Wix (WIX) AI Stock Analysis

• Market Cap: $5.26B
• Dividend Yield: N/A
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): 40.9
• Beta (1Y): 1.60
• Revenue Growth: 13.22%
• EPS Growth: 48.20%
• Country: US
• Employees: 4,399
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 1.68
• Shares Outstanding: 55,686,230
• 10 Day Avg. Volume: 2,542,219
• 30 Day Avg. Volume: 1,679,113
• PEG Ratio: 0.26
• Price to Book (P/B): -151.35
• Price to Sales (P/S): 6.77
• P/FCF Ratio: 24.86
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 5.11
• Enterprise Value/Gross Profit: 7.47
• Enterprise Value/Ebitda: 50.43
• 1Y Price Target: $178.61
• Price Target Upside: 86.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): 6.8
• Revenue Forecast (FY): $2.00B

• Rating: 63 Neutral
• Price Target: $108.00 ▲(12.77% Upside)

Wix's overall stock score is driven by strong earnings call results and robust cash flow performance. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation. The balance sheet's negative equity is a significant risk factor.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

AI-Powered Platform Expansion

The rapid growth of Base 44 reflects Wix's successful expansion into AI-driven solutions, enhancing its competitive edge and future revenue streams.

Cash Flow Performance

Robust cash flow supports Wix's operational stability and strategic investments, providing a solid foundation for sustained growth.

Negative Factors

Negative Equity

Negative equity poses a risk to financial stability, potentially limiting Wix's ability to secure favorable financing and invest in growth opportunities.

Decreased Gross Margin

Declining gross margins could pressure profitability, impacting Wix's ability to reinvest in business development and maintain competitive pricing.

Delayed Product Launch

Delays in product launches can hinder market competitiveness and slow revenue growth, affecting Wix's strategic positioning in the industry.

Wix Business Overview & Revenue Model

Company Description

Wix.com Ltd., together with its subsidiaries, develops and markets a cloud-based platform that enables anyone to create a website or web application in North America, Europe, Latin America, Asia, and internationally. The company offers Wix Editor, a drag-and-drop visual development and website editing environment platform; Wix ADI that enables users to create a website for their specific needs; and Corvid by Wix to create websites and web applications. It also provides Ascend by Wix, which offers its users access to a suite of approximately 20 products or features enabling them to connect with their customers, automate their work, and grow their business; Wix Logo Maker that allows users to generate a logo using artificial intelligence; Wix Answers, a support infrastructure enabling its users to help their users across various channels; and Wix Payments, a payment platform, which helps its users receive payments from their users through their Wix Website. In addition, the company offers various vertical-specific applications that business owners use to operate various aspects of their business online. Further, it provides a range of complementary services, including App Market that offers its registered users the ability to install and uninstall a range of free and paid web applications; Wix Arena, an online marketplace that brings users seeking help in creating and managing a website, together with Web experts; and Wix App, a native mobile application, which enables users to manage their Websites and Wix operating systems. As of December 31, 2021, the company had approximately 222 million registered users and 6 million premium subscriptions. The company was formerly known as Wixpress Ltd. Wix.com Ltd. was incorporated in 2006 and is headquartered in Tel Aviv, Israel.

How the Company Makes Money

Wix generates revenue primarily through a subscription-based model, offering various pricing tiers for its premium services. Key revenue streams include monthly and annual subscriptions for premium plans that provide users with additional features such as custom domain names, increased storage, and e-commerce capabilities. Additionally, Wix earns money from its App Market, where third-party developers can sell applications that enhance website functionality. The company also benefits from advertising revenue and partnerships with payment processors and domain registrars, which contribute to its overall earnings.

Wix Financial Statement Overview

Summary

Wix has shown a strong recovery in its income statement with improved profitability and revenue growth. The cash flow position is robust, supporting operational stability. However, the balance sheet reflects significant leverage and negative equity, which remain areas of concern.

Income Statement

Wix has demonstrated consistent revenue growth, with a TTM revenue growth rate of 3.24%. The company has improved its profitability metrics, with a TTM net profit margin of 8.90% and an EBIT margin of 10.63%, indicating strong operational efficiency. The gross profit margin remains robust at 68.38%, reflecting effective cost management. However, the company has faced challenges in the past with negative EBIT and net margins, which have now turned positive, showcasing a significant turnaround.

Balance Sheet

Wix's balance sheet shows a high debt-to-equity ratio due to negative stockholders' equity, which poses a risk. The TTM debt-to-equity ratio is -8.50, indicating financial leverage concerns. Return on equity is negative, reflecting past losses and the impact of negative equity. Despite these challenges, the company has managed to maintain a stable asset base, but the negative equity position remains a critical area to address.

Cash Flow

Wix has shown strong cash flow performance with a TTM free cash flow growth rate of 3.18%. The operating cash flow to net income ratio is 0.35, and the free cash flow to net income ratio is 0.98, indicating efficient cash generation relative to earnings. The company has consistently improved its cash flow metrics, which supports its operational and strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.93B	1.76B	1.56B	1.39B	1.27B	984.37M
Gross Profit	1.32B	1.20B	1.05B	861.44M	781.08M	671.35M
EBITDA	195.57M	186.21M	68.48M	-439.77M	-28.83M	-104.74M
Net Income	138.90M	138.32M	33.14M	-424.86M	-117.21M	-166.87M
Balance Sheet
Total Assets	2.56B	1.91B	1.80B	1.76B	2.06B	1.89B
Cash, Cash Equivalents and Short-Term Investments	1.59B	1.11B	962.89M	1.06B	1.32B	1.04B
Total Debt	1.57B	969.95M	996.32M	1.13B	1.03B	930.96M
Total Liabilities	2.84B	1.99B	1.86B	2.02B	1.91B	1.61B
Stockholders Equity	-278.76M	-78.79M	-54.48M	-263.24M	145.72M	287.19M
Cash Flow
Free Cash Flow	567.13M	479.60M	182.20M	-33.51M	27.98M	129.20M
Operating Cash Flow	576.21M	497.42M	248.25M	37.15M	65.69M	148.05M
Investing Cash Flow	-189.55M	-35.47M	566.71M	-54.66M	376.87M	-800.23M
Financing Cash Flow	67.43M	-406.73M	-450.02M	-189.16M	-160.06M	552.94M

Wix Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 95.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WIX, the sentiment is Negative. The current price of 95.77 is below the 20-day moving average (MA) of 122.77, below the 50-day MA of 140.04, and below the 200-day MA of 156.11, indicating a bearish trend. The MACD of -12.46 indicates Positive momentum. The RSI at 23.24 is Positive, neither overbought nor oversold. The STOCH value of 5.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WIX.

Wix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOCN	73 Outperform	$4.11B	18.22	―	―	14.20%	204.86%
BOX	66 Neutral	$4.35B	24.09	163.44%	―	6.29%	62.03%
DBX	65 Neutral	$7.47B	16.91	―	―	-0.44%	2.47%
WIX	63 Neutral	$5.26B	40.94	―	―	13.22%	48.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
S	61 Neutral	$5.41B	―	-27.34%	―	25.39%	-42.90%
CFLT	59 Neutral	$7.64B	―	-29.62%	―	21.58%	18.88%

Wix Corporate Events

Wix Reports Strong Q3 2025 Results with Base44 Driving Growth

On November 19, 2025, Wix.com Ltd. reported its financial results for the third quarter of 2025, highlighting a 14% year-over-year increase in total bookings and revenue, driven by strong performance in new cohorts and the Base44 platform. Base44, a coding platform with over 2 million users, is on track to reach $50 million in annual recurring revenue by year-end, contributing to Wix’s strategic growth. The company’s enhanced financial outlook for the full year reflects the robust demand for Base44 and increased marketing investments, positioning Wix for continued expansion in 2026.

Wix Announces 2025 Annual Meeting Amidst Strong Financial Growth

Wix.com Ltd. announced its upcoming Annual General Meeting of Shareholders, scheduled for December 18, 2025, at its Tel Aviv headquarters. Shareholders will vote on key proposals, including the re-election of directors and amendments to compensation arrangements. The company’s strong financial performance in 2024, driven by new AI tools and strategic initiatives, has positioned it as a leader in the digital presence industry. Notably, Wix achieved positive GAAP operating income for the first time and expanded its market with the acquisition of Base44 and the launch of new AI-driven platforms.

Wix Completes $1.15 Billion Convertible Notes Offering

On September 11, 2025, Wix.com Ltd. successfully closed a private offering of $1.15 billion in 0.00% Convertible Senior Notes due 2030. This financial maneuver, which included a $150 million exercise option by initial purchasers, aims to support the company’s strategic initiatives such as share repurchases and potential acquisitions. The issuance of these notes, which are convertible into ordinary shares, reflects Wix’s efforts to strengthen its financial position and enhance shareholder value.

Wix Upsizes Convertible Senior Notes Offering to $1 Billion

On September 8, 2025, Wix.com Ltd. announced the pricing of a $1.0 billion offering of 0.00% convertible senior notes due 2030, upsized from an initial $750 million. The proceeds will be used for capped call transactions, share repurchases, and general corporate purposes, potentially affecting the market price of Wix’s shares and notes.

Wix Announces $750 Million Convertible Notes Offering

On September 8, 2025, Wix.com Ltd. announced a proposed private offering of $750 million in convertible senior notes due in 2030, aimed at qualified institutional buyers. This strategic financial move is expected to support Wix’s liquidity and capital resources, with proceeds potentially used for share repurchases and acquisitions, enhancing its market position and shareholder value.