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Wix.com Ltd (WIX)
NASDAQ:WIX

Wix (WIX) AI Stock Analysis

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WIX

Wix

(NASDAQ:WIX)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
$92.00
▲(40.22% Upside)
Action:ReiteratedDate:11/20/25
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
Strong cash generation
Wix's consistent FCF growth and high free‑cash‑flow-to-net‑income ratio (0.98) indicate durable internal funding for operations, R&D and AI investments. Reliable cash conversion reduces reliance on external financing and supports strategic initiatives despite balance sheet leverage.
Improving profitability margins
Positive and expanding margins show structural operating efficiency across software and transaction lines. Sustained gross margins near 68% and positive EBIT support reinvestment capacity and resilience against cyclical revenue swings, strengthening long‑term earnings durability.
Base44 as strategic growth engine
Rapid Base44 adoption diversifies Wix's product mix into AI‑powered app building, enlarging TAM and cross‑sell opportunities. Achieving material ARR signals a scalable recurring revenue stream and positions Wix competitively in AI-enabled developer tools over the medium term.
Negative Factors
Negative equity / high leverage
Negative equity and elevated leverage constrain financial flexibility and increase refinancing and covenant risk. This structural balance sheet weakness can raise borrowing costs, limit M&A or buyback optionality, and amplify downside during revenue slowdowns.
Margin headwinds from AI and Base44 costs
Ongoing high AI compute and marketing investments for Base44 create persistent margin pressure and compress gross margins. If compute intensity and front‑loaded S&M continue, operating leverage will be weaker, slowing the pace at which revenue growth translates to durable profit expansion.
Delayed flagship product launch
The delayed Self Creator rollout defers monetization and product roadmap milestones, increasing execution risk. Prolonged delays can slow cohort monetization, hinder competitive differentiation in AI website creation, and postpone anticipated revenue and margin benefits.

Wix (WIX) vs. SPDR S&P 500 ETF (SPY)

Wix Business Overview & Revenue Model

Company DescriptionWix.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 MoneyWix generates revenue primarily through subscription plans, which offer users access to premium features, increased storage, and enhanced customer support. The company has multiple tiers of subscription packages, including free plans that monetize through ads and premium plans that provide additional features such as e-commerce capabilities, domain registration, and advanced analytics. Another significant revenue stream comes from its App Market, where third-party developers can offer apps and services that enhance users' websites, with Wix earning a commission on sales. Furthermore, Wix has strategic partnerships with payment processors, marketing platforms, and other service providers that contribute to its earnings by integrating their services into the Wix ecosystem, enhancing user experience and retention.

Wix Key Performance Indicators (KPIs)

Any
Any
Creative Subscription ARR
Creative Subscription ARR
Tracks annual recurring revenue from creative subscriptions, indicating the stability and growth potential of the company's subscription-based business model.
Chart InsightsWix's Creative Subscription ARR has shown consistent growth, reaching $1.4 billion in mid-2025, reflecting strong demand and effective monetization strategies. The latest earnings call highlights robust new user cohort growth and AI integration as key drivers, with the BASE44 acquisition expected to further boost ARR. Despite challenges like declining organic search traffic and rising operational costs, Wix's raised revenue and bookings guidance underscores confidence in sustained growth, particularly in the U.S. market.
Data provided by:The Fly

Wix Earnings Call Summary

Earnings Call Date:Nov 19, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Positive
Wix.com Ltd. experienced robust growth in Q3 2025, driven by strong performance in both its core business and Base 44. Significant advancements in AI-powered app building and transaction revenue growth showed positive market momentum. However, the delayed product launch and increased costs associated with Base 44 present short-term challenges, impacting financial margins. Overall, the company's growth trajectory remains promising, with positive long-term prospects.
Q3-2025 Updates
Positive Updates
Strong Financial Performance
Total bookings grew to $515 million in Q3, up 14% year over year. Total revenue also grew to $505 million, up 14% year over year, exceeding the high end of guidance.
Rapid Growth of Base 44
Base 44's user base increased sevenfold since June, now serving over 2 million users globally. Base 44 is expected to achieve at least $50 million of ARR by year-end, up from previous expectations.
Increased Market Share in AI-Powered Application Building
Base 44's share of audience traffic in AI-powered application builders increased from low single digits in June to more than 10% in October.
Positive Trends in Core Business
New user cohorts continued strong performance, driving top-line growth and providing a solid foundation for continued growth into Q4 and 2026.
Transaction Revenue Growth
Transaction revenue increased by 20% year over year, driven by 13% growth in GPV and an elevated take rate, with merchants opting for Wix.com Ltd. payments.
Negative Updates
Delayed Product Launch
The new flagship Self Creator tool was expected in summer 2025, delayed to the fall, and now further delayed to early 2026 due to technical challenges.
Short-Term Financial Headwinds from Base 44
Base 44's monthly subscription model results in a misalignment between bookings and operating expenses, causing a short-term headwind to free cash flow and operating profit.
Decreased Gross Margin
Total non-GAAP gross margin in Q3 was 69%, down from 70% in Q2, attributed to increased AI processing and compute costs for Base 44.
Company Guidance
During the Wix.com Ltd.'s Third Quarter 2025 Earnings Conference Call, several key metrics and guidance for the future were discussed. Total bookings for Q3 grew to $515 million, marking a 14% increase year over year, while total revenue reached $505 million, also up 14% from the previous year. The company reported a transaction revenue of $65 million, a 20% increase, driven by a 13% growth in Gross Payment Volume (GPV), which totaled $3.7 billion. Base 44, a newly acquired AI-powered app building platform, significantly contributed to this growth, with its user base expanding to over 2 million and achieving an anticipated $50 million in Annual Recurring Revenue (ARR) by year-end. The company raised its full-year bookings outlook to $2.062 billion to $2.078 billion, indicating a 13% to 14% year-over-year growth, driven largely by Base 44's outperformance. Non-GAAP gross margin was reported at 69%, slightly down from 70% in the previous quarter, due to front-end heavy AI and sales and marketing costs. Free cash flow for Q3 was $159 million, or 32% of revenue, and is expected to be approximately $600 million for the full year. Looking ahead, Wix.com Ltd. anticipates Base 44 to continue driving growth, despite short-term margin pressures due to high initial costs and ongoing investments in marketing and AI processing.

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
78
Positive
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
45
Neutral
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
82
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.93B1.76B1.56B1.39B1.27B984.37M
Gross Profit1.32B1.20B1.05B861.44M781.08M671.35M
EBITDA195.57M186.21M68.48M-439.77M-28.83M-104.74M
Net Income138.90M138.32M33.14M-424.86M-117.21M-166.87M
Balance Sheet
Total Assets2.56B1.91B1.80B1.76B2.06B1.89B
Cash, Cash Equivalents and Short-Term Investments1.59B1.11B962.89M1.06B1.32B1.04B
Total Debt1.57B969.95M996.32M1.13B1.03B930.96M
Total Liabilities2.84B1.99B1.86B2.02B1.91B1.61B
Stockholders Equity-278.76M-78.79M-54.48M-263.24M145.72M287.19M
Cash Flow
Free Cash Flow567.13M479.60M182.20M-33.51M27.98M129.20M
Operating Cash Flow576.21M497.42M248.25M37.15M65.69M148.05M
Investing Cash Flow-189.55M-35.47M566.71M-54.66M376.87M-800.23M
Financing Cash Flow67.43M-406.73M-450.02M-189.16M-160.06M552.94M

Wix Technical Analysis

Technical Analysis Sentiment
Negative
Last Price65.61
Price Trends
50DMA
87.51
Negative
100DMA
106.12
Negative
200DMA
130.15
Negative
Market Momentum
MACD
-6.71
Positive
RSI
30.06
Neutral
STOCH
21.92
Neutral
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 65.61 is below the 20-day moving average (MA) of 74.44, below the 50-day MA of 87.51, and below the 200-day MA of 130.15, indicating a bearish trend. The MACD of -6.71 indicates Positive momentum. The RSI at 30.06 is Neutral, neither overbought nor oversold. The STOCH value of 21.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WIX.

Wix Risk Analysis

Wix disclosed 59 risk factors in its most recent earnings report. Wix reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Wix Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$3.27B18.55204.27%7.21%58.61%
68
Neutral
$5.74B23.5914.20%204.86%
63
Neutral
$3.59B28.4313.22%48.20%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
$10.95B-35.68-27.72%21.58%18.88%
60
Neutral
$6.07B13.16-0.44%2.47%
57
Neutral
$4.34B-10.30-25.79%24.09%-34.25%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WIX
Wix
65.61
-136.41
-67.52%
BOX
Box
23.01
-9.39
-28.98%
DBX
Dropbox
24.43
-1.52
-5.86%
DOCN
DigitalOcean Holdings
59.27
16.56
38.77%
CFLT
Confluent
30.64
-1.05
-3.31%
S
SentinelOne
12.92
-7.41
-36.45%

Wix Corporate Events

Wix Board Approves $2 Billion Share Repurchase Program for 2026–2027
Jan 28, 2026

On January 28, 2026, Wix.com Ltd. announced that its board of directors has authorized a two-year share repurchase program for fiscal years 2026–2027, allowing the company to buy back up to $2 billion of its ordinary shares and/or convertible notes. The move signals the board’s confidence in Wix’s cash-flow generation and its commitment to boosting shareholder value, with repurchases to be executed via open-market purchases, privately negotiated deals or other methods in line with U.S. securities laws and subject to Israeli regulatory procedures and potential creditor objections; the company plans to fund the buybacks with existing cash, future operating cash flows and, if needed, additional capital raising, introducing a potentially significant capital allocation lever that could affect its capital structure and returns to investors.

The most recent analyst rating on (WIX) stock is a Hold with a $94.00 price target. To see the full list of analyst forecasts on Wix stock, see the WIX Stock Forecast page.

Wix Shareholders Approve Board Re-Elections and Auditor Mandate at 2025 AGM
Dec 18, 2025

On December 18, 2025, Wix.com Ltd. held its Annual General Meeting of Shareholders in Tel Aviv, where investors re-elected Class III directors Avishai Abrahami and Mark Tluszcz to serve until the 2028 annual meeting, maintaining continuity in the company’s leadership. Shareholders also approved an amendment and readoption of the compensation arrangements for non-executive directors in line with Israeli legal requirements and ratified the appointment and compensation of Kost, Forer, Gabbay & Kasierer, a member of Ernst & Young Global, as Wix’s independent registered public accounting firm for 2025, reinforcing established governance and oversight structures for the coming year.

The most recent analyst rating on (WIX) stock is a Buy with a $155.00 price target. To see the full list of analyst forecasts on Wix stock, see the WIX Stock Forecast page.

Wix Reports Strong Q3 2025 Results with Base44 Driving Growth
Nov 19, 2025

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.

The most recent analyst rating on (WIX) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Wix stock, see the WIX Stock Forecast page.

Wix Announces 2025 Annual Meeting Amidst Strong Financial Growth
Nov 12, 2025

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.

The most recent analyst rating on (WIX) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Wix stock, see the WIX Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 20, 2025