Key Highlights
- WIX shares climbed approximately 2% on Thursday even as the S&P 500 declined 1.4%
- Company finalized a modified Dutch auction tender offer, repurchasing roughly 18.7M shares at $92 each
- Aggregate expenditure for the share repurchase totaled approximately $1.722 billion
- The repurchased 18.7M shares account for approximately 31.6% of total outstanding shares as of April 1, 2026
- UBS reduced its rating on WIX from Buy to Neutral, pointing to core business slowdown concerns
Wix announced the preliminary outcomes of its modified Dutch auction tender offer on Thursday morning. The tender offer concluded at precisely one minute past 11:59 PM Eastern time on April 1, 2026.
According to preliminary tallies from Equiniti Trust Company, serving as the depositary for this transaction, approximately 18,718,009 shares were validly tendered and remained unwithdrawal at prices at or beneath the final purchase price of $92.00 per share.
The company plans to accept the entire 18,718,009 shares for settlement at the $92.00 per share price point.
The total expenditure for this repurchase initiative amounts to roughly $1.722 billion, not including associated fees and transaction expenses.
These repurchased shares constitute approximately 31.6% of the company’s total outstanding share count as of April 1, 2026.
Final figures remain subject to adjustment. The preliminary calculations assume all shares tendered via notice of guaranteed delivery will be completed within the standard one trading day settlement window.
J.P. Morgan (JPM) served as the dealer manager for this tender offer transaction.
Wix had indicated in the previous month that it anticipated spending approximately $1.75 billion through the auction process, establishing a price range between $80 and $92 per share.
Confirmed purchase price and final share count will be disclosed after the guaranteed delivery period concludes. Settlement is anticipated to occur shortly thereafter.
UBS Removes Buy Rating
On Thursday, UBS shifted its stance on Wix from Buy to Neutral.
Christopher Zhang, an analyst at the firm, expressed concerns regarding the company’s forward growth trajectory in Thursday’s client communication.
“Wix’s 2026 outlook implies its core business is decelerating to ~8% vs. ~12% in 2025, with further decel in 2027E+,” Zhang wrote.
UBS also highlighted questions surrounding Base44, the no-code application platform that Wix acquired in the prior year, which has recently surpassed $100 million in annual recurring revenue.
Zhang noted that “heavy investment and uncertainty in Base44 will leave Wix modestly below ‘Rule of 40’ in the next 3+ years.”
The Rule of 40 serves as a key performance indicator for software companies, calculated by adding revenue growth percentage and profit margin percentage.
Wix’s fourth quarter 2025 financial results released earlier this year revealed revenue of $524.3 million, representing a 14% year-over-year increase, though slightly missing Wall Street consensus estimates of $528.13 million.
Management has provided guidance calling for mid-teens percentage revenue growth and free cash flow margins in the low-to-mid 20% range throughout 2026.
Wix’s $2 billion capital return program received initial board authorization in early 2026, encompassing both common shares and convertible debt securities.
Definitive results from the tender offer, including validated share quantities and pricing, are scheduled for release once the depositary completes its verification procedures.
