TLDR
- Q4 2025 revenue reached $524.3M, representing 14% year-over-year growth, falling short of the $528.13M analyst projection.
- Adjusted EPS hit $1.81 on a non-GAAP basis, surpassing Wall Street’s $1.42 forecast by $0.39.
- Base44 acquisition has generated $100M in annual recurring revenue just nine months post-acquisition.
- Private placement of $250M led by Durable Capital Partners scheduled to finalize March 5, 2026.
- Management targets completion of most of its $2 billion stock buyback initiative by year-end 2026.
Wix delivered fourth quarter 2025 financial results that painted a nuanced picture — outperforming on the bottom line while underdelivering on revenue expectations — though the company demonstrated solid traction with its AI-powered offerings and locked in a significant $250 million capital infusion from institutional backers.
Quarterly revenue totaled $524.3 million, reflecting 14% year-over-year expansion, though trailing the Street’s $528.13 million projection. The earnings surprise proved more substantial: adjusted diluted EPS of $1.81 compared to analyst expectations of $1.42 — delivering a $0.39 positive variance.
Fiscal year 2025 revenue totaled $1.99 billion, marking 13% growth versus the prior year. Full-year adjusted net income reached $441.6 million, translating to $7.32 per diluted share.
Operating cash generation for the full year hit $573 million, climbing to $605.1 million when acquisition-related expenses are excluded — equating to approximately 30% of total revenue. This metric deserves particular attention from investors.
Fourth quarter bookings totaled $534.5 million, advancing 15% year-over-year. The Business Solutions segment led growth at 18% year-over-year, generating $153.8 million during the quarter. Partners revenue emerged as the top performer, surging 21% year-over-year to $203.2 million in Q4.
Annual recurring revenue stood at $1.836 billion at quarter-end, also climbing 14% year-over-year. The platform concluded 2025 serving 304 million registered users and maintaining 6.11 million total premium subscriptions, including Base44 customers.
Base44 Crosses $100M ARR Threshold
Base44, the no-code application development platform Wix purchased nine months prior, has already surpassed $100 million in annual recurring revenue. This represents rapid growth trajectory for an asset acquired less than twelve months ago.
Management positions Base44 as a total addressable market expansion vehicle — extending the company’s reach beyond traditional website building into broader software application development. CEO Avishai Abrahami characterized Base44 as fundamental to “the world of what’s possible on Wix.”
Wix Harmony, the platform’s AI-powered website generation tool, is demonstrating encouraging early adoption metrics. The company reports Harmony is exceeding internal projections for both conversion rates and monetization, with booking growth from recent customer cohorts accelerating into early 2026.
Looking ahead to 2026, management projects mid-teens revenue growth and operating cash flow margins in the low-to-mid 20% range. The company acknowledged that elevated investment spending will pressure FCF margins as resources flow toward Harmony and Base44 platform development.
$250M Capital Raise Finalized
Wix unveiled a $250 million private placement transaction spearheaded by Durable Capital Partners, with Durable contributing up to $150 million directly. The offering prices securities at a 5% discount to the March 4 closing share price, accompanied by warrants exercisable at a 25% premium. Warrant instruments expire after three years.
J.P. Morgan served as sole placement agent for the transaction. Deal closure is anticipated for March 5, 2026.
During Q4, Wix executed repurchases of approximately 750,000 ordinary shares totaling $100 million at a volume-weighted average price of $133.56. The company completed $575 million in share buybacks throughout 2025 and intends to deploy the majority of its $2 billion authorization before 2026 concludes.
WIX stock settled at $74.36 on the reporting date, declining 25.80% over the preceding three-month period and falling 62.36% over the trailing twelve months.
