Seizing Momentum: Wix.Com Ltd's Earnings Outperform Expectations - Q3 2025 Earnings Report
Wix.Com Ltd Earnings
Wix.Com Ltd, a front-runner in the digital presence realm, reported robust earnings for the third quarter of 2025, marking a significant acceleration in growth. With a reported total revenue increase fueled by strengthened demand across its products and notable performance from Base44, Wix.com continues to affirm its position as a pivotal player in the tech industry. The New York headquartered company, listed on NASDAQ under the ticker WIX, has successfully maintained momentum, leveraging its platform to democratize advanced technology while pursuing strategic investments to sustain future growth.
Wix.Com Ltd Results
The table below presents key financial metrics from Wix’s third-quarter performance, showcasing quarter-over-quarter and year-over-year growth:
| Metric | Q3 2025 | Q3 2024 | % Change YoY |
|---|---|---|---|
| Total Revenue | $505.2 million | $443.0 million | 14% |
| GAAP Net Loss | $0.6 million | N/A | N/A |
| Non-GAAP Net Income | $100.2 million | N/A | N/A |
| Earnings Per Share (EPS) GAAP | $(0.01) per share | N/A | N/A |
| Earnings Per Share (EPS) Non-GAAP | $1.68 per share | N/A | N/A |
| Free Cash Flow | $127.3 million | N/A | N/A |
Wix's Q3 2025 numbers reflect substantial year-over-year growth, particularly underlined by increased revenue and bookings, underscoring the company's strategic effectiveness.
Revenue Breakdown
To better understand the growth dynamics within Wix, here is a revenue breakdown:
| Segment | Q3 2025 Revenue | % Change YoY |
|---|---|---|
| Creative Subscriptions | $356.2 million | 12% |
| Business Solutions | $149.0 million | 18% |
| Transaction Revenue | $65.3 million | 20% |
| Partners Revenue | $192.1 million | 24% |
Segment Performance
Creative Subscriptions: This segment, forming the backbone of Wix’s offerings, saw a 12% increase. With rising demand for digital tools, Wix continues to fortify its Creative Subscriptions segment, evidenced by an increase in Annualized Recurring Revenue (ARR) to $1.457 billion.
Business Solutions: Showing an 18% boost, this segment significantly benefitted from transaction revenue, primarily sourced through Wix Payments and Wix POS systems, reinforcing the efficacy of its solutions in diverse business contexts.
Transaction Revenue: Experiencing a 20% growth, this revenue stream reflects persuasive adoption by Wix's users for facilitation of payments and related solutions, attesting to user reliance on Wix for comprehensive business needs.
Partners Revenue: With a notable 24% increase, this signifies heightened engagement and contributions from agencies and freelancers who build sites for other users. It points to increasing partner reliance on Wix for scalable digital solutions.
Key Developments
An integral component driving the strong performance was the rollout of Base44, Wix’s AI and natural-language coding platform, which recorded substantial market penetration with over two million users. This innovation not only attracts new users but also solidifies Wix’s footprint as an enabler of advanced yet accessible digital technologies. Base44 is on track to hit an Annual Recurring Revenue (ARR) milestone of $50 million by year-end.
Additionally, Wix executed $175 million in share repurchases, indicating robust confidence in the company's growth trajectory and financial health.
Comments from Company Officers
Avishai Abrahami, Co-founder and CEO, conveyed his vision: "Our goal has always been to give people the power to access advanced technology without the barriers of complexity…This is the next phase in the evolution of our commitment to democratizing technology, and I'm excited for what's ahead."
Nir Zohar, President and Co-founder, underscored the strategic execution: "Strong execution…drove bookings and revenue growth to accelerate to 14% y/y, exceeding expectations…Continued strength in our new cohorts is a testament to the value of the Wix brand."
Lior Shemesh, CFO, highlighted the promising outlook: "With market share growing…Base44 top-line growth is exceeding expectations…I'm confident the strategic investments we're making today will enable Base44 to be a meaningful growth driver for Wix in 2026 and beyond."
Dividends and Share Repurchases
While no dividend payments were announced, Wix pursued aggressive share repurchases, acquiring approximately 1.3 million shares at an average price of $136.64 per share, illustrating proactive capital management geared at enhancing shareholder value.
Wix.Com Ltd Stock Forecast
With a current market cap exceeding $8.85 billion and robust earnings, Wix’s stock reflects optimistic projections catering to increased growth from segments like Base44, which evidence sustained demand. Factoring these dynamics:
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High Projection: If the momentum continues, accompanied by wider Base44 acceptance and revenue growth alignment, Wix’s stock could soar to around $175 per share, supported by enhanced fundamentals and market positioning.
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Low Projection: In the event of market volatility or slower adoption rates in emerging segments, stocks might stabilize around the $140 per share level, still reflecting strong intrinsic value.
Wix.Com Ltd stands poised for progressive gains, buttressed by tactical advancements and proficient management. The Q3 2025 earnings not only reflect yesterday's successes but highlight the roadmap to future accomplishments, making it a company to watch closely in the vibrant digital landscape.
