Wix.com (WIX) Stock Gains 2% on $1.72B Share Repurchase Despite UBS Downgrade

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Key Takeaways

WIX climbed approximately 2% on Thursday even as the S&P 500 declined 1.4%
The company successfully repurchased roughly 18.7M shares through a modified Dutch auction at $92 each
The repurchase program’s total expenditure reached approximately $1.722 billion
The buyback represents around 31.6% of total outstanding shares as of April 1, 2026
UBS cut its rating on WIX from Buy to Neutral, expressing concerns about slowing core business growth

Wix announced preliminary outcomes from its modified Dutch auction tender offer on Thursday morning. The tender period concluded at 12:00:01 AM Eastern Time on April 2, 2026.

WIX Stock Card
Wix.com Ltd., WIX

According to preliminary calculations provided by Equiniti Trust Company, serving as the depositary agent, approximately 18,718,009 shares were validly submitted and remained unwithdawn at prices at or below $92.00 per share.

The company plans to purchase all 18,718,009 of these tendered shares at the final purchase price of $92.00 each.

The total expenditure for this share repurchase amounts to roughly $1.722 billion, not including associated fees and transaction expenses.

This quantity of shares accounts for approximately 31.6% of the company’s total shares outstanding recorded as of April 1, 2026.

These preliminary figures remain subject to final confirmation. Initial calculations are based on the assumption that all shares submitted via guaranteed delivery notices will be delivered during the standard one-day settlement window.

J.P. Morgan (JPM) served as the dealer manager for this tender offer transaction.

The company had indicated in the previous month that it anticipated deploying approximately $1.75 billion through the auction process, establishing a price corridor between $80 and $92 per share.

Final confirmation of both the purchase price and total share count will be provided after the guaranteed delivery deadline expires. The company expects to distribute payment shortly thereafter.

UBS Cuts Rating to Neutral

Coinciding with the buyback announcement, UBS revised its rating on Wix from Buy to Neutral.

Christopher Zhang, an analyst at UBS, expressed apprehension regarding the company’s future growth trajectory in a client communication released Thursday.

“Wix’s 2026 outlook implies its core business is decelerating to ~8% vs. ~12% in 2025, with further decel in 2027E+,” Zhang wrote.

UBS additionally highlighted concerns 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 represents a widely-recognized metric for assessing software company performance, calculated by adding revenue growth percentage and profit margin percentage.

During Wix’s fourth quarter 2025 earnings report released earlier this year, the company posted revenue of $524.3 million, representing a 14% increase compared to the same period last year, though falling slightly short of analyst projections of $528.13 million.

Management has provided guidance indicating mid-teens revenue growth alongside free cash flow margins in the low-to-mid 20% range throughout 2026.

Wix’s $2 billion share repurchase authorization was initially approved by the board of directors in early 2026, encompassing both ordinary shares and convertible debt securities.

Official final results from the tender offer, including verified share quantities and pricing confirmation, are anticipated following the completion of the depositary’s verification procedures.

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