TLDR
- Q4 2025 revenue of $524.3M represented 14% year-over-year growth but came in below the $528.13M analyst consensus.
- The company delivered non-GAAP EPS of $1.81, crushing the $1.42 estimate by $0.39.
- Base44, the acquisition completed nine months earlier, has already achieved $100M in annual recurring revenue.
- A $250M private placement spearheaded by Durable Capital Partners is set to finalize on March 5, 2026.
- Wix intends to execute the lion’s share of its $2 billion buyback program before 2026 wraps up.
Wix delivered Q4 2025 financials that painted a nuanced picture — profits exceeded expectations while sales came up slightly short — yet the company showcased robust performance in its AI-powered offerings and announced a substantial $250 million capital infusion from institutional backers.
Quarterly revenue reached $524.3 million, reflecting 14% growth compared to the prior year, though trailing the analyst projection of $528.13 million. The earnings performance proved far more compelling: non-GAAP diluted EPS of $1.81 handily surpassed the anticipated $1.42 — delivering a $0.39 upside surprise.
For fiscal year 2025, Wix generated total revenue of $1.99 billion, marking 13% annual expansion. Full-year non-GAAP net income totaled $441.6 million, translating to $7.32 per diluted share.
The company produced $573 million in free cash flow for the year, or $605.1 million when acquisition-related expenses are excluded — equating to 30% of revenue. This metric deserves investor scrutiny.
Bookings in Q4 totaled $534.5 million, advancing 15% year-over-year. Business Solutions revenue led growth at 18% year-over-year, generating $153.8 million during the quarter. Partners revenue emerged as the star performer, climbing 21% year-over-year to $203.2 million in Q4.
Annual recurring revenue finished Q4 at $1.836 billion, also expanding 14% year-over-year. The platform concluded 2025 serving 304 million registered users and maintaining 6.11 million premium subscriptions, Base44 included.
Base44 Crosses $100M ARR Threshold
Base44, the no-code software development platform Wix brought into the fold nine months prior, has already surpassed $100 million in ARR. This represents exceptional growth velocity for an acquisition that closed within the past year.
Wix views Base44 as a strategic vehicle for total addressable market expansion — extending the company’s reach beyond website construction into broader software application development. CEO Avishai Abrahami highlighted Base44 as central to what he described as “the world of what’s possible on Wix.”
Wix Harmony, the company’s AI-powered website generation tool, is demonstrating promising early adoption. Management reports that Harmony is exceeding initial expectations for both conversion rates and monetization, with new cohort bookings growth gaining speed as 2026 begins.
Looking ahead to 2026, Wix projects mid-teens revenue growth and free cash flow margins in the low-to-mid 20% range. The company acknowledged that elevated investment spending will compress FCF margins as it accelerates development of Harmony and Base44.
$250M Capital Raise Secured
Wix disclosed a $250 million private placement orchestrated by Durable Capital Partners, with Durable committing up to $150 million directly. The financing prices units at a 5% discount to the March 4 closing price, accompanied by warrants struck at a 25% premium. The warrants carry a three-year expiration.
J.P. Morgan served as exclusive placement agent. The transaction has an anticipated closing date of March 5, 2026.
During Q4, Wix repurchased roughly 750,000 ordinary shares for $100 million at a weighted average cost of $133.56. The company retired $575 million worth of stock throughout 2025 and aims to complete most of its $2 billion repurchase authorization by year-end 2026.
WIX stock settled at $74.36 on the reporting date, declining 25.80% over the preceding three-month period and 62.36% over the trailing twelve months.
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