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1. Company Snapshot

1.a. Company Description

Wix.com Ltd., together with its subsidiaries, develops and markets a cloud-based platform that enables anyone to create a website or web application in North America, Europe, Latin America, Asia, and internationally.The company offers Wix Editor, a drag-and-drop visual development and website editing environment platform; Wix ADI that enables users to create a website for their specific needs; and Corvid by Wix to create websites and web applications.It also provides Ascend by Wix, which offers its users access to a suite of approximately 20 products or features enabling them to connect with their customers, automate their work, and grow their business; Wix Logo Maker that allows users to generate a logo using artificial intelligence; Wix Answers, a support infrastructure enabling its users to help their users across various channels; and Wix Payments, a payment platform, which helps its users receive payments from their users through their Wix Website.


In addition, the company offers various vertical-specific applications that business owners use to operate various aspects of their business online.Further, it provides a range of complementary services, including App Market that offers its registered users the ability to install and uninstall a range of free and paid web applications; Wix Arena, an online marketplace that brings users seeking help in creating and managing a website, together with Web experts; and Wix App, a native mobile application, which enables users to manage their Websites and Wix operating systems.As of December 31, 2021, the company had approximately 222 million registered users and 6 million premium subscriptions.


The company was formerly known as Wixpress Ltd.Wix.com Ltd.was incorporated in 2006 and is headquartered in Tel Aviv, Israel.

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1.b. Last Insights on WIX

Wix.com's recent performance has been impacted by investor concerns over AI disruption and margin pressure. However, the company's latest earnings report showed strong revenue growth, with management projecting stronger growth in 2026. A recent acquisition and new product launches, described as "gamechangers," are fueling growth. The company also plans to repurchase a large portion of its outstanding stock, which is a positive event for shareholders. Wix's AI push and Base44's $100M ARR milestone are driving growth, with a $250M deal announced. (Source: Wix.com's Q4 earnings report)

1.c. Company Highlights

2. Wix.com Ltd. Delivers Strong Q4 2025 Results, Driven by AI-Powered Growth

Wix.com Ltd. reported a robust Q4 2025, with total bookings up 15% year over year and total revenue up 14% year over year. The company's earnings per share (EPS) came in at $1.81, beating estimates of $1.36. Revenue growth was healthy, driven by the core business and the acquisition of Base 44, which has reached $100 million in annual recurring revenue (ARR). Lior Shemesh, CFO, noted that the company exited 2025 with strong cohort momentum and a clear strategic plan, setting the stage for continued growth in 2026.

Publication Date: Mar -05

📋 Highlights
  • Base 44 ARR Surge:: Base 44 grew ARR to $100 million, up from $59 million in Q4 2025, becoming a key revenue driver with infinite total addressable market (TAM).
  • Net Revenue Retention:: 2025 net revenue retention hit 105%, projecting $20 billion in future bookings from existing users.
  • 2026 Financial Growth:: Full-year 2026 bookings and revenue expected to grow at mid-teens YoY, with free cash flow margin reaching 20-25%.
  • OpenAI Partnership:: Collaboration with OpenAI to enable AI-powered website building, enhancing Wix Harmony’s appeal for intelligent site creation.
  • Cohort Momentum:: New user cohorts in 2025 showed strong conversion and monetization, with Wix Harmony driving faster monetization and higher ARPU in early cohorts.

Financial Performance

The company's financial performance was strong, with bookings and revenue growth driven by the core business and Base 44. The revenue growth rate was slightly below analyst estimates of 14.5% but still represented a healthy increase. The company's free cash flow margin is expected to be in the low to mid-20% range in 2026, indicating a strong ability to generate cash.

Base 44 Growth

Base 44, acquired by Wix.com Ltd., has been a significant driver of growth, reaching $100 million in ARR. Nir Zohar attributed this growth to increased brand awareness, improved marketing, and continuous product innovation. The company's investment in growth is expected to continue, with acquisition costs expected to be higher in 2026.

Valuation

Using the current valuation metrics, Wix.com Ltd.'s P/E Ratio stands at 33.57, indicating a relatively high valuation. The P/S Ratio is 2.42, which is more reasonable. The EV/EBITDA ratio is 27.29, suggesting that the company's enterprise value is relatively high compared to its EBITDA. The company's ROE is negative, but this is not unusual for a growth company. The ROIC is 7.25%, indicating a reasonable return on invested capital.

Outlook

Wix.com Ltd. is expected to continue its growth trajectory in 2026, driven by the core business and Base 44. Analysts estimate revenue growth at 12.9% for the next year. The company's focus on AI-powered growth and its partnership with LLM partners like OpenAI are expected to drive innovation and growth.

3. NewsRoom

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Wix.com Ltd. $WIX Shares Bought by Bamco Inc. NY

Mar -16

Source: defenseworld.net

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Here Are Thursday’s Top Wall Street Analyst Research Calls: Arista Networks, Crocs, General Mills, GoDaddy, Jabil, Lumentum, MercadoLibre, Shopify, and More

Mar -12

Source:

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Head to Head Review: Wix.com (NASDAQ:WIX) versus Vertiv (NYSE:VRT)

Mar -12

Source: defenseworld.net

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1 Software Stock to Buy Before It Rebounds 33%, According to Wall Street Analysts

Mar -11

Source: fool.com

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Wix.com (NASDAQ:WIX) vs. Accenture (NYSE:ACN) Critical Comparison

Mar -10

Source: defenseworld.net

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Why Wix.com Stock Fell 18.9% In February Before Soaring To Start March

Mar -08

Source: fool.com

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Why Wix.com Stock Soared 33% This Week

Mar -06

Source: fool.com

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Wix.com (NASDAQ:WIX) Shares Gap Up After Better-Than-Expected Earnings

Mar -06

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.48%)

6. Segments

Creative Subscription

Expected Growth: 12%

Wix.com's Creative Subscription growth is driven by increasing demand for website creation and design, rising adoption of e-commerce platforms, and growing need for digital marketing solutions. Additionally, Wix's user-friendly interface, affordable pricing, and continuous innovation in AI-powered design tools contribute to its growth.

Business Solutions

Expected Growth: 10%

Wix.com Ltd.'s 10% growth in Business Solutions is driven by increasing adoption of website creation and digital presence among small businesses, rising demand for e-commerce enablement, and expanding partnerships with leading companies. Additionally, Wix's AI-powered design capabilities, user-friendly interface, and competitive pricing strategy contribute to its growing market share.

7. Detailed Products

Wix Website Builder

A drag-and-drop website builder that allows users to create professional-looking websites without coding

Wix ADI (Artificial Design Intelligence)

An AI-powered website builder that creates a website in minutes based on user input

Wix eCommerce

An online store builder that allows users to create an online store and sell products online

Wix Restaurants

A website builder and online ordering system for restaurants

Wix Hotels

A website builder and booking system for hotels and vacation rentals

Wix Bookings

An online scheduling and booking system for service-based businesses

Wix SEO Wiz

A search engine optimization (SEO) tool that helps improve website visibility

Wix Ascend

A marketing and automation platform that helps businesses grow online

8. Wix.com Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Wix.com Ltd. faces moderate threat from substitutes, as users can opt for alternative website builders like WordPress, Squarespace, or Weebly. However, Wix's user-friendly interface and affordable pricing help maintain customer loyalty.

Bargaining Power Of Customers

Wix.com Ltd. has a large customer base, which reduces the bargaining power of individual customers. The company's subscription-based model and affordable pricing also limit customers' ability to negotiate prices.

Bargaining Power Of Suppliers

Wix.com Ltd. is not heavily dependent on a single supplier, and its technology infrastructure is largely in-house. This reduces the bargaining power of suppliers, giving Wix more control over its operations.

Threat Of New Entrants

The website building and design industry is highly competitive, and new entrants can easily disrupt the market. Wix.com Ltd. must continuously innovate and improve its services to stay ahead of potential competitors.

Intensity Of Rivalry

The website building and design industry is highly competitive, with many established players like WordPress, Squarespace, and Weebly. Wix.com Ltd. must focus on differentiating its services and maintaining a strong brand presence to stay competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 110.09%
Debt Cost 3.95%
Equity Weight -10.09%
Equity Cost 10.59%
WACC 3.28%
Leverage -1091.48%

11. Quality Control: Wix.com Ltd. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Nexi

A-Score: 5.1/10

Value: 7.3

Growth: 7.9

Quality: 5.5

Yield: 4.4

Momentum: 1.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
IONOS

A-Score: 4.5/10

Value: 4.0

Growth: 7.7

Quality: 6.8

Yield: 0.0

Momentum: 6.5

Volatility: 2.0

1-Year Total Return ->

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CyberArk

A-Score: 3.8/10

Value: 2.0

Growth: 6.0

Quality: 3.0

Yield: 0.0

Momentum: 8.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Wix

A-Score: 3.4/10

Value: 4.2

Growth: 8.9

Quality: 5.7

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

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Darktrace

A-Score: 3.0/10

Value: 0.0

Growth: 5.2

Quality: 7.5

Yield: 0.0

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

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Cellebrite DI

A-Score: 2.9/10

Value: 2.2

Growth: 5.2

Quality: 5.2

Yield: 0.0

Momentum: 2.5

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

89.48$

Current Price

89.48$

Potential

-0.00%

Expected Cash-Flows