TLDR
- Wix delivered Q4 2025 revenue of $524.3M, representing 14% year-over-year growth, though it fell below the $528.13M analyst projection.
- Non-GAAP EPS reached $1.81, surpassing the $1.42 consensus forecast by $0.39.
- Base44, which was acquired nine months prior, has reached $100M in annual recurring revenue (ARR).
- The company closed a $250M private placement with Durable Capital Partners leading the round, scheduled to finalize March 5, 2026.
- Wix intends to execute most of its $2 billion share buyback initiative before 2026 concludes.
Wix unveiled its Q4 2025 financial performance, presenting a tale of two metrics — profit exceeded expectations while sales came up short — though the website builder demonstrated solid traction with AI-powered offerings and attracted $250 million in new institutional funding.
The company generated $524.3 million in Q4 revenue, marking a 14% year-over-year increase, yet missing the Street’s $528.13 million projection. On the profit side, results proved more compelling: non-GAAP diluted EPS of $1.81 compared to analyst expectations of $1.42 — representing a significant $0.39 beat.
For fiscal year 2025, the company posted total revenue of $1.99 billion, reflecting 13% year-over-year expansion. Full-year non-GAAP net income totaled $441.6 million, translating to $7.32 per diluted share.
The company generated $573 million in free cash flow for the full year, or $605.1 million when stripping out acquisition-related expenses — equating to 30% of revenue. This metric deserves investor attention.
Q4 bookings totaled $534.5 million, climbing 15% year-over-year. Business Solutions revenue led growth at 18% year-over-year, hitting $153.8 million during the quarter. Partners revenue proved most impressive, jumping 21% year-over-year to $203.2 million in Q4.
Total ARR reached $1.836 billion at quarter-end, also advancing 14% year-over-year. The company finished 2025 with 304 million registered users and 6.11 million total premium subscriptions, including Base44 customers.
Base44 Reaches $100M ARR Milestone
Base44, the no-code software development platform Wix brought into the fold nine months earlier, has surpassed $100 million in ARR. This represents rapid growth for an asset acquired less than twelve months ago.
The company views Base44 as expanding its total addressable market — pushing beyond website building 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 firm’s AI-powered website creation tool, is also gaining momentum. Management reports that Harmony is producing stronger-than-anticipated conversion and monetization metrics, with new cohort bookings growth picking up steam in early 2026.
Looking to 2026, the company projects mid-teens revenue growth with free cash flow margins in the low-to-mid 20% range. Management indicated that elevated investment spending will compress FCF margins as resources flow toward Harmony and Base44 development.
$250M Private Placement Transaction
The company revealed a $250 million private placement with Durable Capital Partners serving as lead investor, contributing up to $150 million directly. The offering prices units at a 5% discount to the March 4 closing price, with attached warrants carrying a 25% premium. These warrants carry a three-year expiration.
J.P. Morgan served as exclusive placement agent. The deal is set to close on March 5, 2026.
During Q4, the company repurchased roughly 750,000 ordinary shares for $100 million at a weighted average price of $133.56. Wix executed $575 million in buybacks throughout 2025 and aims to complete most of its $2 billion repurchase authorization before 2026 ends.
WIX stock finished at $74.36 on the reporting date, declining 25.80% over the preceding three months and 62.36% over the trailing year.
