Key Highlights
- WIX shares climbed approximately 2% Thursday while the S&P 500 declined 1.4%
- Company finalized modified Dutch auction repurchasing roughly 18.7M shares at $92 each
- Buyback program totaled approximately $1.722 billion in aggregate cost
- Repurchased shares account for ~31.6% of total outstanding stock as of April 1, 2026
- UBS analyst downgrades rating to Neutral from Buy, expressing growth momentum concerns
Wix announced preliminary outcomes from its modified Dutch auction tender offer early Thursday. The tender expired at precisely 12:00:01 AM Eastern time on April 2, 2026.
According to preliminary calculations by Equiniti Trust Company, serving as the offer’s depositary, 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 shares at the $92.00 price point.
The total expenditure for this repurchase reaches approximately $1.722 billion, not including associated fees and transaction expenses.
This volume of shares comprises roughly 31.6% of Wix’s total outstanding stock as of April 1, 2026.
Final tallies remain subject to adjustment. Initial calculations presume all shares tendered via guaranteed delivery notice will be delivered during the one trading day settlement window.
J.P. Morgan (JPM) served as the dealer manager for this tender offer.
Wix had previously disclosed last month its intention to allocate approximately $1.75 billion for the auction, establishing a price band between $80 and $92 per share.
The confirmed purchase price and exact share count will be validated after the guaranteed delivery period concludes. Payment is anticipated shortly thereafter.
UBS Removes Buy Recommendation
Concurrently, UBS revised its rating on Wix from Buy to Neutral.
Christopher Zhang, analyst at UBS, expressed concerns regarding the company’s forward growth trajectory in Thursday’s client communication.
“Wix’s 2026 outlook implies its core business is decelerating to ~8% vs. ~12% in 2025, with further decel in 2027E+,” Zhang noted.
UBS additionally highlighted ambiguity surrounding Base44, the no-code app platform Wix acquired in the previous year, which recently surpassed $100 million in annual recurring revenue.
Zhang stated that “heavy investment and uncertainty in Base44 will leave Wix modestly below ‘Rule of 40’ in the next 3+ years.”
The Rule of 40 serves as a performance metric for software companies — calculated by adding revenue growth percentage and operating margin percentage.
Wix’s fourth quarter 2025 financial results released earlier this year revealed revenue of $524.3 million, representing 14% year-over-year growth, though falling slightly short of Wall Street expectations 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 equity shares and convertible note instruments.
Official final results from the tender offer, confirming exact share quantities and pricing, are anticipated following the depositary’s verification process completion.
