Wix.com 2025 Q3 Earnings Significant Net Loss Amid Revenue Growth

Wix.com (WIX) reported Q3 2025 results on Nov 20, 2025, with revenue growth outpacing expectations and an upward revision to full-year guidance. Despite strong top-line performance, the company swung to a net loss, sparking mixed market reactions. Analysts highlighted strategic investments in AI-driven Base44 as a key growth lever, though margin pressures and delayed product launches raised concerns.

Revenue

Wix.com’s total revenue surged 13.6% to $505.19 million in Q3 2025, driven by robust demand across its Creative Subscriptions and Business Solutions segments. The Creative Subscriptions division, its core offering, generated $356.17 million in revenue, reflecting a 12% year-over-year increase. Meanwhile, the Business Solutions segment, which includes transactional and partner services, contributed $149.02 million, up 18% from the prior year. Partners revenue, a subset of Business Solutions, saw the fastest growth at 24% year-over-year to $192.1 million, underscoring the company’s expanding ecosystem.

Earnings/Net Income

The company reported a net loss of $589,000 in Q3 2025, a stark contrast to a $26.78 million profit in the same period last year. On a per-share basis, earnings turned negative at $0.01, down from $0.49 in 2024 Q3. This marked a 102.2% deterioration in profitability, primarily due to increased R&D and marketing expenses tied to Base44 and tax liabilities.

Post-Earnings Price Action Review

Historically, buying WIX on revenue beats and holding for 30 days has shown positive momentum, with a 60% total return and a Sharpe Ratio of 1.6. The strategy’s success hinges on WIX’s tendency to outperform post-earnings, driven by strong fundamentals and growth prospects. However, recent volatility, including a 23.3% weekly drop, reflects investor caution amid margin pressures and delayed product launches.

CEO Commentary

Avishai Abrahami emphasized Base44’s role in expanding Wix’s AI-driven app-building capabilities, noting its 10% traffic share in October. While acknowledging short-term delays in a flagship product, he expressed confidence in long-term margin alignment with core operations.

Guidance

Wix raised 2025 full-year bookings guidance to $2.06–$2.078 billion (13–14% growth) and revenue to $1.99–$2.00 billion. Base44 is projected to reach $50 million in ARR by year-end, with non-GAAP gross margin targeting 68–69%. Free cash flow is forecast at $600 million for 2025.

Additional News

1. M&A Activity: Wix’s acquisition of Base44 in June 2025 accelerated AI app-building adoption, though technical delays in a new self-creator tool pushed its launch to early 2026.

2. Buyback Program: The company executed $175 million in share repurchases in Q3, buying back 1.3 million shares at an average price of $136.64.

3. Analyst Revisions: Multiple firms cut price targets post-earnings, with Needham lowering its target to $140 from $200 due to Base44’s margin impact.