Why Is Wix.com (WIX) Down 11.8% Since Last Earnings Report?

A month has gone by since the last earnings report for Wix.com (WIX). Shares have lost about 11.8% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Wix.com due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Wix.com Ltd. before we dive into how investors and analysts have reacted as of late.

WIX's Q4 Earnings Beat Estimates

Wix reported non-GAAP earnings per share (EPS) of $1.81 for fourth-quarter 2025, which exceeded the Zacks Consensus Estimate of $1.36. The company had reported EPS of $1.93 in the year-ago quarter.

Quarterly revenues increased 14% year over year to $524.3 million but missed the Zacks Consensus Estimate of $528 million. For 2025, revenues expanded 13% to $1.99 billion. The company’s revenue growth was driven by both its Creative Subscriptions segment and its Business Solutions segment, demonstrating Wix’s ability to monetize both website creation and business services.

Strategic AI investments through Wix Harmony and Base44 are a plus. The Base44 platform has grown rapidly, achieving $100 million in ARR within one year of its founding and reaching that milestone just nine months after Wix acquired it. Base44 significantly expands Wix’s Total Addressable Market by enabling users to create full software applications—not just websites. This could position Wix as a broader AI-driven development platform, competing with low-code and no-code development tools.

The company also announced a $250 million private placement led by Durable Capital Partners, further reinforcing market confidence in Wix’s long-term growth strategy. The investment will be structured as units consisting of one ordinary share and a warrant to purchase 0.25 additional shares. The warrants will have a 25% premium to the share price and expire after three years. The capital will primarily be used for general corporate purposes, including continued investments in AI innovation.

Quarter in Detail

Creative Subscriptions’ revenues (70.6% of total revenues) increased 12% year over year to $370.4 million. Business Solutions’ revenues (29.4% of total revenues) rose 18% to $153.8 million.

For the fourth quarter, total annualized recurring revenues (ARR) were $1.84 billion, up 14% year over year.

Bookings of $534.5 million improved 15% year over year. Creative Subscriptions’ bookings increased 16% year over year to $375.8 million. Business Solutions’ bookings rose 14% to $158.7 million.

Partners revenues in the fourth quarter were $203.2 million, up 21% year over year.

Region-wise, North America, Europe, Asia and others, and Latin America contributed 60%, 25%, 11%, and 4% to fourth-quarter 2025 revenues, up 13%, 10%, 18%, and 11% year over year, respectively.

As of Dec. 31, 2025, registered users totaled 304 million.

Operating Details

Non-GAAP gross margin was 68% compared with 70% a year ago. Creative Subscriptions segment achieved a non-GAAP gross margin of 83%, and the Business Solutions segment recorded 34%.

Wix reported a non-GAAP operating income of $81.2 million compared with $100.5 million in the year-ago quarter.

Balance Sheet & Cash Flow

As of Dec. 31, 2025, Wix had cash and cash equivalents of $311.4 million compared with $889.6 million as of Sept. 30, 2025.

Cash flow from operations amounted to $158.3 million in the fourth quarter compared with $133.7 million in the year-ago quarter.

Capital expenditures totaled $2.8 million. Free cash flow was $155.6 million.

Wix continued returning value to shareholders through stock repurchases. During the quarter, it repurchased approximately 750,000 shares, spending $100 million. The company plans to execute its $2 billion share buyback program aggressively, with the majority expected to be completed before the end of 2026.

Outlook

For 2026, Wix expects mid-teens revenue growth and mid-teens bookings growth.

The company expects similar growth in first-quarter 2026, indicating strong demand momentum.

For 2026, Wix projects free cash flow margins in the low-to-mid-20% range. However, margins may fluctuate depending on how aggressively the company invests in Base44. Management noted that stronger-than-expected Base44 growth could temporarily pressure FCF margins, but would ultimately strengthen Wix’s long-term market position.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -34.5% due to these changes.

VGM Scores

Currently, Wix.com has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Wix.com has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Wix.com belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, Nutanix (NTNX), has gained 1.8% over the past month. More than a month has passed since the company reported results for the quarter ended January 2026.

Nutanix reported revenues of $722.83 million in the last reported quarter, representing a year-over-year change of +10.4%. EPS of $0.56 for the same period compares with $0.56 a year ago.

Nutanix is expected to post earnings of $0.37 per share for the current quarter, representing a year-over-year change of -11.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Nutanix. Also, the stock has a VGM Score of C.

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