Wix.com 2025 Q3 Earnings Net Income Plummets 102.2% Amid AI Investments

Wix.com (WIX) reported fiscal 2025 Q3 earnings on Nov 20, 2025, with revenue rising 13.6% to $505.19 million and non-GAAP EPS of $1.68, surpassing estimates. The company raised full-year bookings and revenue guidance, driven by Base44’s rapid growth. However, a GAAP net loss of $589K marked a 102.2% decline from 2024, reflecting upfront AI and marketing costs.

Revenue

Creative Subscriptions fueled the majority of Wix’s revenue, contributing $356.17 million, while Business Solutions added $149.02 million. The combined total of $505.19 million represented a 13.6% year-over-year increase, underscoring robust demand across both segments.

Earnings/Net Income

Wix swung to a net loss of $589K in Q3 2025, a 102.2% deterioration from $26.78 million net income in Q3 2024. The EPS shifted to a loss of $0.01 per share, a 102.0% negative change, highlighting the financial impact of strategic AI and marketing investments.

Post-Earnings Price Action Review

Despite beating revenue and EPS estimates, Wix’s stock plummeted 3.49% in a single trading day, 23.30% over the subsequent week, and 26.08% month-to-date. Analysts attributed the sharp decline to margin pressures from AI compute costs, delayed product launches, and cautious sentiment around long-term profitability.

CEO Commentary

Avishai Abrahami emphasized Wix’s shift to “vibe coding” for app-building, leveraging AI to democratize development. He highlighted Base44’s 10% traffic share and 7x user growth since June but acknowledged a key product delay until 2026.

Guidance

CFO Lior Shemesh raised 2025 full-year bookings to $2.06–$2.078 billion and revenue to $1.99–$2 billion, citing strong core business and Base44 performance. Free cash flow is projected at $600 million, though short-term margin pressures from AI investments are expected.

Additional News

1. Share Repurchase Program: Wix executed $175 million in buybacks in Q3 2025, repurchasing 1.3 million shares at an average price of $136.64.

2. Base44 Acquisition: Acquired in June 2025, Base44 is on track to achieve $50 million in ARR by year-end, driving strategic AI-driven growth.

3. Convertible Notes Issuance: In September, Wix priced a $1.0 billion offering of 0.00% Convertible Senior Notes due 2030, with proceeds earmarked for buybacks and corporate purposes.