Wix.com 2025 Q3 Earnings Revenue Surpasses Expectations, Net Loss Widens

Wix.com (WIX) reported Q3 2025 earnings on November 20, 2025, with revenue exceeding estimates by 0.51% and guidance raised for full-year bookings and revenue. Despite strong top-line growth, the stock declined sharply post-earnings due to a GAAP net loss and margin pressures from AI investments.

Revenue

Wix.com’s total revenue rose 13.6% year-over-year to $505.19 million in Q3 2025. The Creative Subscriptions segment led with $356.17 million, reflecting 11.7% growth, while Business Solutions surged to $149.02 million, up 18.4%. Partners revenue also contributed significantly, surging 24% to $192.1 million, driven by enhanced business solutions and transactional services.

Earnings/Net Income

The company swung to a net loss of $589,000 in Q3 2025, compared to a net income of $26.78 million in the prior-year period, marking a 102.2% deterioration. Non-GAAP net income, however, remained robust at $100.2 million, with EPS of $1.68, outperforming estimates. The GAAP loss primarily stemmed from higher tax expenses and acquisition costs.

Post-Earnings Price Action Review

Despite beating revenue and EPS expectations, WIX shares plummeted 21.7% post-earnings, reflecting investor concerns over margin compression from AI investments and delayed product launches. Historically, buying WIX on revenue beats and holding for 30 days has yielded a 6.5% average gain with a 75% success rate, though recent volatility underscores heightened risks. The market’s negative reaction highlights skepticism about Wix’s ability to balance growth investments with profitability.

CEO Commentary

Avishai Abrahami emphasized Wix’s focus on AI-driven app building through Base44, which has achieved 10% traffic share and 2 million users. While acknowledging short-term challenges like delayed product launches, he expressed confidence in Base44’s long-term potential to replicate Wix’s website-building success.

Guidance

Wix raised 2025 full-year bookings guidance to $2.06B–$2.078B (13–14% growth) and revenue to $1.99B–$2.00B, driven by Base44’s outperformance. Non-GAAP gross margin is projected at 68–69%, with operating expenses expected to remain around 50% of revenue.

Additional News

Wix’s recent $175 million share repurchase program, buying back 1.3 million shares at $136.64 average price, signaled management’s confidence in long-term value. Meanwhile, analysts cut price targets due to margin pressures: Needham reduced its target to $140 from $200, and Bank of America to $170 from $210, though most maintain “Buy” ratings. Additionally, Wix’s acquisition of Base44 in June has accelerated AI app-building adoption, with the product on track to hit $50M ARR by year-end.