Wix's Stock Dives as GAAP Loss and Analyst Skepticism Overshadow Revenue Surge and AI Growth

Wix.com (WIX) shares fell in after-hours trading on November 19, 2025, despite the company reporting better-than-expected third-quarter revenue and raising full-year guidance, as a GAAP net loss and mixed analyst reactions overshadowed the positive results. The website builder reported Q3 revenue of $505.2 million, a 14% year-over-year increase, surpassing the $502.5 million consensus estimate. Total bookings for the quarter reached $514.5 million, up 14% year-over-year, driven by strong performance across its Creative Subscriptions and Business Solutions segments.

The company raised its 2025 revenue forecast to $1.99 billion–$2 billion (from $1.98 billion–$2 billion) and its bookings target to $2.06 billion–$2.08 billion (from $2.04 billion–$2.08 billion), citing accelerated demand for Base44, its AI-powered coding platform. Base44's market share surged to over 10% since its acquisition earlier this year, with over 2 million users and 1,000 new paying subscribers daily. Jefferies analysts noted that Base44's growth "blunts any AI threats" by expanding Wix's ecosystem and reinforcing its competitive edge.

However, Wix posted a GAAP net loss of $0.6 million, or $0.01 per share, compared to net income of $26.8 million in the prior-year period, due to higher tax expenses and $32 million in acquisition-related costs from Base44 and HourOne. Non-GAAP net income, excluding special items, came in at $100.2 million, or $1.68 per share, exceeding the $1.49 consensus estimate. The company also announced $175 million in share repurchases during the quarter and expects full-year free cash flow of $600 million, or 30% of revenue.

Analysts highlighted diverging views on the stock. Jefferies praised Wix's "healthy core and strong Base44" performance, while BofA Securities cut its price target to $170 from $210, maintaining a "Buy" rating. The firm cited elevated marketing expenses for Base44 and a narrower-than-expected non-GAAP operating margin of 18% (vs. 20% in 2024) as key concerns. Meanwhile, Needham and RBC Capital kept "Buy" ratings, with price targets above $200.

Looking ahead, Wix expects Q4 revenue of $521 million–$531 million, reflecting 13%–15% year-over-year growth, and reaffirmed its focus on AI-driven innovation. CEO Avishai Abrahami emphasized Base44's role in advancing "natural-language development for applications," while President Nir Zohar called the results a sign of "robust business fundamentals".