Wix (WIX): A High-Growth SaaS Play with Strengthening Cohort Momentum and Strategic Leverage

The SaaS sector has long been a goldmine for investors seeking high-growth opportunities, and Wix (WIX) is proving to be one of the most compelling stories in 2025. With its Q2 2025 earnings report, Wix delivered a masterclass in leveraging AI-driven innovation, strategic acquisitions, and disciplined financial management to accelerate growth. Let's break down why this stock is worth a closer look-and why the company's new cohort momentum could be the catalyst for a breakout year.

Cohort Growth: The Engine Behind Wix's Acceleration

Wix's Q2 results were anchored by its new user cohort bookings, which in Q2 2025 compared to the Q2 2024 cohort. By the end of July 2025, , excluding the impact of the Base44 acquisition. This isn't just a one-quarter blip-it's a sign that Wix's AI-powered tools are resonating with users.

The company's AI onboarding funnel and marketing agent are clearly striking a chord. These tools have improved conversion rates and user engagement, turning casual website builders into loyal subscribers. As stated by Wix management during the earnings call, "The new user cohorts are a primary driver of the expected acceleration in top-line growth in the second half of 2025." For investors, this means Wix isn't just acquiring users-it's retaining and monetizing them at a faster clip.

Financials That Speak Volumes

Wix's Q2 revenue hit , and a beat on analyst expectations. This performance was underpinned by , . But the real fireworks come from the acquisition, according to .

The acquisition isn't just a numbers game-it's a strategic masterstroke. By expanding into application development, Wix has broadened its total addressable market and created a new revenue stream. As noted in a report by QuiverQuant, "The Base44 acquisition has significantly impacted Wix's Q2 2025 financial metrics, with the company raising its full-year revenue guidance to $1.975 billion–$2 billion." This upward revision, driven by both core business strength and Base44's contributions, signals confidence in the company's ability to scale.

Strategic Leverage and Shareholder Returns

Wix isn't just growing its top line-it's doing so efficiently. The company in Q2 and generated . These figures highlight a management team that understands the importance of balancing growth with capital returns.

Moreover, during the quarter suggest that Wix's customer acquisition strategy-blending organic and paid channels-is working. While specific customer acquisition costs (CAC) remain undisclosed, . In a competitive SaaS landscape, this kind of operational discipline is rare and invaluable.

The Bottom Line: A Buy for the Long Haul

Wix's Q2 2025 results are a testament to its ability to innovate, scale, and execute. The company's AI-driven tools are fueling cohort growth, its strategic acquisition of Base44 is expanding its TAM, and its financials are robust enough to support both reinvestment and shareholder returns. For investors, this is a rare combination: a SaaS play with both momentum and margin.

As the year progresses, keep an eye on and the sustainability of cohort growth. If these metrics hold, Wix could easily outperform its already-raised guidance-and send its stock to new heights.