Key Highlights
- WIX shares climbed approximately 2% on Thursday while the S&P 500 declined 1.4%
- The company finalized a modified Dutch auction tender, repurchasing roughly 18.7 million shares at $92 each
- The repurchase program totaled approximately $1.722 billion in aggregate costs
- The acquired shares constitute roughly 31.6% of total outstanding shares recorded on April 1, 2026
- UBS analysts downgraded WIX from Buy to Neutral, expressing concerns about core business growth slowdown
Wix announced the preliminary outcome of its modified Dutch auction tender offer on Thursday morning. The tender period concluded at 12:00:01 AM New York time on April 2, 2026.
According to preliminary tallies conducted by Equiniti Trust Company, serving as the offer’s depositary, approximately 18,718,009 shares were validly tendered without withdrawal at prices at or below $92.00 per share.
The company plans to accept the entire 18,718,009 share pool for settlement at the $92.00 per share price point.
The total expenditure for this repurchase initiative amounts to roughly $1.722 billion, not including associated fees and transaction expenses.
These repurchased shares account for approximately 31.6% of the company’s total share count as recorded on April 1, 2026.
Final tallies remain provisional and may be adjusted. These preliminary calculations assume all shares tendered via guaranteed delivery notices will be delivered during the standard one-day trading settlement window.
J.P. Morgan (JPM) served as the dealer manager for this tender offer transaction.
Wix had indicated in previous announcements that it anticipated deploying roughly $1.75 billion throughout the auction process, targeting a price band between $80 and $92 per share.
Official confirmation of the final purchase price and total share count will be released after the guaranteed delivery deadline passes. Shareholder payments are anticipated shortly thereafter.
UBS Shifts to Neutral Stance
Coinciding with the buyback announcement, UBS revised its rating on Wix from Buy to Neutral.
Christopher Zhang, analyst at UBS, expressed apprehension regarding the company’s growth trajectory in a client communication released Thursday.
“Wix’s 2026 outlook implies its core business is decelerating to ~8% vs. ~12% in 2025, with further decel in 2027E+,” Zhang wrote.
UBS also highlighted ambiguity surrounding Base44, the no-code application platform Wix purchased in the previous year, which recently surpassed $100 million in annual recurring revenue.
Zhang noted that “heavy investment and uncertainty in Base44 will leave Wix modestly below ‘Rule of 40’ in the next 3+ years.”
The Rule of 40 serves as a performance metric for software enterprises, calculated by adding revenue growth percentage to profit margin percentage.
Wix’s fourth quarter 2025 financial results released earlier this year revealed revenue of $524.3 million, representing a 14% year-over-year increase, though falling slightly short of analyst consensus expectations of $528.13 million.
Management has provided guidance projecting mid-teens revenue expansion and free cash flow margins in the low-to-mid 20% range throughout 2026.
Wix’s $2 billion share repurchase authorization was initially approved by the board of directors in early 2026, encompassing both common shares and convertible debt securities.
Official results of the tender offer, including verified share quantities and pricing, are scheduled for release upon completion of the depositary’s final confirmation procedures.
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