Key Highlights
- Q4 2025 revenue reached $524.3M, reflecting 14% annual growth, though falling below Wall Street’s $528.13M projection.
- Adjusted EPS of $1.81 significantly exceeded the $1.42 analyst consensus by $0.39.
- Base44’s annual recurring revenue has surged to $100M just nine months following its acquisition.
- A $250M private investment led by Durable Capital Partners is scheduled to finalize on March 5, 2026.
- Management intends to deploy most of its $2 billion stock buyback authorization before 2026 concludes.
The website building platform delivered fourth-quarter 2025 financials displaying contrasting results — impressive profit performance coupled with underwhelming sales — though the organization demonstrated solid progress with its artificial intelligence offerings and secured substantial institutional funding.
Quarterly sales totaled $524.3 million, marking a 14% increase from the prior year period, yet missing the Street’s $528.13 million forecast. The earnings surprise proved more compelling: adjusted diluted earnings per share of $1.81 compared to expectations of $1.42 — exceeding projections by $0.39.
Across fiscal 2025, aggregate revenue hit $1.99 billion, climbing 13% annually. Annual adjusted net profit reached $441.6 million, translating to $7.32 per diluted share.
Operating cash flow minus capital expenditures for fiscal 2025 amounted to $573 million, or $605.1 million excluding acquisition-related expenses — equating to 30% of total revenue. This metric demonstrates significant cash generation capability.
Fourth-quarter bookings totaled $534.5 million, growing 15% compared to last year. The Business Solutions segment expanded most rapidly at 18% annually, generating $153.8 million during the quarter. Partners revenue delivered exceptional performance, surging 21% year-over-year to $203.2 million in Q4.
Aggregate annual recurring revenue stood at $1.836 billion at quarter-end, representing 14% annual expansion. The platform concluded 2025 with 304 million registered users and 6.11 million paying subscriptions, including Base44 contributions.
Base44 Achieves $100M ARR Benchmark
The no-code software development platform Wix purchased nine months earlier has already surpassed $100 million in annual recurring revenue. This represents impressive growth velocity for such a recent acquisition.
Management views Base44 as a market expansion vehicle — extending the company’s reach beyond traditional website creation into broader software application development. Chief Executive Avishai Abrahami highlighted Base44 as integral to what he described as “the world of what’s possible on Wix.”
Wix Harmony, the organization’s artificial intelligence-powered site creation tool, is demonstrating encouraging early adoption. According to company statements, Harmony is achieving better-than-anticipated conversion rates and revenue generation, with recent cohort booking growth gaining momentum in early 2026.
Looking ahead to 2026, management projects mid-teens percentage revenue expansion and operating cash flow margin in the low-to-mid 20% territory. Leadership acknowledged that increased investment spending will pressure cash flow margins as resources flow toward Harmony and Base44 development initiatives.
$250M Strategic Investment
The company disclosed a $250 million strategic private investment spearheaded by Durable Capital Partners, with Durable contributing up to $150 million directly. The transaction values units at a 5% markdown to the March 4 share price, with attached warrants priced at a 25% premium. The warrants carry a three-year expiration.
J.P. Morgan served as sole placement agent. The funding round is anticipated to finalize on March 5, 2026.
During the fourth quarter, the company repurchased roughly 750,000 ordinary shares for $100 million at a weighted average cost of $133.56. The organization completed $575 million in share repurchases throughout 2025 and aims to execute most of its $2 billion authorization before 2026 ends.
WIX shares finished trading at $74.36 on earnings day, declining 25.80% during the previous three-month period and dropping 62.36% over the trailing twelve months.
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