Wix.com (NASDAQ: WIX) reported Q3 2025 results on November 19, 2025, with 14% revenue growth, strong Base44 AI momentum, higher guidance – and a sharp pre-market share drop after a Bank of America price-target cut.
Wix grabs the spotlight on November 19, 2025
Wix.com Ltd. (NASDAQ: WIX) is front and center on November 19, 2025, after the website‑building and digital presence platform released its third-quarter 2025 earnings before the market open. The company posted accelerating double‑digit growth, raised its 2025 outlook, and highlighted explosive traction for its AI‑driven Base44 product — even as the stock trades sharply lower in pre‑market and at least one major Wall Street bank trims its price target. [1]
At the same time, new regulatory filings show Senvest Management LLC has boosted its stake, while Wix continues to lean on buybacks and recently issued zero‑coupon convertible notes to reshape its capital structure. [2]
Here’s a breakdown of all the key Wix (WIX) news investors are watching today.
Q3 2025 by the numbers: growth re-accelerates to 14%
In its official earnings press release, Wix reported that Q3 2025 revenue rose 14% year over year to $505.2 million, up from $444.7 million in the same quarter of 2024. [3]
Segment performance (Q3 2025): [4]
- Total revenue: $505.2 million, +14% y/y
- Creative Subscriptions revenue: $356.2 million, +12% y/y
- Creative Subscriptions ARR: $1.457 billion, +11% y/y
- Business Solutions revenue: $149.0 million, +18% y/y
- Transaction revenue: $65.3 million, +20% y/y
- Partners revenue: $192.1 million, +24% y/y
On a bookings basis — a key metric Wix uses to track future revenue — the company also showed solid momentum:
- Total bookings: $514.5 million, +14% y/y
- Creative Subscriptions bookings: $366.4 million, +12% y/y
- Business Solutions bookings: $148.2 million, +20% y/y [5]
Profitability: GAAP loss, strong non‑GAAP earnings
Despite robust top‑line growth, Wix swung to a small GAAP net loss:
- GAAP net loss:$0.6 million, or $0.01 per share, versus net income of $26.8 million ($0.46 per diluted share) in Q3 2024. [6]
Non‑GAAP results, however, show a much stronger picture:
- Non‑GAAP net income: $100.2 million
- Non‑GAAP EPS:$1.68 per diluted share, ahead of Wall Street estimates around $1.45–$1.49 per share. [7]
According to analysis summarizing the quarter, the shift from profit to GAAP loss is driven largely by higher income tax expense, which jumped to $12.3 million, up from about $3.1 million a year earlier. [8]
Cash flow and margins
Wix continues to generate strong cash:
- Operating cash flow: $128.7 million in Q3
- Free cash flow (FCF): $127.3 million
- FCF excluding acquisition-related costs:$159.4 million, roughly 32% of revenue, slightly ahead of some analyst expectations (around $153 million). [9]
Margins remained healthy:
- GAAP gross margin: 68%
- Non‑GAAP gross margin: 69%
- Creative Subscriptions non‑GAAP gross margin: 84%
- Business Solutions non‑GAAP gross margin: 34% [10]
These figures underscore Wix’s evolution into a high‑margin, cash‑generative SaaS business, even as it steps up investment in AI and new products.
Base44: Wix’s AI engine accelerates
One of the biggest storylines in today’s release is Base44, Wix’s AI‑powered, natural‑language app and site building environment.
From the company’s commentary:
- Bookings and revenue acceleration to 14% y/y in Q3 is explicitly linked to “robust new cohort behavior and Base44 outperformance.” [11]
- Wix says Base44 has already served over 2 million users, with more than 1,000 new paying subscribers joining every day, and now holds over 10% share among AI app builders (based on Similarweb and internal data). [12]
- Management expects Base44 to reach at least $50 million of ARR by year‑end 2025, putting it on a fast track toward a future $100 million ARR milestone. [13]
CEO Avishai Abrahami framed Base44 as part of Wix’s long‑running mission to “give people the power to access advanced technology without the barriers of complexity,” positioning the product as the next phase of democratizing application development. [14]
CFO Lior Shemesh added that Base44’s rapid adoption is beating expectations, prompting Wix to accelerate marketing investments in the product while still raising its outlook for bookings and free cash flow. [15]
Updated 2025 outlook: higher bookings, higher revenue, more spending
Alongside Q3 numbers, Wix raised its full‑year guidance and provided a Q4 forecast:
Full‑year 2025 guidance (updated)
- Bookings:
- New range: $2.06 – $2.078 billion (13–14% y/y growth)
- Previous range: $2.04 – $2.075 billion (11–13% y/y)
- Revenue:
- New range: $1.99 – $2.00 billion (13–14% y/y)
- Previous range: $1.975 – $2.00 billion (12–14% y/y)
- Free cash flow: about $600 million, or roughly 30% of revenue. [16]
Wix also now expects:
- Q4 2025 revenue:$521 – $531 million, implying 13–15% year‑over‑year growth. [17]
- Non‑GAAP gross margin for the year of 68–69%, slightly pressured by higher AI costs as Base44 usage ramps. [18]
- Non‑GAAP operating expenses around 50% of revenue, reflecting stepped‑up branding and marketing around Base44. [19]
In other words: Wix is deliberately spending more now to secure what it sees as a long‑term AI‑driven growth engine, while still maintaining strong cash generation.
Stock reaction: WIX slides pre-market despite beats
Despite beating consensus estimates on both revenue and adjusted EPS, Wix shares are trading sharply lower in early action on November 19.
According to real‑time data from StockAnalysis: [20]
- Last regular close (Nov 18, 2025): $126.92 (+2.17% on the day)
- Pre‑market quote (around 8:00 a.m. ET, Nov 19):$118.00, down 7.03% from the prior close
That drop comes even though:
- Adjusted EPS of $1.68 beat analyst estimates around $1.45–$1.49 per share. [21]
- Revenue of $505.2 million topped consensus estimates near $502–$503 million. [22]
A number of early‑morning analyses — including pieces from AP, CoinCentral, and other earnings recap outlets — highlight the mix of strong growth and rising costs, as well as the optics of a GAAP net loss, as factors behind the cautious market reaction. [23]
Technical commentary published today also notes that Wix shares are now in a bear market, trading roughly 48% below their 52‑week high of $247.11, based on current prices around $127. [24]
Wall Street moves: BofA cuts target, consensus stays bullish
Another key development today: BofA Securities cut its price target on WIX to $170 from $210, while maintaining a Buy rating. [25]
Key points from BofA and related coverage: [26]
- The new $170 target represents a ~19% reduction from the prior $210.
- The firm cites higher marketing and acquisition costs, especially around Base44, as weighing on near‑term operating income, even as revenue and bookings accelerate.
- BofA’s move comes after several other analysts had reaffirmed Bullish/Outperform ratings with targets in the $200–$210 range during Q3 2025.
Broader analyst sentiment remains positive:
- GuruFocus reports an average one‑year target price around $206–$207, with a mix of Buy and Outperform ratings. [27]
- StockAnalysis lists an average 12‑month target of $211.42, implying around 66% upside from the latest close, and a “Strong Buy” consensus across 19 analysts. [28]
As always, these targets reflect analyst models and assumptions and are not guarantees of future performance.
Senvest boosts stake as buybacks continue
While some traders are focusing on today’s pre‑market drop, institutional investors are leaning in — at least in the case of Senvest Management LLC.
A fresh MarketBeat report published November 19 shows: [29]
- Senvest increased its stake by 32.2% in the second quarter, bringing its holding to 2,040,910 Wix shares, representing about 3.64% of the company.
- Wix now makes up roughly 10.8% of Senvest’s portfolio, making it the fund’s second‑largest position, valued at about $323.4 million at the time of the filing.
- The article notes that institutional investors and hedge funds own over 80% of Wix’s shares outstanding.
At the corporate level, Wix is also supporting the stock through buybacks:
- The company’s board has authorized a $200 million share repurchase program, allowing it to buy back up to about 2.9% of outstanding shares. [30]
- In Q3 2025 alone, Wix repurchased approximately $175 million of its own shares, around 1.3 million shares at an average price of $136.64. [31]
These buybacks have been funded in part by strong cash flow and by Wix’s convertible notes strategy:
- In September, Wix priced an upsized $1.0 billion offering of 0.00% Convertible Senior Notes due 2030, with an initial conversion price around $210.49 per share (a 37.5% premium at pricing).
- Net proceeds are earmarked for capped call transactions, further buybacks, and general corporate purposes, including potential acquisitions. [32]
This combination of institutional buying, buybacks, and convertible financing is a major part of the Wix story behind the headline earnings numbers.
What’s next: UBS conference and continued Base44 watch
The news cycle doesn’t end with today’s earnings:
- Wix management will participate in a fireside chat at the UBS Global Technology and AI Conference on December 2, 2025, where investors are likely to press for more detail on Base44, AI costs, and the pace of marketing spend. [33]
Looking ahead, key things market watchers are likely to focus on include:
- Base44 monetization curve
- How quickly ARR scales beyond the $50 million year‑end target
- Whether marketing investment continues at today’s elevated levels
- Business Solutions growth
- The segment grew about 18–20% y/y in Q3, with commerce, payments, and apps such as Google Workspace contributing strongly. [34]
- Free cash flow durability
- Can Wix sustain ~30% FCF margins while investing heavily in AI and new products? [35]
- Balance sheet and leverage
- The addition of 0% convertible debt due 2030 and continued buybacks will remain a talking point for both bulls and bears. [36]
Key takeaways on Wix (WIX) for November 19, 2025
- Q3 2025 beat: Wix delivered 14% revenue growth and better‑than‑expected adjusted EPS, powered by both Creative Subscriptions and a faster‑growing Business Solutions segment. [37]
- GAAP optics: A small GAAP net loss, driven largely by higher tax expense and acquisition costs, contrasts with strong non‑GAAP earnings and cash flow. [38]
- AI and Base44: Base44 is emerging as a major growth engine, with over 2 million users and more than 1,000 new paying subscribers per day, prompting Wix to raise its bookings guidance. [39]
- Market reaction: Despite the beats and higher outlook, WIX is down about 7% in pre‑market trading, and the stock is nearly 50% off its 52‑week high, highlighting ongoing volatility and investor caution. [40]
- Street & holders: BofA cut its price target to $170 but kept a Buy rating; broader consensus remains Bullish/Strong Buy, and Senvest has increased its stake to 3.64% of the company as Wix executes on a mix of buybacks and 0% convertibles.
As always, this article is for informational purposes only and is not investment advice. Anyone considering an investment in WIX should do their own research or consult a licensed financial professional.
References
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