Wix.com (NASDAQ:WIX) Announces Earnings Results, Misses Expectations By $0.53 EPS

Key Points

• Wix.com missed Q1 earnings expectations, reporting $0.68 EPS versus the $1.21 consensus estimate. Revenue came in at $541.17 million, slightly below forecasts, though it was still up 14.2% year over year.
• On the conference call, Wix said bookings rose 15% to $585 million and free cash flow reached $112 million. Management also pointed to continued momentum in its AI strategy and strong growth at Base44.
• The company kept its full-year outlook for mid-teens bookings and revenue growth and expects a high-teens free cash flow margin. Shares fell after the report, and several analysts trimmed price targets even as many maintained bullish ratings.

Wix.com (NASDAQ:WIX - Get Free Report) announced its earnings results on Wednesday. The information services provider reported $0.68 EPS for the quarter, missing the consensus estimate of $1.21 by ($0.53), FiscalAI reports. Wix.com had a net margin of 2.54% and a negative return on equity of 70.04%. The firm had revenue of $541.17 million during the quarter, compared to analysts' expectations of $544.04 million. During the same quarter in the prior year, the company earned $1.69 EPS. The business's revenue for the quarter was up 14.2% on a year-over-year basis.

Here are the key takeaways from Wix.com's conference call:

• Wix said Q1 bookings rose 15% year over year to $585 million and revenue increased 14% to $541 million, with free cash flow of $112 million. Management said growth was driven by healthy new-user cohorts, retention in core Wix, and continued strength at Base44.
• The company highlighted early success with its AI strategy, including the rollout of Wix Harmony and a newly built proprietary LLM that it says is faster, lower cost, and produces better design outcomes. Management expects its own models to reduce inference costs and support a broader portfolio of proprietary AI tools.
• Base44 remained a major growth driver, reaching $150 million in ARR by mid-May after hitting $100 million in early March. Wix said it is seeing improving retention, stronger monetization, and some early overlap between Base44 and its partner audience, though management stressed the business is still early.
• The Partners business grew 19% year over year but slowed more than expected because Wix had pulled back on partner-focused marketing and because product timelines were delayed by productivity disruption from the war in Israel. Management expects Partners to remain a drag until product updates and marketing are realigned.
• Wix maintained full-year guidance for mid-teens bookings and revenue growth and expects full-year free cash flow margin to be in the high teens excluding acquisition-related expenses. Management also said the share repurchase program was completed, shrinking the equity base by nearly 30%.

Wix.com Stock Performance

WIX traded down $2.61 during midday trading on Thursday, hitting $52.71. The stock had a trading volume of 4,780,413 shares, compared to its average volume of 2,583,408. Wix.com has a 1 year low of $51.60 and a 1 year high of $190.93. The business has a fifty day moving average of $80.52 and a 200 day moving average of $92.18. The company has a market cap of $3.07 billion, a P/E ratio of 65.07, a price-to-earnings-growth ratio of 2.24 and a beta of 1.01.

Key Wix.com News

Here are the key news stories impacting Wix.com this week:

• Positive Sentiment: Wix reported Q1 revenue of about $541 million, up 14% year over year, and bookings of $585 million, up 15%, showing the business is still growing despite the selloff. Wix Reports First Quarter 2026 Results
• Positive Sentiment: The company highlighted AI-related momentum, including its proprietary AI model, new “Superagents,” and strong Base44 growth, which supports the long-term product narrative. Wix Posts Double-Digit Q1 2026 Growth, Unveils Proprietary AI Model and Major Share Buyback
• Positive Sentiment: Wix also announced a major share repurchase, which can help support earnings per share and signals management confidence. Wix Reports First Quarter 2026 Results
• Neutral Sentiment: Several brokers trimmed price targets after the report, but most still kept bullish ratings, suggesting analysts see long-term value even as near-term expectations reset.

Analyst Upgrades and Downgrades

A number of analysts recently commented on WIX shares. Weiss Ratings downgraded Wix.com from a "hold (c-)" rating to a "sell (d)" rating in a research report on Friday, March 6th. UBS Group restated a "neutral" rating and set a $68.00 price target on shares of Wix.com in a research note on Thursday. Citigroup downgraded Wix.com from a "buy" rating to a "neutral" rating and cut their target price for the stock from $105.00 to $66.00 in a research note on Thursday. Robert W. Baird downgraded shares of Wix.com from an "outperform" rating to a "neutral" rating and cut their price target for the company from $115.00 to $90.00 in a report on Monday, March 9th. Finally, Oppenheimer cut their price objective on Wix.com from $115.00 to $85.00 and set an "outperform" rating for the company in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, Wix.com has a consensus rating of "Moderate Buy" and a consensus price target of $103.30.

Institutional Investors Weigh In On Wix.com

A number of institutional investors have recently made changes to their positions in the business. PCM Encore LLC bought a new position in Wix.com during the 4th quarter worth approximately $254,000. Royal London Asset Management Ltd. lifted its position in Wix.com by 7.6% in the fourth quarter. Royal London Asset Management Ltd. now owns 2,733 shares of the information services provider's stock valued at $284,000 after purchasing an additional 193 shares during the last quarter. Quadrant Capital Group LLC boosted its stake in shares of Wix.com by 27.3% during the fourth quarter. Quadrant Capital Group LLC now owns 2,839 shares of the information services provider's stock valued at $295,000 after purchasing an additional 608 shares during the period. Merit Financial Group LLC purchased a new stake in shares of Wix.com during the third quarter valued at approximately $240,000. Finally, Vident Advisory LLC grew its holdings in shares of Wix.com by 38.4% in the second quarter. Vident Advisory LLC now owns 1,699 shares of the information services provider's stock worth $269,000 after purchasing an additional 471 shares during the last quarter. Hedge funds and other institutional investors own 81.52% of the company's stock.

Wix.com announced that its Board of Directors has initiated a stock buyback program on Wednesday, January 28th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the information services provider to buy up to 40.5% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's board of directors believes its shares are undervalued.

About Wix.com

Wix.com Ltd. operates a cloud-based platform that enables individuals and businesses to create, manage and develop professional web presences through an intuitive drag-and-drop interface. The company's software-as-a-service model provides hosting, customizable templates and a range of design tools, eliminating the need for coding expertise. Users can choose from a variety of premium plans to access custom domains, enhanced storage, and advanced performance features tailored to personal projects, small businesses and online storefronts.

Beyond its core website builder, Wix offers a suite of complementary services designed to support digital growth and marketing.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.