Wix.com (NASDAQ:WIX) Releases Earnings Results, Beats Estimates By $0.02 EPS

Wix.com (NASDAQ:WIX) issued its earnings results on Tuesday. The information services provider reported $1.42 EPS for the quarter, beating analysts’ consensus estimates of $1.40 by $0.02, FiscalAI reports. The business had revenue of $570.17 million during the quarter, compared to analyst estimates of $566.27 million. Wix.com had a negative return on equity of 1.61% and a negative net margin of 8.19%. Wix.com’s revenue was up 12.9% on a year-over-year basis. During the same period in the prior year, the company posted $1.80 earnings per share.

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

• Base44 reached nearly $250 million in ARR, with stronger conversion, improving cohort retention and upgrades, and Q3 gross margin of 58%; management expects second-half margin around 60% and sees further improvement ahead.
• Wix highlighted new growth opportunities across its portfolio: Symphony reached millions of dollars in ARR within months of launch, while Studio Two’s open AI-enabled workflow is intended to attract agencies and support an enterprise offering.
• Wix is accelerating Base44 marketing and enterprise sales investment, lowering its 2026 free cash flow margin outlook to approximately 16%, from a prior target in the high teens. Management said spending will remain tied to its return-on-investment targets.
• Wix maintained its full-year outlook for low-teens bookings growth and low-to-mid-teens revenue growth; for Q4, it expects low-double-digit revenue growth, with bookings growth continuing to lag revenue.
• Management said the company had 25% fewer employees at Q3-end than in 2022 while delivering double-digit bookings growth and launching new products, and expects the core business’s free cash flow to improve further.

Wix.com Price Performance

Shares of Wix.com stock traded down $2.94 during midday trading on Tuesday, hitting $66.81. 599,432 shares of the company were exchanged, compared to its average volume of 1,913,114. The firm has a market cap of $3.90 billion, a P/E ratio of -19.11, a PEG ratio of 38.27 and a beta of 1.06. Wix.com has a 52 week low of $40.16 and a 52 week high of $136.80. The firm has a 50 day simple moving average of $77.36 and a 200-day simple moving average of $70.42.

Insiders Place Their Bets

In other Wix.com news, Director Ron Gutler sold 5,718 shares of the stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $85.42, for a total transaction of $488,431.56. Following the completion of the transaction, the director directly owned 15,631 shares in the company, valued at $1,335,200.02. This represents a 26.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Lior Shemesh acquired 456 shares of the company’s stock in a transaction on Monday, August 31st. The shares were bought at an average price of $59.89 per share, with a total value of $27,309.84. Following the completion of the purchase, the chief financial officer directly owned 221,567 shares of the company’s stock, valued at approximately $13,269,647.63. This represents a 0.21% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have acquired 2,622 shares of company stock worth $157,032 over the last quarter. Corporate insiders own 6.20% of the company’s stock.

Key Wix.com News

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

• Positive Sentiment: Q3 adjusted earnings of $1.42 per share and revenue of $570.17 million exceeded consensus estimates; revenue grew 12.9% year over year. Wix tops Q3 earnings and revenue estimates
• Positive Sentiment: Management expects revenue to improve in Q4 and for the full year, offering a constructive growth signal. Wix Q3 revenue rises; outlook improves
• Negative Sentiment: Bank of America cut its rating from Buy to Underperform and lowered its price target from $75 to $68, adding pressure after a sharp prior-session decline. Bank of America rating change
• Negative Sentiment: Wix reduced its 2026 cash-flow outlook, raising concerns about the quality of growth and overshadowing the quarterly earnings beat. Wix stock, downgrade and cash-flow outlook

Analysts Set New Price Targets

Several equities research analysts have issued reports on the stock. UBS Group set a $110.00 price target on shares of Wix.com in a report on Monday, October 26th. Royal Bank Of Canada raised their price objective on shares of Wix.com from $45.00 to $60.00 and gave the stock a “sector perform” rating in a report on Wednesday, August 5th. Morgan Stanley lowered shares of Wix.com from an “overweight” rating to an “equal weight” rating and decreased their target price for the company from $112.00 to $60.00 in a research report on Tuesday, July 21st. Cantor Fitzgerald lifted their target price on shares of Wix.com from $80.00 to $90.00 and gave the company an “overweight” rating in a research report on Monday, October 19th. Finally, Wells Fargo & Company upped their target price on shares of Wix.com from $46.00 to $64.00 and gave the company an “equal weight” rating in a research note on Wednesday, August 5th. Ten equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $89.33.

About Wix.com

Wix.com Ltd. is a cloud-based platform that enables individuals, businesses and organizations to create and manage websites. Its tools include customizable templates, a visual website editor and hosting, allowing users to build sites without advanced coding skills or develop more customized experiences.

The company also offers services for online businesses, including e-commerce features, appointment booking, payments, marketing tools and website analytics. Its products are designed to help customers manage multiple aspects of their online presence through one platform.

Founded in 2006, Wix is headquartered in Tel Aviv, Israel, and serves customers internationally.