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Wix
(NASDAQ:WIX)
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Rating:55Neutral
Price Target:
$62.00
▲(20.60% Upside)
Action:Reiterated
Date:08/07/26
The score is driven primarily by mixed financial performance: strong and resilient free cash flow and healthy gross margins are offset by balance-sheet risk (rising debt and deeply negative equity) and volatile profitability. Technicals are mildly positive short-term but still weak versus longer-term averages. Valuation is pressured by a negative P/E and no dividend support, while the earnings call adds a modest positive tilt due to maintained growth/FCF guidance despite near-term margin reinvestment and visibility risks.
Positive Factors
Strong free cash flow generation
Consistent positive operating and free cash flow across 2023–2026 TTM provides durable internal funding for product development, AI buildout, and restructuring costs. Strong cash conversion helps absorb periodic net losses and supports strategic optionality without immediate reliance on equity raises.
Negative Factors
Weak balance sheet: rising debt and negative equity
Deeply negative equity and rising debt materially elevate financial risk and reduce flexibility. This constrains capacity to absorb earnings volatility, limits borrowing headroom for opportunistic investments, and increases sensitivity to cash-flow shocks or slower revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent positive operating and free cash flow across 2023–2026 TTM provides durable internal funding for product development, AI buildout, and restructuring costs. Strong cash conversion helps absorb periodic net losses and supports strategic optionality without immediate reliance on equity raises.
Read all positive factors
Wix Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Gross profit split across business lines (for example subscriptions vs. commerce/services), revealing which parts of the business are most profitable. Tracking segment-level margins helps investors see where growth is financially sustainable and where costs may erode returns.
Gross profit split across business lines (for example subscriptions vs. commerce/services), revealing which parts of the business are most profitable. Tracking segment-level margins helps investors see where growth is financially sustainable and where costs may erode returns.
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The Fly
The FlyWix (WIX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.88B
Dividend YieldN/A
Average Volume (3M)1.29M
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue Growth14.18%
EPS Growth-218.58%
CountryUS
Employees5,277
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-3.54
Shares Outstanding41,849,510
10 Day Avg. Volume1,177,131
30 Day Avg. Volume1,290,914
Financial Highlights & Ratios
PEG Ratio-1.80
Price to Book (P/B)-15.77
Price to Sales (P/S)2.90
P/FCF Ratio10.05
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$77.44Price Target Upside50.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)4.84
Revenue Forecast (FY)$2.26B
Wix Business Overview & Revenue Model
Company Description
Wix.com Ltd. operates a cloud-based platform globally, enabling individuals and businesses across North America, Europe, Latin America, Asia, and other international regions to build websites and web applications. Its offerings include the intuiti...
How the Company Makes Money
Wix primarily makes money through recurring subscription revenue from premium plans that unlock paid features such as custom domains, increased storage and bandwidth, advanced design and marketing tools, analytics, and e-commerce capabilities. The...
Wix Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call highlights strong product and AI-driven progress (notably the Base1 proprietary LLM and a projected jump in BASE44 gross margin to ~60% in H2), healthy revenue growth (15% YoY) and maintained guidance. Offsetting these positives are near-term margin pressures from elevated S&M and AI compute costs, bookings trailing revenue, limited disclosure on BASE44 renewals/ARR, and competitive/market uncertainty. Management is purposefully reinvesting margin gains to accelerate BASE44 growth, indicating a tradeoff of short-term profitability for market capture.Positive Updates
Top-Line Growth
Revenue grew 15% year-over-year in Q2 2026 and bookings grew 12% year-over-year, reflecting steady top-line performance and demand across products.
Negative Updates
Year-Over-Year Gross Margin Pressure
Total non-GAAP gross margin was down 3 percentage points year-over-year in Q2, driven by elevated investments in BASE44 and higher AI compute costs as the business scales.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-Line Growth
Revenue grew 15% year-over-year in Q2 2026 and bookings grew 12% year-over-year, reflecting steady top-line performance and demand across products.
Read all positive updates
Company Guidance
The company maintained guidance that bookings should grow in the low‑teens percentage for 2026 (lagging revenue by a few points) while revenue is expected to grow in the low‑to‑mid‑teens for the full year and in the low double‑digit range in Q3; they reiterated a full‑year free cash flow margin (ex‑acquisition/restructuring) in the high‑teens and said non‑GAAP operating margin should step up in H2 to support that goal. Key margin and cost metrics: Q2 total non‑GAAP gross margin was 67% (down ~3 pts YoY) and non‑GAAP operating income was ~12% of revenue; BASE44 gross margin is expected to improve from roughly 0% at the start of the year to approximately 60% in H2 thanks to Base1, driving an expected ~2‑point consolidated non‑GAAP gross margin improvement in H2 versus H1. They plan to reinvest the entirety of those gross‑margin savings into elevated sales & marketing in Q3–Q4 (extending TROI modestly), expect R&D to be stable H2 vs H1, and closed Q2 with about $960M cash and cash equivalents and $1.63B of short‑ and long‑term debt.Wix Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
32
Negative
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.13B | 1.99B | 1.76B | 1.56B | 1.39B | 1.27B |
| Gross Profit | 1.42B | 1.36B | 1.20B | 1.05B | 861.44M | 781.08M |
| EBITDA | -100.16M | 36.07M | 186.21M | 68.48M | -439.77M | -28.83M |
| Net Income | -174.65M | 50.65M | 138.32M | 33.14M | -424.86M | -117.21M |
Balance Sheet | ||||||
| Total Assets | 1.85B | 2.61B | 1.91B | 1.80B | 1.76B | 2.06B |
| Cash, Cash Equivalents and Short-Term Investments | 960.90M | 1.18B | 1.11B | 962.89M | 1.06B | 1.32B |
| Total Debt | 2.04B | 1.59B | 969.95M | 996.32M | 1.13B | 1.03B |
| Total Liabilities | 3.59B | 2.98B | 1.99B | 1.86B | 2.02B | 1.91B |
| Stockholders Equity | -1.74B | -366.00M | -78.79M | -54.48M | -263.24M | 145.72M |
Cash Flow | ||||||
| Free Cash Flow | 448.21M | 574.30M | 479.60M | 182.20M | -33.51M | 27.98M |
| Operating Cash Flow | 458.47M | 582.86M | 497.42M | 248.25M | 37.15M | 65.69M |
| Investing Cash Flow | -293.53M | -902.15M | -35.47M | 566.71M | -54.66M | 376.87M |
| Financing Cash Flow | -634.30M | -43.00M | -406.73M | -450.02M | -189.16M | -160.06M |
Wix Technical Analysis
Positive
51.41
Price Trends
52.15
Positive
61.91
Positive
79.48
Positive
Market Momentum
5.07
Negative
75.00
Negative
94.46
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WIX, the sentiment is Positive. The current price of 51.41 is below the 20-day moving average (MA) of 58.99, below the 50-day MA of 52.15, and below the 200-day MA of 79.48, indicating a bullish trend. The MACD of 5.07 indicates Negative momentum. The RSI at 75.00 is Negative, neither overbought nor oversold. The STOCH value of 94.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WIX.
Wix Risk Analysis
Wix disclosed 59 risk factors in its most recent earnings report. Wix reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The development and integration of artificial intelligence into our offerings may present regulatory, legal, business, and financial risks, and result in reputational harm, liability, or other adverse consequences to our operations. Q4, 2023
2.
Changes in our provision for income taxes or adverse outcomes resulting from examination of our income tax returns could adversely affect our results. Q4, 2023
3.
The application of indirect taxes, other tax laws or regulations could adversely affect our business and results of operations Q4, 2023
Wix Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $4.48B | 49.93 | 150.65% | ― | 9.55% | -50.29% | |
69 Neutral | $15.68B | 52.50 | 54.71% | ― | 21.41% | 83.31% | |
66 Neutral | $7.64B | -24.83 | -21.49% | ― | 21.38% | 27.92% | |
65 Neutral | $7.57B | 19.74 | -23.53% | ― | -0.05% | 9.77% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $2.88B | -22.61 | 28.08% | ― | 14.18% | -218.58% |
* Technology Sector Average
WIX
Wix
80.06
-44.29
-35.62%
BOX
Box
33.64
2.05
6.49%
DBX
Dropbox
35.93
8.11
29.15%
DOCN
DigitalOcean Holdings
132.29
101.25
326.19%
S
SentinelOne
23.84
7.04
41.90%
Wix Corporate Events
Wix Q2 2026 Results Highlight Base44 LLM Breakthrough and Margin Upside
Aug 4, 2026
On August 4, 2026, Wix reported second-quarter 2026 results, posting revenue of $563.1 million and bookings of $569.1 million, both up low- to mid-teens year over year, with strong growth across Creative Subscriptions, Business Solutions and Partn...
Wix to Cut 20% of Workforce in Major 2026 Organizational Realignment
Jun 8, 2026
On June 8, 2026, Wix announced an organizational realignment aimed at streamlining operations and reallocating resources toward top strategic priorities, including scaling down or discontinuing certain activities, products and subsidiaries. As par...
Wix Posts Double-Digit Q1 2026 Growth, Unveils Proprietary AI Model and Major Share Buyback
May 13, 2026
Wix.com Ltd. reported first-quarter 2026 results on May 13, 2026, posting revenue of $541.2 million, up 14% year over year, and bookings of $585 million, up 15% year over year, with total ARR reaching $1.903 billion. Creative Subscriptions and Bus...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.