Wix (WIXN) AI Stock Analysis

Wix

(BMV:WIXN)

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Action:N/A

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Positive Factors

Steady revenue growthConsistent low-teens revenue expansion indicates ongoing demand across Wix’s products and supports a durable subscription-led growth model. Continued growth across Creative Subscriptions, Business Solutions, and Partners can broaden the platform’s revenue base over the next several quarters.

Negative Factors

Highly leveraged balance sheetDeeply negative equity combined with sharply higher debt reduces Wix’s financial flexibility and weakens its ability to absorb earnings volatility. Elevated leverage can constrain capital allocation and leave less capacity to fund growth or withstand weaker operating performance over coming quarters.

Wix (WIXN) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 3.23B
Dividend Yield: ―
Average Volume (3M): ―
Price to Earnings (P/E): -21.8
Beta (1Y): 0.26
Revenue Growth: 3.80%
EPS Growth: -205.75%
Country: Mexico
Employees: 4,371
Sector: Technology
Sector Strength: 61
Industry: Software - Application

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 intuitive...

Wix Earnings Call Summary

Earnings Call Date:Aug 03, 2026(Q2-2026)|% Change Since:33.64%|Next Earnings Date:Nov 09, 2026

Earnings Call SentimentPositive

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.

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 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 operationsQ4, 2023

Wix Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MX:WIXN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PTRN	72Outperform	$2.94B	-21.27	-23.14%	―	43.94%	-313.68%
YEXT	66Neutral	$711.66M	30.67	27.89%	―	-1.48%	257.78%
CMRC	64Neutral	$272.61M	-47.61	-12.79%	―	2.77%	68.74%
VTEX	62Neutral	$669.34M	23.18	12.98%	―	9.62%	140.62%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
THRY	47Neutral	$55.55M	-3.38	-7.36%	―	-6.16%	84.49%

* Technology Sector Average

Performance Comparison

MX:WIXN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:WIXN	Wix.com Ltd	1470.00	-1041.00	-41.46%
YEXT	Yext Inc	7.19	-1.27	-15.01%
CMRC	Commerce.Com, Inc.	3.29	-1.34	-28.94%
THRY	Thryv Holdings, Inc.	1.25	-5.78	-82.22%
VTEX	Vtex Class A	3.98	-0.40	-9.13%
PTRN	Pattern Group, Inc. Class A	16.59	-0.67	-3.88%

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.

Wix AI Stock Analysis