Wix.com (WIX) Q4 2025 earnings summary

Executive summary

• 2026 is positioned as a pivotal year, with AI-driven innovation and the integration of Base44 and Harmony expanding the platform's capabilities and market reach.

• Harmony and Base44 are now the two strategic pillars, targeting self-creators and software builders, with rapid adoption and strong early performance.

• Achieved strong growth in FY25 with total revenue of $1.99B, up 13% year-over-year, and bookings of $2.07B, up 13% year-over-year.

• Free cash flow margin improved to 30%, with free cash flow of $605M, reflecting disciplined cost management and operational efficiency.

• Aggressive execution of a $2B share repurchase program and a $250M equity investment from Durable Capital Partners reinforce confidence in long-term strategy.

Financial highlights

• Q4 2025 bookings reached $535M, up 15% year-over-year; revenue was $524M, up 14% year-over-year.

• Full year 2025 bookings were $2.07B (up 13% YoY), revenue $1.99B (up 13% YoY), and consolidated ARR $1.84B (up 14% YoY).

• Q4 free cash flow was $156M (30% of revenue); full year free cash flow excluding acquisition costs was $605M (30% of revenue).

• Partners revenue grew 23% YoY in 2025 to $750M, and transaction revenue increased 19% YoY to $255M.

• Q4 2025 non-GAAP gross margin was 68%; full year non-GAAP gross margin was 69%.

Outlook and guidance

• 2026 consolidated bookings and revenue expected to grow at mid-teens percentage year-over-year.

• Free cash flow margin for 2026 projected in the low to mid-20% range, with variability due to Base44's hypergrowth.

• Core business expected to maintain or expand free cash flow margin in 2026.

• Management expects continued strong growth in ARR and free cash flow, supported by ongoing product innovation and expansion into new markets.

• No significant pricing changes assumed in 2026 guidance.