Website building platform Wix (NASDAQ: WIX) met Wall Street’s revenue expectations in Q4 CY2025, with sales up 13.9% year on year to $524.3 million. Its non-GAAP profit of $1.81 per share was 23% above analysts’ consensus estimates.
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Wix (WIX) Q4 CY2025 Highlights:
- Revenue: $524.3 million vs analyst estimates of $526.9 million (13.9% year-on-year growth, in line)
- Adjusted EPS: $1.81 vs analyst estimates of $1.47 (23% beat)
- Adjusted Operating Income: $81.18 million vs analyst estimates of $76.52 million (15.5% margin, 6.1% beat)
- Operating Margin: -13.8%, down from 7.8% in the same quarter last year
- Free Cash Flow Margin: 29.7%, down from 31.6% in the previous quarter
- Annual Recurring Revenue: $1.84 billion (36.7% year-on-year growth)
- Billings: $539.3 million at quarter end, up 16.1% year on year
- Market Capitalization: $4.07 billion
“2026 marks a defining new chapter for Wix as we enter an era of the internet that is evolving exponentially faster through AI advancements, with Wix Harmony and Base44 leading our roadmap,” said Avishai Abrahami, Co-founder and CEO of Wix.
Company Overview
Powering over 263 million registered users worldwide with its AI-driven tools, Wix (NASDAQ: WIX) provides a cloud-based platform that helps individuals and businesses create and manage professional websites without requiring coding skills.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Wix grew its sales at a 15.1% compounded annual growth rate. Though this growth is acceptable on an absolute basis, we need to see more than just topline growth for the software sector, which can display significant earnings volatility. This means our bar for the sector is particularly high, reflecting the non-essential and hit-driven nature of the products and services offered. Additionally, five-year CAGR starts around Covid, when revenue was depressed then rebounded.
We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. Wix’s recent performance shows its demand has slowed as its annualized revenue growth of 13% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
This quarter, Wix’s year-on-year revenue growth was 13.9%, and its $524.3 million of revenue was in line with Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 13.8% over the next 12 months, similar to its two-year rate. This projection doesn't excite us and indicates its newer products and services will not lead to better top-line performance yet.
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Annual Recurring Revenue
While reported revenue for a software company can include low-margin items like implementation fees, annual recurring revenue (ARR) is a sum of the next 12 months of contracted revenue purely from software subscriptions, or the high-margin, predictable revenue streams that make SaaS businesses so valuable.
Wix’s ARR punched in at $1.84 billion in Q4, and over the last four quarters, its growth was solid as it averaged 17.2% year-on-year increases. This alternate topline metric grew faster than total sales, which likely means that the recurring portions of the business are growing faster than less predictable, choppier ones such as implementation fees. That could be a good sign for future revenue growth. 
Customer Acquisition Efficiency
The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments.
Wix is quite efficient at acquiring new customers, and its CAC payback period checked in at 32.6 months this quarter. The company’s rapid recovery of its customer acquisition costs indicates it has a strong brand reputation, giving it more resources pursue new product initiatives while maintaining the flexibility to increase its sales and marketing investments.
Key Takeaways from Wix’s Q4 Results
It was good to see Wix narrowly top analysts’ billings expectations this quarter. Additionally, adjusted operating income beat quite convincingly. Overall, this was a solid quarter. The stock traded up 4.6% to $77.75 immediately following the results.
Big picture, is Wix a buy here and now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
