Q4 2025 Wix.Com Ltd Earnings Call Transcript
Key Points
- Wix.com Ltd (WIX) reported strong cohort momentum with new user bookings maintaining double-digit growth in Q4 2025.
- The introduction of Wix Harmony has shown promising early performance, particularly in conversion and monetization metrics.
- Base44, acquired by Wix, has rapidly scaled, reaching approximately $100 million in ARR, highlighting its accelerating momentum.
- Wix's total addressable market has expanded significantly due to its entry into the application space, facilitated by the acquisition of Base44.
- The company plans to complete a large portion of its $2 billion stock repurchase program in 2026, demonstrating confidence in its strategic plan and undervalued stock performance.
- Wix.com Ltd (WIX) faced continued GPV headwinds as SMBs on the platform experienced macroeconomic pressures, resulting in softer-than-anticipated GPV.
- The company incurred elevated AI compute costs due to scaling Base44, impacting gross margins.
- Non-GAAP gross margin ticked down slightly due to investments in Base44 to support its rapid growth.
- The free cash flow margin guidance for 2026 is wider than normal, reflecting the variability associated with Base44's rapid growth.
- Currency headwinds from a weakening US dollar against the Israeli shekel are expected to impact payroll expenses.
Good day, and thank you for standing by. Welcome to the Wix fourth-quarter 2025 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Emily Liu, Investor Relations. Please go ahead.
Thanks, and good morning, everyone. Welcome to Wix's fourth-quarter and full-year 2025 earnings call. Joining me today to discuss our results are Avishai Abrahami, CEO and Co-Founder; Nir Zohar, President and Co-Founder; and Lior Shemesh, our CFO.
During this call, we may make forward-looking statements, and these statements are based on current expectations and assumptions. Please consider the risk factors included in our press release and most recent Form 20-F that could cause our actual results to differ materially from these forward-looking statements. We do not undertake any obligation to update these forward-looking statements.
In addition, we will comment on non-GAAP financial
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