Wix.com (WIX) Q2 2025 earnings summary

Executive summary

• Strong new user cohort growth, AI-driven innovation, and improved conversion rates are accelerating top-line growth, with robust demand trends and significant momentum in Partners and transaction revenue segments.

• Acquisition of Base44 expands the addressable market into AI-powered application development, with rapid ARR growth post-acquisition and a target of $40–$50 million ARR by year-end.

• Surpassed the "Rule of 40" milestone in 2024, with continued progress expected in 2025, driven by product innovation and operational efficiency.

Financial highlights

• Q2 2025 total revenue reached $510.9 million, up 12% year-over-year, with total bookings at $510 million (+11% y/y).

• Partners’ revenue increased 24% year-over-year to $183 million, with Studio momentum contributing.

• Transaction revenue was $64 million, up 18% year-over-year, driven by 11% GPV growth to $3.6 billion.

• Creative Subscriptions ARR grew 10% year-over-year to $1.41 billion as of Q2 2025.

• Free cash flow for Q2 was $148 million (30% of revenue), up 24% year-over-year.

Outlook and guidance

• Full-year 2025 bookings outlook raised to $2.04–$2.08 billion (11–13% y/y growth); revenue guidance updated to $1.975–$2.0 billion (12–14% y/y growth).

• Q3 2025 revenue expected at $498–$504 million (12–13% y/y growth).

• Free cash flow for 2025 expected at $595–$610 million (30–31% of revenue).

• Non-GAAP gross margin for the year expected at ~69%, with operating expenses at ~49% of revenue.

• Base44 expected to reach $40–$50 million ARR by end of 2025.