Wix.com (WIX) Q4 2025 earnings summary

Executive summary

• 2025 closed with strong momentum in new user cohorts, driven by robust demand for AI-powered solutions and the integration of Base44, which expanded the addressable market and product capabilities.

• Harmony and Base44 are now cornerstone offerings, with Harmony focused on intuitive AI-driven website creation and Base44 enabling advanced software and app development.

• Base44 reached approximately $100 million in ARR within a year of its founding, highlighting rapid adoption and organic growth, especially among enterprise and business users.

• The company is executing a $2 billion share repurchase program and secured a $250 million equity investment from Durable Capital Partners, reflecting confidence in long-term strategy.

• Surpassed the "Rule of 40" milestone in 2024 and maintained a combined revenue growth plus free cash flow margin of 43% in 2025.

Financial highlights

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

• Full year 2025 bookings reached $2.07 billion, up 13% year-over-year; revenue was $1.99 billion, up 13% year-over-year.

• Consolidated ARR at year-end was $1.84 billion, up 14% year-over-year.

• Free cash flow for 2025 was $605 million (30% of revenue), reflecting disciplined cost management and operational efficiency.

• Partners revenue grew 23% year-over-year to $750 million for the full year; transaction revenue reached $255 million, up 19% year-over-year.

Outlook and guidance

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

• Q1 2026 revenue also expected to grow at a mid-teens percentage year-over-year.

• Free cash flow margin for 2026 projected in the low to mid-20% range, with a wider guidance range 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.