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Wix.com Ltd. transforms how millions build their online presence, empowering individuals and businesses with intuitive tools. Its cloud-based platform blends drag-and-drop design, AI-driven features, and integrated business solutions that redefine website creation. Renowned for innovation and accessibility, Wix dominates a dynamic market where digital identity is essential. As competition intensifies, I question whether Wix’s current fundamentals justify its growth premium and long-term leadership potential.
Table of contents
Business Model & Company Overview
Wix.com Ltd., founded in 2006 and headquartered in Tel Aviv, Israel, leads the Software – Infrastructure sector with a powerful cloud-based platform. It empowers users worldwide to create websites and web applications through a cohesive ecosystem including Wix Editor, ADI, Corvid, and Ascend. This suite integrates design, development, marketing, and payment solutions, forming a comprehensive digital presence for individuals and businesses alike.
The company’s revenue engine balances premium subscriptions and a broad spectrum of complementary services like Wix Payments and App Market. Its robust footprint spans North America, Europe, Latin America, and Asia, driving global scale. Wix’s competitive advantage lies in its integrated platform, which locks in millions of registered and premium users, creating a durable economic moat in the evolving web infrastructure landscape.
Financial Performance & Fundamental Metrics
I analyze Wix.com Ltd.’s income statement, key financial ratios, and dividend payout policy to assess its operational efficiency and shareholder return strategy.
Income Statement
This table summarizes Wix.com Ltd.’s key income statement figures for fiscal years 2021 through 2025 in USD.
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Revenue | 1.27B | 1.39B | 1.56B | 1.76B | 1.99B |
| Cost of Revenue | 489M | 526M | 513M | 565M | 636M |
| Operating Expenses | 1.11B | 1.15B | 1.07B | 1.10B | 1.35B |
| Gross Profit | 781M | 861M | 1.05B | 1.20B | 1.36B |
| EBITDA | -29M | -440M | 68M | 186M | 33M |
| EBIT | -48M | -463M | 42M | 155M | 2M |
| Interest Expense | 6.1M | 5.9M | 4.8M | 3.9M | 5.0M |
| Net Income | -117M | -425M | 33M | 138M | 51M |
| EPS | -2.06 | -7.33 | 0.58 | 2.49 | 0.91 |
| Filing Date | 2022-04-01 | 2023-03-30 | 2024-03-22 | 2025-03-21 | 2026-03-05 |
Income Statement Evolution
Wix.com Ltd. revenue grew steadily from $1.27B in 2021 to $1.99B in 2025, a 57% rise over five years. Net income recovered from losses in 2021-22 to a positive $51M in 2025. Gross margin remained strong and favorable at 68%, though EBIT and net margins showed volatility, reflecting profit pressure despite top-line growth.
Is the Income Statement Favorable?
In 2025, Wix posted $1.99B revenue, up 13.2% year-over-year, with gross profit increasing 13.4%. Operating expenses rose proportionally, squeezing EBIT margin to near breakeven at 0.09%. Net margin held at a modest 2.54%, down from prior year levels. The fundamentals show favorable revenue and gross profit growth but weaker profitability metrics, indicating margin pressure despite expanding scale.
Financial Ratios
The following table presents key financial ratios for Wix.com Ltd. over the last five fiscal years, highlighting profitability, liquidity, leverage, and market valuation metrics:
| Ratios | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | -9.2% | -30.6% | 2.1% | 7.9% | 2.5% |
| ROE | -80.4% | 161.4% | -60.8% | -175.6% | -13.8% |
| ROIC | -24.8% | -27.0% | -2.1% | 9.1% | -14.4% |
| P/E | -76.7 | -10.5 | 211.0 | 86.2 | 114.0 |
| P/B | 61.7 | -16.9 | -128.3 | -151.4 | -15.8 |
| Current Ratio | 1.79 | 0.96 | 1.36 | 0.84 | 1.19 |
| Quick Ratio | 1.76 | 0.95 | 1.36 | 0.84 | 1.19 |
| D/E | 7.1 | -4.3 | -18.3 | -12.3 | -4.3 |
| Debt-to-Assets | 50.2% | 64.3% | 55.2% | 50.7% | 60.8% |
| Interest Coverage | -53.7x | -48.0x | -5.1x | 25.9x | 0.3x |
| Asset Turnover | 0.62 | 0.79 | 0.87 | 0.92 | 0.76 |
| Fixed Asset Turnover | 8.4 | 4.5 | 2.8 | 3.3 | 3.9 |
| Dividend Yield | 0% | 0% | 0% | 0% | 0% |
Evolution of Financial Ratios
From 2021 to 2025, Wix.com Ltd.’s Return on Equity (ROE) remained negative, showing persistent losses and capital inefficiency. The Current Ratio fluctuated, ending slightly above 1.1 in 2025, indicating moderate liquidity improvement. Debt-to-Equity Ratio shifted from positive to negative values, reflecting rising leverage and structural changes in capital composition. Profitability margins showed volatility with a recent marginal net profit margin.
Are the Financial Ratios Favorable?
In 2025, profitability ratios such as ROE (-13.8%) and net margin (2.54%) are unfavorable, signaling weak earnings performance. Liquidity, reflected by a 1.19 current ratio and quick ratio, is neutral to favorable, supporting short-term obligations. Leverage ratios show high debt-to-assets (60.8%) and poor interest coverage (0.35), marking financial risk. Efficiency ratios like fixed asset turnover (3.89) are favorable, but overall the financial profile is slightly unfavorable.
Shareholder Return Policy
Wix.com Ltd. does not pay dividends, reflecting its reinvestment strategy and focus on growth. The company also does not engage in share buybacks, emphasizing capital allocation towards expansion rather than immediate shareholder returns.
This policy aligns with sustaining long-term value creation by prioritizing operational cash flow reinvestment. However, investors should monitor whether this approach continues to generate sufficient returns over time to justify the lack of direct distributions.
Score analysis
The radar chart below illustrates Wix.com Ltd.’s key financial scores across valuation and profitability metrics:
Wix.com scores moderately on discounted cash flow and return on assets, signaling some operational efficiency. However, very unfavorable scores for return on equity, debt to equity, price to earnings, and price to book ratios highlight financial and valuation concerns.
Analysis of the company’s bankruptcy risk
Wix.com’s Altman Z-Score places it in the distress zone, indicating a higher risk of financial distress and potential bankruptcy:
Is the company in good financial health?
The Piotroski Score diagram reflects the company’s moderate financial health status:
With a Piotroski Score of 6, Wix.com shows average financial strength. This suggests reasonable profitability and efficiency but leaves room for improvement in financial robustness.
Competitive Landscape & Sector Positioning
This sector analysis examines Wix.com Ltd.’s strategic positioning, revenue segments, key products, and main competitors. I will assess whether Wix.com Ltd. holds a competitive advantage over its peers in the software infrastructure industry.
Strategic Positioning
Wix.com Ltd. maintains a focused product portfolio dominated by Creative Subscription and Business Solutions, with geographic revenue heavily concentrated in North America and Europe. The company operates a cloud-based platform serving multiple regions but centers growth efforts on developed markets, reflecting targeted international expansion.
Revenue by Segment
This pie chart displays Wix.com Ltd.’s revenue breakdown by segment for fiscal year 2025, highlighting the relative contributions of Business Solutions and Creative Subscription.
Wix’s revenue growth centers on Creative Subscription, which reached $1.41B in 2025, up from $644M in 2019. Business Solutions also expanded steadily to $583M. Notably, Creative Subscription dominates, driving over 70% of total revenue. The recent acceleration in this segment underscores Wix’s strong subscription model but signals concentration risk if diversification slows. Business Solutions’ growth complements but does not offset this reliance.
Key Products & Brands
Wix.com Ltd. offers a diversified portfolio of cloud-based website creation and business solutions products:
| Product | Description |
|---|---|
| Wix Editor | Drag-and-drop visual development and website editing platform allowing users to create customized websites. |
| Wix ADI | Artificial intelligence-driven tool that builds personalized websites tailored to user needs. |
| Corvid by Wix | Platform for creating advanced websites and web applications with custom coding capabilities. |
| Ascend by Wix | Suite of ~20 business tools enabling customer engagement, workflow automation, and business growth. |
| Wix Logo Maker | AI-powered logo generation tool for users to design brand identities. |
| Wix Answers | Customer support infrastructure facilitating multi-channel user assistance. |
| Wix Payments | Payment processing platform allowing users to receive payments through their Wix websites. |
| App Market | Marketplace offering free and paid web applications for installation and uninstallation by users. |
| Wix Arena | Online marketplace connecting users with web experts for website creation and management services. |
| Wix App | Native mobile application enabling users to manage websites and Wix systems on the go. |
Wix generates revenue primarily through two segments: Creative Subscription, which reached $1.41B in 2025, and Business Solutions, at $583M in the same year. The company’s product suite supports a broad user base with tools for website creation, business operations, and customer engagement.
Main Competitors
There are 32 competitors in total, with the table below showing the top 10 leaders by market capitalization:
| Competitor | Market Cap. |
|---|---|
| Microsoft Corporation | 3.52T |
| Oracle Corporation | 553B |
| Palantir Technologies Inc. | 383B |
| Adobe Inc. | 140B |
| Palo Alto Networks, Inc. | 120B |
| CrowdStrike Holdings, Inc. | 113B |
| Synopsys, Inc. | 92B |
| Cloudflare, Inc. | 69B |
| Fortinet, Inc. | 59B |
| Block, Inc. | 40B |
Wix.com Ltd. ranks 26th among 32 competitors, with a market cap just 0.15% of Microsoft’s. It sits below both the average market cap of the top 10 (508B) and the sector median (19B). The company is 44% smaller than its next closest competitor above, highlighting a significant scale gap.
Comparisons with competitors
Check out how we compare the company to its competitors:
Does WIX have a competitive advantage?
Wix.com Ltd. currently does not present a strong competitive advantage, as its return on invested capital (ROIC) falls significantly below its weighted average cost of capital (WACC), indicating value destruction. However, its ROIC has shown a positive growth trend, suggesting improving profitability despite the unfavorable overall moat status.
Looking ahead, Wix’s diverse cloud-based platform and suite of products, including AI-driven tools and payment solutions, position it to capture growth in global markets. Opportunities lie in expanding premium subscriptions and leveraging vertical-specific applications across North America, Europe, and emerging regions.
SWOT Analysis
This analysis highlights Wix.com Ltd.’s internal strengths and weaknesses alongside external opportunities and threats shaping its market position.
Strengths
- strong global user base
- diversified product suite
- growing revenue over 5 years
Weaknesses
- negative ROIC vs. WACC indicates value destruction
- high debt-to-assets ratio
- slim net margin
Opportunities
- expanding cloud adoption worldwide
- AI-driven product enhancements
- growing e-commerce and SMB digitalization
Threats
- intense competition in website builders
- technology disruption risk
- regulatory challenges in multiple regions
Wix holds a solid market presence with diversified offerings but struggles with profitability and leverage. Strategic focus on innovation and cost control is critical to convert growth into sustainable value.
Stock Price Action Analysis
The weekly stock chart for Wix.com Ltd. illustrates price movements and volatility over the past 12 months:
Trend Analysis
Over the past 12 months, Wix.com Ltd. stock declined by 26.15%, indicating a bearish trend. The price fell from a high of 240.89 to a low of 66.9, with volatility marked by a 39.83 standard deviation. The downtrend shows deceleration, suggesting a slowing pace of decline.
Volume Analysis
Trading volume has increased overall, with buyers accounting for 53.35% historically, indicating buyer-driven activity. However, in the recent three months, buyer dominance is neutral at 49.59%, with nearly equal buyer and seller volumes, reflecting balanced investor sentiment and cautious market participation.
Target Prices
Analysts set a clear target consensus for Wix.com Ltd., reflecting a wide valuation range.
| Target Low | Target High | Consensus |
|---|---|---|
| 70 | 210 | 151.33 |
The target prices reveal cautious optimism with a high variance, signaling mixed views on Wix’s growth trajectory.
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Analyst & Consumer Opinions
This section examines Wix.com Ltd.’s recent analyst ratings and consumer feedback to provide a balanced performance overview.
Stock Grades
The following table presents the latest verified analyst grades for Wix.com Ltd., reflecting their current stance and ratings as of early 2026:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wells Fargo | Maintain | Overweight | 2026-03-05 |
| Needham | Maintain | Buy | 2026-03-05 |
| Citigroup | Maintain | Buy | 2026-03-05 |
| RBC Capital | Maintain | Outperform | 2026-03-05 |
| Scotiabank | Maintain | Sector Outperform | 2026-03-05 |
| Benchmark | Maintain | Buy | 2026-03-05 |
| Barclays | Maintain | Overweight | 2026-03-05 |
| Benchmark | Maintain | Buy | 2026-03-02 |
| Jefferies | Maintain | Buy | 2026-02-23 |
| Oppenheimer | Maintain | Outperform | 2026-02-02 |
Most analysts maintain a positive outlook with “Buy,” “Overweight,” and “Outperform” ratings dominating. The absence of downgrades indicates steady confidence in Wix’s market position and growth prospects.
Consumer Opinions
Wix.com Ltd. enjoys a strong reputation for user-friendly website building, but some customers raise concerns about pricing and customer support.
| Positive Reviews | Negative Reviews |
|---|---|
| Intuitive drag-and-drop interface | Pricing tiers can be confusing and steep |
| Extensive template selection | Customer service response times are slow |
| Flexible customization options | Occasional bugs in mobile site editing |
| Reliable uptime and performance | Limited advanced SEO features for pros |
Overall, users praise Wix for its ease of use and design flexibility. However, recurring issues with pricing clarity and support responsiveness slightly dampen the experience.
Risk Analysis
The following table highlights key risks facing Wix.com Ltd., including their likelihood and potential impact:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Financial Health | Low Altman Z-Score (1.46) signals distress zone risk. | High | High |
| Profitability | Negative ROE (-13.84%) and ROIC (-14.35%) indicate losses. | High | High |
| Leverage | High debt-to-assets (60.77%) strains balance sheet. | Medium | Medium |
| Valuation | Elevated P/E (114) suggests overvaluation risk. | Medium | Medium |
| Liquidity | Current ratio (1.19) is barely adequate; interest coverage (0.35) is weak. | Medium | High |
| Market Volatility | Beta of 1.46 implies higher sensitivity to market swings. | High | Medium |
Wix faces significant financial distress risks, underscored by its Altman Z-score in the distress zone. Negative profitability metrics and weak interest coverage heighten default risk. Overvaluation poses a correction threat amid volatile market conditions. I advise cautious position sizing given these vulnerabilities.
Should You Buy Wix.com Ltd.?
Wix.com Ltd. appears to be shedding value despite a growing profitability trend, suggesting an eroding competitive moat. Its leverage profile raises concerns amid moderate operational efficiency. The overall C rating reflects a challenging financial health profile with notable risks.
Strength & Efficiency Pillars
Wix.com Ltd. shows operational resilience with a robust gross margin of 68.07%, signaling strong pricing power and cost control. Despite a slim EBIT margin of 0.09% and a modest net margin of 2.54%, the company maintains favorable interest expense management at 0.25%. However, its return on invested capital (ROIC) stands at -14.35%, well below its weighted average cost of capital (WACC) at 8.83%, indicating Wix is currently destroying value rather than creating it. This key metric flags significant operational inefficiencies despite growing profitability trends.
Weaknesses and Drawbacks
The company is in financial distress, as confirmed by an Altman Z-Score of 1.46, well below the 1.8 threshold, signaling a high bankruptcy risk. Profitability ratios are deeply concerning: return on equity (ROE) is negative at -13.84%, and ROIC is negative, highlighting poor capital allocation. Valuation multiples are stretched with a price-to-earnings ratio of 113.95, reflecting a premium that may not be justified by fundamentals. Additionally, high debt levels, evidenced by a 60.77% debt-to-assets ratio and weak interest coverage at 0.35, exacerbate solvency risks.
Our Final Verdict about Wix.com Ltd.
Despite some operational strengths like a high gross margin, Wix.com Ltd.’s financial distress indicated by its Altman Z-Score of 1.46 makes the investment profile highly speculative. The solvency risk overshadows profitability metrics, suggesting this stock may be too risky for conservative capital. Investors should exercise extreme caution and prioritize risk management given the elevated bankruptcy probability.
Disclaimer: This content is for informational purposes only and does not constitute financial, investment, or other professional advice. Investing in financial markets involves a significant risk of loss, and past performance is not indicative of future results.
Additional Resources
- Wix.com Ltd. (NASDAQ:WIX) Given Consensus Rating of “Moderate Buy” by Brokerages – MarketBeat (Mar 09, 2026)
- UBS Maintained Buy on Wix.com Ltd. (WIX), March 06, 2026 – Meyka (Mar 09, 2026)
- Cantor Fitzgerald Remains Bullish on Wix.com (WIX) – Finviz (Mar 08, 2026)
- Wix.com (WIX) Climbs 33% on Revenue Growth, Aggressive Buyback – Yahoo Finance (Mar 08, 2026)
- Wix.com Stock Rebounds After Earnings Report Amid AI Concerns – Intellectia AI (Mar 08, 2026)
For more information about Wix.com Ltd., please visit the official website: wix.com
