Wix.com Ltd. revolutionizes how businesses and individuals create and manage their online presence, making website development accessible to everyone, regardless of technical expertise. With its innovative cloud-based platform, Wix empowers over 222M registered users globally, providing tools like the Wix Editor and Ascend by Wix to streamline website creation and customer engagement. As I analyze Wix’s financial health and market position, I wonder: do its robust fundamentals still justify the current market valuation, or is there potential for growth ahead?
Table of contents
Company Description
Wix.com Ltd. is a leading player in the cloud-based website development space, enabling users worldwide to create stunning websites and web applications effortlessly. Founded in 2006 and headquartered in Tel Aviv, Israel, Wix provides a comprehensive suite of tools including the intuitive Wix Editor, Wix ADI for tailored website creation, and various business management tools through its Ascend platform. With a significant presence in North America, Europe, Latin America, and Asia, the company boasts approximately 222M registered users and 6M premium subscriptions. By continuously innovating and expanding its offerings, Wix positions itself as a vital resource for businesses looking to thrive online, shaping the future of web development and digital commerce.
Fundamental Analysis
In this section, I will analyze Wix.com Ltd.’s financial health by examining its income statement, financial ratios, and dividend payout policy.
Income Statement
The following table summarizes the income statement for Wix.com Ltd. over the last five fiscal years, highlighting key financial metrics and performance.
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 984M | 1.27B | 1.39B | 1.56B | 1.76B |
| Cost of Revenue | 313M | 489M | 526M | 513M | 565M |
| Operating Expenses | 870M | 1.11B | 1.15B | 1.07B | 1.10B |
| Gross Profit | 671M | 781M | 861M | 1.05B | 1.20B |
| EBITDA | -104M | -29M | -440M | 68M | 186M |
| EBIT | -122M | -48M | -463M | 42M | 155M |
| Interest Expense | 30M | 6M | 6M | 5M | 4M |
| Net Income | -167M | -117M | -425M | 33M | 138M |
| EPS | -3.98 | -2.06 | -7.33 | 0.58 | 2.49 |
| Filing Date | 2021-03-25 | 2022-04-01 | 2023-03-30 | 2024-03-22 | 2025-03-21 |
Interpretation of Income Statement
Over the past five years, Wix.com Ltd. has shown a steady increase in revenue, rising from 984M in 2020 to 1.76B in 2024, reflecting a robust growth trajectory. Net income has also significantly improved, transitioning from a loss of 167M in 2020 to a profit of 138M in 2024. This shift indicates effective cost management, especially in operating expenses, which have remained relatively stable despite rising revenues. The most recent year showed a strong recovery in EBITDA and EBIT, suggesting improved operational efficiency and profitability, although interest expenses have gradually decreased, highlighting better financial management.
Financial Ratios
Below is a summary of Wix.com Ltd.’s financial ratios over the last few years.
| Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | -21.90% | -9.23% | -30.62% | 2.12% | 7.86% |
| ROE | -75.39% | -80.44% | 161.40% | -60.82% | -175.57% |
| ROIC | -15.64% | -54.75% | -50.25% | -2.05% | 9.13% |
| P/E | -62.83 | -76.74 | -10.49 | 210.98 | 86.21 |
| P/B | 47.37 | 61.73 | -16.93 | -128.31 | -151.35 |
| Current Ratio | 1.74 | 1.79 | 0.96 | 1.36 | 0.84 |
| Quick Ratio | 1.71 | 1.76 | 0.95 | 1.36 | 0.84 |
| D/E | 3.24 | 7.10 | -4.29 | -18.29 | -12.31 |
| Debt-to-Assets | 49.17% | 50.20% | 64.29% | 55.22% | 50.70% |
| Interest Coverage | -6.47 | -53.73 | -48.03 | -5.06 | 25.92 |
| Asset Turnover | 0.52 | 0.62 | 0.79 | 0.87 | 0.92 |
| Fixed Asset Turnover | 7.96 | 8.38 | 4.49 | 2.80 | 3.33 |
| Dividend Yield | 0% | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
Analyzing Wix.com Ltd.’s financial ratios for FY 2024 reveals several areas of concern regarding its financial health. The liquidity ratios show a current ratio of 0.845 and a quick ratio of 0.845, indicating potential liquidity issues, as values below 1 suggest the company may struggle to cover short-term liabilities. The solvency ratio stands at 0.085, reflecting high debt levels against equity, which is concerning. Profitability ratios are weak, with a net profit margin of 7.86% and a negative EBITDA margin of -5.93%. The company also reports a high price-to-earnings ratio of 86.21, signaling that investors may be betting on future growth despite current losses. Overall, these ratios indicate significant financial stress and warrant caution from potential investors.
Evolution of Financial Ratios
Over the past five years, Wix’s financial ratios have shown a troubling trend. The current ratio has declined from 1.795 in 2021 to 0.845 in 2024, indicating worsening liquidity. Profitability has remained weak, with net profit margins fluctuating but not recovering from negative EBITDA margins seen in previous years. These trends highlight ongoing financial challenges that investors should carefully consider.
Distribution Policy
Wix.com Ltd. does not pay dividends, reflecting its strategy of prioritizing reinvestment in growth and innovation. The company is in a high-growth phase, focusing on enhancing its platform and expanding its market presence. Additionally, Wix engages in share buybacks, although no dividends are distributed. This approach suggests a commitment to long-term value creation for shareholders, as reinvesting profits can potentially yield higher returns than immediate cash distributions.
Sector Analysis
Wix.com Ltd. operates in the Software – Infrastructure sector, offering a cloud-based platform for website creation, competing with established players like Squarespace and Shopify. Its key advantages include user-friendly tools and a broad suite of features.
Strategic Positioning
Wix.com Ltd. holds a significant position in the website development industry, with a market cap of approximately 5.33B USD. The company has made notable strides in market share, catering to a user base of around 222M registered users and 6M premium subscriptions. Despite competitive pressure from platforms like Squarespace and Shopify, Wix’s diverse offerings, including its drag-and-drop editor and artificial intelligence-driven tools, help maintain its competitive edge. However, the rapid pace of technological disruption in the software infrastructure sector requires ongoing innovation to stay relevant.
Revenue by Segment
The following chart illustrates Wix.com Ltd.’s revenue segmentation for the fiscal years 2020 to 2024, highlighting the performance of key business divisions over this period.
Across the reported period, Wix’s revenue growth has been predominantly driven by the Creative Subscription segment, which showed a significant increase from 951M in 2020 to 1.26B in 2024. The Business Solutions segment also experienced growth, rising from 353M in 2020 to nearly 496M in 2024, albeit at a slower rate. Notably, the most recent year saw a deceleration in growth for both segments compared to prior years, raising potential concerns about margin pressures and increased competition in the market.
Key Products
Wix.com Ltd. offers a range of innovative products designed to help users create and manage their online presence effectively. Below is a table summarizing some of their key products:
| Product | Description |
|---|---|
| Wix Editor | A drag-and-drop interface that allows users to design and edit their websites visually without any coding experience. |
| Wix ADI | An artificial intelligence tool that helps users create personalized websites tailored to their specific needs. |
| Corvid by Wix | A development platform enabling users to build advanced web applications and customize their websites with code. |
| Ascend by Wix | A comprehensive suite of tools, approximately 20 features, that help businesses automate tasks and connect with customers. |
| Wix Logo Maker | An AI-driven tool that assists users in generating unique logos for their brands quickly and easily. |
| Wix Answers | A support infrastructure that allows businesses to manage customer inquiries across multiple communication channels. |
| Wix Payments | A secure payment platform that enables users to accept payments directly through their Wix websites. |
| App Market | A marketplace for users to browse and install a variety of free and paid web applications to enhance their websites. |
| Wix Arena | An online platform connecting users with web experts for assistance in website creation and management. |
| Wix App | A mobile application that allows users to manage their websites and access Wix services on-the-go. |
These products collectively empower users to create, manage, and grow their online businesses efficiently.
Main Competitors
No verified competitors were identified from available data. Wix.com Ltd. holds a significant position in the Software – Infrastructure sector, with an estimated market share that reflects its strong competitive position and extensive user base of approximately 222M registered users and 6M premium subscriptions. The company serves a global market, including regions such as North America, Europe, Latin America, and Asia, which enhances its sector dominance.
Competitive Advantages
Wix.com Ltd. possesses several competitive advantages that position it well for future growth. Its user-friendly drag-and-drop interface allows users of all skill levels to create professional websites, making it accessible to a broad audience. Additionally, the introduction of AI-driven tools like Wix Logo Maker enhances user experience and retention. Looking ahead, the company plans to expand its product offerings, including vertical-specific applications and enhanced e-commerce solutions, which will tap into emerging markets and further solidify its presence in the global website development space. These initiatives present significant opportunities for growth and market penetration.
SWOT Analysis
This analysis aims to identify the key strengths, weaknesses, opportunities, and threats facing Wix.com Ltd. (WIX) to inform strategic decisions.
Strengths
- Strong brand recognition
- Diverse product offerings
- Large user base
Weaknesses
- High competition
- Dependence on subscription model
- Limited profitability
Opportunities
- Expansion into new markets
- Growth in e-commerce
- Increased demand for digital services
Threats
- Market volatility
- Cybersecurity risks
- Changing consumer preferences
The overall SWOT assessment indicates that while Wix has significant strengths and opportunities, it must address its weaknesses and remain vigilant against external threats. This balanced approach will be essential for sustaining growth and enhancing its market position.
Stock Analysis
Over the past year, Wix.com Ltd. (WIX) has experienced significant price fluctuations, culminating in a bearish trend characterized by a notable decline in stock value.
Trend Analysis
Analyzing the price movement over the last 12 months, Wix.com Ltd. has recorded an approximate decline of -18.96%. This indicates a bearish trend as the percentage change is below the -2% threshold. Notably, the stock reached a high of 240.89 and a low of 95.51 during this period. The trend is showing signs of deceleration, with a standard deviation of 31.52, suggesting considerable volatility in stock prices.
Volume Analysis
In the last three months, Wix.com Ltd. has seen a total trading volume of approximately 474M shares, with buyer-driven activity accounting for about 53.58% of the total. Volume trends are increasing, although recent data indicates a slight seller dominance, with buyers making up only 44.61% of the recent trading volume. This suggests a cautious investor sentiment, as market participation appears to be shifting towards sellers in the short term.
Analyst Opinions
Recent analyst recommendations for Wix.com Ltd. (WIX) indicate a cautious stance, with a consensus rating of “Hold.” Analysts highlight the company’s challenges in return on equity and debt-to-equity ratios, which have raised concerns. Notably, an analyst has assigned a rating of “C,” reflecting a mixed outlook due to its low scores in critical financial metrics like price-to-earnings and return on assets. Given these factors, I advise investors to exercise caution and consider potential risks before making investment decisions.
Stock Grades
Wix.com Ltd. (WIX) has received consistent ratings from several reputable grading companies. Below is a summary of the current stock grades:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | maintain | Buy | 2025-11-20 |
| Needham | maintain | Buy | 2025-11-20 |
| Scotiabank | maintain | Sector Outperform | 2025-11-20 |
| RBC Capital | maintain | Outperform | 2025-11-20 |
| Morgan Stanley | maintain | Overweight | 2025-11-20 |
| B. Riley Securities | maintain | Buy | 2025-11-20 |
| Oppenheimer | maintain | Outperform | 2025-11-20 |
| Cantor Fitzgerald | maintain | Overweight | 2025-11-20 |
| Benchmark | maintain | Buy | 2025-11-20 |
| Citizens | maintain | Market Outperform | 2025-11-20 |
Overall, the trend in grades for Wix.com Ltd. indicates a strong confidence among analysts, with multiple firms maintaining their positive ratings. The consistent ratings suggest that investors may consider this stock a stable option for their portfolios.
Target Prices
The consensus among analysts for Wix.com Ltd. (WIX) indicates a promising outlook.
| Target High | Target Low | Consensus |
|---|---|---|
| 210 | 135 | 184.3 |
Overall, analysts expect Wix.com to reach a consensus target price of approximately 184.3, reflecting a balanced view between the high and low estimates.
Consumer Opinions
Consumer sentiment towards Wix.com Ltd. reveals a mix of satisfaction and frustration, reflecting the diverse experiences of its user base.
| Positive Reviews | Negative Reviews |
|---|---|
| “Wix offers an intuitive platform for website building.” | “Customer support is often unresponsive.” |
| “The templates are visually appealing and easy to customize.” | “Pricing can be misleading with hidden fees.” |
| “Great for small businesses looking to establish an online presence.” | “Some users report issues with site loading speeds.” |
| “User-friendly interface makes it accessible for beginners.” | “Limited SEO capabilities compared to competitors.” |
Overall, consumer feedback highlights Wix’s user-friendly design and appealing templates as major strengths, while concerns about customer support and pricing transparency are notable weaknesses.
Risk Analysis
In assessing the investment potential of Wix.com Ltd. (WIX), I’ve identified critical risks that could affect its performance. Below is a summary table:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Competition | Increasing competition from new website builders. | High | High |
| Regulatory Changes | Potential changes in data privacy regulations. | Medium | High |
| Economic Downturn | A global economic slowdown could reduce customer spend. | Medium | Medium |
| Technology Risks | Risks related to platform outages or security breaches. | Low | High |
| Customer Retention | Difficulty in retaining subscribers amid alternatives. | High | Medium |
The most likely and impactful risks for Wix.com include intense market competition, which has surged with new entrants, and regulatory changes that could significantly alter operational costs. Additionally, maintaining customer retention against rising alternatives remains crucial for sustained growth.
Should You Buy Wix.com Ltd.?
Wix.com Ltd. has shown a positive net margin of 7.86%, indicating profitability, but is currently facing a bearish stock trend with a significant recent price decline of 44.23%. The company carries a total debt of 970M, representing a high debt level relative to its equity of 5.74B, and it has received a rating of C, suggesting average performance compared to peers.
Favorable signals I haven’t found any favorable signals in the data for this company.
Unfavorable signals The company has a high total debt of 970M, which raises concerns about its financial leverage. Furthermore, the recent seller volume has exceeded buyer volume, indicating a lack of demand for the stock. The stock price has experienced a significant decline of 44.23% in the recent period, reflecting a bearish sentiment in the market. Lastly, the company’s rating of C suggests that it is performing below optimal levels compared to its peers.
Conclusion Considering the unfavorable signals, it might be more prudent to wait for improvements in the company’s financial health and market sentiment before making investment decisions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Wix.com Ltd. (NASDAQ:WIX) Given Consensus Recommendation of “Moderate Buy” by Brokerages – MarketBeat (Nov 29, 2025)
- Wix.com Ltd. (WIX) is Attracting Investor Attention: Here is What You Should Know – Yahoo Finance (Nov 26, 2025)
- What Wix.com (WIX)’s Raised Revenue Outlook and Base44 Transition Means for Shareholders – simplywall.st (Nov 29, 2025)
- Wix.com to offer $750M of convertible senior notes in private offering – MSN (Nov 28, 2025)
- 5 Revealing Analyst Questions From Wix’s Q3 Earnings Call – Finviz (Nov 26, 2025)
For more information about Wix.com Ltd., please visit the official website: wix.com
