In a digital landscape where creating a compelling online presence is crucial, Wix.com Ltd. empowers millions by transforming the complexities of web development into user-friendly solutions. As a frontrunner in the software infrastructure sector, Wix offers innovative tools like its drag-and-drop editor and AI-driven logo maker, enabling users to build and manage their websites effortlessly. With a growing base of over 222M registered users, I find myself questioning whether Wix’s robust fundamentals still justify its current market valuation and promising growth trajectory.
Table of contents
Company Description
Wix.com Ltd. is a leading player in the software infrastructure sector, specializing in cloud-based website development and management solutions. Founded in 2006 and headquartered in Tel Aviv, Israel, Wix empowers users across North America, Europe, Latin America, and Asia to create custom websites and applications through its innovative tools like the Wix Editor and Wix ADI. The company’s diverse portfolio also includes Ascend by Wix, Wix Payments, and various vertical-specific applications, catering to a broad spectrum of business needs. With approximately 222M registered users and 6M premium subscriptions, Wix is strategically positioned to influence the digital landscape, driving innovation and accessibility in web creation.
Fundamental Analysis
In this section, I will analyze Wix.com Ltd.’s fundamental metrics, focusing on its income statement, financial ratios, and dividend payout policy.
Income Statement
Below is the Income Statement for Wix.com Ltd., illustrating key financial figures over the last few fiscal years.
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 989M | 1.27B | 1.39B | 1.56B | 1.76B |
| Cost of Revenue | 316M | 489M | 526M | 513M | 565M |
| Operating Expenses | 870M | 1.11B | 1.15B | 1.07B | 1.10B |
| Gross Profit | 673M | 781M | 861M | 1.05B | 1.20B |
| EBITDA | -104M | -28M | -439M | 68M | 187M |
| EBIT | -121M | -47M | -462M | 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 |
The Income Statement reveals a positive trend in both Revenue and Net Income for Wix.com Ltd. over the period. Revenue increased from 989M in 2020 to 1.76B in 2024, demonstrating strong growth. Net Income shifted from negative figures to a solid 138M in 2024, indicating a significant turnaround. Margins have shown improvement, with a notable rise in EBITDA, reflecting better operational efficiency. The latest year showcases a robust performance, suggesting sustained growth, although it’s essential to monitor future expenses and market conditions that could impact these results.
Financial Ratios
The following table presents the financial ratios for Wix.com Ltd. (WIX) over the last few fiscal years.
| Ratio | 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% | -1.76% |
| ROIC | -15.64% | -25.32% | -27.03% | -2.05% | 9.13% |
| WACC | N/A | N/A | N/A | N/A | N/A |
| P/E | N/A | N/A | N/A | 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
In the most recent year (2024), Wix.com displayed a net margin of 7.86%, indicating a recovery from prior losses, though the return on equity remains negative at -1.76%. The current ratio of 0.84 suggests potential liquidity concerns, while the P/E ratio of 86.21 may indicate overvaluation. The debt-to-assets ratio at 50.70% shows a substantial reliance on debt financing, which could be a risk in a volatile market.
Evolution of Financial Ratios
Over the past five years, Wix.com has shown volatility, particularly in net margins and return on equity, reflecting significant operational challenges. The current ratio has fluctuated, indicating liquidity issues, while the P/E ratio has decreased, suggesting a potential reassessment of the company’s valuation as it seeks to stabilize its financial position.
Distribution Policy
Wix.com Ltd. does not pay dividends, reflecting its strategy to reinvest profits into growth initiatives and product development. The company has consistently reported negative earnings, which aligns with its high-growth phase. Additionally, Wix engages in share buybacks, indicating a commitment to returning value to shareholders. This approach, while prudent for long-term growth, poses risks if the company fails to generate sustainable profits. Overall, the lack of dividends appears to support long-term value creation, provided the growth strategy remains effective.
Sector Analysis
Wix.com Ltd. operates in the Software – Infrastructure industry, providing a cloud-based platform for website creation. Its key competitors include Squarespace and Shopify, with advantages in user-friendly tools and a diverse product suite.
Strategic Positioning
Wix.com Ltd. operates in the competitive Software – Infrastructure sector, commanding a significant market share in the website creation and management space. With approximately 222M registered users and 6M premium subscriptions, Wix faces competitive pressure from established players and emerging platforms. Technological disruption, particularly in AI-driven tools for website creation, is reshaping the landscape, requiring Wix to innovate continuously. The company’s cloud-based offerings and diverse feature set position it well, but ongoing vigilance against competitors is crucial for sustaining its market leadership.
Revenue by Segment
The following chart illustrates the revenue distribution between key segments for Wix.com Ltd. during the fiscal year 2024.
In fiscal year 2024, Wix’s revenue from the Creative Subscription segment reached 1.26B, while Business Solutions contributed 496M. The Creative Subscription segment continues to be the primary revenue driver, reflecting a consistent upward trend. However, the Business Solutions segment showed slower growth compared to previous years, indicating potential concentration risks. Notably, the overall revenue growth for the most recent year indicates a deceleration, raising concerns about margin pressures and the need for strategic adjustments in segment performance.
Key Products
Wix.com Ltd. offers a variety of products designed to empower users to 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 visual development platform that allows users to easily create and customize websites. |
| Wix ADI | An Artificial Design Intelligence tool that helps users generate a website tailored to their specific needs. |
| Corvid by Wix | A development platform for creating advanced web applications and custom functionalities on Wix sites. |
| Ascend by Wix | A comprehensive suite of around 20 tools that help businesses connect with customers and automate workflows. |
| Wix Logo Maker | A tool that utilizes AI to help users design professional logos in minutes. |
| Wix Answers | A customer support infrastructure that enables businesses to assist their users across various channels. |
| Wix Payments | A payment processing solution that allows users to receive payments directly through their Wix site. |
| App Market | A marketplace offering a variety of free and paid web applications that enhance website functionality. |
| 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 oversee their Wix operations on the go. |
These products collectively showcase Wix’s commitment to providing a comprehensive platform for both individual users and businesses to thrive online.
Main Competitors
No verified competitors were identified from available data. However, Wix.com Ltd. has established itself as a significant player in the cloud-based web development platform sector. With a market cap of approximately 7.05B and a diverse range of services tailored to various business needs, Wix holds a competitive position particularly strong in North America and Europe.
Competitive Advantages
Wix.com Ltd. boasts a robust competitive edge with its user-friendly cloud-based platform that caters to a diverse global audience. Its innovative tools, like the Wix Editor and AI-driven solutions such as the Wix Logo Maker, empower users of all skill levels to create customized websites efficiently. With a solid base of 222M registered users and 6M premium subscriptions, Wix is well-positioned for growth. The company is exploring new markets and expanding its suite of services, including recent innovations in e-commerce and payment solutions, which present significant opportunities for revenue enhancement and market penetration in the coming years.
SWOT Analysis
The purpose of this analysis is to evaluate Wix.com Ltd.’s strengths, weaknesses, opportunities, and threats to inform strategic decisions.
Strengths
- Strong brand recognition
- Diverse product offerings
- Large user base (222M registered users)
Weaknesses
- Dependence on subscription model
- Limited profitability
- High competition in industry
Opportunities
- Expansion into new markets
- Increasing demand for website solutions
- Growth in e-commerce
Threats
- Intense competition from established players
- Rapid technology changes
- Economic downturns impacting user spending
Overall, Wix.com Ltd. possesses a robust market position with significant growth potential, yet must navigate competitive threats and address its weaknesses to sustain long-term success. This SWOT analysis indicates that focusing on innovation and market expansion will be crucial for maintaining its competitive edge.
Stock Analysis
Over the past year, Wix.com Ltd. (WIX) has experienced notable price movements, reflecting the dynamics of a bullish trend despite recent volatility.
Trend Analysis
Wix.com Ltd. has shown a price change of +2.88% over the past year, indicating a bullish trend. However, the trend is currently experiencing deceleration, with notable highs at 240.89 and lows at 118.1. A standard deviation of 30.57 suggests considerable price volatility, which may influence investor sentiment moving forward.
Volume Analysis
In the last three months, the trading volume for WIX has been 455.33M, with buyer-driven activity accounting for 55.02% of the total volume. The volume trend is increasing, indicating a slightly buyer-dominant sentiment among investors. This uptick in trading activity may suggest a growing interest in the stock, reflecting positive investor engagement despite the recent price fluctuations.
Analyst Opinions
Recent analysis on Wix.com Ltd. (WIX) indicates a cautious outlook, with a consensus rating of “Hold.” Analysts have expressed concerns about the company’s performance, reflected in a “C” rating from several sources. Key arguments include a low return on equity (1) and poor price-to-earnings ratios (1), suggesting that while Wix has potential, its current financial metrics do not inspire strong buy recommendations. Analysts advise that investors should closely monitor Wix’s performance before making any significant moves.
Stock Grades
Wix.com Ltd. has garnered consistent support from several reputable grading companies, reflecting a stable outlook among analysts.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Needham | Maintain | Buy | 2025-10-27 |
| JMP Securities | Maintain | Market Outperform | 2025-10-03 |
| Piper Sandler | Maintain | Overweight | 2025-09-26 |
| JMP Securities | Maintain | Market Outperform | 2025-09-23 |
| RBC Capital | Maintain | Outperform | 2025-08-19 |
| JMP Securities | Maintain | Market Outperform | 2025-08-18 |
| JMP Securities | Maintain | Market Outperform | 2025-08-11 |
| UBS | Maintain | Buy | 2025-08-07 |
| Barclays | Maintain | Overweight | 2025-08-07 |
| Scotiabank | Maintain | Sector Outperform | 2025-08-07 |
The overall trend indicates a strong consensus among analysts, with most grades holding steady at “Buy” or similar positive ratings. This suggests investor confidence in Wix’s market position and future growth potential.
Target Prices
The current consensus among analysts for Wix.com Ltd. (WIX) indicates a positive outlook.
| Target High | Target Low | Consensus |
|---|---|---|
| 255 | 193 | 218.6 |
Overall, analysts expect Wix.com to reach a consensus target price of approximately 218.6, suggesting a favorable investment potential within this range.
Consumer Opinions
Consumer sentiment towards Wix.com Ltd. is a mix of enthusiasm for its user-friendly design tools and frustration over customer support issues.
| Positive Reviews | Negative Reviews |
|---|---|
| “Wix offers an intuitive interface that’s easy to navigate.” | “Customer service response times can be frustratingly slow.” |
| “The design flexibility allows for creative freedom.” | “Some features feel limited unless you upgrade to premium plans.” |
| “Great for small businesses looking to build a quick website.” | “Occasional bugs in the editor can disrupt workflow.” |
Overall, consumer feedback indicates strong appreciation for Wix’s design capabilities, but recurring complaints about customer support and feature limitations suggest areas for improvement.
Risk Analysis
In evaluating Wix.com Ltd. (WIX), it’s essential to consider the following risks that could affect its market performance.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in demand for website-building services | High | High |
| Competition | Increased competition from similar platforms | Medium | High |
| Regulatory | Changes in internet regulations affecting operations | Medium | Medium |
| Cybersecurity | Potential data breaches impacting user trust | Low | High |
| Economic | Macroeconomic downturn reducing consumer spending | Medium | Medium |
Given the current competitive landscape and recent economic uncertainties, market risk and competition appear to be the most likely and impactful risks for Wix.com Ltd. as of 2025.
Should You Buy Wix.com Ltd.?
Wix.com Ltd. has a positive net margin of 7.86%, indicating profitability, but it struggles with substantial debt, reflected in a total debt of 970M and a debt-to-equity ratio of -12.31. The company’s fundamentals have evolved from negative performance in previous years to a more stable position in 2024, though it still carries a rating of C, indicating room for improvement.
Given the current financial metrics, the analysis is based on the following factors: the net margin is positive at 7.86%, reflecting profitability, and the return on invested capital (ROIC) stands at 9.13%, which exceeds the weighted average cost of capital (WACC) of 9.49%. The long-term trend is bullish, while current buyer volume slightly surpasses seller volume.
A. Favorable signals The positive net margin of 7.86% suggests that Wix.com Ltd. is currently generating profit. Additionally, the ROIC of 9.13% exceeds the WACC of 9.49%, indicating value destruction, but it is essential to note that the company is still producing returns above the cost of capital.
B. Unfavorable signals The company’s WACC of 9.49% is higher than the ROIC of 9.13%, indicating value destruction. The rating of C suggests that there are significant areas for improvement. Moreover, the total debt of 970M reflects a high leverage position, which poses financial risks.
C. Considering the positive net margin and the ROIC exceeding the WACC, this could imply favorable conditions for long-term investors. However, the value destruction indicated by the ROIC being lower than the WACC suggests caution is warranted.
The high price-to-earnings ratio (PER) of 86.21 indicates that the stock is overvalued, and the lack of consistent growth in net income raises a risk of correction.
Overall, the company faces risks associated with high debt levels and the potential for volatility in its financial performance.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Wix.Com Q3 Preview: Analysts Expect Earnings Beat, Price Risks Into Shares – Benzinga (Nov 18, 2025)
- 2,279 Shares in Wix.com Ltd. $WIX Purchased by Semanteon Capital Management LP – MarketBeat (Nov 18, 2025)
- What To Expect From Wix’s (WIX) Q3 Earnings – Finviz (Nov 18, 2025)
- Wix.com Q3 2025 Earnings Preview – MSN (Nov 18, 2025)
- How Wix.com Ltd. (W1X) stock stacks up against competitors – Earnings Growth Summary & Real-Time Chart Breakout Alerts – newser.com (Nov 18, 2025)
For more information about Wix.com Ltd., please visit the official website: wix.com
