Imagine a world where anyone can effortlessly build a stunning website in minutes, transforming the way businesses connect with their customers. Wix.com Ltd. has revolutionized the software infrastructure industry with its cloud-based platform, enabling millions to create custom sites tailored to their needs. Known for its innovation and user-friendly tools, Wix stands out as a formidable player in digital creation. As we delve into Wix’s financial health and market position, we must ask: do its fundamentals still justify its current valuation and future growth potential?
Table of contents
Company Description
Wix.com Ltd. is a prominent player in the Software – Infrastructure sector, established in 2006 and headquartered in Tel Aviv, Israel. The company offers a cloud-based platform that empowers users to create and manage websites and web applications across major markets, including North America, Europe, and Asia. Its core offerings include Wix Editor, Wix ADI, and Corvid by Wix, alongside a comprehensive suite of services like Ascend by Wix and Wix Payments. With approximately 222M registered users and over 6M premium subscriptions, Wix positions itself as a leader in the website development space. The company’s innovative approach and extensive ecosystem continue to shape the digital landscape, enabling businesses to thrive online.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of Wix.com Ltd., focusing on its income statement, financial ratios, and dividend payout policy.
Income Statement
The following table presents Wix.com Ltd.’s income statement, showcasing key financial metrics over the past five fiscal years.
| 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 | -105M | -48M | -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 last five years, Wix has shown a solid upward trend in Revenue, increasing from 984M in 2020 to 1.76B in 2024. Net Income, however, has fluctuated significantly, shifting from losses in the earlier years to a profit of 138M in 2024. Gross margins have remained relatively stable, indicating efficient cost management. In the most recent year, while Revenue growth was robust, the substantial increase in EBITDA to 186M reflects improved operational efficiency, suggesting potential for continued growth moving forward.
Financial Ratios
Below is a summary of the financial ratios for Wix.com Ltd. over the 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 | -15.34% | -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
Wix.com Ltd. exhibits several financial ratios that indicate significant challenges. The liquidity ratios, with a current ratio of 0.845 and a quick ratio of 0.845, suggest potential difficulties in covering short-term obligations. The solvency ratio stands at 0.085, indicating a high debt-to-equity ratio of -12.311, which raises concerns regarding financial stability. Profitability metrics are weak, with a net profit margin of 7.86%, and an EBITDA margin of -5.93%, reflecting ongoing operational difficulties. Efficiency ratios, such as receivables turnover at 38.14, point to a generally effective collection process. However, the overall financial health remains precarious, necessitating cautious consideration for investors.
Evolution of Financial Ratios
Over the past five years, Wix.com has shown a gradual decline in profitability and liquidity ratios, with a particularly sharp drop in net profit margins from positive to negative figures. This trend highlights an ongoing struggle to maintain operational efficiency and financial stability.
Distribution Policy
Wix.com Ltd. does not pay dividends, reflecting its focus on reinvestment to fuel growth and innovation. The company prioritizes research and development, as evidenced by its negative net income and high growth phase. Additionally, Wix engages in share buybacks, utilizing capital to enhance shareholder value. While this strategy supports long-term growth potential, it carries risks if not managed prudently. Careful evaluation of financial health and market conditions will be crucial for sustainable value creation.
Sector Analysis
Wix.com Ltd. operates in the Software – Infrastructure industry, providing a cloud-based platform for website creation. Its competitive advantages include user-friendly tools and a broad suite of services tailored for diverse business needs.
Strategic Positioning
Wix.com Ltd. holds a substantial market share within the website development sector, leveraging its cloud-based platform to appeal to a diverse user base. Currently, the company boasts approximately 222M registered users and 6M premium subscriptions, indicating strong brand recognition and customer loyalty. However, competitive pressure from emerging platforms and technological disruptions necessitate ongoing innovation. As the industry evolves, Wix must continue to adapt its offerings to maintain its edge against rivals while managing risk effectively.
Revenue by Segment
This chart illustrates the revenue breakdown by segment for Wix.com Ltd. for the fiscal year ending December 31, 2024.
In 2024, Wix’s revenue from the Creative Subscription segment reached 1.26B, while Business Solutions contributed 496M. Overall, both segments demonstrated upward trends, with Creative Subscription being the primary growth driver. Notably, Business Solutions experienced a decline compared to 2023, indicating potential concentration risks as the company relies more on its Creative Subscription segment for revenue. The growth rate in Creative Subscription also appears to be slowing, which may necessitate strategic adjustments to maintain momentum in the coming years.
Key Products
Wix.com Ltd. offers a variety of products designed to help users create and manage their online presence effectively. Below is a table summarizing the key products provided by Wix:
| Product | Description |
|---|---|
| Wix Editor | A drag-and-drop visual development platform for easy website creation and editing. |
| Wix ADI | An artificial intelligence tool that assists users in building a customized website based on their needs. |
| Corvid by Wix | A platform for advanced users to create websites and web applications using coding and APIs. |
| Ascend by Wix | A suite of approximately 20 tools designed to help users connect with customers and automate workflows. |
| Wix Logo Maker | An AI-driven tool that allows users to generate logos tailored to their business identity. |
| Wix Answers | A comprehensive support infrastructure enabling businesses to assist their customers across multiple channels. |
| Wix Payments | A payment processing platform that facilitates transactions directly through users’ Wix websites. |
| App Market | A marketplace where users can install various free and paid web applications to enhance their sites. |
| 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’s services on the go. |
These products reflect Wix’s commitment to providing innovative solutions for businesses and individuals seeking to establish a strong online presence.
Main Competitors
The competitive landscape for Wix.com Ltd. is characterized by several prominent players in the software infrastructure space, particularly focused on web development and online services.
| Company | Market Cap |
|---|---|
| UiPath Inc. | 9.94B |
| Klaviyo, Inc. | 8.90B |
| Dropbox, Inc. | 8.25B |
| Paylocity Holding Corporation | 8.13B |
| Confluent, Inc. | 8.09B |
| The Descartes Systems Group Inc. | 7.95B |
| Informatica Inc. | 7.54B |
| Bullish | 6.99B |
| Sportradar Group AG | 6.75B |
| Wix.com Ltd. | 5.58B |
| Core Scientific, Inc. | 5.31B |
Wix.com Ltd. competes with a range of established companies primarily in North America and Europe, each offering various solutions for web development and online business management. This diverse competition reflects a dynamic market with ongoing innovation and adaptation.
Competitive Advantages
Wix.com Ltd. boasts several competitive advantages in the software infrastructure industry. Its user-friendly platform, featuring a drag-and-drop editor, empowers individuals and businesses to create websites effortlessly. The company continually innovates, with future opportunities in expanding its product suite, such as AI-driven tools like the Wix Logo Maker and enhanced e-commerce solutions through Wix Payments. Additionally, Wix’s growing user base of approximately 222M positions it well for market penetration in emerging economies, allowing for sustained growth and competitive resilience in a dynamic digital landscape.
SWOT Analysis
The SWOT analysis provides insights into the strengths, weaknesses, opportunities, and threats related to Wix.com Ltd., aiding strategic decision-making.
Strengths
- Strong brand recognition
- Diverse product offerings
- Large user base
Weaknesses
- No dividend payments
- High Beta (1.416)
- Dependence on subscription revenue
Opportunities
- Growing demand for website creation
- Expansion into emerging markets
- Increasing use of AI in web development
Threats
- Intense competition
- Economic downturns
- Cybersecurity risks
The overall SWOT assessment indicates that while Wix.com Ltd. possesses 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 market position.
Stock Analysis
Over the past year, Wix.com Ltd. (WIX) has experienced significant price movements, culminating in a bearish trading dynamic that reflects broader market challenges.
Trend Analysis
Wix.com’s stock has seen a percentage decline of -20.04% over the past two years, indicating a bearish trend. Notably, the stock reached a high of 240.89 and a low of 95.51 during this period. The trend shows deceleration, with a standard deviation of 31.81, suggesting increased volatility. Recent analysis indicates a steeper decline of -44.97% from September 21, 2025, to December 7, 2025, with a trend slope of -7.18.
Volume Analysis
In the last three months, Wix.com’s trading volume has totaled 476.85M, with 54.04% attributed to buyers. The volume is currently increasing, though recent data shows a seller-dominant behavior with buyer dominance at only 37.6%. This shift suggests a cautious investor sentiment as market participation leans towards selling pressures.
Analyst Opinions
Recent analyst recommendations for Wix.com Ltd. (WIX) indicate a cautious stance. The overall rating stands at C+, with analysts highlighting strengths in discounted cash flow and return on assets, while noting weaknesses in return on equity and other valuation metrics. Despite these mixed signals, the consensus leans towards a hold strategy for 2025. Analysts recommend monitoring debt levels and overall market trends before making significant investment decisions.
Stock Grades
Wix.com Ltd. (WIX) has received consistent evaluations from several reputable grading companies. Below is a summary of the most recent stock grades:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Cantor Fitzgerald | Maintain | Overweight | 2025-11-20 |
| Needham | Maintain | Buy | 2025-11-20 |
| RBC Capital | Maintain | Outperform | 2025-11-20 |
| Morgan Stanley | Maintain | Overweight | 2025-11-20 |
| Scotiabank | Maintain | Sector Outperform | 2025-11-20 |
| Oppenheimer | Maintain | Outperform | 2025-11-20 |
| Wells Fargo | Maintain | Overweight | 2025-11-20 |
| Evercore ISI Group | Maintain | Outperform | 2025-11-20 |
| Citigroup | Maintain | Buy | 2025-11-20 |
| Barclays | Maintain | Overweight | 2025-11-20 |
Overall, the trend in grades for Wix.com Ltd. shows a strong consensus among analysts to maintain existing ratings, with several indicating positive outlooks such as “Overweight” and “Outperform.” This stability suggests confidence in the company’s ongoing performance and market position.
Target Prices
The consensus target price for Wix.com Ltd. (WIX) reflects positive expectations among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 210 | 135 | 184.3 |
Overall, analysts anticipate Wix.com could reach a price of approximately 184.3, indicating a favorable outlook in the market.
Consumer Opinions
Consumer sentiment about Wix.com Ltd. reflects a mix of appreciation for its user-friendly platform and concerns over customer support quality.
| Positive Reviews | Negative Reviews |
|---|---|
| “Wix makes website building effortless!” | “Customer service is often unresponsive.” |
| “Fantastic templates and design options.” | “Pricing can be misleading with hidden fees.” |
| “Great tools for SEO and marketing.” | “Some features feel limited for advanced users.” |
Overall, consumer feedback highlights Wix’s intuitive design and robust marketing tools as key strengths, while customer support and pricing transparency are noted as significant weaknesses.
Risk Analysis
In analyzing Wix.com Ltd. (WIX), I’ve identified several key risks that could impact its performance. Below is a summary of these risks.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Competition | Intense competition from established website builders and new entrants. | High | High |
| Regulatory Changes | Potential changes in data protection and online business regulations. | Medium | High |
| Economic Downturn | A global economic slowdown could reduce consumer spending on digital services. | Medium | Medium |
| Technology Risks | Cybersecurity threats may disrupt service and damage reputation. | High | High |
| Customer Retention | Difficulty in retaining customers due to evolving consumer preferences. | Medium | Medium |
Given the current landscape, the most pressing risks for Wix are intense market competition and cybersecurity threats, both of which have high probabilities and significant impacts on the company’s future.
Should You Buy Wix.com Ltd.?
Wix.com Ltd. has demonstrated a significant increase in revenue, reaching 2.04B in 2025, which represents a growth of 15.89% from the previous year. However, it faces challenges with profitability, as it reported an operating loss of -155M and an EBITDA of -121M. The company’s total debt stands at 970M, with a WACC of 9.44, suggesting value destruction since the return on invested capital (ROIC) is 9.13%. The company’s rating is C+, indicating moderate performance with considerable room for improvement in key financial metrics.
Favorable signals
Wix.com Ltd. demonstrates several favorable elements in its financial performance. The company has achieved a revenue growth of 12.74% and a gross margin of 67.93%. Additionally, Wix has experienced a gross profit growth of 14.0% and a significant EBIT growth of 268.97%. The interest expense as a percentage of revenue stands at a low 0.22%, and the net margin is a positive 7.86%, with a remarkable net margin growth of 270.25%. Furthermore, EPS growth has reached an impressive 314.04%.
Unfavorable signals
Despite the favorable signals, Wix.com Ltd. also faces several unfavorable elements. The return on equity (ROE) is notably negative at -175.57%, and the price-to-earnings (P/E) ratio is very high at 86.21, indicating potential overvaluation. Additionally, the current ratio is a concerning 0.84, suggesting potential liquidity issues, while the debt-to-assets ratio is 50.7%, which indicates a high level of debt. Furthermore, the dividend yield is 0%, indicating no returns to shareholders in this respect.
Conclusion
Considering the overall favorable opinion from the income statement and the unfavorable assessment from the ratios, it might be prudent to wait for further indications of stability in Wix.com Ltd.’s financial health before making any investment decisions. Moreover, as the recent seller volume exceeds the buyer volume, I would suggest waiting for buyers to return.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Wix.com Ltd. (WIX): A Bull Case Theory – Yahoo Finance (Dec 04, 2025)
- Is Wix.com Stock Worth the Hype? – timothysykes.com (Dec 03, 2025)
- Wix.com Ltd. $WIX Shares Purchased by Schroder Investment Management Group – MarketBeat (Dec 03, 2025)
- Why I Am Upgrading Wix.com (NASDAQ:WIX) – Seeking Alpha (Dec 03, 2025)
- Wix’s Stunning Q3 Results: A Rollercoaster Ride? – StocksToTrade (Dec 04, 2025)
For more information about Wix.com Ltd., please visit the official website: wix.com
