This article first appeared on GuruFocus .
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Total Bookings (Q4 2025):$535 million, up 15% year-over-year.
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Total Revenue (Q4 2025):$524 million, up 14% year-over-year.
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Base44 ARR:Approximately $100 million, a significant milestone.
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Gross Payment Volume (GPV) (Q4 2025):$3.7 billion, up 11% year-over-year.
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Transaction Revenue Growth (Q4 2025):18% year-over-year.
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Partners Revenue (Q4 2025):$203 million, up 21% year-over-year.
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Non-GAAP Gross Margin (Q4 2025):68%.
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Non-GAAP Operating Income (Q4 2025):15% of revenue.
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Free Cash Flow (Q4 2025):$156 million, 30% of revenue.
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Total Bookings (Full Year 2025):$2.07 billion, up 13% year-over-year.
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Total Revenue (Full Year 2025):$1.993 billion, up 13% year-over-year.
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Total Consolidated ARR (End of 2025):$1.836 billion, up 14% year-over-year.
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Free Cash Flow (Full Year 2025):$605 million, 30% of revenue.
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Net Revenue Retention (2025):105%.
Release Date: March 04, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Wix.com Ltd ( NASDAQ:WIX ) reported strong cohort momentum with new user bookings maintaining double-digit growth in Q4 2025.
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The introduction of Wix Harmony has shown promising early performance, particularly in conversion and monetization metrics.
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Base44, acquired by Wix, has rapidly scaled, reaching approximately $100 million in ARR, highlighting its accelerating momentum.
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Wix's total addressable market has expanded significantly due to its entry into the application space, facilitated by the acquisition of Base44.
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The company plans to complete a large portion of its $2 billion stock repurchase program in 2026, demonstrating confidence in its strategic plan and undervalued stock performance.
Negative Points
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Wix.com Ltd ( NASDAQ:WIX ) faced continued GPV headwinds as SMBs on the platform experienced macroeconomic pressures, resulting in softer-than-anticipated GPV.
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The company incurred elevated AI compute costs due to scaling Base44, impacting gross margins.
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Non-GAAP gross margin ticked down slightly due to investments in Base44 to support its rapid growth.
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The free cash flow margin guidance for 2026 is wider than normal, reflecting the variability associated with Base44's rapid growth.
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Currency headwinds from a weakening US dollar against the Israeli shekel are expected to impact payroll expenses.
Q & A Highlights
Q: Can you discuss the contributors to the organic growth in your full-year bookings guidance, particularly regarding payment volumes, subscriber mix shift, or pricing? A: Lior Shemesh, CFO: We don't anticipate significant changes in pricing or payment volumes. The growth reflected in our 2026 guidance is primarily driven by the core Wix business and Base44, without any extraordinary factors affecting GPV payments.
Q: What types of businesses or applications are users setting up with Base44, and how does this compare to Wix's core platform? A: Avishai Abrahami, CEO: Users are creating a wide range of applications with Base44, from personal growth apps to enterprise solutions like CRM replacements and SDR automations. The creativity and potential are vast, and we don't see competition between Base44 and Wix's core platform as they serve different needs.
Q: How do you see the segmentation trends between Base44 and Harmony, and how far upmarket do you expect Base44 to go? A: Nir Zohar, President: Harmony is geared towards self-creators, while Base44 serves a broader range of uses, including personal and enterprise applications. We aim to support both segments and see Base44 expanding its reach significantly.
Q: Can you provide insights into the growth acceleration of Base44 and its impact on free cash flow margin guidance? A: Lior Shemesh, CFO: Base44's growth has exceeded expectations, reaching $100 million in ARR. We don't break down bookings between Wix and Base44, but the synergy between them is crucial. The growth is reflected in our optimistic outlook for free cash flow margins.
Q: How is Harmony impacting user conversion and website sophistication, and what are the benefits of the OpenAI partnership? A: Avishai Abrahami, CEO: Harmony is being used by a diverse range of users, enhancing website capabilities. The OpenAI partnership allows Wix users to integrate AI intelligence into their websites, creating significant future opportunities for enhanced user experiences.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
