Wix Credits AI Platform for 15% Bookings Growth

Wix's overall 2025 performance saw total revenues climb 13% to $1.99 billion, with full-year bookings also up 13% to $2.07 billion. The company's fourth-quarter revenue reached $524.3 million, a 14% increase year-over-year, while still narrowly missing analyst expectations. The Base44 platform, acquired by Wix in June 2025 for $80 million, has been a significant growth driver. Founded only six months prior to its acquisition, Base44 allows users to create web applications using natural language prompts. The platform reached $100 million in annual recurring revenue (ARR) just nine months after the acquisition. Alongside the earnings report, Wix announced a $250 million private placement of equity units led by institutional investor Durable Capital Partners. The company also plans to complete the majority of its $2 billion share repurchase program by the end of 2026, having already bought back $575 million worth of shares in 2025. For 2026, Wix projects continued mid-teens percentage growth for both bookings and revenue. However, the company anticipates its free cash flow margin to be in the low- to mid-20% range, a decrease from 30% in 2025, as it increases investments in AI and other growth initiatives. This focus on AI-driven tools places Wix in a competitive landscape with other website builders like Squarespace, Hostinger, and platforms with advanced AI capabilities such as Webflow and Framer. The company is also betting on its Wix Harmony platform, another AI-driven tool, to be a key engine for future growth. Despite the strong earnings beat on a non-GAAP EPS of $1.81 versus an expected $1.42, the stock's performance over the past year has been down. Investor reaction to the Q4 results was positive, with the stock surging in pre-market trading, reflecting confidence in the company's profitability and AI strategy.