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Wix Beats Forecasts, Lifts Outlook as GAAP Loss and Spending Drive Selloff

An investment push tied to Base44 and HourOne pressured margins, prompting target cuts despite a beat-and-raise quarter.

Overview

  • Q3 revenue rose 14% to $505.2 million, topping estimates, and adjusted EPS of $1.68 beat the roughly $1.49 consensus.
  • GAAP net loss of $0.589 million followed a higher income tax charge, with a GAAP operating loss linked to about $32 million in acquisition costs and stepped-up marketing.
  • Wix guided Q4 revenue to $521 million–$531 million and raised full-year 2025 sales guidance to $1.99 billion–$2.00 billion.
  • Shares fell as much as approximately 21.7% during trading after the results and outlook.
  • Analysts lowered targets while largely maintaining positive ratings, including BofA to $170, Needham to $140, Benchmark to $185 and Citizens to $185, as the CEO acknowledged a flagship product delay to 2026.