Wix reported third‑quarter 2025 results that surpassed consensus estimates. Total revenue rose 14% to $505.2 million, driven by a 12% increase in Creative Subscriptions and an 18% jump in Business Solutions. Adjusted earnings per share reached $1.68, a $0.23 beat over the $1.45 consensus, while the company posted a GAAP net loss of $0.6 million, a reversal from a $26.8 million net income in the same quarter a year earlier.
The revenue lift was largely attributable to the Base44 platform, which added more than 1,000 new paying subscribers each day and is on track to generate at least $50 million in annual recurring revenue by year‑end. Creative Subscriptions generated $356.2 million, up 12% YoY, and Business Solutions contributed $149.0 million, up 18% YoY, underscoring the strength of Wix’s core subscription model.
Gross margin fell to 68–69% from 70% a year earlier, reflecting higher AI‑related costs associated with Base44 and broader platform investments. Operating income missed analyst expectations, falling to $89.9 million from $95.97 million expected, as marketing spend and AI development outpaced revenue growth. The GAAP loss was driven by a $0.6 million tax expense and one‑time restructuring charges, offsetting the adjusted profit.
Management raised full‑year guidance, projecting bookings of $2.06 billion to $2.078 billion and revenue of $1.99 billion to $2.00 billion, up from the prior outlook of $1.95 billion to $1.97 billion. The upgrade signals confidence that Base44’s adoption will continue to accelerate and that the company can sustain higher marketing spend while maintaining a healthy margin trajectory.
Cofounder Nir Zohar said the quarter demonstrated “strong execution across both Creative Subscriptions and Business Solutions, with new cohort bookings sustaining momentum.” CFO Lior Shemesh added that Base44’s market share has grown from low‑single digits to more than 10% since its June 2025 acquisition, and that the company is investing heavily in marketing to capture the demand, expecting Base44 to deliver margins comparable to the core business in the long term.
Investors reacted cautiously, citing margin compression from AI investments and the GAAP loss as key concerns. The market’s focus on profitability metrics, despite the earnings beat, highlights a preference for sustainable margin expansion over rapid top‑line growth in the current environment.
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