TLDR
- Wix.com (WIX) stock traded near $70 in premarket Tuesday, up 0.29% at $69.95 after an 8.33% drop in the prior session.
- BofA downgraded the stock to Underperform from Buy and cut its price target to $68 from $75.
- Q3 EPS of $1.42 and revenue of $570.17 million both beat estimates.
- Wix cut its 2026 free cash flow margin forecast to about 16% as it spends more on Base44.
- Cantor Fitzgerald raised its target to $90 and Jefferies lifted its to $85.
Wix.com (WIX) stock was trading near $70 on Tuesday, with a premarket quote of $69.95, up 0.29%. That comes after an 8.33% drop in the previous session.
Investing.com reported an earlier 5.5% slide in pre-open trading. The trigger was a downgrade from BofA Securities to Underperform from Buy.
BofA cut its price target to $68 from $75. The stock now sits just above that number, which leaves little room to spare.
The bank pointed to slowing core revenue, mainly in the Partners segment. It also trimmed its Q4 revenue growth estimate and lowered its EBITDA margin forecast.
Still, the earnings report gave bulls something to hold. Non-GAAP EPS came in at $1.42, ahead of the $1.39 estimate.
Revenue rose 13% to $570.17 million, topping the $565.98 million forecast. Total bookings climbed 11% to $573 million.
Where the Numbers Fell Short
Not every line item cooperated. Operating income margin was negative 2.9% and adjusted EBITDA margin was 13.1%, both below consensus.
Free cash flow came in at $74.5 million. Wedbush had been looking for $84 million.
Wix also cut its 2026 free cash flow margin forecast to about 16%, down from the high teens. The company said it is putting more money into sales and marketing to speed up Base44.
Management also said Q4 bookings growth should trail revenue growth. Softness in Partners hits bookings faster than it hits revenue.
Partners revenue rose 11% to $212.4 million. Creative Subscriptions grew 14% to $406.7 million, and Business Solutions rose 10% to $163.5 million.
Base44 Takes Center Stage
CEO Avishai Abrahami said Base44 continues to beat expectations. CFO Lior Shemesh said its annual recurring revenue is nearing $250 million.
Wix expects Base44’s adjusted gross margin to top 60% by year-end as AI costs fall. Total ARR rose 15% to $2.02 billion.
Jefferies raised its target to $85 and pointed to Base44’s fast ARR growth. Cantor Fitzgerald lifted its target to $90 from $80 and kept an Overweight rating.
Wix named Nir Zohar co-CEO. He will oversee strategy and operations, while Abrahami focuses on AI, products and technology.
The company reaffirmed its 2026 outlook for low- to mid-teens revenue growth and low-teens bookings growth. It expects Q4 revenue to grow by a low-double-digit percentage.
Wix ended September with about $1.05 billion in cash and securities against $1.63 billion in debt. Wix.com stock was up 0.29% at $69.95 in premarket trading Tuesday, while the S&P 500 and Nasdaq were slightly lower.
