Wix (NASDAQ:WIX) shares tanked almost 15% on Wednesday, despite the no-code website building platform reporting third-quarter 2025 revenue and earnings that beat Wall Street expectations.
The drop was driven by investor concerns over rising operating expenses, including higher AI-related costs tied to Wix’s Base44 platform, increased marketing investments, and potential share dilution following a recent $1 billion convertible notes offering.
For Q3, Wix reported revenue of $505.2 million, up 14% year-over-year and slightly above consensus estimates of $502.65 million.
Adjusted income came to $100.2 million, or $1.68 per diluted share, well above the analyst estimate of $0.39 per share.
Total bookings grew 14% year-over-year to $514.5 million.
The company highlighted strong performance in both its Creative Subscriptions and Business Solutions segments. Creative Subscriptions revenue rose 12% to $356.2 million, with annual recurring revenue (ARR) reaching $1.457 billion, up 11% year-over-year.
Business Solutions revenue increased 18% to $149 million, including $65.3 million in transaction revenue, up 20% year-over-year. Partner revenue also grew 24% to $192.1 million.
Wix’s Base44 platform, described by the company as a “top vibe coding platform,” reportedly served over 2 million users and added more than 1,000 new paying subscribers daily. Wix said Base44 is on track to reach at least $50 million in ARR by year-end, with a longer-term target of $100 million.
Looking ahead, Wix raised its full-year guidance, projecting bookings of $2.06 to $2.078 billion, up 13% to 14% year-over-year, compared to a prior range of $2.04 to $2.075 billion (11% to 13% growth). The company cited Base44’s outperformance and increased marketing investment as key drivers.
Full-year revenue is now expected at $1.99 to $2 billion, up 13% to 14% versus 12% to 14% previously, with Q4 revenue projected at $521 to $531 million, a 13% to 15% increase year-over-year.
“As a result of Base44’s outperformance, coupled with new cohort strength in our core Wix business, we are increasing our bookings guidance for the full year,” Wix CFO Lior Shemesh said in a statement.
“I’m confident the strategic investments we’re making today will enable Base44 to be a meaningful growth driver for Wix in 2026 and beyond with similar margins to our core business in the long-term."
Trading at about $109 late morning on Wednesday, Wix shares are down almost 50% this year.