It has been about a month since the last earnings report for Wix.com (WIX Quick QuoteWIX - Free Report) . Shares have added about 4.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Wix.com due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

WIX's Q3 Earnings Beat Estimates

Wix reported non-GAAP earnings per share (EPS) of $1.68 for third-quarter 2025, exceeding the Zacks Consensus Estimate of 39 cents. The company had reported EPS of $1.50 in the year-ago quarter.

Quarterly revenues increased 14% year over year to $505.2 million, beating the Zacks Consensus Estimate of $502.65 million. The top line exceeded management’s guidance ($498-$504 million).  The company not only exceeded expectations across multiple revenue streams but also raised its full-year bookings and revenue outlook, driven largely by accelerating adoption of Base44. With Base44, Wix is expanding this mission into the realm of natural language application development.

Base44 emerged as a key growth engine for the quarter, with market share increasing from low single digits to more than 10% since June, and top-line growth exceeding expectations. The business is on track to reach at least $50 million in ARR by the year's end. Management noted that strong customer traction supports increased marketing investments, and Wix expects Base44 to deliver long-term margins similar to its core business in 2026 as well.

Quarter in Detail

Creative Subscriptions’ revenues (70.5% of total revenues) increased 12% year over year to $356.2 million. In the third quarter, Creative Subscriptions' annualized recurring revenues were $1.5 billion, up 11% year over year.

Business Solutions’ revenues (29.5% of total revenues) rose 18% to $149 million. Transaction revenues totaled $65.3 million, up 20%.

Bookings of $514.5 million improved 14% year over year. Creative Subscriptions’ bookings increased 12% to $366.4 million. Business Solutions’ bookings rose 20% to $148.2 million. Strong performance in both Creative Subscriptions and Business Solutions drove the upside. New cohort bookings stayed strong, reflecting solid demand and healthy fundamentals. This ongoing momentum highlights Wix’s strength and the growing importance of its platform for small businesses and creators today.

Partners revenues in the third quarter were $192.1 million, up 24% year over year.

Region-wise, North America, Europe, Asia and others, and Latin America contributed 61%, 25%, 11% and 4% to third-quarter 2025 revenues, up 13%,14%,11% and 8% year over year, respectively.

At the end of Sept. 30, 2025, registered users were 299 million.

Operating Details

Non-GAAP gross margin was 69% flat year over year. Creative Subscriptions segment achieved a non-GAAP gross margin of 84% and the Business Solutions segment 34%.

Wix reported a non-GAAP operating income of $89.9 million compared with $88.4 million in the year-ago quarter.

Balance Sheet & Cash Flow

As of Sept. 30, 2025, Wix had cash and cash equivalents of $889.6 million compared with $693 million as of June 30, 2025.

Cash flow from operations amounted to $128.7 million compared with $129.8 million in the year-ago quarter.

Capital expenditures totaled $1.4 million. Free cash flow was $127.3 million.

The company also executed $175 million in share repurchases, boosting long-term performance and valuation.

2025 Outlook Revised Upward

For 2025, bookings are now expected to reach $2,060–2,078 million (up 13–14%) compared with previous projections of $2,040–2,075 million (11–13%). The revision is driven primarily by Base44 outperformance and sustained cohort strength.

Wix tweaked its full-year revenue outlook to $1,990–2,000 million (up 13–14%) from $1,975–2,000 million (12–14%), with the slight shift driven by more customers choosing multi-year plans that delay revenue recognition but enhance long-term stability.

Wix now expects a non-GAAP gross margin of 68–69%, slightly lower due to higher AI costs driven by stronger-than-expected demand and growing Base44 usage. It is increasing branding and marketing investments to capture strong Base44 demand, supported by better-than-expected top-line performance. As a result, it now expects non-GAAP operating expenses to be about 50% of full-year revenue, up from the prior view of 49%.

With higher bookings, increased operating expenses and ongoing working-capital benefits, Wix now expects to generate about $600 million in free cash flow in 2025, around 30% of revenue. Prior estimate was $595-$610 million, implying 30-31% of revenues.

Q4 2025 Revenue Guidance

Management anticipates total revenues for the fourth quarter of 2025 to be between $521 million and $531 million, implying a year-over-year increase of 13–15%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -53.59% due to these changes.

VGM Scores

At this time, Wix.com has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Wix.com has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Wix.com is part of the Zacks Computers - IT Services industry. Over the past month, Amdocs (DOX Quick QuoteDOX - Free Report) , a stock from the same industry, has gained 6.5%. The company reported its results for the quarter ended September 2025 more than a month ago.

Amdocs reported revenues of $1.15 billion in the last reported quarter, representing a year-over-year change of -9%. EPS of $1.83 for the same period compares with $1.70 a year ago.

Amdocs is expected to post earnings of $1.75 per share for the current quarter, representing a year-over-year change of +5.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.5%.

Amdocs has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.