Wix raises $250m to invest in AI

The Israel website building company announced the capital raise along with its fourth quarter results.

Israeli website building company Wix.com Ltd. (Nasdaq: WIX) has raised $250 million in a private placement to institutional investors led by Durable Capital Partners. The investment was made at a discount of 5% of Wix’s Nasdaq share price. Each unit consists of one ordinary share and one warrant to purchase 0.25 of one ordinary share at a 25% premium to the closing share price.

The announcement of the capital raised came along with the company’s fourth quarter financial results, which beat analysts’ expectations. The warrants will expire on the third anniversary of the closing date. Wix plans to use the capital raised for general corporate purposes. Among other things, Wix has a plan to buy back up to $2 billion in shares, which it recently reported, and the company says it intends to complete most of the plan by the end of the year. In 2025, the company bought back shares for about $100 million at an average price of over $133, while the current price on Nasdaq is significantly lower, at about $74.4 per share.

Wix allows users to create and manage websites. The company is traded on Nasdaq at a market cap of $4.1 billion after a 60% drop in share price in the past year, 28% of which has been since the start of 2026. This is due to concerns about AI's impact on the businesses of software companies.

Mixed results

In the fourth quarter of 2025, Wix reported mixed results compared with the analysts' forecasts, with revenue missing and profit beating estimates. Revenue rose 14% to $524 million, with non-GAAP earnings per share of $1.81. GAAP net loss was $40.2 million, and non-GAAP net profit was $111 million.

For the full year, revenue rose 13% to nearly $2 billion, GAAP net profit was $50.6 million, and non-GAAP net profit was $442 million, or earnings per share of $7.32. Operating cash flow in 2025 was $583 million, up from $497 million in 2024. Last year’s acquisition, Base44, reached $100 million in ARR (annual recurring revenue) at the end of the year.

Expecting a significant year

Wix says 2026 will be a significant year as the company advances several development plans for its products, including Base44 and Wix Harmony, in an effort to strengthen its position in a world that is moving toward AI. The company expects growth in orders and revenue of around 15% in 2026, slightly higher than analysts’ forecasts. At the same time, the company expects free cash flow to reach a rate of around 20%-25% (compared with 28.7% in 2025) and explains that they are focused on investing in Base 44.

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Analyst Brent Thill of investment bank Jefferies wrote that Wix is fully embracing AI to transform the industry. He says the growth forecast is higher than market forecasts, but the free cash flow forecast is affected by the heavy investments. He mentions the $2 billion buyback program, which constitutes 45% of the company's value, and maintains a "buy" recommendation, but lowers the price target per share from $130 to $100, a 34% premium. "We keep a 'buy' recommendation for patient investors," the analyst concludes.

Published by Globes, Israel business news - en.globes.co.il - on March 4, 2026.

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