WIX Q2 CY2025 Deep Dive: AI Adoption, Vibe Coding, and New Cohort Momentum Drive Results

August 12, 2025 at 03:06 AM EDT

WIX Cover Image

Website design and e-commerce platform provider Wix.com (NASDAQ: WIX) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 12.4% year on year to $489.9 million. The company expects next quarter’s revenue to be around $501 million, close to analysts’ estimates. Its non-GAAP profit of $2.28 per share was 29.7% above analysts’ consensus estimates.

Is now the time to buy WIX? Find out in our full research report (it’s free).

Wix (WIX) Q2 CY2025 Highlights:

Revenue: $489.9 million vs analyst estimates of $487.1 million (12.4% year-on-year growth, 0.6% beat)
Adjusted EPS: $2.28 vs analyst estimates of $1.76 (29.7% beat)
Adjusted Operating Income: $110.2 million vs analyst estimates of $108.7 million (22.5% margin, 1.4% beat)
The company slightly lifted its revenue guidance for the full year to $1.99 billion at the midpoint from $1.99 billion
Operating Margin: 9%, up from 6.6% in the same quarter last year
Billings: $509.9 million at quarter end, up 11.2% year on year
Market Capitalization: $6.45 billion

StockStory’s Take

Wix delivered a positive second quarter, as reflected by a strong market response to its results. Management attributed the outperformance to accelerating adoption of its AI-powered creation tools and robust new user cohort behavior, particularly in key markets such as the U.S. and Europe. CEO Avishai Abrahami emphasized, “AI-driven advancements are lowering the barriers to digital creation,” resulting in more users leveraging the platform for sophisticated projects. The company also noted a healthy mix of high-intent and commerce-oriented users, with new offerings like Wix Capital and expanded partnerships contributing to improved monetization and retention.

Looking forward, Wix’s guidance is shaped by continued momentum in new user acquisition, ongoing expansion of its AI-driven product suite, and the integration of recently acquired BASE44. Management believes AI will remain central to Wix’s growth strategy, with Abrahami stating, “We are making big leaps with our June acquisition of BASE44…vibe coding represents the future of how applications will be built.” While management expects ongoing investment in AI and headcount to support growth, they remain confident that these initiatives will help drive topline acceleration and set a foundation for robust growth in 2026 and beyond.

Key Insights from Management’s Remarks

Management credited the quarter’s results to strong cohort growth, expanding AI adoption, and new business initiatives, with AI and the acquisition of BASE44 cited as particularly impactful. They discussed how these factors have positioned the company for continued momentum. The team highlighted not just the uptick in new user cohorts but also improvements in user quality, engagement, and monetization, particularly in commerce-oriented verticals. Additionally, management noted that the BASE44 acquisition is already showing outsized ARR growth and that the synergy with Wix’s infrastructure is expected to elevate both platforms. Retention and longer subscription terms were also called out as key trends supporting future revenue predictability and user confidence. Management’s remarks repeatedly underscored the strategic importance of AI, both as a differentiator in the crowded web creation space and as a catalyst for operational efficiency. These developments, combined with improved monetization from payments and financial services, are expected to be sustained drivers of growth. Management closed by affirming their confidence in the durability of Wix’s model and their ability to execute against a rapidly evolving digital landscape.

AI adoption accelerates: Wix saw increased user engagement with its AI onboarding funnel and marketing agent, which management said directly improved conversion rates and user success, as well as drove adoption of premium business solutions across the platform.
BASE44 acquisition expands market: The acquisition of BASE44, a vibe coding platform, opened access to developers and teams looking to build applications beyond websites. Management highlighted that BASE44 is already on track to reach $40–$50 million in annual recurring revenue by year-end, despite only recently joining Wix.
Cohort momentum in key markets: New user bookings from major markets like the U.S., U.K., and Europe accelerated, with U.S. cohorts showing particular strength in size, conversion, and monetization. Management attributed this to both organic traffic gains and targeted paid campaigns, leading to a 6% rise in new users onboarded over the prior year.
Commerce and payments growth: Transaction revenue grew 18% year over year, fueled by greater adoption of Wix Payments and new financial services offerings. Management noted that expanded partnerships, including PayPal, and the launch of Wix Capital and Wix Checking, have diversified revenue streams within the commerce segment.
Retention and subscription trends: Strong retention and a shift toward longer-term subscriptions were highlighted as signs of growing user confidence. Management observed that both new and existing users are increasingly committing to multi-year plans, supporting predictable revenue and improved cohort monetization.

Drivers of Future Performance

Wix’s outlook for the coming quarters hinges on sustained AI-driven user adoption, continued new cohort strength, and the ramp-up of BASE44. Management emphasized that the company’s strategy is anchored in leveraging technology to both attract and retain high-value users. They expect that the synergy between AI innovation and product expansion will further differentiate Wix and lead to incremental revenue opportunities. The durability of existing user cohorts, paired with the successful integration of new business lines, underpins management’s optimism for the rest of the year and into 2026. The guidance reflects confidence in both the top-line trajectory and the ability to manage costs and margins effectively, despite ongoing investments in marketing and R&D.

AI and product innovation: Management expects ongoing investment in AI to drive both user acquisition and higher-value subscriptions, particularly as new AI-based features like generative engine optimization and marketing agents gain traction. The company believes these tools will further differentiate Wix in a crowded market and support growth in both self-service and professional segments.
BASE44 scaling and synergy: The integration of BASE44, which management plans to operate separately for now, is projected to be a major growth lever. Wix anticipates that BASE44 will not only accelerate topline growth but also benefit from Wix’s infrastructure, such as hosting, security, and payments. Management sees long-term synergy as BASE44 targets new audiences, including enterprises and developers building internal tools.
Pricing and margin discipline: While management referenced targeted pricing optimizations in select geographies, they emphasized these measures would have only a modest impact. Margin expectations remain stable, supported by AI-driven productivity improvements and operational leverage, even as headcount and marketing investments rise to support growth initiatives.

Catalysts in Upcoming Quarters

Looking ahead, our analysts will be watching (1) the pace and quality of new user cohort growth as a signpost for future revenue acceleration; (2) the adoption and monetization of AI-driven features, including generative engine optimization and marketing agents; and (3) the integration and scaling of BASE44 as it targets new markets. Execution in commerce and financial services, along with evolving user retention trends, will also be closely tracked as indicators of sustained momentum.

Wix currently trades at $116, down from $127.85 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

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