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Mar 31

Wix Q1 2025 Earnings Report

Wix reported strong revenue growth and profitability in Q1 2025, highlighted by solid performance across Self Creators and Partners segments.

Key Takeaways

Wix exceeded expectations in Q1 2025 with $473.7M in revenue and a net income of $33.8M, supported by successful adoption of its AI design platform Wixel and ongoing growth in creative subscriptions and business solutions.

Revenue grew to $473.7M, up from $419.8M in Q1 2024.

Net income reached $33.8M, with non-GAAP EPS of $1.55.

Free cash flow hit $142.4M, maintaining a strong 30% margin.

Launched Wixel, an AI-powered visual design platform broadening Wix's scope beyond websites.

Total Revenue
$474M
Previous year: $420M
+12.8%
EPS
$1.55
Previous year: $1.29
+20.2%
Creative Subscriptions ARR
$1.37B
Previous year: $1.24B
+10.3%
Gross Profit
$322M
Previous year: $282M
+13.9%
Cash and Equivalents
$653M
Previous year: $884M
-26.1%
Free Cash Flow
$142M
Previous year: $106M
+34.2%
Total Assets
$1.81B
Previous year: $1.69B
+6.7%

Wix

Wix

Wix Revenue by Segment

Forward Guidance

Wix expects continued growth in H2 2025 driven by strong cohort performance, while maintaining a cautious full-year outlook due to macroeconomic uncertainties.

Positive Outlook

  • Strong cohort performance expected to drive H2 acceleration
  • Total revenue guidance for Q2 2025: $485M–$489M
  • Full-year revenue guidance maintained at $1.97B–$2.00B
  • Expected free cash flow of $590M–$610M (~30–31% of revenue)
  • On track to achieve Rule of 45 in 2025

Challenges Ahead

  • Macro uncertainty impacting Business Solutions outlook
  • Cautious stance maintained despite Q1 strength
  • FX headwinds only recently dissipated
  • Deferred use of increased $200M share repurchase authorization
  • Potential volatility in certain SMB markets

Revenue & Expenses

Visualization of income flow from segment revenue to net income