Wix’s Base44 Acquisition Pressures Margins; Shares Surge to $89.14 After Beat
Wix’s Q4 shares fell 41.5% and ended 2025 down 51.9% after an unexpected push behind its Base44 acquisition raised short-term margin concerns, despite FCF margins near 30% and mid-teens revenue growth. Following better-than-forecast quarterly results, shares jumped to $89.14 at open, trading near $90.12 on 1.62M volume.
1. Acquisition Integration Concerns
Wix’s acquisition of vibe-coding startup Base44 prompted larger-than-expected integration spending, stoking investor worries over short-term margin erosion. Uncertainties around Base44 cohort lifetime values and its overlap with AI web services intensify doubts on how swiftly the deal can contribute to Wix’s margins.
2. Q4 Performance
During Q4 2025, Wix’s share price fell 41.5% on acquisition-related margin fears and closed the year down 51.9%. The company reported revenue of $524 million, up 14% year-over-year, while maintaining a mid-teens growth trajectory.
3. Earnings Beat and Share Rally
Following release of quarterly results that exceeded consensus forecasts, shares gapped open at $89.14, rising from the prior close of $83.78. The stock last traded around $90.12 on volume of roughly 1.62 million shares, reflecting renewed investor optimism.
4. Financial Outlook and Valuation
Wix sustains free cash flow margins near 30% and is trading at an 11% current FCF yield on a market capitalization of about $5.2 billion. Hedge fund ownership decreased to 45 portfolios from 71 last quarter, underscoring divergent investor views on valuation amid strategic shifts.