Revenue growth decelerated to 14.9% in 2026Q2, but operating margin collapsed to -5.6% from +9.0% in 2025Q2, driven by a 37.6% increase in combined R&D and SG&A expenses.
Wix.com Ltd. (WIX) annual income statement — 15-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Sales/Revenue | 2.13B | 1.99B | 1.76B | 1.56B | 1.39B | 1.27B | 984.37M | 757.67M | 603.7M | 425.64M | 290.1M | 203.52M | 141.84M | 80.47M | 43.68M | 24.6M |
| Revenue Growth % | 14.18% | 13.2% | 12.74% | 12.54% | 9.29% | 28.98% | 29.92% | 25.5% | 41.84% | 46.72% | 42.54% | 43.48% | 76.26% | 84.25% | 77.54% | - |
| Cost of Goods Sold | 711.74M | 636.35M | 564.63M | 512.53M | 526.23M | 488.58M | 313.02M | 194.82M | 126.95M | 69.39M | 45.29M | 34.97M | 26.11M | 15.26M | 9.23M | 5.29M |
| COGS % of Revenue | - | 31.93% | 32.07% | 32.82% | 37.92% | 38.48% | 31.8% | 25.71% | 21.03% | 16.3% | 15.61% | 17.18% | 18.41% | 18.96% | 21.14% | 21.5% |
| Gross Profit | 1.42B | 1.36B | 1.2B | 1.05B | 861.44M | 781.08M | 671.35M | 562.85M | 476.76M | 356.25M | 244.82M | 168.55M | 115.73M | 65.22M | 34.44M | 19.31M |
| Gross Margin % | 66.64% | 68.07% | 67.93% | 67.18% | 62.08% | 61.52% | 68.2% | 74.29% | 78.97% | 83.7% | 84.39% | 82.82% | 81.59% | 81.04% | 78.86% | 78.5% |
| Gross Profit Growth % | - | 13.43% | 14% | 21.79% | 10.29% | 16.34% | 19.28% | 18.06% | 33.83% | 45.52% | 45.25% | 45.64% | 77.46% | 89.34% | 78.37% | - |
| Operating Expenses | 1.6B | 1.35B | 1.1B | 1.07B | 1.15B | 1.11B | 870.4M | 644.43M | 507.39M | 406.26M | 288.85M | 217.18M | 171.38M | 91.74M | 49.4M | 41.67M |
| OpEx % of Revenue | - | 67.98% | 62.24% | 68.74% | 82.64% | 87.16% | 88.42% | 85.05% | 84.05% | 95.45% | 99.57% | 106.71% | 120.82% | 114% | 113.11% | 169.39% |
| Selling, General & Admin | 866.15M | 709.44M | 600.59M | 559.61M | 663.93M | 681.67M | 550.13M | 393.64M | 308.48M | 252.62M | 183.48M | 139.54M | 113.55M | 62.08M | 32.72M | 26.92M |
| SG&A % of Revenue | - | 35.6% | 34.11% | 35.83% | 47.85% | 53.69% | 55.89% | 51.95% | 51.1% | 59.35% | 63.25% | 68.56% | 80.05% | 77.15% | 74.91% | 109.45% |
| Research & Development | 737.17M | 645.5M | 495.28M | 481.29M | 482.86M | 424.94M | 320.28M | 250.79M | 198.91M | 153.63M | 105.37M | 77.65M | 57.83M | 29.66M | 16.78M | 14.75M |
| R&D % of Revenue | - | 32.39% | 28.13% | 30.82% | 34.8% | 33.47% | 32.54% | 33.1% | 32.95% | 36.1% | 36.32% | 38.15% | 40.77% | 36.86% | 38.42% | 59.94% |
| Other Operating Expenses | 0 | 0 | 0 | 32.61M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -181.37M | 1.75M | 100.14M | -24.38M | -285.35M | -325.53M | -199.06M | -81.58M | -30.63M | -50.01M | -44.03M | -48.63M | -55.64M | -26.53M | -14.96M | -22.36M |
| Operating Margin % | -8.5% | 0.09% | 5.69% | -1.56% | -20.56% | -25.64% | -20.22% | -10.77% | -5.07% | -11.75% | -15.18% | -23.9% | -39.23% | -32.96% | -34.25% | -90.89% |
| Operating Income Growth % | - | -98.25% | 510.75% | 91.46% | 12.34% | -63.54% | -143.99% | -166.35% | 38.75% | -13.58% | 9.46% | 12.6% | -109.76% | -77.31% | 33.09% | - |
| EBITDA | -148.85M | 33.2M | 131.26M | 2.07M | -262.5M | -306.65M | -181.87M | -64.87M | -19.12M | -41.6M | -38.75M | -43M | -52.83M | -25.3M | -14.09M | -21.77M |
| EBITDA Margin % | -6.98% | 1.67% | 7.46% | 0.13% | -18.92% | -24.15% | -18.48% | -8.56% | -3.17% | -9.77% | -13.36% | -21.13% | -37.25% | -31.44% | -32.26% | -88.49% |
| EBITDA Growth % | -185.62% | -74.7% | 6253.15% | 100.79% | 14.4% | -68.61% | -180.36% | -239.24% | 54.04% | -7.37% | 9.89% | 18.61% | -108.83% | -79.55% | 35.27% | - |
| D&A (Non-Cash Add-back) | 32.52M | 31.45M | 31.11M | 26.45M | 22.86M | 18.88M | 17.19M | 16.71M | 11.51M | 8.41M | 5.29M | 5.63M | 2.81M | 1.23M | 871K | 592K |
| EBIT | -132.68M | 4.61M | 155.09M | 42.03M | -462.63M | -47.71M | -121.92M | -64.21M | -23.91M | -54.95M | -43.79M | -48.63M | -55.64M | -26.89M | -14.48M | -22.53M |
| Net Interest Income | 34.73M | 45.07M | 38.09M | 40.36M | 13.48M | 4.42M | -14.1M | -1.68M | -707K | 872K | 621K | 74K | 302K | -170K | 26K | 123K |
| Interest Income | 46.89M | 48.9M | 41.95M | 45.19M | 19.42M | 10.47M | 16.39M | 19.79M | 9.61M | 1.18M | 847K | 242K | 415K | 154K | 54K | 147K |
| Interest Expense | 12.15M | 3.83M | 3.86M | 4.82M | 5.94M | 6.06M | 30.49M | 21.47M | 10.31M | 310K | 226K | 168K | 113K | 262K | 28K | 168K |
| Other Income/Expense | 8.43M | -2.15M | 51.78M | 62.22M | -182.49M | 272.53M | 47.18M | -3.57M | -3.28M | -4.94M | 243K | 66K | 2.13M | -621K | 485K | -168K |
| Pretax Income | -172.94M | -401K | 151.93M | 37.84M | -467.84M | -53.01M | -151.88M | -85.15M | -33.91M | -54.95M | -43.79M | -48.57M | -53.51M | -27.15M | -14.48M | -22.53M |
| Pretax Margin % | -8.11% | -0.02% | 8.63% | 2.42% | -33.71% | -4.17% | -15.43% | -11.24% | -5.62% | -12.91% | -15.09% | -23.86% | -37.73% | -33.74% | -33.14% | -91.58% |
| Income Tax | 1.71M | -51.05M | 13.6M | 4.7M | -42.98M | 64.2M | 14.99M | 2.6M | 3.21M | 1.32M | 3.11M | 2.77M | 3.05M | 1.57M | 496K | 212K |
| Effective Tax Rate % | -0.99% | 12729.93% | 8.95% | 12.43% | 9.19% | -121.12% | -9.87% | -3.05% | -9.46% | -2.41% | -7.1% | -5.69% | -5.7% | -5.79% | -3.43% | -0.94% |
| Net Income | -174.65M | 50.65M | 138.32M | 33.14M | -424.86M | -117.21M | -166.87M | -87.75M | -37.12M | -56.27M | -46.9M | -51.33M | -56.57M | -28.72M | -14.97M | -22.74M |
| Net Margin % | -8.19% | 2.54% | 7.86% | 2.12% | -30.62% | -9.23% | -16.95% | -11.58% | -6.15% | -13.22% | -16.17% | -25.22% | -39.88% | -35.69% | -34.28% | -92.44% |
| Net Income Growth % | -205.04% | -63.39% | 317.42% | 107.8% | -262.48% | 29.76% | -90.17% | -136.39% | 34.04% | -20% | 8.65% | 9.25% | -96.96% | -91.82% | 34.16% | - |
| Net Income (Continuing) | -174.65M | 50.65M | 138.32M | 33.14M | -424.86M | -117.21M | -166.87M | -87.75M | -37.12M | -56.27M | -46.9M | -51.33M | -56.57M | -28.72M | -14.97M | -22.74M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -4.06 | 0.88 | 2.36 | 0.57 | -7.33 | -2.06 | -3.98 | -1.71 | -0.77 | -1.24 | -1.12 | -1.30 | -1.49 | -0.93 | -0.50 | -0.75 |
| EPS Growth % | -226.9% | -62.71% | 314.04% | 107.78% | -255.83% | 48.24% | -132.75% | -122.08% | 37.9% | -10.71% | 13.85% | 12.75% | -60.22% | -86% | 33.33% | - |
| EPS (Basic) | - | 0.91 | 2.49 | 0.58 | -7.33 | -2.06 | -3.98 | -1.71 | -0.77 | -1.24 | -1.12 | -1.30 | -1.49 | -0.93 | -0.50 | -0.75 |
| Diluted Shares Outstanding | 42.97M | 57.72M | 59.95M | 58.4M | 57.99M | 57M | 54.43M | 50.5M | 48.02M | 45.55M | 42.03M | 39.41M | 37.85M | 30.92M | 30.16M | 30.16M |
| Basic Shares Outstanding | 42.97M | 55.55M | 55.58M | 56.83M | 57.99M | 57M | 54.43M | 50.5M | 48.02M | 45.55M | 42.03M | 39.41M | 37.85M | 30.92M | 30.16M | 30.16M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying WIX stock.
For fiscal year 2025, Wix.com Ltd. (WIX) reported total revenue of $1.99B. This represents a 8001.8% increase compared to $24.6M in 2011.
Wix.com Ltd. (WIX) is profitable, generating $50.6M in net income for the fiscal year ending 2025 with a net profit margin of 2.5%.
Wix.com Ltd. (WIX) reported an operating income of $1.8M, resulting in an operating profit margin of 0.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Wix.com Ltd. (WIX) generated $1.36B in gross profit for the year, representing a gross profit margin of 68.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
R&D spike and margin compression
Growth Deceleration Amidst Rising Costs
WIX's revenue growth slowed to 14.9% in 2026Q2 from 12.4% a year earlier, but sequential deceleration from 14.3% in 2026Q1 suggests a plateau, as per reported quarterly figures.
The 10-quarter trend shows revenue growth peaking around 14% in 2024 and gradually easing, with 2026Q2 at 14.9% but decelerating sequentially. This may indicate market saturation or increased competition, especially as the company's absolute revenue base expands. Investors should monitor whether growth can sustain above 15% given the heavy investment phase.
Gross Margin Stability Under Pressure
Gross margin held near 65-68% over the past year, but 2026Q2 dipped to 65.8% from 68.7% in 2025Q2, suggesting cost pressures, according to financial statements.
The slight erosion in gross margin from 68.7% to 65.8% year-over-year may reflect higher infrastructure or hosting costs, though the company has historically maintained a stable margin band. This could signal a shift in product mix or pricing dynamics that warrants further investigation, especially as peers like HubSpot achieve 83.8% gross margins.
Operating Leverage Reverses Sharply
Operating income swung from a positive $44.3M in 2025Q2 to a loss of $31.7M in 2026Q2, with operating margin collapsing from 9.0% to -5.6%, as per reported figures.
The dramatic deterioration in operating leverage is driven by a surge in R&D and SG&A expenses, which grew faster than revenue. R&D jumped from $134.7M to $175.7M year-over-year, while SG&A rose from $157.5M to $226.3M, indicating a deliberate investment push that has yet to yield revenue acceleration. This suggests management is prioritizing long-term growth over near-term profitability, but the lack of immediate payoff raises questions about efficiency.
Net Income Volatility Masks Underlying Trends
Net income swung from a $57.7M profit in 2025Q2 to a $76.4M loss in 2026Q2, with EPS dropping from $0.97 to -$1.78, based on quarterly disclosures.
The sharp swing in net income is partly due to non-operating items and tax effects, as operating losses alone do not fully explain the magnitude. The absence of stock-based compensation data in recent quarters (reported as $0) is notable, as SBC was around $60M in prior periods; this may indicate a change in accounting treatment or disclosure, which could affect comparability. Investors should scrutinize the quality of earnings given the volatility.
R&D and SG&A Escalation Outpaces Revenue
Combined R&D and SG&A expenses rose from $292.2M in 2025Q2 to $402.0M in 2026Q2, a 37.6% increase versus 14.9% revenue growth, as per income statement data.
The disproportionate increase in operating expenses, particularly R&D (up 30.4% year-over-year) and SG&A (up 43.7%), suggests a strategic pivot toward AI and product innovation, but also reflects a lack of cost discipline. This cost structure is unsustainable if revenue growth does not reaccelerate, and it may compress margins further. The company appears to be in an investment cycle that could pressure profitability for several quarters.
2026Q2 Marks a Profitability Inflection
The transition from positive operating income in 2025Q2 to a -$31.7M loss in 2026Q2 represents a clear inflection point, with operating margin dropping 14.6 percentage points, as reported.
This inflection is driven by a step-change in R&D spending, which jumped from $134.7M to $175.7M, and a surge in SG&A to $226.3M. The lasting impact is that WIX has shifted from a moderately profitable model to a growth-at-all-costs phase, which may be justified if it captures AI-driven market share, but it also exposes the company to downside if investments fail to generate returns. The next few quarters will be critical to assess whether this is a temporary blip or a new normal.
What Could Invalidate the Base Case
The sharp rise in R&D and SG&A without corresponding revenue acceleration could signal that WIX's investment thesis is failing, as operating losses widen despite 14.9% growth, per reported figures.
Short-sellers might argue that the 37.6% increase in combined R&D and SG&A versus 14.9% revenue growth indicates poor capital allocation, especially if these investments do not translate into sustained growth. The gross margin erosion from 68.7% to 65.8% year-over-year could also reflect competitive pricing pressure, undermining the company's ability to monetize its user base. If revenue growth continues to decelerate while costs remain elevated, WIX could face prolonged losses, making its valuation difficult to justify relative to peers like GoDaddy, which generates 22.9% operating margins.