Wix.com Posts Q3 Net Loss, But Beats Estimates; Expects Final Quarter Revenue To Rise

Wix reported a GAAP net loss of $0.589 million ($0.01/sh) in Q3 versus a $26.8 million profit a year earlier, driven by a higher income tax charge ($12.28M vs $3.08M) and an operating loss of $7.37M, but non-GAAP earnings were $100.20M ($1.68/sh), ahead of the $1.49-per-share analyst consensus. Revenue rose 13.6% to $505.19M, led by Creative Subscriptions revenue of $356.17M, and the company guided Q4 revenue to $521M–$531M (up 13–15% YoY) and raised full-year revenue guidance to $1.99B–$2.00B. The results underscore continued demand and subscription growth that support raised top-line targets, even as higher tax expenses and operating shortfalls leave GAAP profitability cloudy.

Analysis

Wix reported a GAAP net loss of $0.589 million ($0.01/sh) in Q3 versus a $26.778 million profit ($0.46/sh) a year earlier, driven primarily by a $12.280 million income tax charge compared with $3.075 million last year. Excluding items, adjusted earnings were $100.197 million ($1.68/sh), beating the 13-analyst consensus of $1.49/sh. Revenue rose 13.6% to $505.194 million from $444.673 million, with Creative Subscriptions revenue up to $356.174 million from $318.825 million, indicating continued demand for recurring offerings.

Operating loss was $7.371 million versus operating income of $25.846 million a year ago and income before tax declined to $11.691 million from $29.853 million, showing margin pressure below the adjusted line. Management guided Q4 revenue to $521–531 million (up 13–15% YoY) and raised full-year revenue guidance to $1.99–2.00 billion (13–14% growth), roughly in line with analyst revenue expectations. The key takeaway is resilient subscription-led top-line growth offset by GAAP volatility from higher tax expense and weaker operating results; monitoring tax behavior and operating leverage will be decisive for the near-term outlook.

Key Decisions for Investors

• Consider adding or maintaining a position to capture subscription-driven top-line growth given revenue up 13.6% to $505.19M and raised guidance, but size exposure conservatively due to GAAP earnings volatility
• Monitor Q4 revenue versus the company guide ($521–531M) and consensus ($525.61M) and watch adjusted profitability; use a clear revenue/adjusted-earnings beat as a reason to increase exposure
• Demand transparency on the composition and recurrence of the $12.28M tax charge and track whether operating losses narrow; if tax charges persist or operating losses widen, consider hedging or trimming the position
• Treat evidence of sustainable operating leverage (improving income before tax and elimination of material nonrecurring tax items) as the primary catalyst to move from a cautious to a more constructive stance