The Investor
13 May 2026, 16:37
Wix Crashes 24% as Massive EPS Miss and $1.6 Billion Buyback Costs Shock Investors
May 13, 2026 | NASDAQ: WIX
Wix is suffering one of the sharpest single-day declines in software today, down 24% and hitting a new 52-week low, after a quarter that missed Wall Street expectations on both the top and bottom line while revealing the full financial cost of its controversial buyback program.
Revenue came in at $541.2 million, up 14% year-on-year but below the analyst consensus of $544.2 million. More damaging was the earnings miss — adjusted EPS of $0.68 fell far short of the $1.25 consensus expectation. Non-GAAP operating margin collapsed to 5%, down from 21% in the prior-year quarter, as the buyback's financing costs and acquisition expenses hit the P&L hard.(Yahoo Finance, StockStory)
The root cause of the earnings miss is the $1.6 billion modified Dutch Auction tender offer completed in early April, which repurchased approximately 30% of shares outstanding at $92 per share. The deal was funded through cash reserves and a new $500 million credit facility, and the combined effect — foregone interest income, new interest expense, and acquisition-related costs — obliterated near-term profitability. Adjusted operating income came in at $27.79 million against analyst expectations of $68.76 million, a 59.6% miss.
The business itself has genuine bright spots. New user cohort bookings surged 46% year-on-year, Base44 is performing well, and Wix has built a proprietary LLM now powering its Harmony platform. But the Partners business disappointed, with management citing a slower-than-expected start compounded by productivity disruptions from the Middle East war delaying professional-focused product rollouts.
Full-year guidance was maintained at mid-teens revenue growth — not raised, despite Base44 outperformance. Full-year FCF margin is expected in the high-teens due to reduced interest income, credit facility costs, and a meaningful Israeli shekel headwind estimated at approximately $64 million net of hedging.
The buyback dramatically reduced the share count, which should amplify per-share earnings power if growth reaccelerates. But executing a $1.6 billion capital deployment into a leveraged buyback while missing earnings by 46%, managing war-related disruptions, and guiding to margin compression is a combination the market is not willing to forgive today.
May 13, 2026 | NASDAQ: WIX
Wix is suffering one of the sharpest single-day declines in software today, down 24% and hitting a new 52-week low, after a quarter that missed Wall Street expectations on both the top and bottom line while revealing the full financial cost of its controversial buyback program.
Revenue came in at $541.2 million, up 14% year-on-year but below the analyst consensus of $544.2 million. More damaging was the earnings miss — adjusted EPS of $0.68 fell far short of the $1.25 consensus expectation. Non-GAAP operating margin collapsed to 5%, down from 21% in the prior-year quarter, as the buyback's financing costs and acquisition expenses hit the P&L hard.(Yahoo Finance, StockStory)
The root cause of the earnings miss is the $1.6 billion modified Dutch Auction tender offer completed in early April, which repurchased approximately 30% of shares outstanding at $92 per share. The deal was funded through cash reserves and a new $500 million credit facility, and the combined effect — foregone interest income, new interest expense, and acquisition-related costs — obliterated near-term profitability. Adjusted operating income came in at $27.79 million against analyst expectations of $68.76 million, a 59.6% miss.
The business itself has genuine bright spots. New user cohort bookings surged 46% year-on-year, Base44 is performing well, and Wix has built a proprietary LLM now powering its Harmony platform. But the Partners business disappointed, with management citing a slower-than-expected start compounded by productivity disruptions from the Middle East war delaying professional-focused product rollouts.
Full-year guidance was maintained at mid-teens revenue growth — not raised, despite Base44 outperformance. Full-year FCF margin is expected in the high-teens due to reduced interest income, credit facility costs, and a meaningful Israeli shekel headwind estimated at approximately $64 million net of hedging.
The buyback dramatically reduced the share count, which should amplify per-share earnings power if growth reaccelerates. But executing a $1.6 billion capital deployment into a leveraged buyback while missing earnings by 46%, managing war-related disruptions, and guiding to margin compression is a combination the market is not willing to forgive today.
