Wix, a website-building platform, reported a 13% year-over-year revenue increase for the first quarter of 2025, totaling US$473.7 million.

The company’s net profit was US$33.8 million.

Adjusted net income rose by 70% to US$93.9 million compared to the same period last year.

Free cash flow for the quarter was US$142.4 million, aligning with Wix’s goal of achieving at least 30% of revenue in free cash flow.

Wix added 5.3 million new users during the quarter, marking a 7% rise and bringing total registered users to over 287 million.

🔗 Source: Calcalist

🧠 Food for thought

1️⃣ Financial turnaround puts Wix on sustainable growth path

Wix’s current profitability represents a significant milestone in the company’s financial journey.

The reported quarterly net profit of $33.8 million continues a positive trend after years of fluctuating performance, with historical data showing Wix has achieved substantial increases in net income since 2018 1.

This performance comes in the context of Wix’s trailing twelve-month revenue of $1.76 billion and net income of approximately $138.32 million, demonstrating consistent revenue growth 2.

The company’s profit margin of 7.86% and strong liquidity position with $1.11 billion in cash provide a buffer for ongoing investments in AI and other innovations 2.

Wix’s ability to generate free cash flow equal to 30% of revenue addresses previous investor concerns about sustainable profitability, marking a maturation phase for the business.

2️⃣ Intensifying competition drives Wix’s AI innovation strategy

Wix’s introduction of AI tools like Wixel and Astro comes amid increasing competition in the website builder market, where alternatives are rapidly improving their offerings.

Industry comparisons consistently rank Wix among the top website builders, but competitors like Squarespace are challenging with superior design templates, while Shopify dominates in e-commerce functionality 3 4.

Recent Wix developments