Key Highlights
- WIX gained approximately 2% Thursday while the S&P 500 declined 1.4%
- The company finalized a modified Dutch auction, repurchasing roughly 18.7M shares priced at $92 each
- Aggregate repurchase expenditure reached approximately $1.722 billion
- The repurchased 18.7M shares account for roughly 31.6% of total outstanding shares as of April 1, 2026
- UBS analyst downgraded WIX from Buy to Neutral, expressing concerns about core business slowdown
Wix.com announced preliminary outcomes from its modified Dutch auction tender offer on Thursday morning. The tender period concluded at 12:00:01 AM Eastern Time on April 2, 2026.
According to preliminary tabulation by Equiniti Trust Company, serving as the tender offer depositary, approximately 18,718,009 shares were validly tendered without withdrawal at prices at or below $92.00 per share.
The company plans to purchase all 18,718,009 shares at the final price of $92.00 per share.
Total expenditure for this share repurchase amounts to roughly $1.722 billion, not including associated fees and administrative expenses.
The repurchased shares constitute approximately 31.6% of the company’s total outstanding shares as of April 1, 2026.
Final tallies remain subject to adjustment. These preliminary calculations presume all shares tendered via guaranteed delivery notice will be delivered during the standard one-day settlement timeframe.
J.P. Morgan (JPM) served as the dealer manager for this tender offer.
Wix had announced last month its intention to deploy approximately $1.75 billion through the auction mechanism, establishing a price band between $80 and $92 per share.
Confirmation of the exact purchase price and final share count will occur after the guaranteed delivery window closes. Shareholder payments are anticipated shortly thereafter.
UBS Cuts Rating to Neutral
Coinciding with the buyback news, UBS shifted its rating on Wix from Buy to Neutral.
Christopher Zhang, analyst at UBS, expressed apprehension regarding the company’s growth trajectory in a Thursday client note.
“Wix’s 2026 outlook implies its core business is decelerating to ~8% vs. ~12% in 2025, with further decel in 2027E+,” Zhang wrote.
UBS additionally highlighted concerns surrounding Base44, the no-code application platform Wix acquired in the previous year, which recently surpassed $100 million in annual recurring revenue.
Zhang noted that “heavy investment and uncertainty in Base44 will leave Wix modestly below ‘Rule of 40’ in the next 3+ years.”
The Rule of 40 serves as a performance metric for software companies, calculated by adding revenue growth percentage to operating margin percentage.
Wix reported Q4 2025 results earlier this year with revenue reaching $524.3 million, representing 14% year-over-year expansion, though slightly beneath Wall Street consensus expectations of $528.13 million.
Management has provided 2026 guidance projecting mid-teens revenue growth alongside free cash flow margins in the low-to-mid 20% range.
The board of directors initially authorized Wix’s $2 billion repurchase program in early 2026, encompassing both common shares and convertible debt instruments.
Official results from the tender offer, including verified share quantities and pricing, will be disclosed upon completion of the depositary’s verification procedures.
