Key Highlights
- WIX climbed approximately 2% on Thursday while the S&P 500 declined 1.4%
- The company finalized a modified Dutch auction, repurchasing roughly 18.7M shares at $92 each
- The repurchase program totaled approximately $1.722 billion
- The repurchased shares account for roughly 31.6% of total outstanding shares as of April 1, 2026
- UBS shifted its rating on WIX to Neutral from Buy, pointing to core business slowdown concerns
Wix announced preliminary outcomes from its modified Dutch auction tender offer on Thursday morning. The tender period closed at one minute past 11:59 PM New York time on April 1, 2026.
According to preliminary calculations from Equiniti Trust Company, serving as the depositary, approximately 18,718,009 shares were validly tendered and remained unwithdawn at or beneath the $92.00 per share purchase price.
Wix plans to accept the full 18,718,009 shares for payment at the $92.00 per share price point.
The total expenditure for this repurchase reaches approximately $1.722 billion, before accounting for fees and related expenses.
These repurchased shares comprise approximately 31.6% of the company’s total outstanding shares as recorded on April 1, 2026.
Final calculations remain subject to adjustment. Preliminary counts assume that all shares tendered via notice of guaranteed delivery will arrive within the standard one trading day settlement window.
J.P. Morgan (JPM) served as the dealer manager for this tender offer.
Wix had indicated last month that it anticipated deploying roughly $1.75 billion during the auction process, establishing a price band between $80 and $92 per share.
Confirmation of the final purchase price and total share count will occur after the guaranteed delivery period concludes. Payment distribution is anticipated to proceed shortly thereafter.
UBS Moves Rating to Neutral
On Thursday, UBS revised its rating on Wix to Neutral from Buy.
Analyst Christopher Zhang expressed concerns regarding the company’s future growth trajectory in a client note issued Thursday.
“Wix’s 2026 outlook implies its core business is decelerating to ~8% vs. ~12% in 2025, with further decel in 2027E+,” Zhang wrote.
UBS also highlighted questions surrounding Base44, Wix’s no-code application platform acquired in the prior 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 evaluating software companies, calculated by adding revenue growth rate to profit margin.
Wix reported Q4 2025 results earlier this year showing revenue of $524.3 million, representing 14% year-over-year growth, though falling slightly short of analyst projections of $528.13 million.
Management has provided guidance calling for mid-teens revenue expansion and free cash flow margins in the low-to-mid 20% range throughout 2026.
Wix’s $2 billion share repurchase authorization was initially approved by the board in early 2026, encompassing both ordinary shares and convertible note instruments.
Final tender offer results, including verified share quantities and pricing confirmation, will be disclosed following completion of the depositary’s verification procedures.
