Wix turns to $2 billion buyback to shore up confidence after stock slump
Shares have fallen more than 50% over the past year.
Wix is launching a share buyback program of up to $2 billion, as the Israeli website-building company seeks to signal confidence amid a prolonged downturn in its share price. The company’s board of directors has approved a repurchase plan covering both shares and convertible bonds over a two-year period, during fiscal years 2026 and 2027.
Under the plan, Wix will be able to repurchase its securities on the open market, in private transactions, or through other means, subject to U.S. securities laws. Repurchases may begin only after the expiration of a 30-day objection period granted to the company’s creditors, in accordance with Israeli regulations.
Wix said the program will be financed through a combination of existing cash reserves, cash generated from future operations, or additional capital raising. The company emphasized that it is under no obligation to complete purchases of any specific amount and that the program may be suspended or canceled at any time. The actual scope of the buyback will depend on factors including the share price, market conditions, potential legal objections, cash flow, and the availability of financing.
In its announcement, Wix said the program reflects “the board's continued confidence in the company's ability to drive strong cash flow generation and ongoing commitment to increasing shareholder value.”
The buyback comes at a challenging moment for the software industry and for Wix itself, which has faced growing market pressure and declining investor confidence. Following an initial surge of enthusiasm around artificial intelligence, investors have grown more skeptical about companies’ ability to manage the technology’s complexity and rising development costs.
Against this backdrop, Wix cut its annual revenue forecast in November to $2 billion and reduced its free cash flow target to 30% of revenue. While still strong by industry standards, the figure represents a decline from the levels the company reported over the past year.
One of the sector’s central challenges has been the emergence of AI tools that enable software development through natural-language commands, threatening traditional website-building and development platforms. In response, Wix last summer acquired Base44, an Israeli startup developing AI-based programming technology, and recently launched a new website-building product that integrates artificial intelligence into its core offering.
The newly announced buyback may therefore be seen as an effort to reinforce investor confidence and support the stock during a period of uncertainty. Wix shares lost more than 50% of their value last year and fell an additional 15.5% from the start of January through yesterday. Following the announcement, the company’s shares jumped more than 5% in Nasdaq trading.
