Why Is Wix.com (WIX) Raising $1.75 Billion in Convertible Notes and What Could It Mean?

• In early September 2025, Wix.com Ltd. completed a US$1 billion zero-coupon senior unsecured convertible notes offering due 2030 and announced a further US$750 million convertible bond of the same type.
• This substantial capital raise reflects Wix.com's intent to bolster its financial flexibility, potentially supporting forthcoming growth initiatives or strengthening its balance sheet.
• We'll examine how the large convertible issuance could influence Wix.com's investment case, particularly around future growth and capital allocation.

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Wix.com Investment Narrative Recap

To be a Wix.com shareholder, you typically need to believe that the company can capture sustained revenue growth by driving adoption of its AI-powered platform and business solutions, outpacing competitive and technological threats. The recent US$1.75 billion convertible note offering provides Wix.com with added capital flexibility, but does not materially impact the most important short-term catalyst, ongoing new user conversion to paid subscriptions, or the largest risk, which remains the commoditization of DIY web platforms due to AI-driven rivals.

The August launch of Wix Checking and Wix Capital, a suite of financial services for SMBs, stands out as particularly relevant: it demonstrates Wix’s continued efforts to broaden its product suite and deepen user engagement, both critical for supporting higher-value user cohorts and defending average revenue per user in a crowded space. These moves, paired with increased financial resources, align closely with current growth catalysts identified by the company and market watchers.

However, investors should be aware that, despite substantial funding, the long-term risk from new AI-enabled competitors remains substantial, especially if...

Read the full narrative on Wix.com (it's free!)

Wix.com's outlook anticipates $2.7 billion in revenue and $415.6 million in earnings by 2028. This is based on a forecasted 13.3% annual revenue growth and an increase in earnings of $249.3 million from current earnings of $166.3 million.

Uncover how Wix.com's forecasts yield a $206.09 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Seven separate fair value estimates by the Simply Wall St Community span from US$160 to US$263.58 per share. While expectations for continued AI-powered user growth remain high, many participants also note the potential risk of margin pressure from intensifying competition, prompting a broad spectrum of opinions to consider.

Explore 7 other fair value estimates on Wix.com - why the stock might be worth 7% less than the current price!

Build Your Own Wix.com Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Wix.com research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Wix.com research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Wix.com's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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