Wix Authorizes $2 Billion Share Buyback Program

Wix Authorizes $2 Billion Share Buyback Program, Signaling Confidence in Future Growth

Wix.com Ltd. (NASDAQ: WIX), a leading global platform for creating and managing digital presences, has announced a significant $2 billion share repurchase program, authorized by its Board of Directors. This initiative, set to span fiscal years 2026 and 2027, underscores the company’s robust financial outlook and its commitment to enhancing shareholder value.

The program allows for the repurchase of Wix’s ordinary shares and convertible notes. These repurchases can be executed through various methods, including open market transactions and privately negotiated deals, in accordance with applicable U.S. securities laws, such as Rule 10b-18. The company also indicated the potential use of Rule 10b-51 trading plans to facilitate orderly repurchases.

Funding for the program is expected to come from a combination of existing cash reserves, ongoing operational cash flow, and potentially from raising additional capital through debt or equity issuances. This flexible approach provides Wix with strategic options to manage its capital structure while executing the buyback.

The authorization demonstrates strong confidence from Wix’s board in the company’s ability to generate substantial cash flow and its ongoing commitment to returning capital to shareholders. While the program signals positive momentum, it’s important to note that repurchases are subject to a 30-day creditor objection period under Israeli regulations. Furthermore, the company retains the discretion to suspend or discontinue the program at any time, depending on market conditions, financial performance, and other strategic considerations.

The inclusion of convertible notes in the repurchase scope could also signal a strategic move to manage its capital obligations and potentially reduce future dilution from outstanding convertible debt. The specific timing and volume of repurchases will be influenced by several factors, including the market price of Wix’s ordinary shares, broader economic conditions, creditor feedback, and the company’s financial results and liquidity.

About Wix.com Ltd.:
Founded in 2006, Wix.com Ltd. is a leading global platform that empowers millions of users worldwide to create, manage, and grow their digital presence. The platform offers a comprehensive suite of tools, including industry-leading infrastructure, robust security, and advanced AI-powered design capabilities. Wix’s commitment to innovation, exemplified by its intuitive website builder and no-code application creation through Base44, aims to make sophisticated digital creation accessible to a wide range of users, from individuals to enterprises.

Forward-Looking Statements:
This announcement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve risks and uncertainties that could cause actual results to differ materially. Factors such as user acquisition and retention, competition, international operations, macroeconomic conditions, security risks, and the successful development and integration of new technologies, including artificial intelligence, could impact future performance. The company undertakes no obligation to publicly update any forward-looking statements.

Key Takeaways:
* **$2 Billion Repurchase Program:** Wix has authorized a substantial buyback program for fiscal years 2026-2027.
* **Flexibility in Repurchases:** The program allows for repurchases of ordinary shares and convertible notes through various methods.
* **Funding Sources:** The company plans to use existing cash, operating cash flow, or capital raises.
* **Shareholder Value Focus:** The initiative signals confidence in the company’s financial health and commitment to shareholders.
* **Regulatory Considerations:** Repurchases are subject to Israeli regulations and company discretion.
* **Strategic Capital Management:** The inclusion of convertible notes suggests a proactive approach to managing capital structure.