Wix.com (WIX) Stock Rises as Company Launches $2 Billion Buyback Initiative

TLDR

• Wix.com (WIX) board authorizes $2 billion buyback program for fiscal 2026-2027
• Program covers ordinary shares and convertible notes with flexible funding options
• 30-day waiting period required under Israeli law before repurchases begin
• Company will use cash reserves, operating cash flow, or new capital raises
• Stock climbed 4.83% to $92.21 in pre-market trading on the news

Wix.com revealed Wednesday that its board has greenlit a $2 billion share repurchase program. The authorization spans fiscal years 2026 and 2027.

Wix.com Ltd., WIX

The program gives Wix.com the ability to buy back ordinary shares and convertible notes. This dual approach provides management with strategic options for capital deployment.

The company must observe a 30-day waiting period before starting repurchases. Israeli regulations require this window to give creditors a chance to object.

Investors reacted favorably to the announcement. Shares gained 4.83% in pre-market trading, hitting $92.21 on the Nasdaq.

Funding the Repurchases

Wix.com outlined multiple funding mechanisms for the buyback program. The company will tap its existing cash reserves as a primary source. Operational cash flow from ongoing business activities will also support the initiative.

Management retained the option to raise fresh capital if needed. This could involve issuing new debt instruments. The company also mentioned equity or equity-linked securities as possible funding vehicles.

The flexible funding structure ensures the buyback won’t hamper other business priorities. Wix.com can balance returning value to shareholders with investing in growth initiatives.

Program Structure

The $2 billion represents a ceiling rather than a commitment. Wix.com can purchase less depending on market conditions and strategic considerations. The two-year window allows for tactical execution.

Share buyback programs often indicate management’s view on stock valuation. They suggest leadership believes shares are trading below intrinsic value. The programs also reflect confidence in the company’s financial health.

Including convertible notes in the authorization adds flexibility. Buying back these instruments could reduce potential dilution from future conversions. It gives Wix.com tools to manage its capital structure.

Market Response

The pre-market price jump shows investor approval of the decision. A nearly 5% gain before regular trading suggests strong enthusiasm for the program. The $92.21 price level represents the immediate market reaction.

The authorization amount represents a substantial capital allocation decision. It demonstrates Wix.com’s ability to generate and deploy cash at scale. The company is prioritizing shareholder returns through direct repurchases.

The 30-day creditor objection period is standard procedure under Israeli corporate law. Once this timeline expires, Wix.com can execute repurchases based on its preferred strategy and market timing.

The program runs through the end of fiscal 2027. This gives management ample time to optimize execution. They can accelerate or slow repurchases based on stock price movements and business needs.

Wix.com announced the program on January 28, 2026, with trading scheduled to begin following the mandatory waiting period under Israeli regulations.

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