Why WIX Stock dropped -2.75% Today — RQD Quant Desk Flash

WIX scores 52 out of 100, a letter grade of D+, labeled "Roarable Sell — Weak Fundamentals / Trim." The five pillars are: Fundamental Cash Engine at 10/20 (ROIC 0.8%; FCF yield 17.84%), Whale 13F Flow at 9/20 (institutional accumulation and options positioning), Insider Conviction at 12/20 (SEC Form 4 and Congressional PTR cluster flow), Macro Regime Fit at 12/20 (Beta 1.0; sector sensitivity), and Forensic Balance Sheet at 9/20 (Altman Z 1.06; Piotroski F 7/9; Debt/Equity 0.5).

For a prospective investor, the pillar mix points to a company whose cash generation screens far stronger than its accounting returns. The 17.84% FCF yield is the main upside driver cited in the rating, while the 0.8% ROIC and 0.1% operating margin show that little of that cash translates into operating profit on a reported basis. The forward P/E of 54.2 versus a trailing P/E of 64.5 implies earnings expectations are the valuation tradeoff: the price already embeds substantial future growth. The Altman Z of 1.06 is a forensic warning sign, partly offset by a Piotroski F of 7/9 and Debt/Equity of 0.5. Institutional and insider flow scores in the middle range do not provide strong confirmation. The rating is a quantitative synthesis of the provided facts and is not personalized financial advice.

Wix.com Ltd. (WIX) is a NASDAQ-listed company in the Technology sector, within the Computer Software: Programming Data Processing industry..3B. Gross margin of 68.1% is reported in the market data.

Revenue rose from $1.56B in FY 2023 to $1.99B in FY 2025, while operating income fell from $100.1M in FY 2024 to $1.8M in FY 2025. Reported margins for the most recent period are operating margin 0.1%, net margin 2.5%, and gross margin 68.1%, with ROIC at 0.8%. The Altman Z-Score is 1.06 and the Piotroski F-Score is 7/9, with Debt/Equity at 0.5 in the forensic balance sheet pillar.

• 🐂 Primary Bull Case: A 17.84% FCF yield and FY 2025 free cash flow of $582.9M point to strong cash generation relative to the market value. With Fundamental Cash Engine at 10/20 (ROIC 0.8%, FCF yield 17.84%) and Institutional Whale Flow at 9/20, sustained execution supports upside toward the top of the $40.16 – $146.36 52-week range.
• 🐻 Primary Bear Case: A 0.8% ROIC, 0.1% operating margin, and Altman Z of 1.06 indicate weak accounting returns and financial stress risk. Investors must weigh 64.5x trailing P/E against 0.1% operating margins and a 1.00 macro beta if sector demand softens.

Sector correlation data is — beyond the Beta of 1.0 reported in the market data and the sector sensitivity noted in the Macro Regime Fit pillar.

• Key Question #1: What drove the decline in operating income from $100.1M in FY 2024 to $1.8M in FY 2025 while revenue rose?
• Key Question #2: What is the debt balance behind the reported Debt/Equity of 0.5, given that debt is N/A in every period?
• Key Question #3: What does the 52-week range of $40.16 to $148.33 reflect in terms of company events?