Squarespace vs Wix: Revenue, Profit and Business Model
Squarespace reported $1B of revenue in FY2023 and a net loss of $7.1M. Wix reported $2B of revenue in FY2025 and $50.6M of net income.
Latest financial snapshot
Squarespace
- Latest revenue
- $1B (FY2023)
- Net income
- -$7.1M
- Net margin
- -0.7%
- Revenue growth
- +20.2% a year, FY2019–FY2023
Wix
- Latest revenue
- $2B (FY2025)
- Net income
- $50.6M
- Net margin
- 2.5%
- Revenue growth
- +11.9% a year, FY2021–FY2025
Financial summary
Squarespace
Squarespace grew revenue from $484.8 million in 2019 to $1.01 billion in 2023, crossing $1 billion for the first time in its 20-year history. After heavy GAAP losses in 2021 and 2022 (about $249 million and $252 million), the net loss narrowed to $7.1 million in 2023, and Q2 2024 showed $6.1 million of net income on $296.8 million of revenue. Permira first agreed in May 2024 to pay $44.00 per share (about $6.9 billion enterprise value), raised the price to $46.50 in September 2024 (about $7.2 billion), and closed on October 17, 2024. As a private company, Squarespace no longer publishes quarterly results, so figures after mid-2024 are not publicly reported.
Wix
Wix's revenue grew from $1.27 billion in 2021 to $1.99 billion in 2025, and the company moved from a $424.9 million net loss in 2022 to profits in 2023-2025 ($50.6 million in 2025). Free cash flow excluding acquisition costs was $605 million in 2025, about 30% of revenue, and Wix repurchased $575 million of stock that year. In March 2026 it announced a $250 million equity investment led by Durable Capital Partners. In Q2 2026, revenue rose 15% to $563.1 million, bookings rose 12% to $569.1 million and ARR reached $1.963 billion. Higher AI and marketing costs, plus restructuring charges, produced a GAAP net loss of $76.4 million, and free cash flow fell to $52.6 million. For full-year 2026 Wix expects revenue growth in the low- to mid-teens and a free cash flow margin in the high teens, excluding acquisition and restructuring costs.
Revenue and profit by year
Squarespace
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2023 | $1B | -$7.1M | -0.7% | +16.8% | Source |
| FY2022 | $867M | -$252.2M | -29.1% | +10.6% | Source |
| FY2021 | $784M | -$249.1M | -31.8% | +26.2% | Source |
| FY2020 | $621.1M | $30.6M | 4.9% | +28.1% | Source |
| FY2019 | $484.8M | $58.2M | 12.0% | — | Source |
Where the revenue comes from
Squarespace
- Website & Commerce Subscriptions~70%
Monthly and annual SaaS subscriptions across Personal, Business, Commerce Basic, and Commerce Advanced tiers.
- Domain Registration & Renewals~15%
Annual domain registration, renewal, and transfer fees across 10M+ managed top-level domains (TLDs).
- Commerce Transactions & Squarespace Payments~10%
Payment processing take-rates and merchant transaction fees on e-commerce sales and digital goods.
- Acuity Scheduling & Unfold Add-Ons~5%
Subscription add-on fees for online appointment scheduling, email campaign marketing, and mobile social story creation.
Wix
- Creative Subscriptions
~71% (Q2 2026)
Premium website plans, Wix Studio, bundled domains and Base44 subscriptions.
- Business Solutions
~29% (Q2 2026)
Wix Payments and other transaction revenue, Google Workspace resale, third-party apps and other add-ons.
Business model and strategy
Squarespace
How it makes money
Squarespace makes money mainly from recurring subscriptions, which it reported in two segments while public. Presence revenue (website plans, domains, Google Workspace email resale, email campaigns and Acuity Scheduling) was $215.4 million in Q2 2024, up 25% year over year. Commerce revenue (Commerce plan subscriptions plus payment processing and transaction fees from merchants) was $81.4 million, up 8%.
Growth strategy
Now backed by large Private Equity capital, Squarespace's large growth strategy is a highly aggressive pivot to 'E-commerce Dominance' and dominating 'Generative AI Design'. They realize that just building a brochure website is no longer enough; they must compete directly with Shopify. They are aggressively upgrading their e-commerce tools for independent creators to sell digital downloads and memberships.
Competitive advantage
Squarespace's absolute competitive advantage is its large, impenetrable moat of 'Design Templates' and its alarming 'Brand Marketing'. While competitors (like Wix) offer thousands of messy, chaotic templates, Squarespace heavily restricts their templates to ensure every single website looks like it was designed by a top New York ad agency.
Wix
How it makes money
Wix runs a freemium model. Anyone can build a site for free, and Wix earns money when users upgrade to premium plans for custom domains, ad removal, more storage, eCommerce and professional tools. It reports two segments. Creative Subscriptions (premium plans, Wix Studio seats, domains bundled with plans and Base44 subscriptions) brought in $398.4 million in Q2 2026 at an 80% GAAP gross margin.
Growth strategy
Wix plans to grow by bringing in new users through AI-first creation tools (Wix Harmony for websites and Base44 for apps). It also wants to sell more Business Solutions, especially payments and commerce, to existing sites, and to keep agencies and resellers building on Wix Studio. In the second half of 2026 it is moving marketing spend from core Wix to Base44, paid for by lower AI costs.
Competitive advantage
Wix has a large free user base that feeds paid upgrades. It also offers a wide range of built-in business tools, including payments, bookings, stores and events, and a professional tier (Wix Studio) for agencies. Base44 gives it an early position in prompt-based app creation, and Wix is building its own AI models (the Harmony model and Base44's Base 1 LLM) to lower inference costs.
Questions about Squarespace vs Wix
Which company has higher revenue — Squarespace, Inc. or Wix?
Squarespace, Inc. reported $1.0B (FY2023), while Wix reported $2.0B (FY2025). By last reported revenue, Wix is the larger business, with Squarespace, Inc. reporting a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Squarespace, Inc. vs Wix?
Wix has a market capitalisation of $1.9B. A public market cap figure for Squarespace, Inc. was not available (it may be privately held).
Which is more financially efficient — Squarespace, Inc. or Wix?
Squarespace, Inc. generates $562k / employee in revenue per employee, while Wix generates $456k / employee. Squarespace, Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Squarespace, Inc. and Wix make money?
Squarespace, Inc. and Wix generate revenue in fundamentally different ways. Squarespace, Inc.: Squarespace makes money mainly from recurring subscriptions, which it reported in two segments while public. Wix: Wix runs a freemium model.
Is Squarespace, Inc. bigger than Wix?
By last reported revenue, Wix ($2.0B (FY2025)) is the larger company compared to Squarespace, Inc. ($1.0B (FY2023)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Squarespace vs Wix overview