Wix vs Xero: Revenue, Profit and Business Model
Wix had $2B of annual revenue in FY2025 and $50.6M of net income. Xero had ~$1.6B of annual revenue in FY2026 and ~$97.1M of net income.
Latest financial snapshot
Financial summary
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.
Xero
For the year ended 31 March 2026 Xero reported operating revenue of ~$1.59 billion (NZ$2.75 billion), up 31%, net profit of ~$96.9 million (NZ$167 million), down 27% because of Melio acquisition costs, and free cash flow of ~$321 million (NZ$554 million). Subscribers rose 11% to 4.92 million and average revenue per customer rose 23% to NZ$55.44.
Revenue and profit by year
Wix
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $2B | $50.6M | 2.5% | +13.2% | Source |
| FY2024 | $1.8B | $138.3M | 7.9% | +12.7% | Source |
| FY2023 | $1.6B | $33.1M | 2.1% | +12.5% | Source |
| FY2022 | $1.4B | -$424.9M | -30.6% | +9.3% | Source |
| FY2021 | $1.3B | -$117.2M | -9.2% | +29.0% | Source |
| FY2020 | $984.4M | — | — | +29.9% | Source |
| FY2019 | $757.7M | — | — | +25.5% | Source |
| FY2018 | $603.7M | — | — | +41.8% | Source |
| FY2017 | $425.6M | — | — | +46.7% | Source |
| FY2016 | $290.1M | — | — | — | Source |
Xero
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | ~$1.6B | ~$97.1M | 6.1% | +30.9% | Source |
| FY2025 | ~$1.2B | ~$132.1M | 10.8% | +22.7% | Source |
| FY2024 | ~$994M | ~$101.3M | 10.2% | +22.4% | Source |
| FY2023 | ~$811.9M | ~-$65.8M | -8.1% | +27.6% | Source |
| FY2022 | ~$636.2M | ~-$5.3M | -0.8% | — | Source |
Where the revenue comes from
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.
Xero
- Subscriptions and platform88
Recurring subscription revenue from accounting plans, add-ons and other platform services.
- Melio payments12
Transaction revenue from Melio's US bill pay and receivables platform, which contributed ~$193 million (NZ$332 million) in FY26.
Business model and strategy
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.
Xero
How it makes money
Xero sells monthly software subscriptions to small businesses, sole traders, and accounting and bookkeeping firms. The core product covers bank reconciliation, invoicing, bills, payroll in several markets and financial reporting, and plans are priced in tiers by market. Most customers reach Xero through accountants and bookkeepers, who adopt it for their practice and move clients onto it.
Growth strategy
Xero's strategy centres on three jobs for small businesses (accounting, payments and payroll) in three main markets (Australia and New Zealand, the UK and the US). In the US it is combining Xero and Melio under one leadership team, adding online bill payments inside Xero and embedded payroll. It is also building AI features, including its JAX assistant, into the core product.
Competitive advantage
Xero's main advantage is its accountant and bookkeeper channel in Australia, New Zealand and the UK, which brings small business clients onto the platform. Melio adds a US payments product that it owns.
Questions about Wix vs Xero
Which company has higher revenue — Wix or Xero?
Wix had $2.0B (FY2025), while Xero had ~$1.6B (FY2026). By latest annual revenue, Wix is the larger business, with Xero showing 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 Wix vs Xero?
Wix's market capitalisation stands at $1.9B, while Xero's is $6.5B. Xero carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Wix.
How does revenue per employee compare for Wix and Xero?
Wix has $456k / employee in revenue per employee, while Xero has $363k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Wix and Xero make money?
Wix and Xero generate revenue in fundamentally different ways. Wix: Wix runs a freemium model. Xero: Xero sells monthly software subscriptions to small businesses, sole traders, and accounting and bookkeeping firms.
Which company is valued higher relative to revenue — Wix or Xero?
On a price-to-sales (P/S) basis, Wix trades at 1.0x P/S and Xero at 4.1x P/S. Xero commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Wix. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Wix bigger than Xero?
By last reported revenue, Wix ($2.0B (FY2025)) is the larger company compared to Xero (~$1.6B (FY2026)). 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 Wix vs Xero overview