A. History and Development of the Company Our History Wix was founded in late 2006 on the belief that the Internet should be accessible to everyone to develop, create and contribute. We are a leading, global, web development platform for millions 65 of users, including self-creators, agencies, enterprises and more with industry-leading infrastructure, performance, and security, delivering our solutions through a Software-as-a-Service (SaaS) model. Since our founding, we have developed and launched multiple innovative products, services, and business solutions that empower any business, organization or brand worldwide to create, manage and grow a fully integrated and dynamic digital presence. Wix’s vision is to simplify complex technologies and deliver the best tools for every type of user and business to create online. Powered by advanced AI and enterprise-grade infrastructure, Wix is trusted by hundreds of millions of users worldwide. Founded in 2006 and strengthened by the 2025 acquisition of Base44, the no-code application platform, Wix is continuing to build for the future of the internet. In November 2013, we listed our shares on the NASDAQ Global Market. We are a company limited by shares organized under the laws of the State of Israel. We are registered with the Israeli Registrar of Companies. Our registration number is 51-388117-7. Our principal executive offices are located at Wix Campus, Building B, 5th Floor, Tel Aviv 6936024, Israel, and our telephone number is +972 (3) 545-4900. Our website address is www.wix.com. We use our website as a means of disclosing material non-public information. Such disclosures will be included on our website in the “Investor Relations” sections. Accordingly, investors should monitor such sections of our website, in addition to following our press releases, SEC filings and public conference calls and webcasts. Information contained on, or that can be accessed through, our website does not constitute a part of this annual report and is not incorporated by reference herein. We have included our website address in this annual report solely for informational purposes. Our SEC filings are available to you on the SEC’s website at http://www.sec.gov. This site contains reports and other information regarding issuers that file electronically with the SEC. The information on that website is not part of this annual report and is not incorporated by reference herein. Our agent for service of process in the United States is Wix.com, Inc., located at 100 Gansevoort Street, New York, NY 10014, telephone number (707) 235-1726. Principal Capital Expenditures For a description of our principal capital expenditures and divestitures for the three years ended December 31, 2025, and for those currently in progress, see Item 5.B. “Operating and Financial Review and Prospects—Liquidity and Capital Resources.” B. Business Overview We are a leading global cloud-based web development platform for millions of registered users and creators worldwide. Wix was founded on the belief that the Internet should be accessible to everyone and with the mission to enable anyone to express themselves online and for businesses and organizations to take their businesses, brands and workflows online to create and manage a fully integrated and dynamic digital presence. As of December 31, 2025, we empower approximately 304.2 million registered users worldwide who began the website building process with us. The Wix platform combines advanced AI, flexible web design, domains, hosting, templates and robust business and commerce solutions to help users build stronger brands, connect with their audiences, and scale their businesses online. Wix is shaping the future of how digital experiences are built with its intuitive AI-powered website builder and no-code application creation through Base44, making sophisticated creation accessible. We offer our solutions through a freemium SaaS business model (free and premium services), and as of December 31, 2025, we had approximately 6.1 million premium subscriptions. We also promote our services and solutions through our partners. Our platform consists of several web creation products, with different purposes and primary audiences. Wix Harmony and Wix Editor, intended for full website creation targeted at users with basic, average or above average technological skills, and Wix Studio, intended for advanced users such as design agencies, professionals, and enterprises. In January 2026, we released Wix Harmony, the company’s new flagship AI website builder designed for ease, speed, and professional‑grade results. Wix Harmony uniquely combines vibe coding with drag-and-drop design control. Within Wix Harmony, users work with Aria, an AI agent specialized in building high‑quality websites. Aria understands natural language and the full context of a site, so users can describe what they want and Aria can execute it. 66 The Wix Editor is a drag-and-drop visual development and website editing environment complete with high quality templates, graphics, image galleries and fonts. With our platform, Wix registered users can create and manage a professional quality digital presence tailored to their business and brand’s specific look and feel and that is accessible across all major browsers and the most widely used desktop, tablet and mobile devices. The Wix Editor personalizes the web creation process for each user’s intent, enhanced by AI Technologies. Wix Studio is a unified website development platform that enables the creation of advanced websites at scale. Wix Studio offers powerful design and layout capabilities for complete design control, multi-site workflow management and other advanced capabilities, including a robust code environment with Wix online VS Code-based IDE and customizable applications. These features combined with tailored AI Technologies, including responsive design AI and an AI-powered code assistant, enable professionals and agencies to complete complex projects faster and more efficiently. Additionally, design professionals can easily transform their Figma designs into dynamic Wix websites with a Figma to Wix Studio plug-in launched in June 2024. Wix Studio represents an evolution from our previous professional level design product, Editor X, which was sunset in 2024. Through Wix’s web creation products and tools, users have access to a broad and expanding set of AI-powered capabilities designed to simplify and enhance the website creation and management experience. By combining Wix’s proprietary technologies and third-party AI models, including those from leading providers, we embed intelligence across the platform to help users generate, design, customize, and manage their online presence more efficiently. These AI capabilities support everything from building and structuring websites to creating content, visuals, branding elements, and customer interactions, as well as automating common business operations. With these solutions, Wix enables users of all skill levels to create professional, high-quality websites and operate their businesses more effectively and with ease. Our platform also includes a full-stack, no-code/low-code development environment called Velo by Wix, through which users can combine the products and solutions our platform offers with advanced developer capabilities to create content-rich websites and web applications. Velo by Wix provides the ability to use databases to manage content, expose users application via application programming interfaces, or APIs, create server function to connect with external services, and custom code to create custom interactions. This may significantly reduce the need for developers and designers to juggle updating themes, hosts, content management systems (“CMSs”), plugins, content delivery networks (“CDNs”) and other third-party products. We also offer several vertical-specific applications that business owners can use to operate mission critical aspects of their business online, such as selling goods, taking reservations and scheduling and confirming appointments. These applications provide our users with a custom front-end for users of their website, as well as a robust back-end management dashboard. We have developed these software applications for businesses in specific verticals, including retail and online stores, services, event planners and management, hotel and property management, fitness, music, photography and restaurants, among other verticals. These vertical applications are integrated into our website templates or can be installed on any existing website and set up with minimal effort by the user and without the need to write code. We also offer a variety of additional products and services to further complement and enhance our users’ business or branding needs, most notably Payments by Wix, a payment platform that helps our users receive payments from their customers through their Wix website, and Paid Ad Campaigns, which allows businesses to run dynamic online ad campaigns on online ad platforms. Wix is also one of the largest resellers globally of Google Workspace, a productivity solution from Google, which is offered as an integrated productivity solution that enables people and businesses to safely connect, create and collaborate. 67 In addition, we provide a range of complementary services to meet user needs, including our App Market, which enables registered users to easily install and uninstall a variety of free and paid web applications developed by us or identified and selected through third-party developers based on user demands. These applications add functionality and are easily integrated into registered users’ websites with a few clicks, without the need for any coding, and include social plug-ins, online marketing and customer relationship management tools, contact forms and transactional and payment processing capabilities. Additional complementary services include, among others, the Wix Marketplace, an online marketplace which connects users with talented web experts; the Wix Owner App, a native mobile application enabling users to manage their websites and Wix operating systems on the go; and Branded App, which gives users the ability to create a fully branded native mobile application for their business. Our cloud-based platform is accessed through a hosted environment, allowing our registered users to update their site and manage their business or organization at anytime from anywhere with an internet connection. We provide our users with flexibility and scalability, allowing them to expand their digital presence as their business, organizational, professional or individual needs change and grow. Our scale and reach makes us an attractive partner for companies interested in distributing their own solutions to our audience. As we expand our platform through partnerships, we are able to increase our value proposition for existing users and more easily attract new users. We are removing not only technological, but also geographic and linguistic barriers to web development, to empower almost anyone to create and manage a digital presence in their own language. We currently enable our users to create their online presence in any language and offer our platform in 22 languages — English, French, Spanish, Portuguese, Italian, Russian, German, Japanese, Korean, Polish, Dutch, Turkish, Norwegian, Swedish, Danish, Czech, Traditional Chinese, Thai, Ukrainian, Vietnamese, Hindi, and Indonesian. In June 2025, we acquired Base44, an Israeli early-stage startup which offers an AI-powered platform enabling users to build fully functional web and mobile applications via natural-language prompts, automatically generating front-end, back-end, databases, authentication and deployment infrastructure, without the need for manual coding. In May 2025, we acquired Hour One AI Ltd., a company specializing in generative-AI–based media creation and scalable video production for web and content platforms. The acquisition strengthens the company’s AI capabilities and accelerates its roadmap toward more immersive, AI-driven digital experiences, including advanced video and visual content creation tools that can be integrated into our existing product ecosystem. Industry Background As consumers have moved almost all forms of commerce online and onto mobile devices, businesses, organizations and professionals need not only a website, but also a dynamic digital presence with tools to manage operations in real time. Artificial intelligence is transforming how users are interacting with customers, suppliers, partners and employees online. These AI-powered interactions include back-end activities like invoicing, customer relationship management and payment processing, as well as front-end activities such as communications, online marketing, reservations and scheduling, and social media integration, all increasingly enhanced by AI-driven automation and data intelligence. Use of dynamic web content and advanced digital services for high-level customer engagement is becoming increasingly prolific, fueled by AI capabilities that enable personalization, predictive analytics and conversational interfaces. However, building this presence is becoming more challenging for businesses, organizations, and professionals due to costs, time constraints, lack of skills and language barriers. The complexities of web creation and focus on design needs also create challenges for professionals who build web content, such as our partners. We believe there is a significant opportunity to provide an elegant cost-effective, AI-driven solution that caters to the accelerating demands of anyone who needs to create a dynamic, professional digital presence or application. Further, we also believe that there is a significant opportunity to provide solutions that help bring efficiencies to web development and further help businesses manage operations and grow online through vertical Enterprise Resource Planning (ERP), marketing, mobile, customer management and communication products and tools. 68 The Wix Platform Our web development technology is built based on HTML5 and offers HTML5 compatible capabilities, web design and layout tools, domain registration and hosting, and other marketing and work flow management applications and services. Our hosting ensures sites are up and running and requires no installation. We consider website security as one of our highest priorities and strive to offer multi-layered security processes and practices to keep websites safe and secure. Free Products and Services Our registered users receive access to hundreds of free design templates for personal and business use, free web hosting, free usage of select AI tools, free access to our App Market, which offers a variety of free and paid applications, and blog support. The websites developed using our free product contain Wix advertisements in the footer and/or header, and tags, or metadata, which contain our name. Our name is also contained in the URL of the user’s website. Our free product and service offerings include the following features and capabilities: Creation Products By registering with our service, our users gain free access to Wix’s web creation products: Wix Harmony, our flagship AI website builder; Wix Editor, an intuitive, flexible solution for individuals and businesses; Wix Studio, built for professional creators and agencies requiring advanced design, development, and collaboration capabilities; and Wixel, our standalone AI-powered visual design platform. These creation products enable our users to design and manage as many websites as they choose to establish or enhance their digital presence. No installation of software is necessary to use these web editors, as our advanced editing and design platform is accessible through the cloud directly from our website. Our web editors allow registered users to optimize their existing Wix sites for viewing on mobile devices. Our mobile site technology is also based on HTML5 and allows registered users to customize their sites for different mobile devices, yet share design elements and all site data between the different variants. We do not currently charge for gaining access to a mobile presence through our platform. Base44 offers a free, limited, credit-based plan to users that provides access to core features, including AI-powered app building, authentication, database, analytics, and hosting. This free offering is well suited for testing, experimentation, and small projects. Designed for speed and simplicity, Base44 enables users to turn ideas into functional apps through a conversational interface. The platform automatically generates both the user interface and backend infrastructure, eliminating the need to manage separate tools or services. Velo by Wix Velo by Wix is a powerful no code/low code development platform that allows users to extend the functionality of their online presence. With Velo, creators, designers and developers can take advantage of a server-less development environment that features an array of advanced functions to create content-rich, custom websites and web applications. This product combines our creation products - Wix Editor and Wix Studio - with a powerful set of development capabilities. Starting with our creation products, users can design a front end (client-side), then employ Velo developer tools to add advanced functionality and capabilities to the back end. Velo includes features that are built into the platform and do not require code for their implementation. Velo enables easier web application creation, providing the ability to use databases to manage content, APIs to connect with external services and the ability to expose the web application as an API. This significantly reduces the need for website managers to coordinate between updating themes, hosts, CMSs, plugins, CDNs and other third-party products. Velo provides an all-in-one platform, hosted on the Wix cloud, that allows users to spend their time on creation, rather than on complicated setup and maintenance. These capabilities are coupled with the Wix OS backend to manage all operational aspects of a website or application. Our Git integration enables developers to create and manage sites as a team, use any integrated development environment (“IDE”), integrate with CI/CD workflows and incorporate automated testing and verification tools. The Wix Git integration allows developers to work within a more stable and standard environment and provides more transparency to better mitigate problems. Wixel is a standalone AI-powered visual design platform, bringing advanced visual design capabilities into a single intuitive interface. Built to democratize visual design, Wixel enables 69 anyone to effortlessly bring their ideas to life, producing high-quality results with ease. The platform integrates cutting-edge artificial intelligence with an intuitive user interface and powerful features to offer a seamless visual design experience. Hopp is a platform by Wix designed specifically for social-first businesses looking to amplify their brand and scale their operations on social networks. The Hopp ecosystem boasts a variety of helpful features, but its signature offering is its link in bio tool. Additional Complementary Products and Services In addition to our creation products and development environment, multiple complementary products and services are available for users to create and manage their digital presence using Wix. The Wix App Market offers our registered users a large variety of free and paid web applications for building, growing, and managing their businesses. The web applications available in the App Market, which are developed by us, or by third-party developers, meet many of our users’ business needs in marketing, support, bookings, accounting, design, social and media apps, and more. Wix Marketplace connects users who need help creating and managing a website with experienced web professionals on the platform, offering a wide range of services to bring their ideas to life. Users can submit a detailed brief and get matched with the most suitable professional based on their needs, or browse hundreds of vetted experts filtered by service type, location, and budget, and review portfolios to find the right fit. In 2024, we expanded the Marketplace to include Wix Studio template sales, opening new opportunities for professionals to monetize their expertise while giving users high-quality, ready-to-use solutions. This addition further strengthens a thriving ecosystem built on creativity, innovation, and collaboration. Our native mobile applications are available in iOS and Android. The Wix App allows users to fully manage their websites and Wix operating systems on the go and run their businesses, wherever they are, in real time. It is an interface that streamlines the day-to-day mobile management that businesses need to operate e-commerce, marketing, customer service, bookings and communications with customers and site visitors. We also offer Spaces by Wix, a dedicated mobile app that serves as an interface between the site owner and their customers. Spaces by Wix serves as a mobile native business front for buying products, ordering services, registering to attend events and more. Customers use Spaces by Wix to communicate with the business owner or between themselves as a community. Both apps are available for download for free in the Apple App Store and Google Play. In conjunction with the launch of Wix Studio, our cornerstone web and application development platform for professionals, we introduced the Wix Studio App. The Wix Studio mobile app allows agencies building on Wix Studio to manage all of their sites, projects, and clients on the go. Our users have access to a set of tools to manage their site and business directly from a back-office dashboard that displays helpful information regarding the user’s site and business and data insights through Wix Analytics. Wix Customer Care Wix Customer Care provides support and guidance to our users throughout the Wix platform. Users can find answers through our self-service offerings (our Help Center and Helpmate) or engage with our Customer Care experts across multiple channels (calls, chat, or email) in numerous languages. We have a global department of Customer Care teams that are located across the United States (primarily in Cedar Rapids, Iowa) and EMEA (Kyiv, Krakow, Tel Aviv, and Dublin). In addition, we partner with multiple offshore Business Process Outsourcing (BPO) teams in order to provide 24/7 coverage and ongoing support for most of our markets. We provide customized care in 13 languages. Our Customer Care solution enables our experts to retrieve user details, see all previous interactions with Customer Care, and access useful information that can help resolve our users’ issues and assist them in achieving their online business goals. Our experts are expected to resolve users’ issues and also encouraged to provide next-level service by using their vast knowledge and experience to provide meaningful suggestions that help steer our users to success. This approach is applied to all interactions with our users, both free and premium. 70 We also use data models developed by our team to identify and proactively contact new users so that we can help them set up and launch their online presence, as well as harness AI technology to improve the efficiency of our Customer Care capabilities. Paid Products and Services Wix Premium Subscriptions Our premium subscriptions are purchased by businesses, organizations and professionals in a variety of fields, such as art, finance, entertainment, music, photography, tourism, beauty, sports, food services, property management or publishing. Premium subscriptions may also be purchased by creators such as our partners that, in some cases, are engaged by their customers to build web content. Our premium subscriptions offer select AI tools, Velo by Wix, and other complementary products and services. Our premium services also include top-requested business tools, such as social posts, promotional videos and invoice management. Premium subscriptions also include the ability to connect a custom domain name, which can be purchased and managed directly through the Wix platform or purchased and connected to Wix from a third party, the removal of Wix branded ads on the site. Certain premium subscribers also benefit from priority level customer care. As part of our effort to expand our AI capabilities to help our users create, design, and grow their online presence, we introduced AI Credits which can be utilized as part of our premium subscriptions across Wix’s AI‑powered tools and features. Premium subscriptions will be able to utilize AI Credit limits in accordance with the package they purchase. In addition, users can purchase or use products and services to further manage and grow their online business on Wix: Payments by Wix Payments by Wix enables our users to accept payments for goods and services both online and in-person (through point of sale (“POS”)) from their customers, either from third-party payment processors or from Wix Payments, our proprietary fully integrated payments service. Users can select one or more payment methods available to appear on their checkout page, depending on their geographic location and type of goods and services they offer. Users must purchase a premium subscription to accept online payments. Wix Payments allows users to set up and accept payments, in an automated and streamlined onboarding process made entirely within the Wix platform. Wix Payments also includes a dashboard to view the history of online and in-person transactions, from sales to payouts, in a single place, solving a significant challenge with doing business online. Many types of businesses, including e-commerce retailers, service providers, musicians, photographers, hotels, restaurants, and many more are able to take advantage of the efficiency provided by Wix Payments. Wix Payments is currently active in Brazil, the U.S., Canada, the UK, and several European countries. Email Marketing Subscriptions We offer stand-alone packages of email marketing features to help users engage with their audience, convert leads and boost traffic. Users can purchase email marketing packages on a monthly, yearly, or multi-year subscription basis, and can choose between various price points based on the number of required emails sent per month. We also offer a free base package of limited email marketing capabilities. Paid Ad Campaigns An integrated marketing tool that allows businesses to run dynamic online ad campaigns that reach customers they want to target on online ad platforms such as Facebook and Google. Wix Logo Maker Wix Logo Maker generates a customizable, high-resolution logo in minutes, including through the use of AI, providing users with a critical piece for building an online brand. Through Wix Logo Maker, users can design a stunning logo, get downloadable professional vector files in a variety of sizes and color formats, custom design and order business cards with their customized business logo, and build a website based on the styles and colors of their customized business logo. 71 Domains We offer our users the ability to choose and connect their own domain name to their website to better enhance their brand, through third parties that offer domain names, or through our offering as an ICANN accredited domain name registrar. Domain names are offered as a stand-alone product, and also are included, on a limited basis, as part of our premium subscription offerings. Registered users without a premium subscription are assigned a free URL which includes the Wix site address. Google Workspace We sell Google’s Google Workspace application as an integrated solution, which allows our users to create a personalized Gmail email address using their Wix-connected domain name, to enable them to send professional emails from their business address, create group mailing lists for sales, support, email marketing and more, and access other related features through their Wix’s site management dashboard. Since the beginning of 2025, users have had access to Gemini and NotebookLM to automate certain tasks using AI, including writing emails and search engine optimization (“SEO”) keyword research. Wix POS As part of our extended commerce offering, we offer to users who utilize Wix Payments, Wix POS, an end-to-end omnichannel solution unifying online and in-person sales directly from the Wix platform. With Wix POS, users who have an online store and a physical shop are able to manage their business easily while having a single product catalog, one inventory channel and a unified sales history. Gift Cards We provide users a fully native solution to manage gift cards. Gift cards can be used by brands and businesses to attract new customers, increase purchase frequency and retain existing customers. Branded App by Wix We offer a native mobile app builder that provides users with the ability to create and customize their own tailor-made application without a single line of code. In 2024, we launched an AI chat experience for our mobile app builder for global users in English. Through a conversational AI chat experience with the user to understand intent and goals, our AI Technologies generate a fully branded and customizable mobile app for the desired business. Base44 Base44, an AI-powered platform that enables anyone to build fully functioning apps in minutes using natural language, offers a tiered subscription model for AI-powered app development. Base44 uses a dual-credit system: message credits are consumed when users interact with the AI to create or edit an application, effectively metering the development process, while integration credits are used when end users interact with the live application. All paid plans include unlimited apps, AI model selection, and in-app code editing. Wixel Wixel is a new standalone AI-powered visual design platform. Built to democratize visual design, the platform enables anyone to effortlessly bring their ideas to life, producing high-quality results with ease. The platform integrates cutting-edge artificial intelligence with an intuitive user interface and powerful features to offer a seamless visual design experience. Wix Commerce Solutions We offer a robust and comprehensive commerce platform for all types of business owners. As each business segment faces a unique set of challenges, we developed a commerce platform on top of which we offer tailored products and solutions to address specific business needs. This strategy allows us to build on this solid foundation by adding more layers and enhancements that cater to the specific needs of each industry and provides an easy and affordable way for these businesses to bring mission critical workflow online. Current vertical solutions that offer commerce 72 functionality include Wix Stores, Wix Services, Wix Restaurants, Wix Events, Wix Fitness, Wix Hotels, Wix Music, Wix Showcase, Wix Video, Wix Blog, Wix Forms, Wix Groups, Wix Proposals, and Wix Donations. Wix is also focused on agentic commerce to prepare merchants for the shift from traditional search-based shopping to AI-driven purchasing. In late 2025, Wix announced partnerships with Stripe and PayPal to introduce tools that promote user product discoverability, which can be bought directly through AI agents. We intend to continue introducing additional solutions, once we are able to identify a need for such solutions, that are tailored to specific businesses. Wix Stores Wix Stores is our e-commerce platform that offers merchants professional tools and services to establish, design, manage and grow their e-commerce business. The platform allows merchants to sell their products across various channels, including online stores, native mobile apps, physical point-of sale, external e-commerce marketplaces, and social media platforms. Wix Stores enables merchants to manage their e-commerce operations from end-to-end, covering activities such as sourcing products, managing inventory, accepting payments, fulfilling and shipping orders, and obtaining detailed analytics and reporting. Additionally, merchants can leverage a wide-spectrum of marketing and e-commerce tools. The platform also includes numerous integrated third-party-apps, and is built to be extended by both developers and merchants to further customize the solutions and create unique e-commerce experiences at scale. Wix Services Wix Services is an end-to-end online booking solution, giving businesses an easy and effective way to showcase their services and allow online scheduling of appointments, classes and courses, as well as manage their own schedule by synchronizing with their primary Apple Calendar, Microsoft Outlook, and Google Calendar, reducing no-shows by sending auto-reminder emails to customers, selling memberships and packages, and customizing products. Wix Restaurants Wix Restaurants provides various solutions for restaurateurs, including Wix Restaurants Menus and Wix Restaurants Reservations. Wix Restaurants Menus enables restaurateurs to easily create a menu on their Wix website, using professionally created layouts offered on our site. Wix Restaurants Orders is an online ordering solution for restaurateurs enabling them to receive takeout and delivery orders through their desktop and mobile Wix websites and to consequently grow their business and maintain a direct relationship with their customers. Wix Restaurants Reservations allows restaurant owners to take online table reservations from their restaurant site and confirm and manage reservations via their Wix dashboard. Wix Events Wix Events is an application which enables users to create and manage their events on both desktop and mobile. Users can create their venue map, send invites, collect RSVPs, sell tickets and manage a guest list. Wix Events provides ready-made reports to track event sales to registrations. It can be used for conferences, meetups, concerts, shows, weddings, parties, and more. Users can use Wix Events to promote their events on social media and use third-party integrations for virtual events. We charge a ticket service fee from our Wix Events users on a sales of tickets sold through Wix Events. Wix Fitness Wix Fitness enables fitness instructors and studio owners to manage each aspect of their businesses from their website and the Wix Fit App. Fitness professionals can create a website using designed templates and customize the Wix Fit App, manage their calendars and classes, allow their customers to book classes, connect with their community, stream and sell videos, take payments and obtain analytics to help grow their business. Wix Fitness offers bookings, subscriptions, e-commerce including coupons, as well as a chat interface that allows for real-time interactions with customers. Wix Hotels Wix Hotels, by HotelRunner, is a full suite of professional tools for every touchpoint needed to launch, manage, and grow a hospitality business and maximize revenue. Wix Hotels offers a 73 comprehensive booking engine that is fully integrated into a Wix website for hotels, B&Bs and vacation rentals, making it simple to build and maintain the room inventory complete with pricing, booking, reservation and payment management capabilities. Through their dashboards, hotel owners can easily add reservations made elsewhere and manage their entire room inventory in one place and accept and manage bookings that come through many online travel agencies and marketplaces. Wix Music Wix Music is a comprehensive solution for musicians and entertainers that includes a music player, an easy-to-use digital asset management system, concert promotion and ticketing, fan management and communication tools and a range of specifically designed music website templates. Wix Showcase Wix Showcase is a comprehensive solution for maintaining media online, from both desktop and mobile, comprised of (i) Wix Portfolio (ii) Wix Pro Gallery, and (iii) Wix Photo Albums. Our Wix Portfolio offering enables users to easily create professional online portfolios. Students and professionals in the arts, entertainment, science and technology, fashion, architecture and building and other industries can display their work online with uniquely designed and customizable layouts for project collections of all sizes. The Wix Pro Gallery provides designer-class tools to manage and showcase media online. From customizable layouts and professional settings to pixel perfect display controls, Wix Photo Albums gives users beautiful stand-alone albums for their client’s photos. Each album can be personalized with branding and shared directly with clients. Wix Video Wix Video allows our users to showcase, promote and sell videos on their Wix website. Users can create their own video channels, upload and stream videos in the highest quality, or easily add videos from YouTube, Vimeo and Facebook. Wix Video allows users to live stream and charge access for live events from desktop. Additional features include selling video downloads, customizable interactive cards placed on top of the videos, automatic sites for vloggers via Wix Editor and direct syndication of videos to YouTube and Facebook. Wix Blog and Wix Forms Wix Blog enables users to easily create a blog and grow an online community. Users can choose from several beautiful layouts with built-in social features. Readers can join the blog, create member profiles, and comment with images and videos. In addition, users have the option to set up a paywall and charge for access to selected content. In 2024, we announced a suite of AI-powered tools that generate the content and images for a user’s target audience, quickly turning ideas into engaging, near-ready articles. Wix Forms enables users to easily create forms to get subscribers, generate leads and collect the information they need. Users can choose from multiple templates, such as contract, subscription and payment forms, or create their own form from scratch, using a variety of form fields. Users can add their forms to their Wix website or create standalone forms to share with a unique link. After receiving submissions, users can view their data in an easy to read table or export it to view offline. Wix Groups Wix Groups enables users to create an online community directly on their Wix site. The Wix Groups users can become members, join conversations, follow posts, upload videos, write comments and more. Users can choose from a variety of layouts and customize them to their needs. In addition, users have the option to set up a paywall and charge for access to select content. 74 Wix Proposals Wix Proposals, powered by Prospero, is a comprehensive solution for managing long-term contractual or financial engagements. By using Wix Proposals, business owners can seamlessly create, customize, and finalize proposals tailored to their unique needs as well as work more efficiently with automated invoices. Prospero's proposal templates are seamlessly integrated with Wix's business management tools, providing users with a powerful and versatile proposal creation and management experience. Wix Donations Wix Donations enables nonprofits and fundraisers worldwide to easily establish an online presence, collect donations, attract donors, and manage their entire operation right from the Wix platform. Artificial Intelligence and Generative AI Technologies We offer a comprehensive suite of AI- and generative AI-powered web creation and business enablement tools, which are available to all of our users. Wix Artificial Design Intelligence (“ADI”), launched in 2016, was a first of its kind AI-based site creation platform. We have since developed and launched multiple products and solutions leveraging AI Technologies. We deploy hundreds of AI and generative AI models on our platform, both leveraging third-party models from OpenAI and other partners as well as our own proprietary algorithms. Harnessing AI Technologies simplifies the user experience and streamlines the website building process, allowing businesses to move online more quickly and easily. We also deploy AI models to improve our internal workflows and development velocity. We have a large suite of AI-powered tools and features for web design, eCommerce, online marketing and advertising, and analytics. This includes, but is not limited to: Wix AI Website Builder The AI Website Builder generates a fully tailor-made site created with a layout, theme, text, images and business solutions such as scheduling, eCommerce, event management, and more, after participating in an in-depth dialogue about their intent and goals with our AI chatbot. Users have the ability to refine and customize the site by regenerating it or changing its look, feel, structure and layout. Furthermore, users can seamlessly continue to edit their site in the Wix Editor. The websites created using the AI Website Builder are fully optimized with Wix's reliable infrastructure including security and performance, as well as built-in marketing, SEO, CRM & analytic tools. Kleo, Wix’s AI Marketing Agent The AI Marketing Agent, also called Kleo, proactively creates marketing content and optimizes sites for SEO, helping users grow their business, reach new audiences, and save time. By connecting Wix’s powerful marketing tools, including SEO, social media, email marketing, and paid ads, and more, Kleo delivers a personalized strategy with ready-to-use content and recommendations tailored to specific users goals. Aria, Wix’s AI-Powered Business Assistant Aria simplifies the user experience by allowing users to query and perform various business and back-office tasks directly from the chat interface. Integrated throughout the dashboard, Aria allows users to ask questions, optimize site settings, complete tasks, and discover useful features. By guiding users toward relevant tools and add-ons, Aria is expected to drive app installations, increase package upgrades, and encourage the adoption of premium features, ultimately improving collections and helping reduce churn. Wix AI Text Creator The AI Text Creator is designed specifically for website creation. Upon a user entering inputs about the desired text, the AI Text Creator creates custom content ranging from a catchy title to a product description of an eCommerce product listed on the website and other detailed text that is precisely formulated for the website. 75 Business Launcher In the beginning of 2025, we announced the launch of the Business Launcher, an AI-powered tool that helps users create new business initiatives from concept to execution. The Business Launcher guides users through various steps of starting a new business, offering personalized ideas, actionable plans, and essential tools to create a website and launch a business. Wix AI Image Generator The AI Image Generator generates high-quality, personalized image content quickly and cost-effectively. Upon the user providing a descriptive prompt about the desired image and the preferred image style, the AI Image Generator creates multiple versions of a custom image, ready to be added to the user’s website. Alternative Layouts The Alternative Layouts tool gives users the ability to redesign parts of a website in a single click. AI Visual Sitemap and Wireframe Generator Wix Studio’s AI-powered Visual Sitemap and Wireframe Generator creates tailored sitemap structures and bespoke wireframes with pages, sections, and relevant business applications from the user’s inputted project details. Once generated and further refined as needed, users can export the visual sitemap and share with clients for proposals, and access the Studio editor to edit and design the wireframes, pre-injected with content suggestions. Auto Background Removal and Auto Enhance The Auto Background Removal and Auto Enhance tools allow users to refine photos and upgrade the quality of their photos to match the look and feel of a website more seamlessly. AI Theme Assistant Through a conversational chat embedded directly within the Wix Editor, the AI Theme Assistant provides personalized guidance and real-time suggestions for the design theme of a website. Auto-Generated Trailer The Auto-Generated Trailer tool quickly transforms a user’s video file into a professional-looking informational trailer for site visitors. AI Meta Tags Creator The AI Meta Tags Creator is a natively developed built-in SEO tool that enables users to instantly generate optimized tailored title tags and meta descriptions based on their page data and content. This tool allows users to generate and customize SEO-friendly tags that align to SEO best practices for each website page in real-time, enabling users to create search-optimized and customized content more efficiently and effectively. AI for Google Ads The AI for Google Ads is an added layer of AI for Google Ads streamlines campaign creation with a single click. Users can quickly generate high-quality, effective titles and descriptions that align with relevant keyword themes and geographical locations, based on the campaign’s brief. AI Portfolio Creator Wix’s Portfolio Creator allows users to easily bulk upload media and organize them into collections for their online portfolio. Using AI image clustering technology, Wix will swiftly group images and suggest titles and descriptions for each project. Product Recommendations The Product Recommendations tool enables eCommerce users to proactively predict their customers’ needs and suggest relevant items based on customer history, improving business success. AI Site-Chat 76 Wix’s AI Site-Chat serves as a virtual agent for the customers of our users. AI Site-Chat enables businesses to connect with visitors 24/7, answer their questions, and provide relevant information in real time, even when business owners are not available. Our AI Site-Chat is designed to detect the intent behind every query, then use live data from your website, support database and other internal resources to make precise recommendations. AI Code Assistant Wix Studio’s AI Code Assistant provides users working in the Wix Online VS Code-Based IDE with an AI-powered code assistant that helps developers write cleaner code and detect errors automatically. Base44 Base44 is an AI-powered platform that enables anyone to build fully functioning apps in minutes using natural language. From personal productivity tools and internal workflows to customer portals and enterprise-grade products, Base44 turns ideas into ready-to-use applications with no integrations required. HourOne Hour One is a pioneer in generative AI media creation. It develops technology that enables the effortless creation of studio-quality content at scale. The platform supports personalized video and interactive experiences that merge storytelling with real-time engagement. At the core of Hour One’s offering is a proprietary cloud-based infrastructure that integrates generative AI inference with advanced 3D rendering. Selling and Marketing Our selling and marketing efforts focus primarily on online and offline advertising, and on sales teams and account management teams focused on meeting the needs of our partners that may utilize our products and services for their own needs or to serve their own customers. We market our solutions and applications to businesses, organizations, and professionals, including entrepreneurs and freelancers, as well as through partners. We are able to attract a high volume of registered users, including those that purchase premium subscriptions, by offering free solutions and services, as well as upgrades and additional features and solutions that are offered under our premium subscriptions. User Acquisition We engage in online and offline advertising, with a focus on acquiring new users to our platform, converting these users into purchasing premium subscriptions, and increasing our revenue from them by selling them our business solutions. A majority of our premium subscriptions are generated from traffic to our website, primarily through search engine optimization or direct traffic, meaning visitor traffic that reached our website, Wix.com, via unpaid search results or by typing the URL of our website in their browser. We also acquire a small amount of free traffic through our participation on social networking sites and the banner advertisements we place on our non-paying registered users’ websites. In order to increase our exposure and optimize organic, or free, search engine results, we constantly test our search engine optimization strategy to ensure that our website is relevant to those potential customers seeking web development and design products. Furthermore, we continually evaluate our marketing spending and its effectiveness and invest in those activities that are most likely to maximize our return by generating premium subscriptions which will drive high revenues. In addition to our online and offline marketing activities to acquire new users, we also acquire new users by engaging with partners that sell our solutions to, or purchase our solutions on behalf of, their customers. We accomplish this outreach with our sales and account management teams as well as through marketing content, online communities and organized events and conferences. We believe that our branding efforts have accounted for a significant portion of users who come directly to our website, through typing our URL directly into their browsers, or through searching for “Wix” or a term related to the establishment of a digital presence. We believe that these users are also attracted due to referrals from other users, and via word-of-mouth regarding our products and services. Our marketing acquisition strategy benefits from the brand we have built as a leading web development and design platform for businesses, organizations, professionals, and individuals and also benefits from our use of A/B testing on our website, a marketing approach that 77 aims to identify changes to our website, which may increase or maximize user interest and acquisition. Our Design Studio and product development teams change the layout of our website and product interface from time to time, and engage in A/B testing to determine which layouts and graphics are the most successful in maximizing user acquisition. Our marketing approach for our Wix offering focuses on higher-intent users. In doing so, we significantly reduce investment in acquisition marketing, which has meaningfully improved return on these investments until today, while new user cohort bookings increased. We believe the driver of this success is the strength of our Wix brand and further believe that our investments in building a global, scaled brand since our inception have made Wix synonymous with relevant general keywords on the internet. Our marketing expenditures directed to advertising were $243.6 million in 2025, $175.6 million in 2024 and $142.8 million in 2023. Our marketing expenditures are primarily directed toward search engine advertising, advertising on social networks, video advertising and traditional media advertising. We also maintain the Wix Affiliate Program, a program where our affiliates receive a commission for directing visitors to our website, by placing Wix ads on their own websites. From time to time, we also hold webinars, promotional contests, user meet-ups and public relations events. We also maintain an active online presence using social networking sites and web design influencers for our Wix Studio brand. Business to Business Sales and Marketing We have enhanced our sales efforts to attract partners, including to large and enterprise-level users, and to those who sell premium subscriptions and additional business solutions to their customers at scale. We have established dedicated sales, marketing, and customer success teams to facilitate the use of our services by these partners. User Retention Once we attract visitors to our website, our preliminary goal is to register them as registered users. Once they are registered, we distribute marketing and promotional emails and support tools to help our registered users build their site. These materials are created by our Wix content team, which complements our marketing efforts by focusing on the consistency of our branding message online, in our in-person merchandise and at our community events. We constantly seek to generate premium subscriptions from our registered users and to maximize our revenue from such subscriptions by offering them enhanced functionalities through business solutions. Registered users who purchase premium subscriptions gain access to additional features based on the subscription they choose, which may include Wix ad removal, domain connectivity, e-commerce and payment solutions. In the beginning of 2026, we expanded our AI ecosystem to help our users create, design, and scale their business with unprecedented efficiency by integrating AI Credits directly into our premium subscriptions for new purchases, providing extra capabilities and a more powerful way for users to manage their digital presence and growth. We offer a 14-day refund to introduce registered users to these additional products and solutions. Registered users can choose between monthly, yearly or multi-year premium subscriptions, and, as of December 31, 2025, 83% of our premium subscriptions were for a one-year period or more and 17% were monthly. We seek to increase the number of premium yearly and multi-year subscriptions by offering promotions and discounts on these subscriptions. We also send emails to our yearly and multi-year premium subscribers, reminding them that their subscriptions are about to renew, as well as other discounts on products and services to maximize our revenue from such premium subscriptions. We seek to retain premium subscriptions by offering upgrades for our premium products, business solutions, and free and paid applications in our App Market. We further retain premium subscriptions by developing relationships with subscribing users through our Customer Care team, with which we address our users’ technological needs and concerns. Through our Customer Care operations, we help our users with premium subscriptions to discover additional business solutions to enhance their subscription and, as a result, their engagement in our platform. We seek to maintain goodwill with all of our registered users, and retain them as registered users, even if they do not choose to subscribe to, renew or enhance their premium subscriptions. 78 We further expect to retain premium subscriptions and maximize our revenue from our partners by providing improved support, account management and additional business solutions to them, as well as back-office functionality required by our partners. Our Technology and Infrastructure Our cloud-based platform provides our registered users with a suite of web design, development and workflow management products and applications, as well as hosting for our registered users’ sites. All of these tools are accessible directly through our platform. In order to enhance our suite of products, we also conduct product and quality assurance testing on new and existing technology integrated into our platform. Wix Cloud We use a flexible hybrid cloud, comprised of both cloud-based storage and data centers, to host our products and our applications, and the websites that our registered users create. We rely on collocated servers, cloud service providers and other third-party hardware and infrastructure to support our operations. Our primary data centers are located in two geographically separate locations in the United States, one located on the East coast and the other located on the West coast, each of which is capable of running individually, and we have additional CDN providers worldwide and a hosting data center in Europe to improve our performance and provide backup in case of failure of our primary data centers. The vast majority of our data is located in our primary data centers in the United States hosted by Amazon Web Services by Amazon.com, Inc. and Google, Inc., as well as by additional providers as required or for specific purposes, and we also use cloud storage from Google, Inc. and Amazon.com, Inc. Our network equipment is stored in data centers leased from Equinix, Inc, and connected to cloud storage providers such as Google, Inc. and Amazon.com. To date, we have not experienced any material outages or service interruptions. This highly scalable multi-tenant technology infrastructure enables us to serve all of our users simultaneously and consistently, and scales based on overall traffic and capacity. As a result, our platform is not affected or slowed down by growth in the number of users whose data is stored in our cloud. Our cloud technology is also capable of full resource sharing, meaning that our registered users can access information via their individual website database easily over the Internet without the need for manual download, with content delivery provided by international cloud delivery network vendors. To further reduce the possibility that data of our registered users will be lost, and that our platform will not experience material downtime, we also use Google and Amazon cloud services as well as additional providers, to back up our users’ data. We apply industry standard data security measures to protect against potential vulnerabilities in our technology. HTML5-Based Design Capabilities HTML5 is the latest and most advanced markup language available for structuring and presenting dynamic content on the Internet. Websites using HTML5 can seamlessly incorporate video, audio, fonts, graphics and animations. Because of these advanced capabilities, we use HTML5 as the basis for our products. We developed our HTML5-based technology by leveraging our many years of experience in developing web development and design tools. Style Engine and Smart Layout Technology Our style engine technology provides registered users with advanced customization capabilities, making all aspects of a registered user’s website customizable. Our technology, which uses dropdown lists and customized color palettes, allows the user to quickly brand or re-brand their website with just a few clicks in our editor. In one click, users can customize backgrounds, banners, buttons, fonts and font sizes using a dropdown list. Registered users can customize colors using a color palette. One click also allows a user to simultaneously apply all color and style changes to all elements on the user’s website. This type of customization is generally time-consuming and requires knowledge of advanced HTML5 and CSS3 coding skills. However, with our style engine technology, our registered users can change their websites’ style and branding in moments. Our editors include the Wix Editor’s Smart Layout technology that offers both functionality and customization. Our technology provides for dynamic layout and content, meaning that no one component box on a registered user’s website is static or incapable of being moved to other areas of the user’s page. Component boxes added to our registered users’ websites identify the user’s 79 site structure and automatically adapt to the size and style of other component boxes within the site. These capabilities allow the registered user full control over the layout of their website, allowing the user to create a design-rich, professional website. Through Wix Studio, which offers advanced design and layout capabilities, we allow users and design professionals, through its wide, flexible canvas, to use modern CSS technologies to accurately and proportionally scale elements at every viewpoint. Additionally, the Alternative Layout tool provided under our suite of AI Technologies give users the ability to redesign the composition of their website in a single click. Web Service Creation Environment We provide a software development platform with a software development kit, or SDK, REST APIs, and webhooks that enable third-party developers to build applications for Wix websites. Applications may include widgets (also called site components) that are embedded on users' sites. Developers configure and publish these applications through the Wix Developer Center using tools such as the Wix CLI. Widgets are embedded on users' sites through various integration methods. For integrations that need to receive website events, such as order management and financial services , applications access site data through set permissions and webhooks that deliver real-time event notifications. The Wix App Market is the primary distribution channel where users can browse and install third party applications to add functionality to their website. Applications may display widgets as embedded UI components within pages, in modals or popups, or as dashboard panels, depending on the application's design. Widgets that provide meaningful content and include dedicated, SEO endpoints can have their content indexed by search engines as part of the site’s SEO view. Wix Databases Our application development and data technology, Wix Databases, is a platform that allows our registered users and developers to create their own applications and work management tools, such as contact forms and FAQ lists. This platform uses our AI engine, drag-and-drop, style engine and smart layout technology, so that the user or developer may create professional-looking applications and tools with customized styles, colors and layouts. The applications and tools created through Wix Databases can be fully integrated into our registered users’ websites through publishing on the Wix Editor platform. Infrastructure Our operations, including marketing and delivery, are efficient since the vast majority of them are online-based and, as such, provide us with flexibility and scalability. Our hybrid cloud and content delivery network enables our registered users to purchase and use our products and services online, through our website. As a result of these efficiencies, we have built a large registered user base, while limiting the number of physical offices required for conducting our business. Our marketing and customer support operations are supported by online marketing tools such as CPC advertising, SEO and email distributions, and by customer support tools such as online forums and an advanced user self-service support system using online ticketing and a database of questions and answers. We currently process all of the payments for use of our paid services by our users using a billing system that enables our registered users to submit information of credit, debit card and other alternative payment methods for payment processing. This system interfaces with a number of different payment gateway providers who then link to payment card processors and/or acquiring banks, based on the registered user’s jurisdiction. With this system, we are not materially dependent on any single gateway provider or payment card processor in any of our main markets. Our infrastructure includes servers and bandwidth capacity collocated from third parties located in the United States, as well as in Europe, and any other locations as required, including CDNs from Fastly, Google, and Amazon, and cloud storage from Google and Amazon as well as additional providers as required or for specific purposes. We mostly use third-party cloud services to run our research and development activities (such as Amazon, Google, GitHub and BuildKite) and to operate our office applications. Our use of servers in different locations to back up our registered users’ data and to serve our registered users, protects against accidental data loss and reduces disruption to our operations from server outages or physical damage to a server. We aim to maintain industry standard server operations, which will provide our growing registered user base with industry standard reliability to access our products and consistent service provisions. 80 Research and Development As of December 31, 2025, we had 2,530 employees and contractors focused on research and development. Our research and development team, which also includes our design team and our quality assurance team, is comprised of individuals with experience in web development, AI Technologies, design, data management and data analysis. Our principal research and development activities are conducted from our headquarters in Tel Aviv, Israel. We also engage teams of developers in Beer-Sheva, Israel, Lithuania, Germany, the U.S., UK, Poland, Ireland, Brazil, the Netherlands, Japan, Australia, Canada, and Ukraine to benefit from the significant pool of talent that is more readily available in those markets. Our research and development personnel focus primarily on enhancing our technology, improving our products, and developing new products and solutions, including AI. Our research and development spending was $645.5 million in 2025, $495.3 million in 2024 and $481.3 million in 2023. We invest in research and development to enhance and expand our product and service offerings, tailor our marketing efforts, and expand our registered user base. Our development strategy is focused on identifying updates and enhanced features for our existing offerings, developing new offerings that are tailored to our registered users’ and our partners’ needs and often arise out of their suggestions or new technological advancements such as AI Technologies, and improving the performance, quality, security, resilience, and scalability of our platform. For this, we rely heavily on sophisticated tools, such as automated process systems which, for example, enable our registered users to request new product features and upgrades, which then enables us to quickly react to our registered users’ requests. We also engage in A/B testing to measure the effectiveness of our upgrades and new product features. In addition to our organic efforts at recruiting through our career portal, we aim to recruit talented individuals for our research and development team through a variety of techniques, including cooperation with local universities, work programs for students, and recruiting events. We are a member of key industry organizations and regularly attend and participate in industry events, where our employees frequently speak. We also engage with potential talents by publishing professional blog posts, videos and research articles as well as hosting technology meet-ups in our headquarters and regional offices. Intellectual Property Our success depends, among other things, upon our ability to protect our core technology and intellectual property. We rely on a combination of patent, trademark, copyright, industrial design and trade secret laws, as well as licensing agreements and third-party nondisclosure and assignment agreements to protect our intellectual property and know-how. We have filed a number of patent applications and continue to file for patents to protect our inventions. We have pending patent applications in the United States as well as in several additional jurisdictions worldwide. We also have pending Patent Cooperation Treaty, or PCT, applications that may lead to additional patent applications. Certain of our applications have been accepted and patents were granted. However, we cannot be certain that all our applications will issue as patents or of the scope of protection any issued patent would provide. We actively monitor innovation within our company so as to properly consider whether to file additional patent applications. In addition, we have registered and filed a number of applications to register our copyrights, however, we do not seek to register the copyrights in all of our copyrightable works. We enter into confidentiality and proprietary rights agreements with our employees, consultants, business partners and other third parties to whom we may disclose confidential information, and we control access to and distribution of our proprietary information. The Wix brand, and the brands of other solutions within our overall offering, such as Base44, are central to our business strategy, and we believe that maintaining, protecting and enhancing these brands is important to expanding our business. We have obtained trademark registrations in certain jurisdictions for trademarks that we consider material to the marketing of our products, including the WIX® mark and the Wix logo, as well as the Wix Studio® mark and logo. We also have trademark applications pending for additional marks that we use to identify certain product collections used for certain of our products. While we expect to submit additional trademark applications and expect our pending applications to mature into registrations, we cannot be certain that we will obtain such registrations. We have also registered and continue to register rights to our typeface font, MADEFOR, available in 10 weights and all the Latin languages in the U.S., EU, UK, and Brazil. 81 Our in-house know-how is an important element of our intellectual property. The development of our web development and design software and management of our data analysis and marketing programs, requires sophisticated coordination among many specialized employees. We believe that duplication of this coordination by competitors or individuals seeking to copy our software offering would be difficult. This risk is further mitigated by the fact that our product and service offerings are cloud-based such that most of the core technology operating on our systems is never directly exposed to our users or to our competitors. Competition We enable our registered users to create a customizable, fully integrated and professional digital presence through an attractive web-based software platform with various marketing and workflow management capabilities. We believe that the key competitive factors in our market include, simplicity and ease of use, functionality, product breadth, integration of multiple solutions, price, design quality, global scope, security and reliability, and brand recognition and reputation. We believe that we compete favorably on these factors because of the unique combination of our comprehensive suite of design and digital presence software, advanced technology and product integration, efficiencies in operations, brand recognition and marketing expertise, longstanding customer, designer and developer relationships, large user base, and track record of successfully attracting new users to our website and products. The market for providing web-based website design and management software is evolving and highly fragmented today. We believe no provider currently offers a comprehensive, customizable, fully integrated workflow solution to create and manage a professional digital presence comparable to ours. However, some providers currently offer separate products or technologies that overlap with parts of our solution and could try to integrate these with other products to offer a more comprehensive solution in the future. Providers of these point products vary and include: •DIY template-based and other website design companies that enable website creation such as Squarespace and Webflow; •Versatile, web-based, and app-based graphic design platforms such as Canva and Figma; •offerings that provide e-commerce software enabling a merchant to sell goods online such as Shopify and BigCommerce; •software that enables a business to take and manage appointments and/or reservation schedules online, such as Mindbody; •content management systems that help users build and manage content for a website such as WordPress.org and Drupal; •solutions that help businesses market themselves online such as search engine marketing, or SEM, and SEO providers, e-mail marketing solutions and online directory listing services; and •“vibe coding” solutions for developers, such as Claude Code, Cursor and Replit, and AI-powered low-code/no-code application builders, such as Lovable, Google AI Studio, Bolt.new, and V0 which may be competitive with our Base44 offering. Additionally, several large service companies that primarily offer domain registration and hosting services, such as GoDaddy, provide the ability for a business owner to build a website using their tools or have one built by their workforce. Moreover, newly emerging technologies that utilize AI may also offer services that overlap with certain solutions we offer, including the emergence of generative AI website builders. Environmental, Social and Governance (ESG) Practices Underpinning our Company’s strategy is the belief that the internet is meant to be safe and accessible to all. Therefore, our platform is here to make a difference, to create a better world for everyone and to provide opportunities for any type of user or business, regardless of their size, age, economic status, skill level, location, vision or any other factor. To achieve this, we aim to create a culture in which any person can be successful, is treated equally and fairly and is a partner in the success of the Company, sharing in the responsibility of building and improving it, while being attentive to and supporting one another. Our three core pillars that influence the specific ways in which we are making positive change in our communities and the key issues that we believe are important to our business and stakeholders: 82 Our Users We promote and support fair, accessible, social and economic opportunities in the professional services global market. We invest resources into data privacy and how we can protect our users by, among other things, building key infrastructures and policies to help safeguard the data on our platform and the privacy of our users. We are also committed to maintaining the integrity of the transactions performed on our platform. Our People Our work environment seeks to foster a culture where our employees feel empowered, challenged, and in possession of the tools to thrive at work and in their personal lives. We are continuously learning and looking at ways to continue to create an environment that is an inclusive place of work. We believe personal and professional growth is imperative to the well-being of our employees. Such growth requires us to provide opportunities to acquire new skills and to develop through exploration, experience and learning. Our company and guild structure is one of the main tools that allows and encourages development. The guild enables knowledge sharing, promotes professional development and provides mentorship. In addition, we provide learning and development programs and have multiple specialized teams focused on developing great learning and growth platforms for our people worldwide. As part of our continued emphasis on satisfaction and retention, we have teams dedicated to supporting our employees’ physical and mental health. We offer well-being benefits (that may vary by location) like health insurance, fitness sessions and subsidized psychology sessions. We actively encourage our people to support their local communities, and we recognize and respect our employees’ passions about engaging with their communities by creating initiatives like the “Wix Playground Academy” (a program hosted by Wix employees that helps young creatives looking to enrich their professional skill sets, interact with industry leaders and network with other designers), “Wix Karma” (a global initiative that gives our employees the opportunity to help others in any way they can), and “Wix Tomorrow” (a platform that provides teachers with a dedicated online system built for students, alongside curriculum and resources to teach web creation in the classroom). Our Company We recognize the importance of making sustainable choices. We initiated our longer-term environmental goals with the way we built our new headquarters, which is LEED GOLD certified. Our ESG reports that detail our philosophy and the various initiatives under each of the pillars above are available on our investor relations website at https://investors.wix.com/esg; neither the reports nor the content of our website are incorporated by reference into this annual report. Government Legislation and Regulation Actions of our Users and Other Third Parties In many jurisdictions, including the United States and countries in Europe, laws relating to the liability of providers of online services for activities of their users and other third parties are evolving and are currently being tested by a number of claims, including actions based on defamation, breach of data protection and data privacy rights and other torts, unfair competition, copyright and trademark infringement, and other theories based on the nature and content of the materials searched, the ads posted, or the content uploaded by users. These laws, and court or regulatory interpretations of these laws (including their limitations and safe harbors), may shift quickly in the United States and worldwide. In the EU, the DSA imposes content moderation obligations, notice obligations, transparency obligations, advertising restrictions and other onerous requirements. The DSA may increase our compliance costs, require changes to our processes, operations and business practices, which may adversely affect our ability to attract, retain and provide our services to customers, and may otherwise adversely affect our business, operations and financial condition. Failure to comply with the DSA can result in fines of up to 6% of total annual worldwide turnover, and recipients of services have the right to seek compensation from providers in respect of damage or loss suffered 83 due to infringement by the provider to comply with the DSA. Similar legislation is being considered or is in process in other jurisdictions relevant to our business. User Data We hold certain personal data of our registered users, primarily, username, email address and billing details that are provided by our registered users and by our users who have purchased premium subscriptions, and may store certain personal data of the users of our registered users’ websites. We are subject to the data protection and storage laws of the State of Israel, as well as certain industry standards. In addition, we are subject to local data privacy legislation in the areas where we operate, including Europe and the U.S. We operate in accordance with the terms of our terms of use and privacy policy, which describe our practices concerning the use, transmission and disclosure of user data and personal data. United States A number of legislative proposals pending before the U.S. Congress and various state legislative bodies, concerning data privacy and data protection, including changing regulatory guidelines and interpretations, could affect us and our business, our products and our services. Additionally, some states have passed proactive, as well as reactive, data privacy and information security legislation. More generally, some observers have noted that such legislation could mark the beginning of a trend toward more stringent United States federal privacy legislation, which could increase our potential liability and adversely affect our business. Regulatory enforcement actions and trends in consumer class actions against other online companies suggest a trend that regulators and judges may require such companies to adopt certain minimum data privacy protections and data security measures to protect personal data. We have a dedicated team that implements relevant measures in relation to applicable data privacy and information security laws, and assesses the impact of other such laws that may apply to us in the future. The costs of compliance with these laws, best practices and regulatory guidance may increase in the future as a result of changes in regulatory guidelines and interpretation. Europe We are subject to the GDPR and to the UK GDPR, which impose a comprehensive and strict data protection compliance regime in relation to our collection, control, processing, sharing, disclosure and other use of data relating to an identifiable living individual (personal data of UK and EEA residents), including obligations in relation to data breaches, extensive data subject/individual rights, and restrictions on international transfers of personal data, as well as introducing significant fines and other penalties for breach. Additionally, the GDPR and UK GDPR have an extra-territorial effect and regulate the covered data processing activities of businesses regardless of their location or the locations of their servers. We are subject to the GDPR and the UK GDPR as a “controller” of certain information (primarily in relation to our users and our employees) and as a “processor” of certain other information (primarily personal data collected by our registered users themselves through the websites that we host for them). The GDPR and UK GDPR impose obligations on both controllers and, to a lesser extent, processors. Regulatory guidance and enforcement on the extent and application of these obligations is quickly evolving. The company has a dedicated team that seeks to take the necessary measures in order to maintain compliance with the GDPR, UK GDPR and other applicable data protection regulations. We are also subject to EEA and UK privacy laws on cookies, web beacons and similar tracking technologies, and e-marketing, including obligations to, among other things, obtain consent to store information or access information already stored on an individual’s terminal equipment (e.g., computer or mobile device). Prior to providing such consent, individuals must receive clear and comprehensive information, in accordance with applicable laws. We are also subject to the EU AI Act, which entered into force in 2024 and classifies AI systems according to risk, imposing transparency and governance obligations on providers and deployers of AI systems. 84 Israel In addition, we are also subject to the Israeli Privacy Protection Law 5741-1981 (“PPL”), and its regulations, including the Israeli Privacy Protection Regulations (Data Security) 2017 (“Data Security Regulations”), which came into effect in Israel in May 2018 and impose obligations with respect to the manner certain personal data is processed, maintained, transferred, disclosed, accessed, and secured, as well as the guidelines of the Israeli Privacy Protection Authority (“IPPA”). In this respect, material changes to the Data Security Regulations may require us to adjust our data protection and data security practices, information and other technical and organizational security measures, certain organizational procedures and supervisory roles. Failure to comply with the PPL, its regulations, and guidelines issued by the IPPA may expose us to administrative fines, civil claims (including class actions), and in certain cases criminal liability, and compel us to take certain remedial actions to rectify any irregularities, which may increase our costs. Starting from August 2025, Amendment 13 to the PPL will introduce stricter sanctions for non-compliance, potentially reaching millions of NIS. The IPPA may initiate administrative inspection proceedings, from time to time, without any suspicion of any particular breach of the PPL, as it has done in the past with respect to dozens of Israeli companies in various business sectors. Artificial Intelligence The regulatory framework for AI Technologies is rapidly evolving as many federal, state and foreign government bodies and agencies have introduced or are currently considering additional laws and regulations. Already, certain existing legal regimes (e.g., relating to data privacy) regulate certain aspects of AI Technologies, and new laws regulating AI Technologies have been enacted in the EU and are expected to enter into force in the United States in 2026. In the United States, the Biden administration issued the 2023 AI Order, emphasizing the need for transparency, accountability and fairness in the development and use of AI. However, as previously described, the Trump administration has rescinded the 2023 AI Order and issued the 2025 AI Order that, among other things, requires certain agencies to develop and submit to the President action plans to “sustain and enhance America’s global AI dominance,” and to specifically review and, if possible, rescind rule making taken pursuant to the rescinded 2023 AI Order. Thus, the Trump administration may continue to rescind other existing federal orders and/or administrative policies relating to AI Technologies, or may implement new executive orders and/or other rule making relating to AI Technologies in the future. Agencies, such as the Department of Commerce and the Federal Trade Commission, have issued proposed rules governing the use and development of AI Technologies. Legislation related to AI Technologies has also been introduced at the federal level and is advancing at the state level. Any such changes at the federal or state level could require us to expend significant resources to modify our products, services, or operations to ensure compliance or remain competitive. For example, California has enacted numerous laws regulating the use of AI Technologies, such as requiring companies to disclose certain uses of generative AI. Other states have also passed AI-focused legislation, such as Colorado’s Artificial Intelligence Act, which will require developers and deployers of “high-risk” AI systems to implement certain safeguards against algorithmic discrimination, and Utah’s Artificial Intelligence Policy Act, which establishes disclosure requirements and accountability measures for the use of generative AI in certain consumer interactions. Such additional regulations may impact our ability to develop, use, procure and commercialize AI Technologies in the future. In Europe, the European Commission enacted a regulation establishing a comprehensive, risk-based governance framework for AI in the EU market, the EU AI Act. The EU AI Act applies to companies that develop, use and/or provide AI in the EU and, depending on the AI use case, includes requirements around transparency, conformity assessments and monitoring, risk assessments, human oversight, security and accuracy and introduces significant fines for noncompliance. 85 Facilities Our principal facilities are located in Tel Aviv, Israel, and consist of approximately 80,000 square meters (approximately 861,112 square feet) in our corporate headquarters at the Wix Campus. The lease for our headquarters is for an initial period of 10 years commencing on the transfer of possession (which occurred on October 14, 2022), and we have the option to extend the lease period for additional periods of up to 15 years, subject to the conditions of the lease agreement. We began occupancy of the first stage of our offices in October 2022, and the second stage on October 9, 2023. A portion of our headquarters is sub-leased to sub-tenants. We also lease additional office space in Beer-Sheva, Israel totaling approximately 1,766 square meters (approximately 19,010 square feet). These facilities accommodate our principal executive, research and development, marketing, design, business development, human resources, finance, legal information technology, customer support and administrative activities. In the United States, we maintain offices in New York City, Miami, and Cedar Rapids, Iowa. In New York, we lease approximately 23,074 square feet under a lease that will terminate in September 2026, and will begin a new lease for approximately 24,339 square feet under a lease that will expire in March 2037. In Miami, we hold a lease totaling 12,644 square feet (of which 9,008 are subleased) that expires in July 2032. In Cedar Rapids, we occupy a total of 13,679 square feet with a lease that expires in November 2027. In Lithuania, we maintain offices in Vilnius; in Germany, we maintain an office in Berlin; in Ireland, we maintain an office in Dublin; in Brazil, we maintain an office in Santana de Parnaiba near the city of Sao Paulo; in Japan, we maintain an office in Tokyo; in Poland, we maintain an office in Krakow and Warsaw; and in Ukraine, we maintain offices in Kyiv, Lvov and in Dnipro. Legal Proceedings See Item 8. “Financial Information—Consolidated Financial Statements and Other Financial Information—Legal proceedings.” C. Organizational Structure The legal name of our company is Wix.com Ltd., and we are organized under the laws of the State of Israel. Our key subsidiaries are: Wix.com Brasil Serviços De Internet Ltda. (Brazil), Wix.com, Inc. (Delaware, United States), Wix.com Luxemburg S.a.r.l (Luxemburg), Wix.com UAB (Lithuania), Wix Online Platform Limited (Ireland), and Wix.com Japan K.K. (Japan). Our subsidiary Wix.com Inc. wholly owns DeviantArt, Inc. (Delaware), which wholly owns Wix Payments Canada Inc. (Canada). D. Property, Plants and Equipment For a discussion of property, plants and equipment, see Item 4.B. “Information on the Company—Business Overview—Facilities.”