Wicked has a couple of problems, one specific to the show and the other that affects every single musical.
It’s not unreasonable that many people are just Wicked-ed out in the wake of the films, the second of which was always going to be a problem. At least the second act of the stage musical moves along quickly. It’s not surprising that the Wicked frenzy, which peaked at the box office just after the release of the first movie, has gone into a recession.
The second problem is that Wicked is a musical, and splashy musicals get a lot of support on Broadway from foreign tourists - and we have decided as a country to alienate every one of them. We see this with just about every musical, with a couple of exceptions (The Lion King and, to a lesser extent, Hamilton) that can thrive with a domestic audience.
Between high costs and the K-shaped economy, musicals are all doing worse than they have. The Outsiders is the only new musical hit that is lasting since COVID-19. The gloomy outlook for Maybe Happy Ending is my main example. It should be a sustainable hit, with its emotionally resonant themes and pretty staging. But it’s not happening, in part because overseas tourism isn’t there to prop it up.