✦ The Future BetsNarrow moat

Text (TXT) — the future bets

A new suite, a repriced base, a hundred-million-dollar target and a shopfront inside ChatGPT.

Text spent the year to March 2026 building something and the year after it trying to sell it.

What the year boughtAug 2025suite launchedSOC 2Type 1 and Type 23marketplace listings$10,5mgap to theARR targetManagement: the challenges are significant and success is not guaranteed
The spending is done; the selling has just started, and the company says so plainly.

The chief executive's summary of the period is unusually blunt for an annual report: looking at the financial results, the past fiscal year was not a successful one1. What it produced instead was a suite-class product, an infrastructure estate rebuilt on Google's cloud, two security attestations, a repriced installed base and listings in three of the largest software marketplaces in the world2.

The bets below are what that spending was for, and they divide into two kinds.

Two of them are largely mechanical and will happen whether or not the strategy works. The end of price grandfathering is already lifting recurring revenue and has further to run, since customers on annual plans migrate only as their subscriptions expire3. And the 100 million dollar annual recurring revenue target is now 10,5 million dollars away, from 89,52 million at 30 June 20264 — reachable on price and mix alone.

The other two decide what Text is worth. The suite has to acquire customers who were not already Text's, through a Go-To-Market programme the company says may be a long-term process requiring marketing expenditure whose effects appear gradually5. And the distribution has to move to wherever buyers now look, which is why a Polish live-chat company is listed in the ChatGPT marketplace6.

Text is honest about the odds on both. Its chief executive writes that the challenges ahead are significant, that the company must be smarter, more creative, harder-working and more efficient than competitors with far deeper pockets, and that success is not guaranteed7.

The financial position underwriting all of it is genuinely strong — no debt, 62,8 million złoty of cash, and operating cash flow of 161,6 million8 — with the qualification that 94% of last year's profit was paid out rather than invested9.

Only one thing will show whether any of it is working — new recurring revenue in a quarter containing no price increase.

Moat trajectory: Widening

A suite product, two security attestations, three marketplace listings, a repriced base and a target 10,5 million dollars away. The spending is done; the selling has just started.

The number that tests this moat
Reported
Annualised recurring revenue against the stated target
$89,52m against $100m

Text spent the year to March 2026 building - a suite product, a rebuilt cloud estate, two security attestations, a repriced base and three marketplace listings - and the year after selling. Two of the bets are mechanical and will largely happen anyway; two decide what the company is worth. Management says the challenges are significant and success is not guaranteed. Only new recurring revenue in a quarter containing no price increase will show whether it is working.

Source: Text Group results for Q1 of the 2026/27 financial year ↗
✦ Future bets — beyond today's moat
✦ FUTURE BET 01
The Hundred-Million-Dollar Line
The target is now probable and no longer very informative - price and a definition change can close most of the gap.
✦ FUTURE BET 02
What Is Left of the Grandfathering
The price rise that lifted recurring revenue 7,6% in a quarter has only reached the monthly payers.
✦ FUTURE BET 03
Text, the Suite
The product the company renamed itself after is a year old and does not yet appear in its accounts.
✦ FUTURE BET 04
Selling Through the Assistant
If buyers stop using search engines, Text intends to be inside whatever replaces them.
References
  1. ReportedThe chief executive's summary of the period is unusually blunt for an annual report: looking at the financial results, the past fiscal year was not a successful one.
    Text Group Management Board report for 2025/26, the chief executive's letter (the statement that on the financial results the past fiscal year was not a successful one, with dollar revenue similar to the prior year but lower after conversion to złoty and costs incurred in both currencies; an artificial-intelligence resolution rate of 74% against an industry average of 59%, a figure said to include customers who have not yet trained the models on their own data; the intention to measure success in dollars earned rather than dollars saved on customer support, building an ecosystem that becomes a growth engine for customers rather than a cost centre; and the assessment that Text operates in a market with strong competitors, many with enormous resources they can and sometimes must allocate to customer acquisition, that Text must be smarter, more creative, harder-working and more efficient, and that success is not guaranteed) — FY2025/26 · publ. June 2026 · source ↗
  2. ReportedWhat it produced instead was a suite-class product, an infrastructure estate rebuilt on Google's cloud, two security attestations, a repriced installed base and listings in three of the largest software marketplaces in the world.
    Text Group Management Board report for 2025/26, strategy, products and market (the Service on Offense goal of turning customer service teams into revenue-generating centres, with the suite monitoring live traffic, recognising visitor intent, identifying returning visitors, enabling proactive outreach and tracking steps to monetisation or a qualified lead; a Go-To-Market period expected to be a long-term process requiring marketing expenditure with effects observed gradually; over 20 years of experience; competing solutions named as Fin, previously Intercom, Zendesk and Freshworks; the live-chat market valued at USD 1,06-1,17bn in 2024 growing 8-11%, the chatbot market at USD 0,7-6,95bn and the helpdesk market at USD 9,82-12,5bn; and Datanyze counting more than 210 different live-chat technologies, a substantial number offered freemium, with monetisation of free users judged difficult and ineffective) — FY2025/26 · publ. June 2026 · source ↗
  3. ReportedThe end of price grandfathering is already lifting recurring revenue and has further to run, since customers on annual plans migrate only as their subscriptions expire.
    Text Group Management Board report for 2025/26, corporate events (the Text App suite reaching first existing customers in June 2025 and opening on text.com in August, with the first new customers acquired organically in the following quarter; full migration of infrastructure to Google cloud servers in July 2025; SOC 2 Type 1 attestation in December 2025 and Type 2 in May 2026 audited by Sensiba, described as significant support in acquiring enterprise-class customers especially in the United States; Meta Business Partner status in January 2026; products introduced to the Microsoft marketplace in February 2026; a partnership with Golden Whale for the iGaming industry in April 2026; the closure of the traditional sales department with responsibilities assumed by the customer support team; the new visual identity and Go-To-Market campaign in May 2026; and the end of price grandfathering, with LiveChat Team and Business prices raised in September 2025, customers on older price lists notified in March 2026, monthly payers transferred from April 2026 and annual payers transferring as their subscription periods expire) — FY2025/26 · publ. June 2026 · source ↗
  4. Moat Explorer calcAnd the 100 million dollar annual recurring revenue target is now 10,5 million dollars away, from 89,52 million at 30 June 2026 - reachable on price and mix alone.
    Moat Explorer calculation - arithmetic on figures Text reports: monthly churn of 4% compounded over twelve months (1 - 0,96^12 = 38,7% of logos a year); revenue per team member (329 073 thousand złoty over 271 people = 1,21m); third-party services as a share of operating costs (159 821 of 201 291 = 79%) and employee benefits as a share (6 458 of 201 291 = 3,2%); operating cash flow against net profit (161 552 over 116 608 = 1,39); the dividend payout ratio (109,7m over 116,6m = 94%); the gap to the ARR target (100,0 less 89,52 = USD 10,5m); the fall in operating margin (50,1% less 38,6% = 11,5 points); the tax saved under the IP Box (126 680 at 19% less the 10 072 charged = about 14m złoty); the market value in dollars (1,08bn złoty at 0,2688 = USD 0,29bn); Text's share of the live-chat market (89,52 over about 1 100 = a twelfth); the largest new contract against revenue (seven figures over USD 88,2m = about 1%); and 500 dollars a month expressed annually (6 000 dollars); the price-to-earnings multiple at each financial year end (market value over net profit: 3 687 over 155,261 = 23,8 times, and 967 over 116,608 = 8,3); cost of goods sold as a share of revenue (85 588 over 354 178 = 24,2%, and 106 753 over 329 073 = 32,4%); and the effective tax rate (12 323 over 178 876 = 6,89%, and 10 072 over 126 680 = 7,95%) — FY2025/26 · publ. September 2026 · source ↗
  5. ReportedThe suite has to acquire customers who were not already Text's, through a Go-To-Market programme the company says may be a long-term process requiring marketing expenditure whose effects appear gradually.
    Text Group Management Board report for 2025/26, corporate events (the Text App suite reaching first existing customers in June 2025 and opening on text.com in August, with the first new customers acquired organically in the following quarter; full migration of infrastructure to Google cloud servers in July 2025; SOC 2 Type 1 attestation in December 2025 and Type 2 in May 2026 audited by Sensiba, described as significant support in acquiring enterprise-class customers especially in the United States; Meta Business Partner status in January 2026; products introduced to the Microsoft marketplace in February 2026; a partnership with Golden Whale for the iGaming industry in April 2026; the closure of the traditional sales department with responsibilities assumed by the customer support team; the new visual identity and Go-To-Market campaign in May 2026; and the end of price grandfathering, with LiveChat Team and Business prices raised in September 2025, customers on older price lists notified in March 2026, monthly payers transferred from April 2026 and annual payers transferring as their subscription periods expire) — FY2025/26 · publ. June 2026 · source ↗
  6. ReportedAnd the distribution has to move to wherever buyers now look, which is why a Polish live-chat company is listed in the ChatGPT marketplace.
    Text Group results for the first quarter of the 2026/27 financial year, published 28 August 2026 (revenue of PLN 83,20m, down 1,9% year on year and up 4,1% on the previous quarter; net profit PLN 29,11m down 6,2%; operating profit PLN 31,36m down 11,0%; EBITDA PLN 38,56m down 7,4%; revenue in US dollars of 22,61m up 2,1%; MRR of USD 7,46m at 30 June 2026, up 4,0% year on year and 7,6% on the previous quarter, giving ARR of USD 89,52m against the USD 100m goal, with the chief executive attributing the growth largely to the completion of price grandfathering for LiveChat customers; a record PLN 77,2m of deferred revenue and net operating cash flow up 22,2% to PLN 41,5m on a high share of annual payments; margins of 69,6% gross, 37,7% operating, 46,4% EBITDA and 35,0% net; SOC 2 Type 2 attestation in May 2026; the new visual identity and Go-To-Market start in May 2026; purchase of the livechat.ai domain and a seventh US patent in June 2026; a Klaviyo integration and Google Cloud Marketplace listing in July; a MarTech Breakthrough award and an official ChatGPT marketplace listing in August; and the annual general meeting of 6 August 2026 allocating PLN 109,7m to dividends, PLN 4,26 per share) — Q1 2026/27 · publ. 28 August 2026 · source ↗
  7. ReportedIts chief executive writes that the challenges ahead are significant, that the company must be smarter, more creative, harder-working and more efficient than competitors with far deeper pockets, and that success is not guaranteed.
    Text Group Management Board report for 2025/26, the chief executive's letter (the statement that on the financial results the past fiscal year was not a successful one, with dollar revenue similar to the prior year but lower after conversion to złoty and costs incurred in both currencies; an artificial-intelligence resolution rate of 74% against an industry average of 59%, a figure said to include customers who have not yet trained the models on their own data; the intention to measure success in dollars earned rather than dollars saved on customer support, building an ecosystem that becomes a growth engine for customers rather than a cost centre; and the assessment that Text operates in a market with strong competitors, many with enormous resources they can and sometimes must allocate to customer acquisition, that Text must be smarter, more creative, harder-working and more efficient, and that success is not guaranteed) — FY2025/26 · publ. June 2026 · source ↗
  8. ReportedThe financial position underwriting all of it is genuinely strong - no debt, 62,8 million złoty of cash, and operating cash flow of 161,6 million - with the qualification that 94% of last year's profit was paid out rather than invested.
    Text Group consolidated financial statements for the year ended 31 March 2026 (revenue of PLN 329 073 thousand against 354 178; operating profit 126 931 against 177 367; profit before tax 126 680; net profit 116 608 against 164 418; earnings per share 4,53; 25 750 thousand shares; operating cash flow 161 552 against 179 489; revenue by product line of LiveChat 275,495, ChatBot 28,694, HelpDesk 23 466 and KnowledgeBase 1 418; revenue in US dollars of 88 162 thousand against 88 595; approximately 95% of consolidated revenue generated through the group's subsidiary in the United States and Polish sales of 4 837; costs by type including depreciation 26,396, third-party services 159 821 against 140,300, employee benefits 6 458 and total operating costs 201 291 against 176,876, split as cost of goods sold 106 753 against 85,588, selling expenses 68 457 and administrative expenses 26 081; total assets 195 923 against 226 705; equity 109 965 against 136 418; cash 62 780 against 77 704; current contract liabilities 65 502 and non-current 1 539; trade payables 10 284; no credits or loans; and income tax at 19% on other income and 5% on qualifying intellectual property rights under the IP Box regime, with the deferred portion computed at 6,87% against 7,43%) — FY2025/26 · publ. June 2026 · source ↗
  9. ReportedThe financial position underwriting all of it is genuinely strong - no debt, 62,8 million złoty of cash, and operating cash flow of 161,6 million - with the qualification that 94% of last year's profit was paid out rather than invested.
    Text Group consolidated financial statements for the year ended 31 March 2026 (revenue of PLN 329 073 thousand against 354 178; operating profit 126 931 against 177 367; profit before tax 126 680; net profit 116 608 against 164 418; earnings per share 4,53; 25 750 thousand shares; operating cash flow 161 552 against 179 489; revenue by product line of LiveChat 275,495, ChatBot 28,694, HelpDesk 23 466 and KnowledgeBase 1 418; revenue in US dollars of 88 162 thousand against 88 595; approximately 95% of consolidated revenue generated through the group's subsidiary in the United States and Polish sales of 4 837; costs by type including depreciation 26,396, third-party services 159 821 against 140,300, employee benefits 6 458 and total operating costs 201 291 against 176,876, split as cost of goods sold 106 753 against 85,588, selling expenses 68 457 and administrative expenses 26 081; total assets 195 923 against 226 705; equity 109 965 against 136 418; cash 62 780 against 77 704; current contract liabilities 65 502 and non-current 1 539; trade payables 10 284; no credits or loans; and income tax at 19% on other income and 5% on qualifying intellectual property rights under the IP Box regime, with the deferred portion computed at 6,87% against 7,43%) — FY2025/26 · publ. June 2026 · source ↗
Sources
Generated September 24, 2026