✦ The Hundred-Million-Dollar LineNarrow moat

Text (TXT) — the future bets

The target is now probable and no longer very informative - price and a definition change can close most of the gap.

Text has one public numerical target and it repeats it in every release: the group's strategic goal remains reaching 100 million dollars of annual recurring revenue1.

Annualised recurring revenue ($m)Jun 2025Dec 2025Mar 2026Jun 2026Target is $100m; the June rise came from repricing, not from new customers
Now probable and no longer very informative - price and a definition change close most of it.

At 30 June 2026 it stood at 89,52 million, from monthly recurring revenue of 7,46 million dollars2. Twelve months earlier the figure was 7,17 million a month, and at the March year-end it had fallen to 6,93 million3. So the path has not been a climb: recurring revenue declined through the financial year and then jumped 7,6% in a single quarter.

The gap to the target is now 10,5 million dollars, or about 12%. Two things could close it without a single new customer. The repricing of LiveChat's Team and Business plans still has the annual-payment cohort to work through4. And Text intends to bring prepaid usage packages — additional chatbot interactions, API usage — into the recurring revenue calculation, a change it says would have no impact on the current level but would capture revenue the metric currently excludes5.

That second point deserves attention. A target hit partly by widening the definition of the metric is a different achievement from a target hit by selling more, and Text has been transparent that the change is coming.

The honest reading is that 100 million is now probable and no longer very informative. What it will not tell anyone is whether the Text product works.

To separate the two, look for recurring revenue growth in a quarter with no repricing and no definitional change in it.

Moat trajectory: Widening

Annualised recurring revenue reached 89,52 million dollars against the 100 million target, and Text intends to bring prepaid usage packages into the calculation - which would close part of the gap by definition.

The number that tests this moat
Reported
Gap to the ARR target
$10,5m, or about 12%

Two things could close it without a single new customer: the annual-payment cohort still to be repriced, and Text's stated intention to bring prepaid usage packages into the recurring revenue calculation - a change it says would not alter the current level but would capture revenue the metric excludes. A target hit partly by widening the definition is a different achievement from one hit by selling more.

Source: Text Group results for Q1 of the 2026/27 financial year ↗
References
  1. ReportedText has one public numerical target and it repeats it in every release: the group's strategic goal remains reaching 100 million dollars of annual recurring revenue.
    Text Group Management Board report for 2025/26, key performance indicators (monthly recurring revenue of USD 6,93m at 31 March 2026, down 2,7% year on year and 0,7% on December, giving annual recurring revenue of USD 83,12m; revenue in US dollars of 88,2m against 88,6m, down 0,5%; payments received of USD 87,9m, down 0,7%; Q4 dollar revenue of 22,56m, the highest since Q2 2024/25; a LiveChat customer churn rate of 4% on a monthly basis with net MRR churn described as significantly lower; LiveChat at 83,7% of group revenue with ChatBot 8,7% and HelpDesk with KnowledgeBase 7,5%; and an average USD/PLN translation rate 8,0% lower than the prior period) — FY2025/26 · publ. June 2026 · source ↗
  2. ReportedAt 30 June 2026 it stood at 89,52 million, from monthly recurring revenue of 7,46 million dollars.
    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 ↗
  3. ReportedTwelve months earlier the figure was 7,17 million a month, and at the March year-end it had fallen to 6,93 million.
    Text Group Management Board report for 2025/26, key performance indicators (monthly recurring revenue of USD 6,93m at 31 March 2026, down 2,7% year on year and 0,7% on December, giving annual recurring revenue of USD 83,12m; revenue in US dollars of 88,2m against 88,6m, down 0,5%; payments received of USD 87,9m, down 0,7%; Q4 dollar revenue of 22,56m, the highest since Q2 2024/25; a LiveChat customer churn rate of 4% on a monthly basis with net MRR churn described as significantly lower; LiveChat at 83,7% of group revenue with ChatBot 8,7% and HelpDesk with KnowledgeBase 7,5%; and an average USD/PLN translation rate 8,0% lower than the prior period) — FY2025/26 · publ. June 2026 · source ↗
  4. ReportedThe repricing of LiveChat's Team and Business plans still has the annual-payment cohort to work through.
    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 ↗
  5. ReportedAnd Text intends to bring prepaid usage packages - additional chatbot interactions, API usage - into the recurring revenue calculation, a change it says would have no impact on the current level but would capture revenue the metric currently excludes.
    Text Group Management Board report for 2025/26, key performance indicators (monthly recurring revenue of USD 6,93m at 31 March 2026, down 2,7% year on year and 0,7% on December, giving annual recurring revenue of USD 83,12m; revenue in US dollars of 88,2m against 88,6m, down 0,5%; payments received of USD 87,9m, down 0,7%; Q4 dollar revenue of 22,56m, the highest since Q2 2024/25; a LiveChat customer churn rate of 4% on a monthly basis with net MRR churn described as significantly lower; LiveChat at 83,7% of group revenue with ChatBot 8,7% and HelpDesk with KnowledgeBase 7,5%; and an average USD/PLN translation rate 8,0% lower than the prior period) — FY2025/26 · publ. June 2026 · source ↗
Sources
Generated September 24, 2026