Better at the Answer Than the IndustryThin moat

Text (TXT) — moat facet

Text resolves 74% of conversations without a human against an industry average of 59% - and bills by the seat.

Text is measurably good at the thing that makes its pricing model obsolete.

Good at the job, paid for the wrong unitConversations resolved without a human74%Industry average resolution rate59%Share of revenue billed per seat83,7%Who pays for the AI inferencenot yet decidedText states it cannot yet determine how much of the AI cost stays with the company
Text is measurably good at the thing that makes its own pricing model obsolete.

The company reports an artificial-intelligence resolution rate of 74% against an industry average of 59%, and adds that the figure includes customers who have not yet trained the models on their own data1. For comparison, Fin — the agent sold by the company formerly called Intercom, which Text names as a competitor2 — is reported at a 67% average resolution rate across roughly 8 000 businesses3.

So on the central capability of this market Text appears to be ahead of the best-funded specialist. That is not nothing, and it is the strongest argument the bulls have.

The difficulty is arithmetic. LiveChat is 83,7% of revenue4 and is priced per person: 49 dollars a month on the Team plan, 79 on Business5. Every conversation the automation resolves is a conversation a human did not handle, and a customer who needs fewer humans buys fewer seats. Text's excellence at automation is a deduction from its own invoice.

Fin resolved the same problem by changing what it sells, charging 99 cents per resolved outcome, and the shift took its net revenue retention from 112% to 146%6. Text has built the same meter — the new Text product bundles resolutions into the seat price and charges 99 cents for each one beyond it7 — but the meter sits on a product launched in August 2025 that has yet to appear in the revenue disclosure, while the seats sit on the 83,7%.

There is a second unknown underneath. Text states that with increased use of artificial intelligence by customers this cost category may increase significantly, and that it is still difficult to determine to what extent these costs will be borne by customers and to what extent they will remain with Text8.

A company that does not yet know who pays for the inference does not yet know what the gross margin of its future product is. Gross margin on sales was 67,6% last year9; that is the number this facet will be judged by.

Moat trajectory: Widening

Text reports a 74% resolution rate against a 59% industry average, has built the outcome-priced meter at 99 cents, and won a retail technology award in August 2026. The capability is improving faster than the ability to charge for it.

The number that tests this moat
Reported
Gross margin on sales
67,6% for the year, 69,6% in the June quarter

This is where the unresolved question about artificial intelligence lands. Text states it cannot yet determine how much of the AI cost will be borne by customers and how much will remain with the company - which means the gross margin of its future product is unknown. Its published answer is to bundle resolutions into the seat fee and charge $0,99 beyond the allowance. If adoption of the new suite accelerates and this figure falls, the market has its answer about who pays.

Source: Text Group Management Board report for the financial year 2025/26 ↗
Aspects of the moat
DIG DEEPER 01
Seventy-Four Percent Against Fifty-Nine
On the capability this market is currently buying, Text appears to be ahead of the best-funded specialist in it.
DIG DEEPER 02
Ninety-Nine Cents an Answer
Text has arrived at exactly the right pricing model and put it on the product with no revenue.
DIG DEEPER 03
The Models Belong to Somebody Else
Text builds the agent, the workflow and the data, and rents the intelligence underneath.
DIG DEEPER 04
Service on Offense
The only escape from selling seats while automating the people who fill them: sell the revenue instead of the saving.
⚠ Threats to the moat
⚠ THREAT 01
Nobody Has Decided Who Pays for the Inference
Text says in its own annual report that it cannot yet tell how much of the AI cost ends with customers and how much stays with it.
⚠ THREAT 02
Every Resolution Is a Seat Not Sold
The better the product performs, the faster Text's own billable unit shrinks inside its best customers.
References
  1. ReportedThe company reports an artificial-intelligence resolution rate of 74% against an industry average of 59%, and adds that the figure includes customers who have not yet trained the models on their own data.
    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. Third-party estimateFor comparison, Fin - the agent sold by the company formerly called Intercom, which Text names as a competitor - is reported at a 67% average resolution rate across roughly 8 000 businesses.
    Sacra research note on Intercom, now trading as Fin (approximately USD 400m of annual recurring revenue as of April 2026, up from 382m at the end of 2025 and growing 27%; the Fin AI agent surpassing USD 100m of ARR and expanding at about 350% a year across roughly 8 000 businesses, resolving close to two million support queries a week - equivalent to more than 6 500 human agents - at a 67% average resolution rate; usage-based pricing at USD 0,99 per resolved outcome, a shift that improved net revenue retention from 112% to 146%; a valuation of USD 1,3bn in 2024 with March 2026 venture debt discussions at USD 2bn or higher; and Zendesk at roughly 170 000 customers, about 30% of the global customer-service market, on a USD 9,1bn market capitalisation, with Freshworks around USD 3,7bn) — April 2026 · publ. 2026 · source ↗
  3. Third-party estimateFor comparison, Fin - the agent sold by the company formerly called Intercom, which Text names as a competitor - is reported at a 67% average resolution rate across roughly 8 000 businesses.
    Sacra research note on Intercom, now trading as Fin (approximately USD 400m of annual recurring revenue as of April 2026, up from 382m at the end of 2025 and growing 27%; the Fin AI agent surpassing USD 100m of ARR and expanding at about 350% a year across roughly 8 000 businesses, resolving close to two million support queries a week - equivalent to more than 6 500 human agents - at a 67% average resolution rate; usage-based pricing at USD 0,99 per resolved outcome, a shift that improved net revenue retention from 112% to 146%; a valuation of USD 1,3bn in 2024 with March 2026 venture debt discussions at USD 2bn or higher; and Zendesk at roughly 170 000 customers, about 30% of the global customer-service market, on a USD 9,1bn market capitalisation, with Freshworks around USD 3,7bn) — April 2026 · publ. 2026 · source ↗
  4. ReportedLiveChat is 83,7% of revenue and is priced per person: 49 dollars a month on the Team plan, 79 on Business.
    LiveChat pricing (Starter at USD 19 per person per month billed annually or 25 monthly; Team at USD 49 billed annually or 59 monthly; Business at USD 79 billed annually or 89 monthly; and Enterprise on custom pricing, all charged per agent per month with a discount for annual billing) — September 2026 · publ. September 2026 · source ↗
  5. ReportedLiveChat is 83,7% of revenue and is priced per person: 49 dollars a month on the Team plan, 79 on Business.
    LiveChat pricing (Starter at USD 19 per person per month billed annually or 25 monthly; Team at USD 49 billed annually or 59 monthly; Business at USD 79 billed annually or 89 monthly; and Enterprise on custom pricing, all charged per agent per month with a discount for annual billing) — September 2026 · publ. September 2026 · source ↗
  6. ReportedFin resolved the same problem by changing what it sells, charging 99 cents per resolved outcome, and the shift took its net revenue retention from 112% to 146%.
    Text pricing (Essential at USD 19 per user per month billed annually, or 25 monthly, including 10 AI Agent resolutions a month; Growth at USD 79 per user per month, or 99 monthly, including 200 resolutions a month; Enterprise on custom pricing; additional resolutions at USD 49,50 for a package of 50, or 0,99 each; a resolution counted when the AI Agent provides an answer that directly solves at least one customer question; and a 14-day free trial with full platform access and no credit card required) — September 2026 · publ. September 2026 · source ↗
  7. ReportedText has built the same meter - the new Text product bundles resolutions into the seat price and charges 99 cents for each one beyond it - but the meter sits on a product launched in August 2025 that has yet to appear in the revenue disclosure, while the seats sit on the 83,7%.
    Text pricing (Essential at USD 19 per user per month billed annually, or 25 monthly, including 10 AI Agent resolutions a month; Growth at USD 79 per user per month, or 99 monthly, including 200 resolutions a month; Enterprise on custom pricing; additional resolutions at USD 49,50 for a package of 50, or 0,99 each; a resolution counted when the AI Agent provides an answer that directly solves at least one customer question; and a 14-day free trial with full platform access and no credit card required) — September 2026 · publ. September 2026 · source ↗
  8. ReportedText states that with increased use of artificial intelligence by customers this cost category may increase significantly, and that it is still difficult to determine to what extent these costs will be borne by customers and to what extent they will remain with Text.
    Text Group Management Board report for 2025/26, margins, costs and cash (gross profit margin on sales of 67,6%, operating margin 38,6% and net margin 35,4%; cloud infrastructure costs rising, the migration completing in July 2025 after more than a year of duplicated cost, and completion not translating into cost reductions because of price increases regardless of provider and a deliberately expanded scope of purchased services; increased consulting, legal and public relations costs; fourth-quarter costs falling on cloud optimisation; a warning that more intensive use of artificial intelligence may cause further cost increases and that rising AI costs should press hardest on competitors offering free or freemium products; operating cash flow of PLN 161,6m and PLN 62,8m of cash; and a dividend policy of allocating the highest possible part of profit to shareholders) — FY2025/26 · publ. June 2026 · source ↗
  9. ReportedGross margin on sales was 67,6% last year; that is the number this facet will be judged by.
    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 ↗
Sources
Generated September 24, 2026