Seventy-Seven Million Złoty of Other People's MoneyNarrow moat

Text (TXT) — moat facet

The closest thing Text publishes to a forward order book, and it set a record in the quarter recurring revenue recovered.

At 30 June 2026 Text was holding 77,2 million złoty of revenue it had collected and not yet earned — a record1.

Deferred revenue, quarter end (zl m)69,6Jun 202567,0Mar 202677,2Jun 2026Contract liabilities: revenue collected and not yet earned - a record in the June quarter
The closest thing Text publishes to a forward order book, set while recurring revenue fell.

The mechanism is annual billing. A high share of customers pay for twelve months in advance, which the company identifies as the direct cause of both the record deferred balance and net operating cash flow of 41,5 million złoty in the quarter, up 22,2% year on year2. On the March balance sheet the same item appears as 65,5 million złoty of current contract liabilities plus 1,5 million non-current3.

Set that against the rest of the balance sheet and the character of the company becomes clear. Total liabilities were 86,0 million złoty, of which contract liabilities are 67,0 million; there are no borrowings4. In other words the overwhelming majority of what Text owes, it owes in service rather than in money.

The float has a second function that is easy to miss: it is the closest thing Text publishes to a forward book. Deferred revenue rising while recurring revenue falls tells you customers are choosing longer commitments, which is a genuine signal of confidence from the people best placed to judge the product.

It also means a good deal of the current cash generation was decided a year ago.

Follow the deferred balance quarter by quarter, and specifically whether it keeps setting records once the repricing has finished passing through. A year before the current record it stood at 69,6 million złoty5.

Moat trajectory: Widening

The deferred balance reached a record on a high share of annual payments, up from 69,6 million złoty a year earlier. Customers are committing further ahead in cash even as there are slightly fewer of them.

The number that tests this moat
Reported
Contract liabilities on the balance sheet
67,0m zł of 86,0m zł of total liabilities

The overwhelming majority of what Text owes, it owes in service rather than in money: current contract liabilities were 65,5m zł plus 1,5m zł non-current, against no borrowings at all. Deferred revenue rising while recurring revenue falls tells you customers are choosing longer commitments, which is a genuine signal from the people best placed to judge the product. Follow the balance quarter by quarter once the repricing has passed through; a year earlier it was 69,6m zł.

Source: Text Group consolidated financial statements for the year ended 31 March 2026 ↗
⚠ Threats to the moat
⚠ THREAT 01
Annual Billing Delays the Verdict
Customers who pay yearly cannot react for a year, which is exactly how long the price rise takes to be judged.
References
  1. ReportedAt 30 June 2026 Text was holding 77,2 million złoty of revenue it had collected and not yet earned - a record.
    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 ↗
  2. ReportedA high share of customers pay for twelve months in advance, which the company identifies as the direct cause of both the record deferred balance and net operating cash flow of 41,5 million złoty in the quarter, up 22,2% year on year.
    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. ReportedOn the March balance sheet the same item appears as 65,5 million złoty of current contract liabilities plus 1,5 million non-current.
    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 ↗
  4. ReportedTotal liabilities were 86,0 million złoty, of which contract liabilities are 67,0 million; there are no borrowings.
    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 ↗
  5. ReportedA year before the current record it stood at 69,6 million złoty.
    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