⚠ Annual Billing Delays the VerdictModerate threat

Text (TXT) — threat to the moat

Customers who pay yearly cannot react for a year, which is exactly how long the price rise takes to be judged.

The prepayment that funds Text also postpones every piece of information about how customers feel.

How long a price rise takes to be judgedSep 2025new pricesMar 2026 noticeJun 2026monthly payers2027 annualpayersAn annual customer cannot leave until renewal, so the reaction arrives up to a year later
The reported improvement arrives well before the reckoning that follows it.

Text raised LiveChat prices on the Team and Business plans in September 2025 for new customers, told existing customers on older price lists in March 2026 that the change was coming, and began moving them in April. Customers on monthly plans were transferred during the June quarter. Customers on annual plans transfer only at the end of the period they have already paid for1.

That produces a reported improvement well before the reckoning. Monthly recurring revenue rose 7,6% in the June quarter to 7,46 million dollars, and the chief executive attributed it to the completion of price grandfathering2. The customers who were repriced in that quarter are the monthly ones — the group with the least commitment and the easiest exit. The annual cohort has mostly not yet been asked.

A customer who receives a price increase notice while eleven months into a paid year does not churn in that quarter; they churn at renewal. So the full response to the largest pricing action in Text's recent history will arrive spread across the following twelve months, in a line item that also contains everything else.

Text's own churn figure sets the base rate this has to beat: 4% a month on LiveChat3.

Recurring revenue in the quarters after the repricing completes is the read that matters. Text says it will publish operating metrics including recurring revenue and payments received after each quarter ends4, and the first clean read is the first quarter with no migration in it.

References
  1. ReportedCustomers on annual plans transfer only at the end of the period they have already paid for.
    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 ↗
  2. ReportedMonthly recurring revenue rose 7,6% in the June quarter to 7,46 million dollars, and the chief executive attributed it to the completion of price grandfathering.
    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. ReportedText's own churn figure sets the base rate this has to beat: 4% a month on LiveChat.
    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. ReportedText says it will publish operating metrics including recurring revenue and payments received after each quarter ends, and the first clean read is the first quarter with no migration in it.
    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