Four Percent a MonthThin moat

Text (TXT) — moat facet

The single disclosed number that constrains every other claim about this moat.

Text publishes one number that constrains every other claim on this page, and it publishes it without emphasis: the customer churn rate for LiveChat in the reported year was 4% on a monthly basis1.

LiveChat customers retained, compounding 4% monthly churn100%Month 088,5%Month 378,3%Month 669,3%Month 961,3%Month 12Text's own disclosed churn rate, compounded - roughly two-fifths of the logos in a year
The one disclosed number that constrains every other claim about switching costs.

Compounded across a year that is roughly two-fifths of the customer list. Whatever the widget, the integrations and the archive are worth, they are not worth enough to keep the average customer for much beyond two years.

The company's answer is that logo churn is the wrong lens. Net revenue churn, which sets expansion within surviving accounts against the revenue that leaves, is "significantly lower"2, and the supporting statistics are real: multi-product accounts rose to 38,8% of recurring revenue, up seven points, and accounts above 500 dollars a month now supply more than half of it3. Text is losing many small customers and growing the large ones.

That is a genuine and favourable dynamic, and it has a ceiling. A business that keeps a shrinking number of increasingly valuable accounts is consolidating rather than compounding, and the top line eventually reports it. Last year it did: monthly recurring revenue fell 2,7% in dollars, to 6,93 million4.

There is one more thing this number explains. A company losing 4% of its customers a month has to spend permanently on acquisition, which is why closing the traditional sales department and handing its work to the support team5 is a larger decision than it first appears.

Everything here turns on the one figure Text will not quantify — net revenue churn. Until it does, 4% a month is the only retention datum the market has.

Moat trajectory: Holding steady

The disclosed churn rate has not moved, and neither has the argument around it. Net revenue churn is described as significantly lower and has never been quantified.

The number that tests this moat
Reported
LiveChat monthly customer churn
4% a month - close to two-fifths of the logos a year

This single disclosed figure constrains every other claim about switching costs. Text argues net revenue churn is significantly lower because surviving accounts expand, and it has never put a number on that. Until it does, 4% a month is the only retention datum the market has, and it means the acquisition engine is a maintenance requirement rather than a growth strategy. A fall below 4% would be the first evidence the apparatus is binding.

Source: Text Group Management Board report for the financial year 2025/26 ↗
⚠ Threats to the moat
⚠ THREAT 01
Two-Fifths of the List, Every Year
At 4% a month the acquisition engine is not a growth strategy, it is life support - and both halves of it are being rebuilt at once.
References
  1. ReportedText publishes one number that constrains every other claim on this page, and it publishes it without emphasis: the customer churn rate for LiveChat in the reported year was 4% on a monthly basis.
    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. ReportedNet revenue churn, which sets expansion within surviving accounts against the revenue that leaves, is "significantly lower", and the supporting statistics are real: multi-product accounts rose to 38,8% of recurring revenue, up seven points, and accounts above 500 dollars a month now supply more than half of 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 ↗
  3. ReportedNet revenue churn, which sets expansion within surviving accounts against the revenue that leaves, is "significantly lower", and the supporting statistics are real: multi-product accounts rose to 38,8% of recurring revenue, up seven points, and accounts above 500 dollars a month now supply more than half of 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 ↗
  4. ReportedLast year it did: monthly recurring revenue fell 2,7% in dollars, 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 ↗
  5. ReportedA company losing 4% of its customers a month has to spend permanently on acquisition, which is why closing the traditional sales department and handing its work to the support team is a larger decision than it first appears.
    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 ↗
Sources
Generated September 24, 2026