⚠ The Złoty Decides What Shareholders ReceiveHigh threat

Text (TXT) — threat to the moat

Revenue in dollars, costs partly in złoty, no hedging at all - and the dividend is paid in the currency that keeps strengthening.

Text earns in one currency, spends in two, reports in the one it barely sells in, and does nothing to manage the difference.

FY2026 change, same company, two currencies-0,5%Revenue in US dollars-7,1%Revenue in złoty-29,1%Net profit in złotyAverage translation rate 8,0% lower; Text does not hedge its open positions
A flat business became a bad one because of a rate nobody at Text manages.

The structure is stated plainly in the risk factors: currency risk arises directly because the company generates revenue in dollars and incurs a significant portion of costs in złoty; fluctuations affect reported results and the amount of any dividend paid in złoty; and as of the report date the company does not hedge its open foreign exchange positions1.

Last year that turned a flat business into a bad one. Revenue in dollars fell 0,5%; the average translation rate was 8,0% lower; reported revenue fell 7,1%2. Because the Polish cost base did not move with the rate, the decline landed almost entirely on profit: operating profit fell 28,7% and net profit 29,1%, with operating margin dropping from 50,1% to 38,6%3.

Shareholders felt it directly. The dividend fell from 6,06 złoty a share to 4,264, because the payout is a share of a profit measured in the strengthening currency.

There are two genuine mitigations. Part of the cost base is in dollars, which the company notes reduces the exposure5. And the effect is symmetrical — a weaker złoty would flatter results just as mechanically, with no operational improvement behind it.

What there is not is any management of the risk, by choice.

This threat is tested by the gap between the two revenue lines. Dollar revenue fell 0,5% and złoty revenue 7,1%6; whenever they diverge by that much, the reported figures are describing a currency rather than a business.

The number that tests this threat
Reported
Gap between dollar and złoty revenue
-0,5% in dollars against -7,1% in złoty

Text generates revenue in dollars and incurs a significant portion of costs in złoty, and states that it does not hedge its open foreign exchange positions. The average translation rate was 8,0% lower than the prior year, which turned a flat business into a 29,1% fall in net profit and cut operating margin from 50,1% to 38,6%. Shareholders felt it directly: the dividend fell from 6,06 złoty a share to 4,26 złoty. The effect is symmetrical - a weaker złoty would flatter results just as mechanically.

Source: Text Group Management Board report for the financial year 2025/26 ↗
References
  1. ReportedThe structure is stated plainly in the risk factors: currency risk arises directly because the company generates revenue in dollars and incurs a significant portion of costs in złoty; fluctuations affect reported results and the amount of any dividend paid in złoty; and as of the report date the company does not hedge its open foreign exchange positions.
    Text Group Management Board report for 2025/26, risks and key factors (currency risk arising because revenue is generated in US dollars while a significant portion of costs is incurred in Polish złoty, affecting reported results and the dividend, with the company not hedging its open foreign exchange positions; competition risk from more innovative or cost-effective solutions and from rivals allocating far greater funds to development and promotion, and from AI changing how software is developed and marketed in a way that could erode the advantage derived from the company's technology and experience; distribution risk from the loss or reduced effectiveness of channels such as Google, Shopify or BigCommerce, and from traditional search engines being replaced by LLM models or AI assistants in a way that may harm the SEO activities of the company and its affiliate partners; product concentration risk, since Text generates almost all revenue from LiveChat products; and risk from entities using patents to enforce compensation) — FY2025/26 · publ. June 2026 · source ↗
  2. ReportedRevenue in dollars fell 0,5%; the average translation rate was 8,0% lower; reported revenue fell 7,1%.
    Text Group annual results press release of 26 June 2026 (consolidated revenue of PLN 329,1m and net profit of PLN 116,6m, down 7,1% and 29,1% respectively; revenue in US dollars of 88,2m, down 0,5%; MRR of USD 6,93m at 31 March 2026, down 2,7%, and ARR of USD 83,12m against a strategic goal of USD 100m; operating profit PLN 126,7m down 28,7% and EBITDA PLN 153,3m down 23,9%; margins of 67,6% gross, 38,6% operating, 46,4% EBITDA and 35,4% net; and a recommended dividend of PLN 4,26 per share including two interim payments, the first of PLN 1,15 paid in February 2026) — FY2025/26 · publ. 26 June 2026 · source ↗
  3. ReportedBecause the Polish cost base did not move with the rate, the decline landed almost entirely on profit: operating profit fell 28,7% and net profit 29,1%, with operating margin dropping from 50,1% to 38,6%.
    Text Group annual results press release of 26 June 2026 (consolidated revenue of PLN 329,1m and net profit of PLN 116,6m, down 7,1% and 29,1% respectively; revenue in US dollars of 88,2m, down 0,5%; MRR of USD 6,93m at 31 March 2026, down 2,7%, and ARR of USD 83,12m against a strategic goal of USD 100m; operating profit PLN 126,7m down 28,7% and EBITDA PLN 153,3m down 23,9%; margins of 67,6% gross, 38,6% operating, 46,4% EBITDA and 35,4% net; and a recommended dividend of PLN 4,26 per share including two interim payments, the first of PLN 1,15 paid in February 2026) — FY2025/26 · publ. 26 June 2026 · source ↗
  4. ReportedThe dividend fell from 6,06 złoty a share to 4,26, because the payout is a share of a profit measured in the strengthening currency.
    Text Group annual results press release of 26 June 2026 (consolidated revenue of PLN 329,1m and net profit of PLN 116,6m, down 7,1% and 29,1% respectively; revenue in US dollars of 88,2m, down 0,5%; MRR of USD 6,93m at 31 March 2026, down 2,7%, and ARR of USD 83,12m against a strategic goal of USD 100m; operating profit PLN 126,7m down 28,7% and EBITDA PLN 153,3m down 23,9%; margins of 67,6% gross, 38,6% operating, 46,4% EBITDA and 35,4% net; and a recommended dividend of PLN 4,26 per share including two interim payments, the first of PLN 1,15 paid in February 2026) — FY2025/26 · publ. 26 June 2026 · source ↗
  5. ReportedPart of the cost base is in dollars, which the company notes reduces the exposure.
    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 ↗
  6. ReportedDollar revenue fell 0,5% and złoty revenue 7,1%; whenever they diverge by that much, the reported figures are describing a currency rather than a business.
    Text Group annual results press release of 26 June 2026 (consolidated revenue of PLN 329,1m and net profit of PLN 116,6m, down 7,1% and 29,1% respectively; revenue in US dollars of 88,2m, down 0,5%; MRR of USD 6,93m at 31 March 2026, down 2,7%, and ARR of USD 83,12m against a strategic goal of USD 100m; operating profit PLN 126,7m down 28,7% and EBITDA PLN 153,3m down 23,9%; margins of 67,6% gross, 38,6% operating, 46,4% EBITDA and 35,4% net; and a recommended dividend of PLN 4,26 per share including two interim payments, the first of PLN 1,15 paid in February 2026) — FY2025/26 · publ. 26 June 2026 · source ↗
Sources
Generated September 24, 2026