The Trial That Closes ItselfNarrow moat

Text (TXT) — moat facet

Fourteen days, no credit card, 19 dollars a seat: Text never has to be chosen, only tried.

Text's sales process is a pricing page and a fortnight.

LiveChat price per seat, billed annually ($/month)$19Starter$49Team$79Business14-day trial, no credit card - low enough that nobody has to approve the purchase
Text never has to be chosen, only tried. That is the margin and the churn together.

A prospect starts a 14-day trial with full platform access and no credit card, and the entry plan costs 19 dollars per user per month billed annually1. LiveChat's ladder runs 19, 49 and 79 dollars a seat, with monthly billing a little dearer2. At those numbers the purchase clears without a procurement process, which is the entire point: Text never has to be chosen, only tried.

This is what makes the margin possible, and it is measurable in what Text does not spend. General administrative costs were 26,1 million złoty on 329,1 million of revenue3, and the company describes its practical, automated sales process as a significant competitive advantage4.

The same design decides what kind of company Text is. A self-serve funnel is superb at collecting small accounts in volume and structurally poor at landing large ones, which is why more than half of recurring revenue still comes from customers paying above 500 dollars a month rather than from customers paying many thousands5, and why Text needed a SOC 2 Type 2 attestation before enterprise buyers would take it seriously6.

It is also why churn is what it is. A customer who bought without deliberating leaves without deliberating, and 4% a month leave7.

Whether the funnel is stretching upmarket shows in one place: the share of recurring revenue from accounts above 500 dollars a month. It passed half this year, up materially8, and it is the metric Text is actually managing.

Moat trajectory: Holding steady

The funnel works exactly as it always has, which is the point: it collects small accounts efficiently and cannot reach large ones. Nothing in the year changed either half of that.

The number that tests this moat
Reported
Entry price per seat
$19 per user per month, on a 14-day trial with no credit card

The self-serve funnel is what removed the need for a sales force and produced the margin. It also selects the customer base: buyers who decide alone in minutes churn at 4% a month, and the same design cannot reach enterprise accounts without security attestations and marketplace listings. The measure of whether the funnel is stretching upmarket is the share of recurring revenue from accounts above $500 a month, which passed half this year.

Source: Text pricing page ↗
⚠ Threats to the moat
⚠ THREAT 01
A Funnel Built for Small Accounts
A customer who bought without deliberating leaves without deliberating.
References
  1. ReportedA prospect starts a 14-day trial with full platform access and no credit card, and the entry plan costs 19 dollars per user per month billed annually.
    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 ↗
  2. ReportedLiveChat's ladder runs 19, 49 and 79 dollars a seat, with monthly billing a little dearer.
    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 ↗
  3. ReportedGeneral administrative costs were 26,1 million złoty on 329,1 million of revenue, and the company describes its practical, automated sales process as a significant competitive advantage.
    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. ReportedGeneral administrative costs were 26,1 million złoty on 329,1 million of revenue, and the company describes its practical, automated sales process as a significant competitive advantage.
    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 self-serve funnel is superb at collecting small accounts in volume and structurally poor at landing large ones, which is why more than half of recurring revenue still comes from customers paying above 500 dollars a month rather than from customers paying many thousands, and why Text needed a SOC 2 Type 2 attestation before enterprise buyers would take it seriously.
    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 ↗
  6. ReportedA self-serve funnel is superb at collecting small accounts in volume and structurally poor at landing large ones, which is why more than half of recurring revenue still comes from customers paying above 500 dollars a month rather than from customers paying many thousands, and why Text needed a SOC 2 Type 2 attestation before enterprise buyers would take it seriously.
    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 ↗
  7. ReportedA customer who bought without deliberating leaves without deliberating, and 4% a month leave.
    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 ↗
  8. ReportedIt passed half this year, up materially, and it is the metric Text is actually managing.
    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 ↗
Sources
Generated September 24, 2026