⚠ Ninety-Four Percent of the Profit Goes Out the DoorModerate threat

Text (TXT) — threat to the moat

A 10,4% yield on a dividend that just fell 30%, paid while the company rebuilds itself.

Text's dividend policy is to allocate the highest possible part of profit to shareholders, subject to legal limits, unless investments appear that would offer a better return1. It means it: 109,7 million złoty was allocated from the 2025/26 profit of 116,6 million, a payout of 94%2.

Dividend per share (zl)6,06 złFY20254,26 złFY2026A 30% cut, tracking net profit down 29,1% - the yield is a ratio, not a coupon
Text distributes 94% of earnings while rebuilding itself, and the payment moves with profit.

For most of the company's life that was obviously correct. A business with no debt, no capital needs and customers who prepay has nothing useful to do with retained earnings, and shareholders received a compounding stream instead.

It reads differently now. Text is in the middle of the largest strategic change in its history — a new suite product, a Go-To-Market campaign it says will require marketing spend over a long period, a rebuilt sales model and an infrastructure estate it deliberately expanded3. Those things cost money, and the company is distributing 94% of its earnings while it does them. Cash fell from 77,7 million złoty to 62,8 million over the year4.

The mechanical consequence is that the dividend tracks earnings down. The payment fell from 6,06 złoty a share for 2024/25 to 4,26 for 2025/265, a 30% cut in the same year profit fell 29,1%6. The 10,4% yield the shares now carry7 is a percentage of a number that has just moved sharply, not a fixed coupon.

The falsifying event is a policy change. If Text retains materially more of the next year's profit to fund the Text product, the yield thesis ends and the growth thesis begins — and the share price will be asked to reflect the swap.

References
  1. ReportedText's dividend policy is to allocate the highest possible part of profit to shareholders, subject to legal limits, unless investments appear that would offer a better return.
    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 ↗
  2. ReportedIt means it: 109,7 million złoty was allocated from the 2025/26 profit of 116,6 million, a payout of 94%.
    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. ReportedText is in the middle of the largest strategic change in its history - a new suite product, a Go-To-Market campaign it says will require marketing spend over a long period, a rebuilt sales model and an infrastructure estate it deliberately expanded.
    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 ↗
  4. ReportedCash fell from 77,7 million złoty to 62,8 million over the year.
    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. ReportedThe payment fell from 6,06 złoty a share for 2024/25 to 4,26 for 2025/26, a 30% cut in the same year profit fell 29,1%.
    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 ↗
  6. ReportedThe payment fell from 6,06 złoty a share for 2024/25 to 4,26 for 2025/26, a 30% cut in the same year profit fell 29,1%.
    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 ↗
  7. ReportedThe 10,4% yield the shares now carry is a percentage of a number that has just moved sharply, not a fixed coupon.
    Market data for Text S.A. (WSE:TXT), stockanalysis.com, cross-checked against a second source (a share price of 41,76 złoty on 25,75 million shares for a market value of about 1,08 billion złoty, roughly 9,4 times trailing earnings and 3,3 times sales, on trailing twelve-month revenue of 327,47m złoty and net income of 114,70m; a dividend of 4,26 złoty at a 10,36% yield; a 52-week range of 35,50 to 55,00; and fiscal-year-end market capitalisations of 2 637m złoty at 31 March 2022, 3 687m at 2023, 2 318m at 2024, 1 362m at 2025 and 967m at 2026) — September 2026 · publ. September 2026 · source ↗
Sources
Generated September 24, 2026