⚠ A Fortress Balance Sheet With Nothing BoughtModerate threat

Text (TXT) — threat to the moat

Text arrives at the most competitive moment in its history having given its capital away rather than deployed it.

1. ReportedThe company has never issued a share beyond its original 25,750,000, has no borrowings, and distributes almost everything it earns - 109,7 million złoty of the 116,6 million made in 2025/26.
   Text Group Management Board report for 2025/26, team, intellectual property and shareholders (a team of 271 people at 31 March 2026, up 6,7%, consisting of independent persons and sole proprietors called Partners on civil-law contracts, with the company having no employees under employment contracts, a rotation rate of 22% and turnover of 15%, mostly working from Wroclaw on a hybrid basis with 95% Polish citizens; the disclosed risk that because no team member works under an employment contract copyright does not vest automatically, transfers require individual agreements, Polish law forbids contracting for all future works of a given type, and an absent contract leaves the company dependent on the creator's will and open to dispute; a seventh United States patent granted in June 2026 for configuring a communication widget directly on a website; and 25 750 000 shares of 0,02 złoty each, one vote per share and none privileged, with a shareholders' consortium holding 10 625 752 shares or 41,27% of votes and two Polish pension funds above 5%) — FY2025/26 · publ. June 2026 · source ↗
2. ReportedThe company has never issued a share beyond its original 25,750,000, has no borrowings, and distributes almost everything it earns - 109,7 million złoty of the 116,6 million made in 2025/26.
   Text Group Management Board report for 2025/26, team, intellectual property and shareholders (a team of 271 people at 31 March 2026, up 6,7%, consisting of independent persons and sole proprietors called Partners on civil-law contracts, with the company having no employees under employment contracts, a rotation rate of 22% and turnover of 15%, mostly working from Wroclaw on a hybrid basis with 95% Polish citizens; the disclosed risk that because no team member works under an employment contract copyright does not vest automatically, transfers require individual agreements, Polish law forbids contracting for all future works of a given type, and an absent contract leaves the company dependent on the creator's will and open to dispute; a seventh United States patent granted in June 2026 for configuring a communication widget directly on a website; and 25 750 000 shares of 0,02 złoty each, one vote per share and none privileged, with a shareholders' consortium holding 10 625 752 shares or 41,27% of votes and two Polish pension funds above 5%) — FY2025/26 · publ. June 2026 · source ↗
3. ReportedThe company has never issued a share beyond its original 25,750,000, has no borrowings, and distributes almost everything it earns - 109,7 million złoty of the 116,6 million made in 2025/26.
   Text Group Management Board report for 2025/26, team, intellectual property and shareholders (a team of 271 people at 31 March 2026, up 6,7%, consisting of independent persons and sole proprietors called Partners on civil-law contracts, with the company having no employees under employment contracts, a rotation rate of 22% and turnover of 15%, mostly working from Wroclaw on a hybrid basis with 95% Polish citizens; the disclosed risk that because no team member works under an employment contract copyright does not vest automatically, transfers require individual agreements, Polish law forbids contracting for all future works of a given type, and an absent contract leaves the company dependent on the creator's will and open to dispute; a seventh United States patent granted in June 2026 for configuring a communication widget directly on a website; and 25 750 000 shares of 0,02 złoty each, one vote per share and none privileged, with a shareholders' consortium holding 10 625 752 shares or 41,27% of votes and two Polish pension funds above 5%) — FY2025/26 · publ. June 2026 · source ↗
4. ReportedIts stated policy is to pay out the highest possible part of profit unless investments appear that would provide a higher return to shareholders.
   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 ↗
5. ReportedThe consequence is that Text arrives at the most competitive moment in its history with 62,8 million złoty of cash and no acquisition history to speak of.
   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 ↗
6. Third-party estimateIntercom, which now trades as Fin, was valued at 1,3 billion dollars in 2024 with venture debt discussions in March 2026 at 2 billion or more; Zendesk carries a market capitalisation around 9,1 billion dollars.
   Sacra research note on Intercom, now trading as Fin (approximately USD 400m of annual recurring revenue as of April 2026, up from 382m at the end of 2025 and growing 27%; the Fin AI agent surpassing USD 100m of ARR and expanding at about 350% a year across roughly 8 000 businesses, resolving close to two million support queries a week - equivalent to more than 6 500 human agents - at a 67% average resolution rate; usage-based pricing at USD 0,99 per resolved outcome, a shift that improved net revenue retention from 112% to 146%; a valuation of USD 1,3bn in 2024 with March 2026 venture debt discussions at USD 2bn or higher; and Zendesk at roughly 170 000 customers, about 30% of the global customer-service market, on a USD 9,1bn market capitalisation, with Freshworks around USD 3,7bn) — April 2026 · publ. 2026 · source ↗
7. Third-party estimateIntercom, which now trades as Fin, was valued at 1,3 billion dollars in 2024 with venture debt discussions in March 2026 at 2 billion or more; Zendesk carries a market capitalisation around 9,1 billion dollars.
   Sacra research note on Intercom, now trading as Fin (approximately USD 400m of annual recurring revenue as of April 2026, up from 382m at the end of 2025 and growing 27%; the Fin AI agent surpassing USD 100m of ARR and expanding at about 350% a year across roughly 8 000 businesses, resolving close to two million support queries a week - equivalent to more than 6 500 human agents - at a 67% average resolution rate; usage-based pricing at USD 0,99 per resolved outcome, a shift that improved net revenue retention from 112% to 146%; a valuation of USD 1,3bn in 2024 with March 2026 venture debt discussions at USD 2bn or higher; and Zendesk at roughly 170 000 customers, about 30% of the global customer-service market, on a USD 9,1bn market capitalisation, with Freshworks around USD 3,7bn) — April 2026 · publ. 2026 · source ↗
8. ReportedText's chief executive describes the environment precisely: strong competitors with enormous resources that they can, and sometimes must in order to satisfy investors, allocate to customer acquisition.
   Text Group Management Board report for 2025/26, the chief executive's letter (the statement that on the financial results the past fiscal year was not a successful one, with dollar revenue similar to the prior year but lower after conversion to złoty and costs incurred in both currencies; an artificial-intelligence resolution rate of 74% against an industry average of 59%, a figure said to include customers who have not yet trained the models on their own data; the intention to measure success in dollars earned rather than dollars saved on customer support, building an ecosystem that becomes a growth engine for customers rather than a cost centre; and the assessment that Text operates in a market with strong competitors, many with enormous resources they can and sometimes must allocate to customer acquisition, that Text must be smarter, more creative, harder-working and more efficient, and that success is not guaranteed) — FY2025/26 · publ. June 2026 · source ↗
9. ReportedText's answer is that it intends to be smarter, more creative, harder-working and more efficient, and that success is not guaranteed.
   Text Group Management Board report for 2025/26, the chief executive's letter (the statement that on the financial results the past fiscal year was not a successful one, with dollar revenue similar to the prior year but lower after conversion to złoty and costs incurred in both currencies; an artificial-intelligence resolution rate of 74% against an industry average of 59%, a figure said to include customers who have not yet trained the models on their own data; the intention to measure success in dollars earned rather than dollars saved on customer support, building an ecosystem that becomes a growth engine for customers rather than a cost centre; and the assessment that Text operates in a market with strong competitors, many with enormous resources they can and sometimes must allocate to customer acquisition, that Text must be smarter, more creative, harder-working and more efficient, and that success is not guaranteed) — FY2025/26 · publ. June 2026 · source ↗
10. ReportedRetaining a materially larger share of earnings would signal that management has found something to buy - and would end the 10,4% yield that is currently a large part of why anyone owns the shares.
    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 ↗

• Text Group Management Board report for the financial year 2025/26