⚠ The Recurring Revenue Went Backwards, and Price Put It BackHigh threat

Text (TXT) — threat to the moat

MRR fell 2,7% over the year; the 7,6% recovery that followed was a price increase, and you can only stop honouring legacy prices once.

Text's subscription base shrank in its own currency last year, and the recovery investors saw next was a price rise.

Monthly recurring revenue, quarter end ($m)$7,17mJun 2025$6,98mDec 2025$6,93mMar 2026$7,46mJun 2026The June recovery was attributed by the CEO to the end of price grandfathering
The base shrank for a year; what put it back was a price, and prices only rise once per cohort.

Monthly recurring revenue ended the financial year at 6,93 million dollars, down 2,7% year on year and down 0,7% against December1. Revenue in dollars was 88,2 million against 88,6 million, off 0,5%, and payments received were 87,9 million, off 0,7%2. Currency explains the złoty decline; none of it explains these.

Then came the June quarter: monthly recurring revenue up 7,6% to 7,46 million dollars, annualising to 89,52 million3. The chief executive attributed the growth mainly to the completion of price grandfathering for LiveChat customers4 — the migration of customers off older price lists onto the higher Team and Business prices set in September 20255.

That is a legitimate and overdue commercial action. It is also an act that can be performed once. A company can stop honouring legacy prices exactly one time per legacy cohort, and Text has now done it for the monthly payers, with the annual payers still to come as their subscriptions expire6.

Underneath, the operating question is unchanged: LiveChat lost 4% of its customers a month7 and its revenue fell 12,4%8, while the products meant to replace it are small — ChatBot at 8,7% of revenue and HelpDesk at 7,1%9.

The number that tests this threat is monthly recurring revenue in the first quarter that contains no repricing. Text reports it within weeks of each quarter end10, so the answer arrives quickly — and until it does, the growth the market has just been shown is a price, not a customer.

The number that tests this threat
Reported
Monthly recurring revenue
$6,93m at 31 March 2026, down 2,7% - then $7,46m on a price rise

Revenue in dollars fell 0,5% and payments received 0,7%, so currency does not explain these. The 7,6% quarterly recovery that followed was attributed by the chief executive to the completion of price grandfathering for LiveChat customers - an action that can be performed once per legacy cohort, and which has so far reached only the monthly payers. Underneath, LiveChat lost 4% of its customers a month and its revenue fell 12,4%. Watch recurring revenue in the first quarter containing no repricing.

Source: Text Group results for Q1 of the 2026/27 financial year ↗
References
  1. ReportedMonthly recurring revenue ended the financial year at 6,93 million dollars, down 2,7% year on year and down 0,7% against December.
    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. ReportedRevenue in dollars was 88,2 million against 88,6 million, off 0,5%, and payments received were 87,9 million, off 0,7%.
    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. ReportedThen came the June quarter: monthly recurring revenue up 7,6% to 7,46 million dollars, annualising to 89,52 million.
    Text Group results for the first quarter of the 2026/27 financial year, published 28 August 2026 (revenue of PLN 83,20m, down 1,9% year on year and up 4,1% on the previous quarter; net profit PLN 29,11m down 6,2%; operating profit PLN 31,36m down 11,0%; EBITDA PLN 38,56m down 7,4%; revenue in US dollars of 22,61m up 2,1%; MRR of USD 7,46m at 30 June 2026, up 4,0% year on year and 7,6% on the previous quarter, giving ARR of USD 89,52m against the USD 100m goal, with the chief executive attributing the growth largely to the completion of price grandfathering for LiveChat customers; a record PLN 77,2m of deferred revenue and net operating cash flow up 22,2% to PLN 41,5m on a high share of annual payments; margins of 69,6% gross, 37,7% operating, 46,4% EBITDA and 35,0% net; SOC 2 Type 2 attestation in May 2026; the new visual identity and Go-To-Market start in May 2026; purchase of the livechat.ai domain and a seventh US patent in June 2026; a Klaviyo integration and Google Cloud Marketplace listing in July; a MarTech Breakthrough award and an official ChatGPT marketplace listing in August; and the annual general meeting of 6 August 2026 allocating PLN 109,7m to dividends, PLN 4,26 per share) — Q1 2026/27 · publ. 28 August 2026 · source ↗
  4. ReportedThe chief executive attributed the growth mainly to the completion of price grandfathering for LiveChat customers - the migration of customers off older price lists onto the higher Team and Business prices set in September 2025.
    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 ↗
  5. ReportedThe chief executive attributed the growth mainly to the completion of price grandfathering for LiveChat customers - the migration of customers off older price lists onto the higher Team and Business prices set in September 2025.
    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 company can stop honouring legacy prices exactly one time per legacy cohort, and Text has now done it for the monthly payers, with the annual payers still to come as their subscriptions expire.
    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 ↗
  7. ReportedUnderneath, the operating question is unchanged: LiveChat lost 4% of its customers a month and its revenue fell 12,4%, while the products meant to replace it are small - ChatBot at 8,7% of revenue and HelpDesk at 7,1%.
    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. ReportedUnderneath, the operating question is unchanged: LiveChat lost 4% of its customers a month and its revenue fell 12,4%, while the products meant to replace it are small - ChatBot at 8,7% of revenue and HelpDesk at 7,1%.
    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 ↗
  9. ReportedUnderneath, the operating question is unchanged: LiveChat lost 4% of its customers a month and its revenue fell 12,4%, while the products meant to replace it are small - ChatBot at 8,7% of revenue and HelpDesk at 7,1%.
    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 ↗
  10. ReportedText reports it within weeks of each quarter end, so the answer arrives quickly - and until it does, the growth the market has just been shown is a price, not a customer.
    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