Text (TXT) Q4 25/26 TU earnings summary

Executive summary

• MRR at end of March was $6.93M, down 0.4% year-over-year and 2.7% sequentially, with the decline smaller than previous quarters.

• Payments received reached $22.56M in Q4, up 0.4% year-over-year and 3.1% sequentially, marking the highest quarterly value of the year.

• Multiproduct customers contributed 38.8% of MRR at March 2026, a 10 percentage point increase year-over-year.

• Customer churn increased in February and March, mainly due to unpaid subscriptions and early reactions to ending grandfathered pricing.

• Significant renewals and upsells with key accounts in biotechnology, Forex, iGaming, and new clients in education, finance, insurance, and sports betting.

Financial highlights

• Net sales for Q1–Q3 2025/26 fell 6.0% year-over-year to PLN 249.2M; EBIT dropped 29.6% to PLN 96.2M; net profit declined 32.0% to PLN 88.1M.

• Q3 2025/26 net sales were PLN 81.6M, down 8.2% year-over-year; EBIT and net profit fell 29.6% and 31.6%, respectively.

• EBITDA for Q1–Q3 2025/26 was PLN 115.7M, down 24.0% year-over-year; Q3 EBITDA margin was 45.8%.

• Payments received from post-pay-per-usage, especially API usage, rose over 160% sequentially, exceeding $250K for the quarter.

• USD/PLN exchange rate negatively impacted reported results; in USD, Q1–Q3 revenue grew 1.0% year-over-year.

Outlook and guidance

• Ending grandfathered pricing for LiveChat customers is expected to increase churn short-term but should have a net positive effect on recurring revenue.

• Largest MRR impact from price changes anticipated in the current quarter.

• SOC 2 Type 2 certification in observation; official Text brand rollout scheduled for Q1 2026/27.

• Marketing and customer acquisition costs will rise, but budgets will be data-driven and scalable.

• Effects of the new brand campaign for Text expected to be visible in KPIs by year-end.