Text ended the first quarter of the 2026/27 financial year with results below market expectations, and the decline in subscription revenue in July and August may prove to be a greater concern than the results themselves.
Between April and June, the company generated PLN 83.2 million in revenue, 1.9 per cent less than a year earlier. EBITDA fell by 7.4 per cent to PLN 38.6 million, whilst net profit fell by 6.2 per cent to PLN 29.1 million. The PAP Biznes consensus forecast had predicted revenue of PLN 87.7 million, EBITDA of PLN 42 million and net profit of PLN 32.5 million.
Part of the decline is attributable to the stronger zloty. In US dollars – the currency in which Text generates the majority of its sales – revenue rose by 2.1 per cent year-on-year to US$22.61 million. At the same time, operating cash flow increased by 22.2 per cent to PLN 41.5 million.
At the end of June, MRR (monthly recurring revenue) stood at US$7.46 million, up 7.6 per cent on the previous quarter. This growth was driven by the migration of LiveChat customers to higher-priced plans.
The problem arose after the end of the quarter. According to information provided by the management board, MRR fell quarter-on-quarter in July and August, although it remained higher year-on-year. This may indicate that the effect of price rises is being partially offset by customer churn or a reduction in subscriptions.
The market reacted strongly: on Monday morning, Text’s shares were down by around 8 per cent. For a company developing AI products and new distribution channels, including Google Cloud Marketplace and ChatGPT Marketplace, it will now be crucial to demonstrate that these investments can translate into sustainable growth in its subscriber base.
