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Text: Text's Q3 2025 Results: A Year of Rebuilding and Growth

Text's financial performance in 2025 was marked by a 1.7% decline in Monthly Recurring Revenue (MRR) to $6.98 million as of December 31, in line with expectations. Payments received in Q3 2025 were $21.89 million, 1.6% less than the previous quarter but 2.1% more than the same period last year. For the 2025 calendar year, MRR declined 1.7%, while payments received were $88.42 million, essentially flat year-over-year. The company's liquidity position improved, with nearly PLN 30 million in tax refunds and full repayment of a short-term bank loan.

TXT.WA

PLN 40.1

0.25%

A-Score: 5.9/10

Publication date: January 5, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • MRR Decline: Year-over-year and quarter-over-quarter MRR dropped 1.7% and 1.1%, respectively, to $6.98 million by December 31, 2025.
  • Q3 Payments: Payments received in Q3 totaled $21.89 million (1.6% lower than previous quarter, 2.1% higher YoY).
  • Large Customer Growth: 51% of total MRR now comes from customers with MRR ≥ $500, up 8 percentage points YoY.
  • Liquidity Boost: PLN 30 million in tax refunds and full repayment of a short-term loan improved financial flexibility in 2025.
  • Team Expansion: Workforce grew by 24 employees YoY, primarily developers, with minimal sales team additions (1–2 people).

Business Highlights and Growth

The company saw a growing share of larger customers with MRR of at least $500, now accounting for 51% of total MRR, an 8 percentage point increase year-over-year. Text built a new product from scratch, overhauled its cloud infrastructure, and obtained SOC 2 Type 1 certification. The management team highlighted that "2025 was a year of building for Text App; they changed infrastructure and built a new product from scratch, providing value to customers." The Text App has been tested with over 700 customers, with feedback applied to improve the product.

Outlook and Valuation

For 2026, Text will focus on broadening its product offering, customer acquisition, distribution, and visibility. Analysts estimate next year's revenue growth at 2.4%. With a P/S Ratio of 3.0 and an EV/EBITDA of 5.84, the company's valuation appears reasonable. The Dividend Yield of 10.95% is also attractive, with a planned dividend advance of PLN 1.15 in February. The company's ROE of 104.22% and ROIC of 140.04% indicate strong profitability.

Operational Efficiency and Churn

The company has been optimizing its operations, with the team increasing by 24 people year-over-year, mostly developers. The higher churn rate was predominantly driven by smaller customers, with the main reason being business closure or financial problems. As the management noted, "Churn is natural in the SaaS business." The Text App is gaining customers globally, with diverse use cases and a loyal customer base.

Text's A-Score