TextMagic Reports Q3 2025 Revenue and User Trends
TextMagic's Financial Performance in Q3 2025
TextMagic has released its financial results, revealing an unaudited consolidated revenue of €3,221 thousand for the third quarter of 2025. This figure represents a 6% decline compared to the same quarter last year, where revenue was €3,444 thousand. The total revenues for the first nine months of 2025 also show a downward trend, decreasing by 8% to €10,024 thousand from €10,934 thousand in the same period last year.
Performance Metrics Overview
A glance at the performance metrics for Q3 2025 reveals a total of 65,352 thousand SMS messages sent, an increase of 9% from 60,137 thousand messages in Q3 2024. Despite this uptick, the number of active users has decreased to 18,892 from 20,254, a decline of 7%. Notably, the average revenue per user (ARPU) remained steady at €170, indicating consistency in individual user spend.
Revenue Trends over Nine Months
Across the first nine months of 2025, the SMS platform reported a total of 191,266 thousand SMS messages sent, slightly higher than the 187,183 thousand messages sent in the prior year, marking a 2% increase. The average revenue per user (ARPU) for this period rose marginally by 1%, reaching €443 compared to €437 in 2024. However, with the number of active users dropping to 22,613 from 25,049—a 10% decrease—TextMagic is grappling with ongoing challenges.
Impact of Currency Fluctuations and Market Changes
The fluctuation of foreign exchange rates has notably impacted TextMagic's revenue for Q3 2025. Had exchange rates remained consistent with last year, the revenue would have been reported at €3,388 thousand, reflecting a smaller decline at -2%. Without these exchange rate impacts, the projected revenue for the first nine months would have been approximately €10,232 thousand, suggesting a true decline of about 6%.
Competitive Landscape and Strategic Adjustments
In response to market challenges and fluctuating exchange rates, TextMagic has introduced more affordable pricing plans to boost competitiveness. Despite the increase in SMS volumes, regulatory changes in the United States have hindered active user growth, as new rules restrict the sending of unregistered SMS campaigns. Conversely, the United Kingdom has experienced a rise in active users, showing that market dynamics vary significantly by region.
Q3 2025 Highlights and Changes
A significant development this quarter was the sale of Edicy OÜ, the subsidiary managing the Voog platform and Edicy tool for campaign page creation. This transaction is classified as a discontinued operation in TextMagic's financial reports, which has implications for future revenue and operations.
The company also announced a shareholder vote to approve a dividend payment of €0.15 per share, amounting to a total of €1,291,500, scheduled for distribution on October 7, 2025. This decision illustrates TextMagic's commitment to returning value to its shareholders despite the recent drop in revenue figures.
Throughout Q3, the focus on platform development was geared towards enhancing email campaign functionalities. By advancing automation solutions, TextMagic aims to empower its clients with tools for efficient multichannel communication, which could foster greater engagement and revenue in future quarters.
For additional inquiries, please contact:
Getter Grünmann
TextMagic AS, CFO
investor@textmagic.biz
Frequently Asked Questions
What were TextMagic's Q3 2025 revenue figures?
TextMagic reported an unaudited revenue of €3,221 thousand for Q3 2025, a 6% decline from the previous year's figure.
How many SMS messages did TextMagic send in Q3 2025?
The company sent 65,352 thousand SMS messages in Q3 2025, which is a 9% increase from the same quarter in the prior year.
What caused the decline in active users?
The drop in active users is attributed to stricter regulations in the United States regarding unregistered SMS campaigns, although growth was observed in the United Kingdom.
What strategic changes is TextMagic implementing?
TextMagic has introduced more affordable pricing plans to remain competitive and focused on improving its platform's email campaign capabilities through automation.
When will the dividend payment be made?
The approved dividend of €0.15 per share will be paid on October 7, 2025, following a shareholder vote.
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