Highly profitable, recurring-revenue telecom technology business that helps outbound-calling enterprises remove negative carrier spam labels, deploy branded caller identification, and protect phone-number reputation. The Company operates a cloud-delivered platform with direct workflows into AT&T, T-Mobile, and Verizon, removing spam labels typically within 2-3 days and continuously monitoring number health across a network of more than 400 million active mobile devices. Customers are predominantly outbound-heavy enterprises in insurance, financial services, lead generation, and contact center verticals where contact rates directly drive enterprise revenue. The business generated $2.71M of TTM revenue with a 59% EBITDA margin while growing revenue at a mid-30% CAGR from 2023 to 2025.
Investment Highlights
- Recurring revenue with structural tailwind. Customers depend on the Company’s service to keep their outbound numbers off carrier spam labels, an issue tied directly to enterprise revenue. Tightening carrier algorithms, iOS 26 call screening, and STIR/SHAKEN enforcement are all driving rising demand for paid remediation.
- Rule of 40 score of approximately 93. Mid-30% revenue growth combined with a 59% EBITDA margin places the Company well above the SaaS quality threshold most institutional buyers screen for.
- Approximately 120% Net Revenue Retention. Existing customers grew aggregate spend by approximately 20% year-over-year on a customer-level trailing-12-month methodology. Top accounts have expanded across additional phone numbers and use cases.
- 85% variable profit margin. Each incremental dollar of revenue carries roughly $0.85 of contribution margin. EBITDA margin expands as revenue scales, since the platform cost base is largely fixed.
- Diversified, repeat customer base. Approximately 125 active revenue customers across the trailing twelve months, with the top customer representing only 10% of revenue. The recurring core of 44 customers contributes approximately 90% of revenue and shows 133% NRR and 91% GRR.
- Cash-generative, debt-free, owner-light. Zero debt, $285K of cash, and $3.2M of cumulative distributions to the owner. No owner salary or personal expenses run through the P&L. The owner runs the business in approximately 10 to 20 hours per week today and is available for transition support post-close.
- Differentiated lower-mid-market position. Competes against larger enterprise platforms like Numeracle and Bandwidth, but wins on faster onboarding, simpler per-number recurring pricing, and direct workflows into all three Tier-1 US carriers, an underserved segment of the call-trust market.
- 100% referral and word-of-mouth growth. The Company performs no active marketing or outbound sales effort. The entire current customer base has been built through referrals and word of mouth, with less than $10K of TTM marketing spend producing approximately 34% revenue CAGR. This implies meaningful upside under a professionalized go-to-market motion. Two named recurring products today, Spam Label Removal at 98% of revenue and Branded Caller ID, with the latter still substantially unpenetrated across the existing customer base.
Operations & Transition
The owner is open to a clean equity sale on a cash-free, debt-free basis at an asking price of $12.3 million, approximately 7.6x TTM EBITDA and 4.6x TTM revenue, reflecting the Company’s combination of recurring revenue, premium margins, approximately 120% NRR, and structural market tailwind. The owner is available for a transition support period at market-rate compensation. The business is operationally ready for new ownership with a cloud-delivered platform, established carrier workflows, and a stable customer base. Suitable for a strategic acquirer such as a CPaaS, CCaaS, caller identity, or compliance platform seeking a high-margin bolt-on, or a financial buyer seeking a profitable platform asset in a structurally growing telecom-compliance category.
