High-Margin Recurring Revenue Software Services Co

This opportunity offers a highly profitable, U.S.-based software development outsourcing company that delivers recurring revenue through long-term client relationships. The company operates entirely remotely and leverages a team of 44 offshore contractors based in Egypt, maintaining a staff retention rate exceeding 90%. The business specializes in software development, quality assurance, and UI/UX design services for small to mid-sized U.S. software vendors.

With $2.5 million in annual revenue and approximately $1 million in net income, the company maintains a 39–48% margin, showcasing strong financial performance and operational discipline. The business has demonstrated consistency pre- and post-COVID, with no debt, no capital expenditures, and clean financial records.

Clients typically remain with the company for 5–10+ years, with four key accounts contributing approximately 20% of revenue each. All new clients are acquired via referrals, highlighting significant untapped growth potential for a buyer with sales and marketing capabilities.

The current owner works less than 5 hours per week, overseeing finance and participating in high-level project reviews. A trained team of project managers handles day-to-day operations, allowing for a seamless ownership transition. The owner seeks a full exit but is open to limited post-sale consulting.

This is an attractive acquisition for strategic or financial buyers looking to scale a tech-enabled service business with strong cash flow, minimal overhead, and immediate profitability.