Is Otter.ai profitable in 2026?

Otter.ai has not disclosed formal profitability, but it reached $100M ARR by March 2025 and maintained it through December 2025 with fewer than 200 employees, implying over $500,000 revenue per employee and no new funding raised since February 2021, suggesting a capital-efficient, largely self-funding model.

Could AI replace Otter.ai's core product?

Otter.ai's original core feature, passive meeting transcription and summarization, is now bundled free into Microsoft Teams Copilot, Google Meet Gemini, and Zoom AI Companion at 95 to 98 percent accuracy industry-wide as of April 2026, directly commoditizing the standalone product it was built on.

Otter.ai is privately held, founded in 2016 by Sam Liang and Yun Fu as AISense. It has raised roughly $73M total, led by Spectrum Equity in a February 2021 Series B, with no new funding round reported since then as of July 2026.

Who is Otter.ai's biggest competitor?

The biggest threat is not a startup but platform incumbents: Microsoft Teams Copilot, Google Meet Gemini, and Zoom AI Companion, which ship free native meeting-notetaking to customers who already pay for those subscriptions. Among direct SaaS peers, Gong dwarfs Otter with $298M ARR at end of 2024 versus Otter's $100M ARR in 2025.

Is Otter.ai facing any lawsuits?

Yes. In re Otter.AI Privacy Litigation (N.D. Cal., case 5:25-cv-06911-EKL) is a consolidated federal class action alleging Otter recorded meeting participants without all-party consent and used transcripts to train AI without permission. A motion to dismiss was argued May 20, 2026, with no ruling as of June 20, 2026.

How many users does Otter.ai have?

Otter.ai states it has more than 35 million users worldwide, has transcribed over 1 billion meetings, and has generated over 30 million action items, according to its own company blog post published June 28, 2026 (vendor-claimed figures).

AI companies and labs · United States

Otter.ai

otter.ai ↗

AI meeting transcription and notetaker app used by 86% of Fortune 500.

Losing its protection

Assessed 20 July 2026 · Evidence as of 20 July 2026

The structural protection is eroding.

On the recordSince 20 July 2026 · Checkable from Q3-Q4 2026 · Every call on the record Checkpoint: Ruling on motion to dismiss in In re Otter.AI Privacy Litigation (N.D. Cal.)

The call

Otter has real scale and enterprise reach, but its main feature is now free inside Teams, Meet, and Zoom, and a pending wiretap lawsuit could reshape the whole bot-based category.

Otter.ai records and writes down what happens in meetings, then summarizes them using AI. The problem is that Microsoft Teams, Google Meet, and Zoom have all added this exact same feature for free to their apps, which millions of people already use every day.

Why

AI pressure: Microsoft Teams Copilot, Google Gemini in Meet, Zoom AI Companion. These tools now transcribe and summarize meetings free inside the platform, cutting the reason to install a separate bot. Could AI do the core job? Yes, likely.

Bigger players: Microsoft, Google, Zoom. Each owns the meeting software itself and bundles transcription at no extra cost, squeezing Otter at renewal time. Could a giant copy it? Yes, easily.

What protects it. 86% Fortune 500 usage, 35M users, and 1B+ transcribed meetings give it data and habit that a bundled feature does not yet match.

What would change this call

Ruling in In re Otter.AI Privacy Litigation (N.D. Cal.), expected Q3-Q4 2026. A surviving wiretap/CIPA claim would threaten the entire bot-based transcription model.
Otter.ai's next ARR disclosure after the $100M plateau since March 2025. Renewed growth would show enterprise lock-in; continued flatness would show free bundles are eating share.
Any new funding round, acquisition, or IPO filing for Otter.ai. Would signal investor confidence after 65+ months without a capital raise.

Key numbers

$100M ARR held flat since March 2025 (2025-12-22)
No funding round since Feb 2021 (2026-07-02)
Growth Score 34/100 (2026-06-02)

Named risks

Federal class action alleging wiretap/consent violations, motion to dismiss unresolved as of June 2026. Severity: high
Core transcription feature commoditized free by Microsoft, Google, and Zoom. Severity: high
ARR plateaued at $100M since March 2025 with no reported acceleration. Severity: medium
No new funding raised since February 2021 despite hitting $100M ARR. Severity: medium
Google Meet flagging third-party bots as risk since March 2026 adds platform friction. Severity: medium

Rivals, as read in July 2026

Rival	Direction	Evidence
Microsoft Teams Copilot	gaining on	Ships free native AI meeting notetaking bundled into existing subscriptions, cited June 2026
Google Meet/Gemini	gaining on	Began flagging third-party bots like Otter as potential risk by default starting March 2026
Zoom AI Companion	gaining on	Bundles free AI meeting summarization on a platform Otter depends on for bot access
Gong	losing to	Gong reported $298M ARR at end of 2024, roughly 3x Otter's $100M ARR in 2025
Granola and Fathom (bot-free tools)	losing to	Bot-free capture tools gaining preference in 2026 as Otter's bot-based model faces lawsuit exposure

Questions people ask

Is Otter.ai profitable in 2026?: Otter.ai has not disclosed formal profitability, but it reached $100M ARR by March 2025 and maintained it through December 2025 with fewer than 200 employees, implying over $500,000 revenue per employee and no new funding raised since February 2021, suggesting a capital-efficient, largely self-funding model.
Could AI replace Otter.ai's core product?: Otter.ai's original core feature, passive meeting transcription and summarization, is now bundled free into Microsoft Teams Copilot, Google Meet Gemini, and Zoom AI Companion at 95 to 98 percent accuracy industry-wide as of April 2026, directly commoditizing the standalone product it was built on.
Who owns Otter.ai?: Otter.ai is privately held, founded in 2016 by Sam Liang and Yun Fu as AISense. It has raised roughly $73M total, led by Spectrum Equity in a February 2021 Series B, with no new funding round reported since then as of July 2026.
Who is Otter.ai's biggest competitor?: The biggest threat is not a startup but platform incumbents: Microsoft Teams Copilot, Google Meet Gemini, and Zoom AI Companion, which ship free native meeting-notetaking to customers who already pay for those subscriptions. Among direct SaaS peers, Gong dwarfs Otter with $298M ARR at end of 2024 versus Otter's $100M ARR in 2025.
Is Otter.ai facing any lawsuits?: Yes. In re Otter.AI Privacy Litigation (N.D. Cal., case 5:25-cv-06911-EKL) is a consolidated federal class action alleging Otter recorded meeting participants without all-party consent and used transcripts to train AI without permission. A motion to dismiss was argued May 20, 2026, with no ruling as of June 20, 2026.
How many users does Otter.ai have?: Otter.ai states it has more than 35 million users worldwide, has transcribed over 1 billion meetings, and has generated over 30 million action items, according to its own company blog post published June 28, 2026 (vendor-claimed figures).

Timeline

2026-06-28Otter.ai blog claims 35M+ users, 1B+ meetings transcribed, 30M+ action items
2026-06-20No ruling yet in In re Otter.AI Privacy Litigation motion to dismiss
2026-06-03CEO Sam Liang states Otter used by 86% of Fortune 500 companies
2026-03-01Kenny Scannell appointed Chief Revenue Officer for enterprise growth push
2026-03-01Google Meet begins flagging third-party notetaker bots as potential risk by default
2025-12-22Otter.ai confirms $100M ARR maintained through end of 2025, sub-200 headcount
2025-07-10Otter.ai achieves HIPAA compliance alongside existing SOC 2 Type II
2025-03-25Otter.ai crosses $100M ARR, launches AI Meeting Agent suite (Sales Agent, SDR Agent)
2021-02-01Otter.ai closes $40-50M Series B plus $10M note led by Spectrum Equity, last raise to date

Revision history

20 July 2026

First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.

In the same band

Safe Superintelligence Inc.Mistral AI Cohere