Asure Software, Inc.

What they do

Asure delivers SaaS payroll, tax filing, HR, time & attendance, recruiting and benefits tools on its Asure HCM platform. It also provides technology-enabled services including AsureMarketplace data exchange, HR compliance guidance, AsurePay payroll cards, and licensed insurance brokerage services. The company sells directly and through white-label Reseller Partners; about 35% of clients are direct and the remainder are contracted through Reseller Partners. Revenue comes from recurring per-employee-per-month fees, transaction-based processing fees, implementation fees, payment and funds-movement fees, and hardware and Hardware-as-a-Service sales.

Revenue drivers

• Payroll and HCM solutions — Payroll processing, workforce management and compliance support sold to small and mid-sized employers, either as point solutions, bundled platforms, or managed administrative services. This is the core offering on which the eight-product Asure HCM suite is built.
• Recurring revenue base — Recurring revenue reached $34.0M in Q2 2026, up 19% from $28.6M, and was $71.7M in the first half of 2026, up 16%. That is the majority of the $37.1M quarterly and $79.9M first-half revenue totals.
• Partner and reseller distribution — The company sells through direct and partner channels, including Reseller Partners who white label products and Referral Partners who provide leads. About 65% of clients reach Asure through Reseller Partners rather than directly.
• Ancillary services and payments — Additional revenue comes from AsureMarketplace integrations, HR compliance services, AsurePay payroll cards offered with partners, and insurance brokerage services that help employers manage benefits.

Recent performance

Second quarter 2026 revenue was $37.1M, up 23% from $30.1M a year earlier, with recurring revenue of $34.0M up 19% from $28.6M. The net loss narrowed to $4.4M from $6.1M, while EBITDA was $4.6M versus $1.4M and Adjusted EBITDA was $7.7M versus $5.2M. Gross profit rose to $25.1M from $19.9M, and non-GAAP gross profit was $27.1M, a 73% margin, unchanged from the year-ago 73%. For the first half of 2026, revenue was $79.9M, up 23%, with a net loss of $3.8M versus $8.5M, and Adjusted EBITDA of $20.1M versus $12.6M. The most recent quarter's revenue of $37.1M was below the prior quarter's $42.8M.

Strategy

Management cited broad-based contributions across business lines, improved organic growth, and increased gross margins versus the prior-year period. It emphasized improving product attach rates and continuing to advance AI capabilities while building sales and marketing efforts. The company launched AsureWorks and reported positive trends and a healthy pipeline of deals. It also expanded its partnership with Foodservice Restaurant Partners Group's FRPG Restaurant Rewards, a group purchasing organization serving independent restaurant operators across 20 states and 3,000 members. Asure says it has invested and believes it is positioned to achieve 2026 growth and profitability goals.

Risks

• History of losses — The company states it has a history of losses and cannot be certain it will achieve or sustain profitability, with net losses in 2022 through 2025 and a $4.4M net loss in Q2 2026.
• Data security and privacy — Its HCM platform handles sensitive personal, payroll, health and financial data, and the company warns that a breach or compromise could reduce revenue, increase expenses and expose it to legal claims and regulatory action.
• Reseller partner acquisitions — Asure has acquired and plans to continue acquiring Reseller Partners' businesses, which it says could be difficult to integrate and could result in unforeseen liabilities or dilution.
• Capital and financing needs — The company states it may need additional capital to support growth or to make scheduled payments on or refinance existing debt, which totaled $62.2M in long-term debt at June 30, 2026.

Outlook

Management guided third quarter 2026 revenue to $38.0M-$40.0M and full-year 2026 revenue to $159.0M-$163.0M, with a full-year Adjusted EBITDA range expressed as 24%-25%. It said the strong position reflects investments made and business trends in the first half of the year. The company did not provide a reconciliation of GAAP to non-GAAP guidance. Management also pointed to increasing product attach rates and advancing AI capabilities as priorities for the second half.