Asure Software Stock Earnings Reports

Asure Software reported a strong start to 2026 with Q1 revenue of $42.8M, up 23% year-over-year, and organic growth of 7% (vs. 3% in Q1 2025). Recurring revenue was $37.8M (≈88% of total) and management expects recurring revenue to rise into the low-90% range for 2026. Adjusted EBITDA was $12.3M (29% margin), up 69% year-over-year, and GAAP net income was $0.6M (compared with a loss in Q1 2025). Management reiterated medium-term targets of $180–$200M in revenue and adjusted EBITDA margins of 30%+. Key operating highlights: rapid adoption of Asure Central (majority of ~30,000 direct clients expected on the platform by end of Q2), improving multiproduct attach rates (payroll multi-product customers up 15% YoY), early traction with AsureWorks (managed payroll/ASO, pilot with 6 reps), and continued rollout of AI agent Luna (15%+ adoption among potential users; interactions up ~50% QoQ). The Lathem acquisition is being migrated onto Asure Central with a planned longer-term shift of Lathem revenue toward a hardware-as-a-service/recurring model. Backlog is ~$85.6M with ~38% expected to convert in 12 months. Financial position: cash $19.2M, debt $68.8M. Updated guidance: FY2026 revenue $159M–$163M and adjusted EBITDA margin 23%–25%; Q2 revenue guidance $36M–$38M and adjusted EBITDA $6M–$8M. Management emphasizes the defensibility of their payroll/tax compliance position (regulatory/licensing barriers, high switching costs) and views AI as an accelerator that both reduces cost-to-serve and enables new managed-service revenue streams.