ASUR

This article first appeared on GuruFocus. Total Revenue: $37.1 million in Q2 2026, up 23% year-over-year. Recurring Revenue: $34 million in Q2 2026, up 19% year-over-year, representing approximately 91% of total revenue. Professional Services, Hardware, and Other Revenue: $3.2 million in Q2 2026, compared to $1.5 million in Q2 2025. GAAP Gross Margin: 68% in Q2 2026, compared to 66% in Q2 2025. Non-GAAP Gross Margin: 73% in Q2 2026, unchanged year-over-year. Net Loss: $4.4 million in Q2 2026, compared to a net loss of $6.1 million in Q2 2025. EBITDA: $4.6 million in Q2 2026, compared to $1.4 million in Q2 2025. Adjusted EBITDA: $7.7 million in Q2 2026, up 48% year-over-year. Adjusted EBITDA Margin: 21% in Q2 2026, up 400 basis points from 17% in Q2 2025. Cash and Cash Equivalents: $19.7 million as of June 30, 2026. Total Debt: $68.9 million as of June 30, 2026. Organic Growth Rate: 5% in Q2 2026, compared to 1% in Q2 2025. New Sales Bookings Growth: Core HCM payroll bookings grew 14% year-over-year in Q2 2026. Contracted Backlog: Approximately $80 million, with about 41% expected to convert over the next 12 months. Full Year 2026 Revenue Guidance: $159 million to $163 million. Full Year 2026 Adjusted EBITDA Margin Guidance: 24% to 25%. Q3 2026 Revenue Guidance: $38 million to $40 million. Q3 2026 Adjusted EBITDA Guidance: $8 million to $10 million. Warning! GuruFocus has detected 2 Warning Signs with ASUR. Is ASUR fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Asure Software Inc (NASDAQ:ASUR) reported strong Q2 2026 results with total revenue growth of 23% year-over-year to $37.1 million, driven by broad-based growth across business lines. Adjusted EBITDA increased 48% year-over-year to $7.7 million, with margins expanding 400 basis points to 21%, reflecting improved operational efficiency and scale. The company achieved a significant milestone with 2 million employees from Venture Employer Services now live on its enterprise payroll tax management platform, with a robust pipeline of future opportunities. AsureWorks, the administrative services outsourcing offering, is gaining strong traction with a growing pipeline and new client additions, representing up to 5 times the revenue of a payroll-only client. AI initiatives are showing tangible results, with a 30% increase in platform adoptions and a 38% increase in interactions with Luna, the AI agent, driving both revenue opportunities and cost efficiencies. The company raised its full-year 2026 adjusted EBITDA margin guidance to 24%-25%, reflecting confidence in continued profitability improvements. Organic growth rate slowed sequentially to 5% in Q2 2026 from 7% in Q1 2026, attributed to seasonality, though the company expects double-digit organic growth in the second half. The company did not complete any reseller acquisitions in Q2 2026, and while it expects a few deals in the second half, none are currently included in guidance, creating uncertainty around incremental growth. A forecasted headwind of approximately $600,000 to revenue during the first half of 2027 due to the transition of Latham to a hardware-as-a-service model, which will pressure nonrecurring revenue. The company is not forecasting any further interest rate cuts this year based on current market sentiment, which could limit potential tailwinds from interest income on client funds. Full-year revenue guidance implies a more muted overall growth rate in the second half due to a difficult comparison with $10 million in nonrecurring revenue from the prior year, which is expected to decline to $5-$6 million. The company is still about 10 sales reps short of its goal of 150 by the end of 2026, and while confident, it acknowledges the challenge of hiring full-solution sales reps with a different skill set. Q: Can you break down how AI is contributing to both cost-cutting efficiencies and revenue generation, and where you are in that journey?A: Pat Goepel (CEO) explained that on the revenue side, AI is leveraging intent and trigger data to identify cross-sell opportunities, such as offering COBRA services when a client hits 20 employees or suggesting 401(k) increases after a raise. On the cost side, Luna, the AI agent, is handling routine customer service calls and questions, freeing up staff for more strategic relationship building. John Pence (CFO) added that they are in the "really, really early days" of the journey, citing an example where sentiment analysis on customer service calls is used to proactively reach out to dissatisfied customers, which should improve retention over time. Q: You mentioned expectations of hitting double-digit organic growth in the second half. The midpoint of your guidance implies closer to 7% total growth. Is that conservatism?A: John Pence (CFO) clarified that the discrepancy is due to a difficult comparison on nonrecurring revenue. Last year's second half included roughly $10 million in nonrecurring professional services, largely from large tax deals, which are not expected to repeat. This headwind will be offset by strong growth in the recurring organic side of the business, which is healthier and more predictable. Pat Goepel (CEO) added that the "motion is already in place" to achieve these outcomes, giving them high confidence. Q: How do you plan to differentiate your AsureWorks ASO offering given that competitors are also rolling out managed service offerings?A: Pat Goepel (CEO) stated that Asure has a historical advantage, having offered managed payroll as a core service before it became a trend. The differentiation lies in their integrated platform, Asure Central, combined with Luna's AI capabilities to orchestrate work. He noted that their core customer base often lacks an HR professional until they reach ~80 employees, making AsureWorks a natural fit. He believes competitors entering the space will validate the model and draw attention, but Asure's core competency and head start in AI give them a significant lead. Q: Can you provide an update on the sales headcount goal of 150 reps by year-end and the productivity of the current sales force?A: Pat Goepel (CEO) said they are still about 10 reps short of their target but are confident in reaching 150 by year-end. They are being selective, hiring "full solution" sales reps who can sell the entire suite rather than point solutions, and these reps are ramping faster than historically seen. He noted that productivity is in the "early innings," but they are targeting 25%+ productivity improvements from year-one and year-two reps next year, driven by higher attach rates and selling to business owners rather than office managers. Q: With Asure Central now on a majority of your 30,000 direct clients, are you seeing the expected increase in cross-sell and attach rates?A: Pat Goepel (CEO) confirmed that the platform is building on itself exponentially. In Q2, the number of clients purchasing multiple products increased by 6% year-over-year. He highlighted strong traction in HR, 401(k), and time and attendance products, which are setting records. The use of intent and trigger event data is making cross-sell more of a standard practice rather than an incremental one, and they expect this to build further in the second half of the year. Q: Is the enterprise payroll tax management pipeline up year-over-year, and is any potential large deal included in your guidance?A: Pat Goepel (CEO) described the emerging pipeline as "extraordinarily strong" but noted that deal cycles can be short or long. He confirmed that the current guidance does not include a significant amount of professional services revenue from these large tax deals, making the forecast conservative. He hinted that press releases reflecting growth opportunities in this area could be expected in the coming quarters, but the timing of revenue conversion could fall into 2026, 2027, or even 2028. Q: You raised the low end of the adjusted EBITDA margin guidance. Is that due to revenue mix or changes in cost of goods?A: John Pence (CFO) attributed the raise to the strong performance already achieved in the first two quarters of the year, stating, "it's more of just what's already in the barn." He clarified that nothing structurally has changed dramatically; they simply felt the midpoint was very achievable and wanted to tighten the range based on where they expect to land. Q: Can you comment on Latham's retention and the opportunity for cross-sell, given it's been a year since the acquisition?A: John Pence (CFO) noted that Latham's retention is very consistent and similar to Asure's own, performing at or slightly above expectations with most planned cost savings realized. Pat Goepel (CEO) added that the cultural fit is excellent and they are integrating the go-to-market strategy. While transitioning Latham to a Hardware-as-a-Service (HaaS) model will create a ~$600,000 revenue headwind in the first half of 2027, it aligns the value proposition and is expected to be a ~$2 million positive long-term. Cross-sell opportunities are already strong and expected to build through 2027 and 2028. Q: You mentioned expecting to complete a few M&A deals in the back half. Is anything included in your guidance?A: John Pence (CFO) confirmed that no acquisitions are included in the current guidance, so any deals completed would be incremental. They have been disciplined, passing on deals due to price or other reasons, but continue to actively evaluate opportunities. Pat Goepel (CEO) added that they are working on a couple of reseller deals that could close in the second half of the year. Q: Can you provide more color on the composition of recurring versus nonrecurring revenue strength heading into the back half of the year?A: John Pence (CFO) explained that last year's back half had about $10 million in nonrecurring revenue, largely from professional services on large tax deals. This year, they are modeling only $5 million to $6 million in nonrecurring revenue for the back half. This means the growth in their guidance is coming almost entirely from the recurring organic side of the business, driven by cross-selling products like 401(k), HR compliance, and time and attendance. Pat Goepel (CEO) added that the For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Asure Software, Inc. (ASUR) came out with quarterly earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -33.33%. A quarter ago, it was expected that this company would post earnings of $0.25 per share when it actually produced earnings of $0.29, delivering a surprise of +16%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Asure Software, Inc., which belongs to the Zacks Internet - Delivery Services industry, posted revenues of $37.11 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.06%. This compares to year-ago revenues of $30.12 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Asure Software, Inc. shares have lost about 10.4% since the beginning of the year versus the S&P 500's gain of 6.9%. While Asure Software, Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Asure Software, Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.19 on $39.57 million in revenues for the coming quarter and $0.87 on $160.75 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Delivery Services is currently in the bottom 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Zoom Communications (ZM), another stock in the broader Zacks Computer and Technology sector, has yet to report results for the quarter ended July 2026. This video-conferencing company is expected to post quarterly earnings of $1.50 per share in its upcoming report, which represents a year-over-year change of -2%. The consensus EPS estimate for the quarter has been revised 0.5% higher over the last 30 days to the current level. Zoom Communications' revenues are expected to be $1.27 billion, up 4.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Asure Software, Inc. (ASUR) : Free Stock Analysis Report Zoom Communications, Inc. (ZM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

HR software provider Asure Software (NASDAQ:ASUR) met Wall Street’s revenue expectations in Q2 CY2026, with sales up 23.2% year on year to $37.11 million. On the other hand, next quarter’s revenue guidance of $39 million was less impressive, coming in 1.6% below analysts’ estimates. Its GAAP loss of $0.15 per share was in line with analysts’ consensus estimates. Is now the time to buy Asure Software? Find out in our full research report. Revenue: $37.11 million vs analyst estimates of $37.15 million (23.2% year-on-year growth, in line) EPS (GAAP): -$0.15 vs analyst estimates of -$0.15 (in line) Adjusted EBITDA: $7.74 million vs analyst estimates of $6.91 million (20.9% margin, 12% beat) The company reconfirmed its revenue guidance for the full year of $161 million at the midpoint EBITDA guidance for Q3 CY2026 is $9 million at the midpoint, above analyst estimates of $8.55 million Operating Margin: -6.5%, up from -15.4% in the same quarter last year Free Cash Flow was $664,000, up from -$745,000 in the previous quarter Market Capitalization: $242.1 million "We are very pleased to deliver another solid quarter of revenue growth for the second quarter of 2026 with revenues increasing 23% from a year ago to $37.1 million. The contributors to our success this quarter were broad based across business lines and during the quarter we experienced improved organic growth as well as increased gross margins versus the prior year period. We also continue to experience improving attach rates with our products and the launch of AsureWorks™ has continued its positive trends with a healthy pipeline of deals," said Asure Chairman and CEO Pat Goepel. Operating in the often-overlooked smaller metropolitan markets where HR expertise can be scarce, Asure Software (NASDAQ:ASUR) provides cloud-based human capital management software and services that help small and medium-sized businesses manage payroll, taxes, time tracking, and HR compliance. Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Asure Software grew its sales at a 17.5% annual rate. Though this growth is acceptable on an absolute basis, we need to see more than just topline growth for the software sector, which can display significant earnings volatility. This means our bar for the sector is particularly high, reflecting the non-essential and hit-driven nature of the products and services offered. Additionally, five-year CAGR starts around Covid, when revenue was depressed then rebounded. Long-term growth is the most important, but within software, a half-decade historical view may miss new innovations or demand cycles. Asure Software’s annualized revenue growth of 16.1% over the last two years is below its five-year trend, but we still think the results were respectable. This quarter, Asure Software’s year-on-year revenue growth of 23.2% was excellent, and its $37.11 million of revenue was in line with Wall Street’s estimates. Company management is currently guiding for a 7.6% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 7.5% over the next 12 months, a deceleration versus the last two years. This projection doesn’t excite us and implies its products and services will face some demand challenges. ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable. These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE. The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it’s the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability. Asure Software is extremely efficient at acquiring new customers, and its CAC payback period checked in at 5.5 months this quarter. The company’s rapid recovery of its customer acquisition costs indicates it has a highly differentiated product offering and a strong brand reputation. These dynamics give Asure Software more resources to pursue new product initiatives while maintaining the flexibility to increase its sales and marketing investments. We were impressed by Asure Software’s optimistic EBITDA guidance for next quarter, which blew past analysts’ expectations. On the other hand, its revenue guidance for next quarter missed. Overall, this was a mixed quarter. The stock remained flat at $8.39 immediately following the results. So do we think Asure Software is an attractive buy at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

Interested in Asure Software Inc? Here are five stocks we like better. Strong Q2 performance: Revenue increased 23% year over year to $37.1 million, recurring revenue rose 19% to $34 million, and adjusted EBITDA grew 48% to $7.7 million as the margin expanded to 21%. 2026 outlook emphasizes recurring growth: Asure guided for full-year revenue of $159 million to $163 million and adjusted EBITDA margins of 24% to 25%, with double-digit organic recurring revenue growth expected in the second half. Platform expansion and AI adoption continue: Most of Asure’s roughly 30,000 direct clients now use AsureCentral, while Luna AI usage increased more than 30% sequentially; management is also evaluating several acquisitions for the second half of 2026. Asure Software (NASDAQ:ASUR) reported second-quarter 2026 revenue growth of 23% year over year, citing broad-based performance across its business lines, increased cross-selling and progress in its payroll tax, human capital management and artificial intelligence initiatives. Total revenue rose to $37.1 million from $30.1 million in the prior-year quarter. Recurring revenue increased 19% to $34 million and represented approximately 91% of total revenue. The company’s organic growth rate was 5%, compared with 1% a year earlier and 7% in the first quarter, with management attributing the sequential moderation in part to seasonality. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Net loss narrowed to $4.4 million from $6.1 million in the second quarter of 2025. Adjusted EBITDA increased 48% to $7.7 million, while adjusted EBITDA margin expanded to 21% from 17%. Chief Financial Officer John Pence said Asure expects full-year 2026 revenue of $159 million to $163 million and adjusted EBITDA margins of 24% to 25%. For the third quarter, the company expects revenue of $38 million to $40 million and adjusted EBITDA of $8 million to $10 million. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Pence said the company tightened its full-year adjusted EBITDA margin outlook based on its performance in the first two quarters, rather than a major structural change in its business or cost base. Asure also expects to generate positive levered free cash flow in the mid- to high-teens range for the full year, based on adjusted EBITDA at the midpoint of guidance, less approximately $15 million in software capitalization and approximately $6 million in cash interest expense. Asure ended the quarter with $19.7 million in cash and cash equivalents and $68.9 million in total debt as of June 30. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Management said the back half of 2026 is expected to be driven primarily by recurring organic growth. Pence noted that the company generated roughly $10 million in non-recurring revenue in the second half of 2025, including professional-services work tied to large tax deals and revenue related to Lathem hardware. For the second half of 2026, Asure expects approximately $5 million to $6 million of non-recurring revenue under its current outlook. Chief Executive Officer Pat Goepel said the company expects double-digit organic recurring revenue growth in the second half, supported by payroll, time and attendance, 401(k), HR compliance and cross-selling activity. He said the company’s guidance does not include contributions from potential acquisitions or a significant amount of tax-related professional services work. Goepel said a majority of Asure’s approximately 30,000 direct clients are now using the AsureCentral platform, in line with the company’s forecast from its prior earnings call. The number of clients purchasing multiple products rose 6% from the year-earlier period, and management said it is pursuing an objective of increasing the average client relationship from about two products toward four or more over time. The company also reported that 2 million supported employees of Vensure Employer Solutions are now live on Asure’s enterprise payroll tax management platform. Goepel said the company’s opportunity pipeline remains robust, though he declined to provide details for competitive and confidentiality reasons. New sales bookings for core human capital management payroll grew 14% from the second quarter of 2025, while contracted backlog was approximately $80 million. Asure expects to convert about 41% of that backlog over the next 12 months. Management said it did not see meaningful changes in sales-cycle length or competitive intensity during the quarter. The company continues to model flat headcount growth among its clients, which are primarily small and midsized businesses in payroll-intensive and compliance-driven industries. Goepel said the company’s AsureWorks administrative services outsourcing offering continued to gain traction, adding clients and expanding its pipeline among small hotel chains, restaurants, HVAC companies and other businesses that require payroll and HR compliance support. He emphasized that AsureWorks is not a professional employer organization model and does not involve co-employment risk. The company said managed payroll and compliance clients can represent up to five times the revenue of a payroll-only customer. Asure is expanding its sales organization with a goal of reaching 150 representatives by the end of 2026. Goepel said the company remained about 10 representatives short of that objective but was confident it could meet the target. The company is seeking more consultative sales professionals capable of selling its broader platform rather than individual products. The split between revenue from existing customers and new customer logos was approximately 53% and 47%, respectively. Management’s longer-term target is a mix of 65% base expansion and 35% new-logo business. Management said Luna, Asure’s AI agent, is being used to support customer-service, sales and compliance workflows. Platform adoptions involving Luna increased more than 30% from the first quarter, while interactions increased approximately 38%. Asure said Luna has transcribed 147,000 voicemail calls and screened about 196,000 emails for sentiment analysis. Pence said the company is still in the early stages of using AI to reduce costs, but it is already using call transcription and trigger words to identify customers who may need proactive outreach. Goepel said AI-driven intent and trigger data could also support cross-selling, including offers for COBRA administration, retirement savings services and managed services. He said the company is expanding the automated Luna model from its Canadian tax solution across U.S. payroll, U.S. tax and HR compliance. Separately, Pence said the Lathem acquisition has performed at or slightly above expectations, with retention remaining consistent and most anticipated cost savings realized. Asure is transitioning Lathem toward a hardware-as-a-service model, which it expects will create an approximately $600,000 revenue headwind in the first half of 2027 as some hardware sales shift into recurring revenue. Management said the transition is expected to improve customer value over time. Asure did not complete reseller acquisitions during the second quarter, but management said it is evaluating opportunities and expects it could complete several deals in the second half of the year. No acquisitions are included in the company’s current guidance. Asure Software, Inc (NASDAQ: ASUR) is a Texas‐based technology company specializing in cloud‐based workforce and workspace management solutions. The company develops software that streamlines human capital management (HCM), payroll processing, time and attendance tracking, and workspace reservation for businesses seeking to optimize employee experience and operational efficiency. The Asure platform includes modules for payroll administration, benefits enrollment, performance management, applicant tracking and onboarding, as well as mobile and web‐based timekeeping. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Asure Software Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Second Quarter 2026 Revenues of $37.1 Million up 23% year over year Recurring Revenue of $34.0 Million up 19% year over year AUSTIN, Texas, July 30, 2026 (GLOBE NEWSWIRE) -- Asure Software, Inc. (Nasdaq: ASUR), a leading provider of cloud-based Human Capital Management software solutions, today reported results for the second quarter ended June 30, 2026. Second Quarter 2026 Financial Highlights* Revenue of $37.1 million, up 23% from $30.1 million Recurring revenue of $34.0 million, up 19% from $28.6 million Net loss of $4.4 million versus a net loss of $6.1 million EBITDA(1) of $4.6 million versus $1.4 million Adjusted EBITDA(1) of $7.7 million versus $5.2 million Gross profit of $25.1 million versus $19.9 million Non-GAAP gross profit(1) of $27.1 million (margin of 73%) versus $21.9 million (margin of 73%) First Half 2026 Financial Highlights* Revenue of $79.9 million, up 23% from prior year first half Recurring revenue of $71.7 million, up 16% from prior year first half Net loss of $3.8 million versus a net loss of $8.5 million in the prior year first half EBITDA(1) of $14.0 million versus $5.6 million in the prior year first half Adjusted EBITDA(1) of $20.1 million versus $12.6 million in the prior year first half Gross profit of $55.5 million versus $44.5 million in the prior year first half Non-GAAP gross profit(1) of $59.4 million (margin of 74%) versus $48.1 million (margin of 74%) in prior year first half *Financial metrics are compared to second quarter and the first half of the prior year respectively. Recent Business Highlights Announced the expansion of its partnership with Foodservice Restaurant Partners Group’s (“FRPG”) FRPG Restaurant Rewards, one of the nation’s largest Group Purchasing Organizations serving independent restaurant operators. The expanded agreement strengthens Asure’s distribution within FRPG’s network, which spans 20 states and 3,000 members, and is expected to further position the Company to capture market share in the large and underserved independent restaurant segment. (1)This financial measure is not calculated in accordance with GAAP and is defined on page 3 of this press release. A reconciliation of this non-GAAP measure to the most applicable GAAP measure begins on page 10 of this release. Management Commentary "We are very pleased to deliver another solid quarter of revenue growth for the second quarter of 2026 with revenues increasing 23% from a year ago to $37.1 million. The contributors to our success this quarter were broad based across business lines and during the quarter we experienced improved organic growth as well as increased gross margins versus the prior year period. We also continue to experience improving attach rates with our products and the launch of AsureWorks™ has continued its positive trends with a healthy pipeline of deals," said Asure Chairman and CEO Pat Goepel. "As we look to the second half of 2026, we remain focused on increasing product attach rates with our clients, continuing to advance our AI capabilities while building on our sales and marketing efforts to further our growth trend. Given the investments we have made and the business trends we experienced in the first half of the year, we believe we are in a strong position to achieve our growth and profitability goals for 2026." Third Quarter 2026 and Full Year 2026 Revenue Guidance Ranges The Company provides guidance for the third quarter of 2026 and full year 2026 based on the Company’s year-to-date results and recent business trends. Guidance for 2026 Management uses GAAP, non-GAAP and adjusted measures when planning, monitoring, and evaluating the Company’s performance. The primary purpose of using non-GAAP and adjusted measures is to provide supplemental information that may prove useful to investors and to enable investors to evaluate the Company’s results in the same way management does. Management believes that supplementing GAAP disclosures with non-GAAP and adjusted disclosures provides investors with a more complete view of the Company’s operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the Company’s business. Further, to the extent that other companies use similar methods in calculating adjusted financial measures, the provision of supplemental non-GAAP and adjusted information can allow for a comparison of the Company’s relative performance against other companies that also report non-GAAP and adjusted operating results. Management has not provided a reconciliation of guidance of GAAP to non-GAAP or adjusted disclosures because management is unable to predict the nature and materiality of non-recurring expenses without unreasonable effort. Management’s projections are based on management’s current beliefs and assumptions about the Company's business, and the industry and the markets in which it operates; there are known and unknown risks and uncertainties associated with these projections. There can be no assurance that our actual results will not differ from the guidance set forth above. The Company assumes no obligation to update publicly any forward-looking statements, including its 2026 earnings guidance, whether as a result of new information, future events or otherwise. Please refer to the “Use of Forward-Looking Statements” disclosures on page 5 of this press release as well as the risk factors in our quarterly and annual reports on file with the Securities and Exchange Commission for more information about risk that affect our business and industry. (1)This financial measure is not calculated in accordance with GAAP and is defined on page 3 of this press release. A reconciliation of this non-GAAP measure to the most applicable GAAP measure begins on page 10 of this release. Conference Call Details Asure management will host a conference call on Thursday, July 30, 2026, at 3:30 pm Central (4:30 pm Eastern). Asure Chairman and CEO Pat Goepel and CFO John Pence will participate in the conference call followed by a question-and-answer session. The conference call will be broadcast live and available for replay via the investor relations section of the Company’s website. Analysts may participate on the conference call by dialing 877-407-9219 or 201-689-8852. About Asure Software, Inc. Asure (Nasdaq: ASUR) provides cloud-based Human Capital Management (HCM) software solutions that assist organizations of all sizes in streamlining their HCM processes. Asure's suite of HCM solutions includes HR, payroll, time and attendance, benefits administration, payroll tax management, and talent management. The company's approach to HR compliance services incorporates AI technology to enhance scalability and efficiency while prioritizing client interactions. For more information, please visit www.asuresoftware.com. Non-GAAP and Adjusted Financial Measures This press release includes information about non-GAAP gross profit, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, non-GAAP research and development expense, EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin. These non-GAAP and adjusted financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP and adjusted financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s Condensed Consolidated Financial Statements prepared in accordance with GAAP. Non-GAAP and adjusted financial measures are reconciled to GAAP in the tables set forth in this release and are subject to reclassifications to conform to current period presentations. Non-GAAP gross profit differs from gross profit in that it excludes amortization, share-based compensation, and one-time items. Non-GAAP sales and marketing expense differs from sales and marketing expense in that it excludes share-based compensation and one-time items. Non-GAAP general and administrative expense differs from general and administrative expense in that it excludes share-based compensation and one-time items. Non-GAAP research and development expense differs from research and development expense in that it excludes share-based compensation and one-time items. EBITDA differs from net income (loss) in that it excludes items such as interest, income taxes, depreciation, and amortization. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Adjusted EBITDA differs from EBITDA in that it excludes share-based compensation, other income (expense), net and one-time expenses. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. All adjusted and non-GAAP measures presented as “margin” are computed by dividing the applicable adjusted financial measure by total revenue. Specifically, as applicable to the respective financial measure, management is adjusting for the following items when calculating non-GAAP and adjusted financial measures as applicable for the periods presented. No additional adjustments have been made for potential income tax effects of the adjustments based on the Company’s current and anticipated de minimis effective federal tax rate, resulting from the Company’s continued losses for federal tax purposes and its tax net operating loss balances. Share-Based Compensation Expenses. The Company’s compensation strategy includes the use of share-based compensation to attract and retain employees and executives. It is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than to motivate or reward operational performance for any particular period. Thus, share-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period. Depreciation. The Company excludes depreciation of fixed assets. Also included in the expense is the depreciation of capitalized software costs. Amortization of Purchased Intangibles. The Company views amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, customer lists and customer relationships, and acquired lease intangibles, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, one that is not typically affected by operations during any particular period. Interest Expense, Net. The Company excludes accrued interest expense, the amortization of debt discounts and deferred financing costs. Income Taxes. The Company excludes income taxes, both at the federal and state levels. One-Time Expenses. The Company’s adjusted financial measures exclude the following costs to normalize comparable reporting periods, as these are generally non-recurring expenses that do not reflect the ongoing operational results. These items are typically not budgeted and are infrequent and unusual in nature. Settlements, Penalties and Interest. The Company excludes legal settlements, including separation agreements, penalties and interest that are generally one-time in nature and not reflective of the operational results of the business. Acquisition and Transaction Related Costs. The Company excludes these expenses as they are transaction costs and expenses that are generally one-time in nature and not reflective of the underlying operational results of our business. Examples of these types of expenses include legal, accounting, regulatory, other consulting services, severance and other employee costs. Other non-recurring Expenses. The Company excludes these as they are generally non-recurring items that are not reflective of the underlying operational results of the business and are generally not anticipated to recur. Some examples of these types of expenses, historically, have included write-offs or impairments of assets, demolition of office space and cybersecurity consultants. Other (Expense) Income, Net. The Company’s adjusted financial measures exclude Other (Expense) Income, Net because it includes items that are not reflective of the underlying operational results of the business, such as loan forgiveness, adjustments to contingent liabilities and credits earned as part of the CARES Act, passed by Congress in the wake of the coronavirus pandemic. Use of Forward-Looking StatementsThis press release contains certain statements made by management that may constitute “forward-looking” statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements about our financial results may include expected or projected U.S GAAP and other operating and non-operating results. The words “believe,” “may,” “will,” “estimate,” “projects,” “anticipate,” “intend,” “expect,” “should,” “plan,” and similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements include statements we make regarding our operating performance, future results of operations and financial position, revenue growth, earnings or other projections. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions, over many of which we have no control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. The risks and uncertainties referred to above include—but are not limited to—risks associated with breaches of our security measures; possible fluctuations in our financial and operating results; potential financing needed to meet future capital requirements; access to additional capital; volatility and weakness in bank and capital markets; the financial and other impact of any previous and future acquisitions; privacy concerns and laws and other regulations that may limit the effectiveness of our applications; inability to adopt new or correctly interpret existing money service and money transmitter business status; risk of our software and solutions not functioning adequately; interruptions, delays or changes in our services or our Web hosting; significant costs as a result of operating as a public company; economic and governmental interruptions to supply chains; risks related to weaknesses in internal control; the inability to continue to release timely updates for changes in laws; the inability to develop new and improved versions of our services and technological developments; customer’s nonrenewal of their agreements and other similar changes; the exposure of market, interest, credit and liquidity risk on client funds held in trust; our operations in highly competitive markets; risks that our clients could have insufficient funds, limitations in the ability to transmit ACH transactions; the nature of our business model; impairment of intangible assets; litigation and any related claims, negotiations and settlements, including with respect to intellectual property matters or industry-specific regulations; market demand of our Software-as-a-Service offerings; adverse effects to our business a result of claims, lawsuits, and other proceedings; adverse material effects caused by advancements and adoption of artificial intelligence; issues in the use of artificial intelligence in our HCM products and services; adverse changes to financial accounting standards to us; intellectual property risks associated with the use of open source software; failures of our service providers; factors affecting our deferred tax assets and ability to value and utilize them; inability to maintain third-party licensed software; evolving regulation of the Internet, changes in the infrastructure underlying the Internet or interruptions in Internet services; the expiration of Employee Retention Tax Credits (“ERTC”) and the impact of recent regulatory and other measures by governmental authorities-regarding ERTC claims and the corresponding cash collections of existing receivables; our ability to hire, retain and motivate employees and manage our growth; potential enactment of adverse tax laws, regulation, political, economic and social factors; potential sales of a substantial number of shares of our common stock along with its volatility; and risks associated with potential equity-related transactions including dividends, rights under the stockholder plan to discourage certain actions and other impacts as a result of actions of our stockholders. Please review the Company’s risk factors in its annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2026. The forward-looking statements, including the financial guidance and 2026 outlook, contained in this press release represent the judgment of the Company as of the date of this press release, and the Company expressly disclaims any intent, obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations with regard to these forward looking statements or any change in events, conditions or circumstances on which any such statements are based. © 2026 Asure Software, Inc. All rights reserved. (1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period. (1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period. Investor Relations ContactPatrick McKillopVice President, Investor [email protected]

First Quarter 2026 Revenues of $42.8 Million up 23% year over year First Quarter 2026 Net Income $0.6 Million versus Net Loss of $2.4 Million in prior year First Quarter 2026 Adjusted EBITDA(1) increased 69% to $12.3 Million year over year AUSTIN, Texas, April 30, 2026 (GLOBE NEWSWIRE) -- Asure Software, Inc. (Nasdaq: ASUR), a leading provider of cloud-based Human Capital Management software solutions, today reported results for the first quarter ended March 31, 2026. First Quarter 2026 Financial Highlights* Revenue of $42.8 million, up 23% from $34.9 million Recurring revenue of $37.8 million, up 14% from $33.2 million Net income of $0.6 million versus a net loss of $2.4 million EBITDA(1) of $9.4 million versus $4.1 million Adjusted EBITDA(1) of $12.3 million versus $7.3 million Gross profit of $30.5 million versus $24.6 million Non-GAAP gross profit(1) of $32.3 million (margin of 76%) versus $26.3 million (margin of 75%) *Financial metrics are compared to the first quarter of the prior year. Recent Business Highlights Announced the appointment of Tiffany Mortimer as Chief Transformation & People Officer. Mortimer brings 15 years of experience leading enterprise transformation, operational execution, and people strategy at high-growth SaaS companies, and joins Asure as the company continues to build the operational and organizational foundation for its next phase of growth. Management Commentary "We are very pleased with our first quarter of 2026 results, which reflect the strongest start to a year in Asure's recent history. Revenue grew 23% to $42.8 million versus a year ago, and the combination of accelerating organic growth, profitability at the net income level, and continued margin improvement validates the strategic investments we have been making across our platform, our people, and our go-to-market efforts. We believe this quarter demonstrates that our business is reaching an inflection point where growth and profitability are advancing together," said Asure Chairman and CEO Pat Goepel. "Looking ahead, we remain focused on the strategic investments we believe will sustain this growth trajectory. We are expanding our sales and marketing efforts and advancing our AI capabilities, which we expect to enhance the client’s experience while lowering our cost to serve over time. These initiatives, combined with the continued customer adoption of Asure Central™, position us well to achieve our full-year 2026 revenue and profitability targets." (1)This financial measure is not calculated in accordance with GAAP and is defined on page 3 of this press release. A reconciliation of this non-GAAP measure to the most applicable GAAP measure begins on page 10 of this release. Second Quarter 2026 and Full Year 2026 Revenue Guidance Ranges The Company provides guidance for the second quarter of 2026 and full year 2026 based on the Company’s year-to-date results and recent business trends. Guidance for 2026 Management uses GAAP, non-GAAP and adjusted measures when planning, monitoring, and evaluating the Company’s performance. The primary purpose of using non-GAAP and adjusted measures is to provide supplemental information that may prove useful to investors and to enable investors to evaluate the Company’s results in the same way management does. Management believes that supplementing GAAP disclosures with non-GAAP and adjusted disclosures provides investors with a more complete view of the Company’s operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the Company’s business. Further, to the extent that other companies use similar methods in calculating adjusted financial measures, the provision of supplemental non-GAAP and adjusted information can allow for a comparison of the Company’s relative performance against other companies that also report non-GAAP and adjusted operating results. Management has not provided a reconciliation of guidance of GAAP to non-GAAP or adjusted disclosures because management is unable to predict the nature and materiality of non-recurring expenses without unreasonable effort. Management’s projections are based on management’s current beliefs and assumptions about the Company's business, and the industry and the markets in which it operates; there are known and unknown risks and uncertainties associated with these projections. There can be no assurance that our actual results will not differ from the guidance set forth above. The Company assumes no obligation to update publicly any forward-looking statements, including its 2026 earnings guidance, whether as a result of new information, future events or otherwise. Please refer to the “Use of Forward-Looking Statements” disclosures on page 5 of this press release as well as the risk factors in our quarterly and annual reports on file with the Securities and Exchange Commission for more information about risk that affect our business and industry. Conference Call Details Asure management will host a conference call on Thursday, April 30, 2026, at 3:30 pm Central (4:30 pm Eastern). Asure Chairman and CEO Pat Goepel and CFO John Pence will participate in the conference call followed by a question-and-answer session. The conference call will be broadcast live and available for replay via the investor relations section of the Company’s website. Analysts may participate on the conference call by dialing 877-407-9219 or 201-689-8852. About Asure Software, Inc. Asure (Nasdaq: ASUR) provides cloud-based Human Capital Management (HCM) software solutions that assist organizations of all sizes in streamlining their HCM processes. Asure's suite of HCM solutions includes HR, payroll, time and attendance, benefits administration, payroll tax management, and talent management. The company's approach to HR compliance services incorporates AI technology to enhance scalability and efficiency while prioritizing client interactions. For more information, please visit www.asuresoftware.com. Non-GAAP and Adjusted Financial Measures This press release includes information about non-GAAP gross profit, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, non-GAAP research and development expense, EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin. These non-GAAP and adjusted financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP and adjusted financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s Condensed Consolidated Financial Statements prepared in accordance with GAAP. Non-GAAP and adjusted financial measures are reconciled to GAAP in the tables set forth in this release and are subject to reclassifications to conform to current period presentations. Non-GAAP gross profit differs from gross profit in that it excludes amortization, share-based compensation, and one-time items. Non-GAAP sales and marketing expense differs from sales and marketing expense in that it excludes share-based compensation and one-time items. Non-GAAP general and administrative expense differs from general and administrative expense in that it excludes share-based compensation and one-time items. Non-GAAP research and development expense differs from research and development expense in that it excludes share-based compensation and one-time items. EBITDA differs from net income (loss) in that it excludes items such as interest, income taxes, depreciation, and amortization. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Adjusted EBITDA differs from EBITDA in that it excludes share-based compensation, other income (expense), net and one-time expenses. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. All adjusted and non-GAAP measures presented as “margin” are computed by dividing the applicable adjusted financial measure by total revenue. Specifically, as applicable to the respective financial measure, management is adjusting for the following items when calculating non-GAAP and adjusted financial measures as applicable for the periods presented. No additional adjustments have been made for potential income tax effects of the adjustments based on the Company’s current and anticipated de minimis effective federal tax rate, resulting from the Company’s continued losses for federal tax purposes and its tax net operating loss balances. Share-Based Compensation Expenses. The Company’s compensation strategy includes the use of share-based compensation to attract and retain employees and executives. It is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than to motivate or reward operational performance for any particular period. Thus, share-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period. Depreciation. The Company excludes depreciation of fixed assets. Also included in the expense is the depreciation of capitalized software costs. Amortization of Purchased Intangibles. The Company views amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, customer lists and customer relationships, and acquired lease intangibles, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, one that is not typically affected by operations during any particular period. Interest Expense, Net. The Company excludes accrued interest expense, the amortization of debt discounts and deferred financing costs. Income Taxes. The Company excludes income taxes, both at the federal and state levels. One-Time Expenses. The Company’s adjusted financial measures exclude the following costs to normalize comparable reporting periods, as these are generally non-recurring expenses that do not reflect the ongoing operational results. These items are typically not budgeted and are infrequent and unusual in nature. Settlements, Penalties and Interest. The Company excludes legal settlements, including separation agreements, penalties and interest that are generally one-time in nature and not reflective of the operational results of the business. Acquisition and Transaction Related Costs. The Company excludes these expenses as they are transaction costs and expenses that are generally one-time in nature and not reflective of the underlying operational results of our business. Examples of these types of expenses include legal, accounting, regulatory, other consulting services, severance and other employee costs. Other non-recurring Expenses. The Company excludes these as they are generally non-recurring items that are not reflective of the underlying operational results of the business and are generally not anticipated to recur. Some examples of these types of expenses, historically, have included write-offs or impairments of assets, demolition of office space and cybersecurity consultants. Other (Expense) Income, Net. The Company’s adjusted financial measures exclude Other (Expense) Income, Net because it includes items that are not reflective of the underlying operational results of the business, such as loan forgiveness, adjustments to contingent liabilities and credits earned as part of the CARES Act, passed by Congress in the wake of the coronavirus pandemic. Use of Forward-Looking Statements This press release contains certain statements made by management that may constitute “forward-looking” statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements about our financial results may include expected or projected U.S GAAP and other operating and non-operating results. The words “believe,” “may,” “will,” “estimate,” “projects,” “anticipate,” “intend,” “expect,” “should,” “plan,” and similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements include statements we make regarding our operating performance, future results of operations and financial position, revenue growth, earnings or other projections. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions, over many of which we have no control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. The risks and uncertainties referred to above include—but are not limited to—risks associated with breaches of our security measures; possible fluctuations in our financial and operating results; potential financing needed to meet future capital requirements; access to additional capital; volatility and weakness in bank and capital markets; the financial and other impact of any previous and future acquisitions; privacy concerns and laws and other regulations that may limit the effectiveness of our applications; inability to adopt new or correctly interpret existing money service and money transmitter business status; risk of our software and solutions not functioning adequately; interruptions, delays or changes in our services or our Web hosting; significant costs as a result of operating as a public company; economic and governmental interruptions to supply chains; risks related to weaknesses in internal control; the inability to continue to release timely updates for changes in laws; the inability to develop new and improved versions of our services and technological developments; customer’s nonrenewal of their agreements and other similar changes; the exposure of market, interest, credit and liquidity risk on client funds held in trust; our operations in highly competitive markets; risks that our clients could have insufficient funds, limitations in the ability to transmit ACH transactions; the nature of our business model; impairment of intangible assets; litigation and any related claims, negotiations and settlements, including with respect to intellectual property matters or industry-specific regulations; market demand of our Software-as-a-Service offerings; adverse effects to our business a result of claims, lawsuits, and other proceedings; adverse material effects caused by advancements and adoption of artificial intelligence; issues in the use of artificial intelligence in our HCM products and services; adverse changes to financial accounting standards to us; intellectual property risks associated with the use of open source software; failures of our service providers; factors affecting our deferred tax assets and ability to value and utilize them; inability to maintain third-party licensed software; evolving regulation of the Internet, changes in the infrastructure underlying the Internet or interruptions in Internet services; the expiration of Employee Retention Tax Credits (“ERTC”) and the impact of recent regulatory and other measures by governmental authorities-regarding ERTC claims and the corresponding cash collections of existing receivables; our ability to hire, retain and motivate employees and manage our growth; potential enactment of adverse tax laws, regulation, political, economic and social factors; potential sales of a substantial number of shares of our common stock along with its volatility; and risks associated with potential equity-related transactions including dividends, rights under the stockholder plan to discourage certain actions and other impacts as a result of actions of our stockholders. Please review the Company’s risk factors in its annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2026. The forward-looking statements, including the financial guidance and 2026 outlook, contained in this press release represent the judgment of the Company as of the date of this press release, and the Company expressly disclaims any intent, obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations with regard to these forward looking statements or any change in events, conditions or circumstances on which any such statements are based. © 2026 Asure Software, Inc. All rights reserved. (1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period. (1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.

Organic growth accelerated to 7% in Q1, driven by increased product attach rates and new logo wins within the core HCM platform. The transition to Asure Central is nearing completion, with the majority of 30,000 direct clients expected on the unified platform by the end of Q2 2026. Management launched AsureWorks, an ASO model that allows clients to delegate payroll and HR compliance without the co-employment risks associated with traditional PEOs. AI agent 'Luna' is driving operational efficiency, with interactions increasing 50% quarter-over-quarter and assisting in over 100,000 support cases monthly. The company maintains a high barrier to entry through its regulatory infrastructure, holding money transmitter licenses in every state and processing approximately $20 billion in annual payroll. Strategic sales focus is shifting toward a mix of 35% new logos and 65% base expansion to capitalize on cross-sell opportunities within the existing client base. Full-year 2026 revenue guidance of $159 million to $163 million assumes double-digit organic growth in the second half of the year. Management expects recurring revenue to reach the low 90% range of total revenue for 2026, trending higher in 2027 as hardware sales shift to a subscription model. The sales force is on track to reach 150 reps by year-end, with a focus on hiring consultative professionals capable of selling complex managed service solutions. Medium-term targets remain at $180 million to $200 million in revenue with adjusted EBITDA margins of 30% or better, supported by AI-driven cost-to-serve reductions. Guidance incorporates a conservative stance on the macro environment, including modeling for two additional interest rate cuts in 2026. The Lathem acquisition is undergoing a business model transition from one-time hardware sales to a Hardware-as-a-Service (HaaS) recurring model, which may create short-term pressure on non-recurring revenue compares. Float revenue remained flat year-over-year as growth in client fund balances was offset by interest rate dynamics. Management noted that while AI disrupts workflow software, Asure's 'system of record' status and regulatory complexity provide a structural defense against generic AI automation. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management aims to double revenue per employee per month (PEPM) over the next 2-3 years by moving clients from an average of 2 products to 4 or more. The AsureWorks offering presents a significant uplift opportunity, with potential revenue of approximately $50 PEPM compared to the current $12-$15 range. Management clarified that they are often the 'tail, not the dog' in ERP migrations, winning business when clients move to platforms like Workday or Oracle. They are not seeing a slowdown from broader ERP market trends, as they also target the current installed base for compliance and tax service upgrades. The company plans to focus on small, strategic acquisitions of resellers rather than major platform deals, as the core product suite is now considered complete. Acquisitions will prioritize targets that can be quickly integrated into Asure Central to drive immediate cross-sell and cost synergies. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Asure Software, Inc. (ASUR) came out with quarterly earnings of $0.29 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.19 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +16.00%. A quarter ago, it was expected that this company would post earnings of $0.23 per share when it actually produced earnings of $0.32, delivering a surprise of +39.13%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Asure Software, Inc., which belongs to the Zacks Internet - Delivery Services industry, posted revenues of $42.76 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.44%. This compares to year-ago revenues of $34.85 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Asure Software, Inc. shares have lost about 2% since the beginning of the year versus the S&P 500's gain of 4.2%. While Asure Software, Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Asure Software, Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.16 on $37.57 million in revenues for the coming quarter and $0.86 on $159.84 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Delivery Services is currently in the bottom 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Computer and Technology sector, Actelis Networks, Inc. (ASNS), has yet to report results for the quarter ended March 2026. This company is expected to post quarterly loss of $0.79 per share in its upcoming report, which represents a year-over-year change of +64.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Actelis Networks, Inc.'s revenues are expected to be $1.2 million, up 66.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Asure Software, Inc. (ASUR) : Free Stock Analysis Report Actelis Networks, Inc. (ASNS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: $42.8 million in Q1 2026, a 23% increase from Q1 2025. Organic Growth Rate: 7% in Q1 2026, up from 3% in Q1 2025. Recurring Revenue: $37.8 million in Q1 2026, a 14% increase from Q1 2025. Gross Profit: $30.5 million in Q1 2026. GAAP Gross Margin: 71% in Q1 2026. Non-GAAP Gross Margin: 76% in Q1 2026, up from 75% in Q1 2025. Net Income: $0.6 million in Q1 2026, compared to a net loss of $2.4 million in Q1 2025. EBITDA: $9.4 million in Q1 2026, up from $4.1 million in Q1 2025. Adjusted EBITDA: $12.3 million in Q1 2026, a 69% increase from Q1 2025. Adjusted EBITDA Margin: 29% in Q1 2026, up from 21% in Q1 2025. Cash and Cash Equivalents: $19.2 million as of March 31, 2026. Debt: $68.8 million as of March 31, 2026. Full Year 2026 Revenue Guidance: $159 million to $163 million. Full Year 2026 Adjusted EBITDA Margin Guidance: 23% to 25%. Q2 2026 Revenue Guidance: $36 million to $38 million. Q2 2026 Adjusted EBITDA Guidance: $6 million to $8 million. Warning! GuruFocus has detected 2 Warning Sign with ASUR. Is ASUR fairly valued? Test your thesis with our free DCF calculator. Release Date: April 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Asure Software Inc (NASDAQ:ASUR) reported a strong start to 2026 with first-quarter revenues of $42.8 million, representing a 23% growth compared to Q1 2025. The company achieved an organic growth rate of 7% in Q1 2026, a significant acceleration from previous years. The launch of AsureCentral has seen rapid adoption, with the majority of direct clients expected to be on the platform by the end of Q2 2026. AsureWorks, the company's administrative services outsourcing model, is gaining traction with a growing pipeline and new client wins. AI initiatives, including the Luna AI agent, have been adopted by over 15% of potential users, enhancing operational efficiency and client service. Despite the positive revenue growth, the company is taking a conservative stance due to global uncertainty. The transition of the Lathem acquisition to a recurring revenue model may put pressure on nonrecurring revenue in the short term. The company is about 10 sales reps short of its target, which could impact sales momentum. Professional services and hardware revenue was higher than expected, but this is not expected to be a consistent trend throughout the year. The company faces challenges in maintaining employment growth among its client base due to demographic factors and economic uncertainty. Q: On AsureCentral, what are you observing with respect to the path of adoption as people get single sign-on and are exposed to more products? A: Patrick Goepel, CEO: Attach rates were up about 15% year-over-year. The adoption is encouraging, and it's one of the reasons we introduced AsureWorks. The unified platform allows us to offer comprehensive compliance management tools or manage the work for clients, making it easier to cross-sell additional services. Q: Can you discuss the expanding PEPM (Per Employee Per Month) and where you currently stand? A: Patrick Goepel, CEO: We are aiming to move from two products to four products per client. Currently, we are in the $12 to $15 PEPM range, and we expect to double this over the next two to three years. Q: How did the tax season impact Q1, and what was the seasonal uplift? A: Patrick Goepel, CEO: We saw about a 6% increase in W-2s and ACA forms, with float balances ending the quarter with a double-digit increase. This seasonal uplift contributed positively to our Q1 results. Q: Regarding the enterprise payroll tax deals, how important is cloud ERP migration for winning business? A: Patrick Goepel, CEO: The market for tax services is strong, and while ERP migrations can lengthen the install cycle, they are not critical for winning deals. Our AI-driven compliance services are compelling, and we continue to see growth in this area. Q: Can you talk about your managed service offerings and the revenue opportunity from these? A: Patrick Goepel, CEO: AsureWorks offers a significant opportunity, with potential revenue of about $50 per employee per month. We expect $3 million to $5 million in revenue from this initiative in 2026, with more growth anticipated in the coming years. Q: What is the pace of organic growth implied by your guidance for the rest of the year? A: John Pence, CFO: At the midpoint of our guidance, we expect around 15% year-over-year growth for the full year. The growth will be evenly split between organic and inorganic, with potential upside on the organic side. Q: How are AI efficiency tools being deployed internally, and how do they impact costs and EBITDA growth? A: John Pence, CFO: AI is being used across the organization, improving efficiency in financial analysis, operations, and sales. While we don't plan to reduce headcount, AI allows us to shift focus from data entry to customer engagement, enhancing EBITDA growth. Q: Can you discuss the health of your client base and whether clients are hiring in the current environment? A: Patrick Goepel, CEO: Our client base is stable, with cautious optimism. While employment growth isn't significant, the small business environment remains strong, and we continue to see opportunities for growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript.