Asure Software (Nasdaq: ASUR) grows Q2 sales 23% and sets 2026 guidance
Rhea-AI Filing Summary
Asure Software, Inc. reported strong second-quarter 2026 results with revenue of $37.1 million, up 23% from $30.1 million, driven by recurring revenue of $34.0 million, up 19%. Net loss narrowed to $4.4 million from $6.1 million as EBITDA improved to $4.6 million and adjusted EBITDA to $7.7 million. GAAP gross profit rose to $25.1 million, while non‑GAAP gross profit reached $27.1 million with a 73% margin.
For the first half of 2026, revenue was $79.9 million, up 23%, and net loss decreased to $3.8 million. Management highlighted broad-based growth, higher product attach rates and momentum from its AsureWorks offering. Guidance calls for third‑quarter 2026 revenue of $38.0–$40.0 million and full‑year 2026 revenue of $159.0–$163.0 million, with adjusted EBITDA of $8.0–$10.0 million for the third quarter and 24%–25% for 2026.
Positive
- Q2 2026 revenue grew 23% year over year to $37.1 million, with recurring revenue up 19%, reflecting continued demand for Asure’s cloud-based HCM solutions.
- Adjusted EBITDA rose to $7.7 million in Q2 2026 from $5.2 million a year earlier, and guidance targets $159.0–$163.0 million 2026 revenue with adjusted EBITDA of 24%–25%.
Negative
- None.
Insights
Analyzing...
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 Revenue: $37.113 million
Q2 2026 Recurring Revenue: $33.958 million
Q2 2026 Net Loss: $4.443 million
+5 more
8 metrics
Q2 2026 Revenue
$37.113 million
Up 23% from $30.124 million in Q2 2025
Q2 2026 Recurring Revenue
$33.958 million
Up 19% from $28.596 million in Q2 2025
Q2 2026 Net Loss
$4.443 million
Compared with $6.123 million net loss in Q2 2025
Q2 2026 Adjusted EBITDA
$7.740 million
Versus $5.242 million in Q2 2025
First-half 2026 Revenue
$79.870 million
Up 23% from the prior-year first half
FY 2026 Revenue Guidance
$159.0–$163.0 million
Projected full-year 2026 revenue range
Q3 2026 Revenue Guidance
$38.0–$40.0 million
Projected revenue for the third quarter of 2026
Total Assets
$477,878
In thousands, total assets as of June 30, 2026
Key Terms
Adjusted EBITDA, Non-GAAP gross profit, Funds held for clients, Client fund obligations, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA(1) of $7.7 million versus $5.2 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Non-GAAP gross profit financial
"Non-GAAP gross profit(1) of $27.1 million (margin of 73%)"
Non-GAAP gross profit is a way companies measure how much money they make from selling their products or services, excluding some expenses that are usually included in standard calculations. It matters because it can give a clearer picture of the company's core earning ability, helping investors understand its performance without certain accounting adjustments.
Funds held for clients financial
"Funds held for clients | 178,915 | | | 228,111"
Money a financial firm or service provider keeps on behalf of its customers rather than claiming it as the firm’s own cash. Like a bank holding your paycheck in a locked safe for you, these client funds are kept separate to protect customers and meet legal rules; for investors, that separation matters because it reduces the firm’s usable cash, creates custody and reputational risk if mishandled, and affects how the company reports liabilities and liquidity.
Client fund obligations financial
"Client fund obligations | 179,836 | | | 228,482"
Human Capital Management technical
"provider of cloud-based Human Capital Management software solutions"
Human capital management is a company’s system for recruiting, training, organizing, paying and retaining its workforce—like running a sports team or orchestra to ensure the right people with the right skills are in the right roles. Investors care because how well a firm manages its people affects productivity, costs, staff turnover and the company’s ability to execute strategy, which in turn influences future profits, cash flow and valuation.
Earnings Snapshot
Q2 2026 Revenue: $37.1 million · Guidance included
Quarter and six months ended June 30, 2026
Q2 2026 Revenue
$37.1 million
Up 23% from $30.1 million in Q2 2025
Q2 2026 Net Loss
$4.4 million
Improved from $6.1 million net loss in Q2 2025
Q2 2026 Adjusted EBITDA
$7.7 million
Increased from $5.2 million in Q2 2025
First-half 2026 Revenue
$79.9 million
Up 23% from the prior-year first half
First-half 2026 Net Loss
$3.8 million
Improved from $8.5 million net loss in the prior-year first half
Guidance
Company projects Q3 2026 revenue of $38.0–$40.0 million, full-year 2026 revenue of $159.0–$163.0 million, Q3 2026 adjusted EBITDA of $8.0–$10.0 million, and 2026 adjusted EBITDA of 24%–25%.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Asure Software (ASUR)'s key Q2 2026 financial results?
Asure reported Q2 2026 revenue of $37.1 million, up 23% from $30.1 million, with recurring revenue of $34.0 million, up 19%. Net loss narrowed to $4.4 million, while EBITDA reached $4.6 million and adjusted EBITDA $7.7 million.
How did Asure Software (ASUR) perform in the first half of 2026?
For the first half of 2026, Asure generated revenue of $79.9 million, up 23% year over year. Recurring revenue was $71.7 million, up 16%, and net loss improved to $3.8 million from $8.5 million in the prior-year first half.
What guidance did Asure Software (ASUR) give for Q3 2026 and full year 2026?
Asure projects Q3 2026 revenue of $38.0–$40.0 million and adjusted EBITDA of $8.0–$10.0 million. For full-year 2026, it guides to revenue of $159.0–$163.0 million and adjusted EBITDA of 24%–25%.
Is Asure Software (ASUR) profitable based on its Q2 2026 results?
Asure was not yet profitable in Q2 2026, reporting a net loss of $4.4 million. However, this loss improved from $6.1 million a year earlier, alongside higher EBITDA and adjusted EBITDA, indicating better operating performance.
How are Asure Software (ASUR)'s gross margins trending?
Q2 2026 GAAP gross profit was $25.1 million, while non‑GAAP gross profit reached $27.1 million with a 73% margin, unchanged from the prior-year quarter. For the first half, non‑GAAP gross profit margin was 74%, also flat year over year.
What recent business development did Asure Software (ASUR) highlight?
Asure highlighted an expanded partnership with FRPG Restaurant Rewards, a large group purchasing organization serving independent restaurants. The agreement enhances Asure’s distribution across 20 states and 3,000 members, supporting growth in the independent restaurant segment.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 30, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
| (Registrant’s Telephone Number, including Area Code) | ||
| None | ||
| (Former address) | ||
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
The | ||||||||||||||
| N/A | ||||||||||||||
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Exchange Act (§240.12b-2 of this chapter). | ||||||||||||||
| Emerging growth company | ||||||||||||||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ||||||||||||||
| ☐ | ||||||||||||||
Item 2.02. Results of Operations and Financial Condition
On July 30, 2026, Asure Software, Inc. (the “Company”) issued a press release announcing its financial results for its second quarter ended June 30, 2026 (the “Press Release”). A copy of the Press Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information contained in this Item 2.02 of this Current Report (including the press release furnished as an exhibit hereto) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Description | |||||||
99.1 | Press Release issued by Asure Software, Inc. dated July 30, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ASURE SOFTWARE, INC. | ||||||||
| Dated: July 30, 2026 | By: | /s/ John Pence | ||||||
| Chief Financial Officer, Principal Financial Officer and Principal Accounting Officer | ||||||||
Exhibit 99.1
Asure Announces Second Quarter 2026 Results
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, TX – July 30, 2026 – 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. | ||||||||
1 | ||||||||
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
| Guidance Range | Q3-2026 | FY-2026 | ||||||||||||
| Revenue | $ | 38.0 M – 40.0 M | $ | 159.0 M – 163.0 M | ||||||||||
Adjusted EBITDA(1) | $ | 8.0 M – 10.0 M | 24% – 25% | |||||||||||
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 4 of this press release. A reconciliation of this non-GAAP measure to the most applicable GAAP measure begins on page 11 of this release. | ||||||||
2 | ||||||||
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.
3
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.
4
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.
5
ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
| June 30, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 19,679 | $ | 25,244 | |||||||
Accounts receivable, net of allowance for credit losses of $9,717 and $7,206 at June 30, 2026 and December 31, 2025, respectively | 13,120 | 15,859 | |||||||||
| Inventory | 2,048 | 2,826 | |||||||||
| Prepaid expenses and other current assets | 8,059 | 6,329 | |||||||||
| Total current assets before funds held for clients | 42,906 | 50,258 | |||||||||
| Funds held for clients | 178,915 | 228,111 | |||||||||
| Total current assets | 221,821 | 278,369 | |||||||||
| Property and equipment, net | 31,515 | 27,810 | |||||||||
| Goodwill | 115,759 | 115,759 | |||||||||
| Intangible assets, net | 83,526 | 87,911 | |||||||||
| Operating lease assets, net | 5,164 | 6,028 | |||||||||
| Other assets, net | 20,093 | 15,542 | |||||||||
| Total assets | $ | 477,878 | $ | 531,419 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Current portion of notes payable | $ | 6,665 | $ | 4,344 | |||||||
| Accounts payable | 2,035 | 2,174 | |||||||||
| Accrued compensation and benefits | 4,731 | 4,723 | |||||||||
| Lease liabilities, current | 1,909 | 1,956 | |||||||||
| Other accrued liabilities | 6,481 | 6,422 | |||||||||
| Deferred revenue | 6,730 | 11,622 | |||||||||
| Total current liabilities before client fund obligations | 28,551 | 31,241 | |||||||||
| Client fund obligations | 179,836 | 228,482 | |||||||||
| Total current liabilities | 208,387 | 259,723 | |||||||||
| Long-term liabilities: | |||||||||||
| Deferred revenue | 1,185 | 1,909 | |||||||||
| Deferred tax liability | 3,869 | 3,264 | |||||||||
| Notes payable, net of current portion | 62,234 | 63,282 | |||||||||
| Lease liabilities, noncurrent | 4,070 | 5,221 | |||||||||
| Other liabilities | 370 | 224 | |||||||||
| Total long-term liabilities | 71,728 | 73,900 | |||||||||
| Total liabilities | 280,115 | 333,623 | |||||||||
| Stockholders’ equity: | |||||||||||
Preferred stock, $0.01 par value; 1,500 shares authorized; none issued or outstanding | — | — | |||||||||
Common stock, $0.01 par value; 44,000 shares authorized; 28,824 and 28,076 shares issued, 28,824 and 28,076 shares outstanding at June 30, 2026 and December 31, 2025, respectively | 288 | 281 | |||||||||
Treasury stock at cost, zero(1) shares at June 30, 2026 and December 31, 2025 | — | — | |||||||||
| Additional paid-in capital | 522,060 | 517,432 | |||||||||
| Accumulated deficit | (324,170) | (320,352) | |||||||||
| Accumulated other comprehensive income (loss) | (415) | 435 | |||||||||
| Total stockholders’ equity | 197,763 | 197,796 | |||||||||
| Total liabilities and stockholders’ equity | $ | 477,878 | $ | 531,419 | |||||||
| (1) The aggregate Treasury stock of prior repurchases of our own common stock was retired and subsequently issued effective January 1, 2024. See the Condensed Consolidated | |||||||||||
| Statement of Changes in Stockholders' Equity for the impact of this transaction. | |||||||||||
6
ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands, except per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Recurring | $ | 33,958 | $ | 28,596 | $ | 71,715 | $ | 61,783 | |||||||||||||||
| Professional services, hardware and other | 3,155 | 1,528 | 8,155 | 3,195 | |||||||||||||||||||
| Total revenue | 37,113 | 30,124 | 79,870 | 64,978 | |||||||||||||||||||
| Cost of sales | 12,058 | 10,213 | 24,345 | 20,459 | |||||||||||||||||||
| Gross profit | 25,055 | 19,911 | 55,525 | 44,519 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Sales and marketing | 9,098 | 8,149 | 17,862 | 16,535 | |||||||||||||||||||
| General and administrative | 12,099 | 10,968 | 24,847 | 22,868 | |||||||||||||||||||
| Research and development | 1,565 | 1,273 | 3,222 | 3,302 | |||||||||||||||||||
| Amortization of intangible assets | 4,689 | 4,173 | 9,661 | 8,481 | |||||||||||||||||||
| Total operating expenses | 27,451 | 24,563 | 55,592 | 51,186 | |||||||||||||||||||
| Income (loss) from operations | (2,396) | (4,652) | (67) | (6,667) | |||||||||||||||||||
| Interest income | 168 | 277 | 354 | 448 | |||||||||||||||||||
| Interest expense | (1,753) | (809) | (3,499) | (1,260) | |||||||||||||||||||
| Other income, net | — | (96) | — | 92 | |||||||||||||||||||
| Income (loss) from operations before income taxes | (3,981) | (5,280) | (3,212) | (7,387) | |||||||||||||||||||
| Income tax expense | 462 | 843 | 606 | 1,134 | |||||||||||||||||||
| Net income (loss) | (4,443) | (6,123) | (3,818) | (8,521) | |||||||||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||||||
| Unrealized gain (loss) on marketable securities | (262) | 228 | (850) | 670 | |||||||||||||||||||
| Comprehensive income (loss) | $ | (4,705) | $ | (5,895) | $ | (4,668) | $ | (7,851) | |||||||||||||||
| Basic and diluted earnings (loss) per share | |||||||||||||||||||||||
| Basic | $ | (0.15) | $ | (0.22) | $ | (0.13) | $ | (0.31) | |||||||||||||||
| Diluted | $ | (0.15) | $ | (0.22) | $ | (0.13) | $ | (0.31) | |||||||||||||||
| Weighted average basic and diluted shares | |||||||||||||||||||||||
| Basic | 28,749 | 27,237 | 28,586 | 27,100 | |||||||||||||||||||
| Diluted | 28,749 | 27,237 | 28,586 | 27,100 | |||||||||||||||||||
7
ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net loss | $ | (3,818) | $ | (8,521) | |||||||
| Adjustments to reconcile loss to net cash provided by operations: | |||||||||||
| Depreciation and amortization | 14,072 | 12,155 | |||||||||
| Amortization of operating lease assets | 899 | 740 | |||||||||
| Amortization of debt financing costs and discount | 653 | 537 | |||||||||
| Non-cash interest expense | 158 | 309 | |||||||||
| Net accretion of discounts on available-for-sale securities | (116) | (236) | |||||||||
| Provision for expected losses | 14 | 20 | |||||||||
| Provision for deferred income taxes | 606 | 1,134 | |||||||||
| Loss on extinguishment of debt | — | 103 | |||||||||
| Net realized gains on sales of available-for-sale securities | (1,803) | (1,310) | |||||||||
| Share-based compensation | 4,281 | 3,754 | |||||||||
| Gain on disposals of long-term assets | — | (7) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | 2,726 | 4,512 | |||||||||
| Inventory | 778 | 53 | |||||||||
| Prepaid expenses and other assets | (4,443) | (1,462) | |||||||||
| Operating lease right-of-use assets | — | 21 | |||||||||
| Accounts payable | (138) | 232 | |||||||||
| Accrued expenses and other long-term obligations | (104) | (624) | |||||||||
| Lease liabilities | (968) | (825) | |||||||||
| Deferred revenue | (5,617) | (5,434) | |||||||||
| Net cash provided by operating activities | 7,180 | 5,151 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Acquisition of intangible assets | (4,721) | (6,346) | |||||||||
| Purchases of property and equipment | (472) | (393) | |||||||||
| Software capitalization costs | (6,789) | (6,470) | |||||||||
| Purchases of available-for-sale securities | (23,752) | (12,304) | |||||||||
| Proceeds from sales and maturities of available-for-sale securities | 12,529 | 7,699 | |||||||||
| Net cash used in investing activities | (23,205) | (17,814) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from notes payable, net of issuance costs | — | 57,982 | |||||||||
| Payments of notes payable | — | (5,000) | |||||||||
| Debt extinguishment costs | — | (100) | |||||||||
| Payments made on amounts due for the acquisition of intangible assets | (449) | (1,280) | |||||||||
| Net proceeds from (settlements for) common stock transactions | (91) | 1,034 | |||||||||
| Net change in client fund obligations | (48,647) | 20,461 | |||||||||
| Net cash provided by (used in) financing activities | (49,187) | 73,097 | |||||||||
| Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | (65,212) | 60,434 | |||||||||
| Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period | 164,703 | 145,712 | |||||||||
| Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period | $ | 99,491 | $ | 206,146 | |||||||
8
ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(in thousands)
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Condensed Consolidated Balance Sheets | |||||||||||
| Cash and cash equivalents | $ | 19,679 | $ | 66,000 | |||||||
| Restricted cash and restricted cash equivalents included in funds held for clients | 79,812 | 140,146 | |||||||||
| Total cash, cash equivalents, restricted cash, and restricted cash equivalents | $ | 99,491 | $ | 206,146 | |||||||
| Supplemental information: | |||||||||||
| Cash paid for interest | $ | 3,160 | $ | 498 | |||||||
| Non-cash investing and financing activities: | |||||||||||
| Acquisition of intangible assets | $ | 167 | $ | 1,884 | |||||||
| Notes payable issued for acquisitions | $ | 622 | $ | 1,150 | |||||||
| Shares issued for acquisitions | $ | 445 | $ | — | |||||||
9
ASURE SOFTWARE, INC.
RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES
(unaudited)
| (in thousands) | Q2-26 | Q1-26 | Q4-25 | Q3-25 | Q2-25 | Q1-25 | Q4-24 | Q3-24 | ||||||||||||||||||
Revenue(1) | $ | 37,113 | $ | 42,757 | $ | 39,311 | $ | 36,252 | $ | 30,124 | $ | 34,854 | $ | 30,792 | $ | 29,304 | ||||||||||
| Gross Profit to non-GAAP Gross Profit | ||||||||||||||||||||||||||
| Gross Profit | $ | 25,055 | $ | 30,470 | $ | 27,213 | $ | 23,142 | $ | 19,911 | $ | 24,608 | $ | 20,928 | $ | 19,704 | ||||||||||
| Gross Margin | 67.5 | % | 71.3 | % | 69.2 | % | 63.8 | % | 66.1 | % | 70.6 | % | 68.0 | % | 67.2 | % | ||||||||||
| Share-based Compensation | 35 | 42 | 46 | 46 | 46 | 44 | 44 | 44 | ||||||||||||||||||
| Depreciation | 1,604 | 1,434 | 1,419 | 1,795 | 1,378 | 1,369 | 1,190 | 1,232 | ||||||||||||||||||
| Amortization - intangibles | 365 | 363 | 362 | 365 | 370 | 50 | 50 | 50 | ||||||||||||||||||
| One-time expenses | ||||||||||||||||||||||||||
| Settlements, penalties & interest | 14 | 8 | 224 | 2 | 46 | 29 | 25 | 2 | ||||||||||||||||||
| Acquisition and transaction costs | — | — | 182 | 50 | — | 167 | 221 | 367 | ||||||||||||||||||
| Other non-recurring expenses | — | — | — | 1 | 106 | — | 84 | — | ||||||||||||||||||
| Non-GAAP Gross Profit | $ | 27,073 | $ | 32,317 | $ | 29,446 | $ | 25,401 | $ | 21,857 | $ | 26,267 | $ | 22,542 | $ | 21,399 | ||||||||||
| Non-GAAP Gross Margin | 72.9 | % | 75.6 | % | 74.9 | % | 70.1 | % | 72.6 | % | 75.4 | % | 73.2 | % | 73.0 | % | ||||||||||
| Sales and Marketing Expense to non-GAAP Sales and Marketing Expense | ||||||||||||||||||||||||||
| Sales and Marketing Expense | $ | 9,098 | $ | 8,764 | $ | 7,991 | $ | 9,043 | $ | 8,149 | $ | 8,386 | $ | 6,945 | $ | 6,680 | ||||||||||
| Share-based Compensation | 311 | 305 | 276 | 323 | 332 | 322 | 251 | 269 | ||||||||||||||||||
| Depreciation | 7 | 1 | 1 | 1 | 1 | 1 | — | 1 | ||||||||||||||||||
| One-time expenses | ||||||||||||||||||||||||||
| Settlements, penalties & interest | 39 | 33 | 174 | 57 | 40 | 51 | 78 | (5) | ||||||||||||||||||
| Acquisition and transaction costs | — | — | 70 | 68 | 30 | 30 | 9 | 68 | ||||||||||||||||||
| Other non-recurring expenses | — | — | — | 1,361 | 164 | — | 52 | — | ||||||||||||||||||
| Non-GAAP Sales and Marketing Expense | $ | 8,741 | $ | 8,425 | $ | 7,470 | $ | 7,233 | $ | 7,582 | $ | 7,982 | $ | 6,555 | $ | 6,347 | ||||||||||
| General and Administrative Expense to non-GAAP General and Administrative Expense | ||||||||||||||||||||||||||
| General and Administrative Expense | $ | 12,099 | $ | 12,748 | $ | 11,308 | $ | 11,655 | $ | 10,968 | $ | 11,900 | $ | 9,940 | $ | 10,378 | ||||||||||
| Share-based Compensation | 1,707 | 1,709 | 1,593 | 1,499 | 1,419 | 1,407 | 1,081 | 1,187 | ||||||||||||||||||
| Depreciation | 275 | 290 | 284 | 254 | 261 | 244 | 269 | 264 | ||||||||||||||||||
| One-time expenses | ||||||||||||||||||||||||||
| Settlements, penalties & interest | 94 | 262 | (494) | 449 | 365 | 492 | 142 | 377 | ||||||||||||||||||
| Acquisition and transaction costs | 391 | 446 | 258 | 427 | 812 | 491 | 282 | 371 | ||||||||||||||||||
| Other non-recurring expenses | 435 | 44 | 3 | 20 | 189 | 136 | 220 | 253 | ||||||||||||||||||
| Non-GAAP General and Administrative Expense | $ | 9,197 | $ | 9,997 | $ | 9,664 | $ | 9,006 | $ | 7,922 | $ | 9,130 | $ | 7,946 | $ | 7,926 | ||||||||||
| Research and Development Expense to non-GAAP Research and Development Expense | ||||||||||||||||||||||||||
| Research and Development Expense | $ | 1,565 | $ | 1,657 | $ | 1,123 | $ | 1,174 | $ | 1,273 | $ | 2,029 | $ | 2,103 | $ | 1,973 | ||||||||||
| Share-based Compensation | 78 | 94 | 103 | 99 | 94 | 90 | 87 | 90 | ||||||||||||||||||
| Depreciation | 59 | 13 | 1 | 1 | (1) | 1 | — | — | ||||||||||||||||||
| One-time expenses | ||||||||||||||||||||||||||
| Settlements, penalties & interest | 33 | — | 67 | 17 | 33 | 9 | 21 | — | ||||||||||||||||||
| Acquisition and transaction costs | — | — | — | — | — | 91 | 153 | 195 | ||||||||||||||||||
| Other non-recurring expenses | — | — | — | — | 35 | — | 29 | — | ||||||||||||||||||
| Non-GAAP Research and Development Expense | $ | 1,395 | $ | 1,550 | $ | 952 | $ | 1,057 | $ | 1,112 | $ | 1,838 | $ | 1,813 | $ | 1,688 | ||||||||||
(1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.
10
ASURE SOFTWARE, INC.
RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES (cont.)
(unaudited)
| (in thousands) | Q2-26 | Q1-26 | Q4-25 | Q3-25 | Q2-25 | Q1-25 | Q4-24 | Q3-24 | ||||||||||||||||||
Revenue(1) | $ | 37,113 | $ | 42,757 | $ | 39,311 | $ | 36,252 | $ | 30,124 | $ | 34,854 | $ | 30,792 | $ | 29,304 | ||||||||||
| GAAP Net Loss to Adjusted EBITDA | ||||||||||||||||||||||||||
| GAAP Net Loss | $ | (4,443) | $ | 625 | $ | 757 | $ | (5,362) | $ | (6,123) | $ | (2,398) | $ | (3,204) | $ | (3,901) | ||||||||||
| Interest expense, net | 1,585 | 1,560 | 1,659 | 1,716 | 532 | 280 | 211 | 109 | ||||||||||||||||||
| Income taxes | 462 | 144 | (849) | 367 | 843 | 291 | 499 | 170 | ||||||||||||||||||
| Depreciation | 1,945 | 1,738 | 1,705 | 2,050 | 1,640 | 1,614 | 1,460 | 1,497 | ||||||||||||||||||
| Amortization - intangibles | 5,054 | 5,335 | 5,397 | 5,132 | 4,543 | 4,358 | 4,482 | 4,345 | ||||||||||||||||||
| EBITDA | $ | 4,603 | $ | 9,402 | $ | 8,669 | $ | 3,903 | $ | 1,435 | $ | 4,145 | $ | 3,448 | $ | 2,220 | ||||||||||
| EBITDA Margin | 12.4 | % | 22.0 | % | 22.1 | % | 10.8 | % | 4.8 | % | 11.9 | % | 11.2 | % | 7.6 | % | ||||||||||
| Share-based Compensation | 2,131 | 2,150 | 2,018 | 1,967 | 1,891 | 1,863 | 1,463 | 1,591 | ||||||||||||||||||
| One Time Expenses | ||||||||||||||||||||||||||
| Settlements, penalties & interest | 180 | 303 | (29) | 525 | 484 | 581 | 266 | 375 | ||||||||||||||||||
| Acquisition and transaction costs | 391 | 446 | 510 | 545 | 842 | 779 | 665 | 1,001 | ||||||||||||||||||
| Other non-recurring expenses | 435 | 44 | 3 | 1,382 | 494 | 136 | 385 | 253 | ||||||||||||||||||
| Other expense (income), net | — | — | 192 | (220) | 96 | (188) | 2 | — | ||||||||||||||||||
| Adjusted EBITDA | $ | 7,740 | $ | 12,345 | $ | 11,363 | $ | 8,102 | $ | 5,242 | $ | 7,316 | $ | 6,229 | $ | 5,440 | ||||||||||
| Adjusted EBITDA Margin | 20.9 | % | 28.9 | % | 28.9 | % | 22.3 | % | 17.4 | % | 21.0 | % | 20.2 | % | 18.6 | % | ||||||||||
(1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.
| Investor Relations Contact | ||
| Patrick McKillop | ||
| Vice President, Investor Relations | ||
| 617-335-5058 | ||
| patrick.mckillop@asuresoftware.com | ||
11