Asure Raises 2026 Outlook After Slowdown in Sales Growth

The Tip Desk · October 29, 2026 · 3 min read

Third-quarter revenue was $40.0 million, up 10% from a year earlier, as the HCM software maker swung to $0.5 million of operating income.

Asure Software, Inc. (ASUR), a provider of cloud-based human capital management software, reported third-quarter revenue of $40.0 million, up 10% from $36.3 million a year earlier, after 23% year-over-year growth in both the first and second quarters of 2026.

The Austin, Texas, company said organic growth continued to improve, with total revenue up 9% and recurring revenue up 14% organically. Recurring revenue was $36.9 million, up 16% from $31.8 million a year earlier. Professional services, hardware and other revenue fell to $3.1 million from $4.4 million.

GAAP results moved closer to the break-even line. Net loss narrowed to $0.6 million, or $0.02 a share, from a $5.4 million loss, or $0.19 a share, a year earlier. Income from operations was $0.5 million, versus an operating loss of $3.5 million. EBITDA rose to $7.9 million from $3.9 million, and adjusted EBITDA rose to $10.5 million from $8.1 million. Adjusted EBITDA margin was 26.1%.

Gross profit was $27.8 million. GAAP gross margin expanded to 69.6% from 64.9% a year earlier. Non-GAAP gross profit was $30.2 million, a 75% margin, versus $25.4 million, or a 70% margin. Chairman and CEO Pat Goepel said the company experienced a notable uplift in gross margins as well as improved profitability.

Sales and marketing expense was $8.9 million. General and administrative expense was $12.5 million. Research and development expense was $1.7 million. Amortization of intangible assets was $4.2 million. Interest expense was $1.8 million.

The company said it strengthened its position in the Oracle ecosystem by making Payroll Tax Management available on Oracle Marketplace, entered a relationship with Amazon Web Services to offer solutions through AWS Marketplace covering more than 330,000 active customers, and launched AsureCentral to its reseller network, taking first resellers live in September. The reseller network reaches approximately three times as many employers as Asure’s direct client business, the company said.

After the quarter, Asure completed a $26.5 million acquisition of a payroll processing business primarily located in the southeastern United States, which it said expands exposure to the mid-market and adds technology to update some product offerings. It also entered a new credit agreement of up to $115.0 million led by MUFG Bank, receiving $85.0 million of gross proceeds on October 15, 2026, and using $62.6 million to repay in full its existing MidCap Financial Trust facility. Cash and cash equivalents were $16.8 million at September 30. Funds held for clients were $194.7 million.

Guidance for the fourth quarter of 2026 is revenue of $42.0 million to $44.0 million and adjusted EBITDA of $10.0 million to $12.0 million. Full-year 2026 revenue guidance was raised to $162.0 million to $164.0 million from $159.0 million to $163.0 million. Full-year 2026 adjusted EBITDA guidance is now a dollar range of $40.0 million to $42.0 million, replacing the prior 24% to 25% margin range. The company introduced full-year 2027 revenue guidance of $183.0 million to $187.0 million and adjusted EBITDA of 26% to 28%. The company said the guidance incorporates the October payroll acquisition.

Goepel said the company expects to keep investing to fuel growth on both organic and inorganic fronts.