Asure Software Q1 Earnings Call Highlights

Key Points

• Asure reported Q1 revenue of $42.8 million, up 23% year-over-year, with organic growth of 7%, recurring revenue of $37.8 million (~88% of total), and improved profitability (adjusted EBITDA of $12.3 million and adjusted EBITDA margin of 29%).
• Adoption of the AsureCentral platform is accelerating—management expects the majority of ~30,000 direct clients on the platform by end of Q2, and multi-product attach rates rose 15%, enabling cross-sell as the company aims to increase average products per client from 2 toward 4+.
• The new AsureWorks managed-services pilot shows early traction (targeting ~2–3x revenue versus payroll-only clients) with an estimated $3–5 million opportunity in 2026, while company guidance calls for full-year 2026 revenue of $159–163 million, adjusted EBITDA margin of 23–25%, and a contracted backlog of $85.6 million ( ~38% expected to convert in 12 months).

Asure Software NASDAQ: ASUR reported first-quarter 2026 results that management said reflect accelerating organic growth, improving profitability, and continued progress consolidating customers onto its AsureCentral platform while expanding attach rates and early traction for a new managed services offering.

First-quarter results show higher revenue and profitability

Chairman and CEO Pat Goepel said the company was “very pleased to report a strong start in 2026,” with first-quarter revenue of $42.8 million, up 23% from $34.9 million in Q1 2025. Goepel cited “continued momentum across our core business lines” and said the performance validated investments in the platform, Salesforce, and AI capabilities.

Goepel said organic growth was 7% in Q1 2026, up from 3% in Q1 2025 and 3.5% in Q1 2024, calling it a “significant acceleration” for a quarter that has historically shown seasonality. Despite “global uncertainty,” he said the company is operating conservatively while remaining “bullish” on customer response and reiterating a belief it can deliver double-digit organic growth as 2026 progresses.

Chief Financial Officer John Pence said recurring revenue was $37.8 million, up more than 14% year over year, and represented about 88% of total revenue in the quarter. Professional services and hardware revenue was $5.0 million, up from $1.7 million a year earlier, which Pence attributed primarily to hardware sales from the Lathem acquisition and professional services tied to enterprise tax implementations.

On profitability, Pence reported GAAP gross margin of 71% and non-GAAP gross margin of 76%. Net income was $0.6 million, compared with a net loss of $2.4 million in Q1 2025. EBITDA was $9.4 million versus $4.1 million a year ago, and adjusted EBITDA was $12.3 million, up from $7.3 million, with adjusted EBITDA margin of 29% compared with 21% in Q1 2025.

Pence said the company ended the quarter with $19.2 million in cash and cash equivalents and $68.8 million in debt as of March 31, 2026.

AsureCentral adoption and attach rates highlighted

Goepel said that since AsureCentral launched in October 2025, adoption has continued rapidly and the company expects that by the end of Q2 2026, “the majority” of its roughly 30,000 direct clients will be on the platform. With more of the client base on a unified platform, he said Asure is positioned to accelerate cross-sell and attach rates.

Goepel reported that multi-product attach rates improved, with the number of payroll clients purchasing multiple products rising 15% in Q1 compared with Q1 2025. He said the company is working toward an internal goal of moving relationships from an average of 2 products to 4 or more.

In response to a question about adoption patterns, Goepel said attach rates were up and “people are really getting into the flow of it,” adding that AsureCentral supports “trigger events” tied to compliance needs—such as COBRA requirements at 20 employees or state retirement plan mandates—that can prompt cross-sell conversations.

AsureWorks managed services positioned as growth opportunity

Goepel also emphasized early reception for AsureWorks, a new administrative services outsourcing (ASO) model introduced at the company’s sales kickoff. He said AsureWorks allows clients to delegate payroll and HR compliance processes to Asure and is being scaled “thoughtfully” based on early results.

Goepel said the company currently has six sales reps dedicated to AsureWorks as part of a pilot and plans to add a few more. He described early adopters as including small hotel chains, restaurants, and HVAC companies, consistent with the company’s small and mid-sized “Main Street” customer base.

According to Goepel, managed payroll and compliance services clients “typically represent 2 to 3 times the revenue of a payroll-only client.” He also stressed that AsureWorks is “not a PEO model” and does not involve co-employment risk. In response to a question about revenue opportunity, he said the company sees “about $50 or so per employee per month” as an opportunity level when it is doing the work for the customer, though that can vary by client size and breadth of services. He characterized AsureWorks as more of a 2027–2028 initiative but said the company expects $3 million to $5 million of opportunity in 2026 revenue.

AI strategy: defensibility and operational leverage

Goepel argued that payroll and HR compliance are less susceptible to AI-driven disruption than productivity software because of regulatory barriers and system-of-record requirements. He said Asure moves approximately $20 billion annually on behalf of clients, holds money transmitter licenses in required states, and interfaces with the IRS, tax agencies, and banks. He also highlighted switching costs tied to long employment histories and complex compliance obligations.

At the same time, Goepel said AI is an “accelerator” for Asure. He noted that Luna, the company’s AI agent, has been adopted by more than 15% of potential users “without any active marketing or onboarding,” and that Luna interactions rose nearly 50% from the prior quarter. He said Asure has “transcribed, categorized, and scored approximately 80,000 support calls” and that ticket mining analyzes more than 100,000 cases monthly.

During Q&A, Pence said AI is being deployed across the organization, including finance, operations, and sales, and he expects it to change work profiles away from data manipulation and toward higher-value customer engagement. President and Chief Revenue Officer Eyal Goldstein added that sales and marketing teams are using AI for content creation and faster prospect research, and are evaluating additional tools to expand outbound demand generation.

Bookings, backlog, guidance, and salesforce build

Goepel said new bookings in core HCM payroll were up 13% year over year in Q1, and he reported contracted backlog of about $85.6 million, with an expectation to convert roughly 38% over the next 12 months. He also said the company had not observed meaningful changes in sales cycle dynamics or competitive behavior in the first quarter.

Pence updated guidance, while noting that first quarters are seasonally strong due to year-end W-2 and ACA revenue recognized in the period. The company’s outlook included:

• Full-year 2026: revenue of $159 million to $163 million and adjusted EBITDA margin of 23% to 25%
• Q2 2026: revenue of $36 million to $38 million and adjusted EBITDA of $6 million to $8 million

Goepel reiterated the company is on track for its full-year target of 150 sales reps, while saying headcount was currently “about 10 under” where he would like it to be as the company prioritizes “quality” and a more consultative sales profile. Goldstein said the newer sales hires are ramping faster than historical cohorts as the product set expands beyond point solutions.

Looking longer term, Goepel said the company remains on track toward a medium-term target of $180 million to $200 million in revenue with adjusted EBITDA margins of 30% or better, adding that Q1 and Q4 2025 came “within close range” of that margin level.

About Asure Software NASDAQ: ASUR

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 contact@marketbeat.com.