ASUR — Asure Software, Inc.

Summary of ASUR Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Full Year Revenue: $140.5 million, up 17% year-over-year.
• Q4 Revenue: $39.3 million, an increase of 28% compared to Q4 2024; recurring revenue grew by 18% to $33.7 million.
• Organic Growth: 10% in Q4, up from 4% in Q3; full year organic growth at 5%.
• Gross Profit: Q4 gross profit of $27.2 million (gross margin of 69%); full year gross margin at 68%.
• Net Income: Q4 net income of $800,000, compared to a net loss of $3.2 million in Q4 2024; full year net loss of $13.1 million, slightly worse than the prior year’s loss of $11.8 million.
• EBITDA: Q4 EBITDA of $8.7 million (up from $3.4 million in Q4 2024); full year EBITDA increased to $18.2 million from $11.4 million.
• Adjusted EBITDA: Q4 adjusted EBITDA rose 82% to $11.4 million; full year adjusted EBITDA increased 42% to $32.0 million.

2. Strategic Updates and Business Highlights:

• Asure Central Launch: Over two-thirds of clients have upgraded to the new portal, enhancing user experience and workflow.
• AI Integration: Launched Luna, an AI agent for payroll and HR, which has improved operational efficiency and reduced support workload.
• New Offering: Introduced AsureWorks, an administrative services outsourcing model aimed at small and mid-sized businesses, enhancing client relationships and revenue potential.
• Sales Performance: New bookings increased by 35% in 2025; contracted backlog rose 18% to approximately $100 million.

3. Forward Guidance and Outlook:

• Q1 2026 Revenue Guidance: Expected between $41 million and $43 million; full year 2026 revenue guidance raised to $159 million - $162 million.
• Adjusted EBITDA Margin: Projected between 23% and 25% for 2026.
• Sales Force Expansion: Targeting 150 sales representatives in 2026 to drive growth.

4. Bad News, Challenges, or Points of Concern:

• Net Loss: Despite improved performance, the company reported a higher net loss for the full year compared to the previous year.
• Gross Margin Decline: Slight decrease in gross margins attributed to a shift in revenue mix and the impact of the recent Latham acquisition.
• Interest Rate Impact: Float revenue is expected to decline due to anticipated interest rate cuts, although client fund balances may help mitigate this.

5. Notable Q&A Insights:

• Acquisition Impact: The recent acquisition of Latham is performing better than expected, contributing $4.5 million in revenue in Q4.
• Attach Rate Goals: The company aims to increase the number of clients purchasing multiple products but has not set specific targets for 2026.
• AI as a Growth Driver: Management believes AI will enhance both top-line growth and long-term profitability by improving operational efficiencies.
• Sales Strategy: A shift towards focusing on existing clients for cross-selling opportunities, with a current rep count of approximately 118, aiming for 150.

Overall, Asure Software, Inc. demonstrated strong revenue growth and strategic advancements in AI integration and service offerings, although it continues to face challenges with net losses and margin pressures. The outlook for 2026 remains positive, with expectations for continued growth and improved profitability.