Asure (ASUR)
NASDAQ:ASUR
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Asure
(NASDAQ:ASUR)
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Rating:56Neutral
Price Target:
$8.00
▲(1.14% Upside)
Action:ReiteratedDate:03/03/26
The score is anchored by improving financial performance—especially the 2025 free-cash-flow inflection and strong gross margins—offset by still-weak GAAP profitability and higher leverage. The latest earnings call adds meaningful support via upbeat 2026 guidance, backlog visibility, and expanding adjusted EBITDA, while technicals are mixed and valuation remains constrained by a negative P/E and no dividend.
Positive Factors
High gross margins
Sustained gross margins near 67–72% indicate durable unit economics for Asure's cloud HCM and payroll services. High gross profit per client allows the company to invest in sales, product and AI while absorbing scale-related SG&A, supporting long-term margin expansion as revenue scales.
Negative Factors
Persistent GAAP losses
Ongoing GAAP losses and recent widening of the full‑year loss highlight that adjusted profitability gains have not fully translated to GAAP earnings. This constrains retained earnings, limits return on equity, and creates execution risk as management seeks sustained GAAP profitability over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained gross margins near 67–72% indicate durable unit economics for Asure's cloud HCM and payroll services. High gross profit per client allows the company to invest in sales, product and AI while absorbing scale-related SG&A, supporting long-term margin expansion as revenue scales.
Read all positive factors
Asure (ASUR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$224.43M
Dividend YieldN/A
Average Volume (3M)149.51K
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth14.54%
EPS Growth-33.11%
CountryUS
Employees621
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.31
Shares Outstanding28,373,354
10 Day Avg. Volume108,016
30 Day Avg. Volume149,514
Financial Highlights & Ratios
PEG Ratio-2.95
Price to Book (P/B)1.31
Price to Sales (P/S)1.84
P/FCF Ratio12.06
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue1.99
Enterprise Value/Gross Profit2.94
Enterprise Value/Ebitda20.12
Forecast
1Y Price Target
$13.43Price Target Upside69.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.7
Revenue Forecast (FY)$160.23M
Asure Business Overview & Revenue Model
Company Description
Asure Software, Inc. provides cloud-based human capital management solutions the United States. It helps various small and mid-sized businesses to build productive teams to help them stay compliant and allocate resources to grow their business. Th...
How the Company Makes Money
Asure makes money primarily by providing (1) payroll and payroll tax processing services and (2) subscription access to its cloud HCM software, with additional revenue from related HR and compliance service offerings. A significant portion of reve...
Asure Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial momentum: meaningful revenue growth (17% FY), robust Q4 performance (28% YoY), sizable adjusted EBITDA improvement (+42% FY, +82% Q4) and clear product/AI-driven initiatives (Asure Central, Luna, AsureWorks) that are already improving attach rates and efficiency. Management provided constructive 2026 guidance and medium-term targets while acknowledging near-term margin pressure from hardware/non-recurring revenue (Latham integration), a 2025 GAAP net loss, and sensitivity of float income to interest-rate cuts. Overall, the positives—accelerating organic growth, margin expansion on an adjusted basis, backlog conversion visibility, AI-driven productivity gains, and a scalable cross-sell strategy—outweigh the challenges, though execution risks (hardware-to-HaaS transition, integration, and interest-rate impacts) remain and are being actively managed.Positive Updates
Strong Full-Year Revenue Growth
Full-year 2025 revenue of $140.5M, up 17% year-over-year; management expects 2026 revenue of $159M–$162M (low end increased $1M) implying continued double-digit growth.
Negative Updates
Full-Year GAAP Loss and Mixed Profitability
Full-year 2025 net loss widened to $13.1M versus a $11.8M net loss in the prior year, despite Q4 GAAP profitability of $0.8M. Company forecasts moving toward consistent GAAP profitability but full-year GAAP results remain negative in 2025.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Revenue Growth
Full-year 2025 revenue of $140.5M, up 17% year-over-year; management expects 2026 revenue of $159M–$162M (low end increased $1M) implying continued double-digit growth.
Read all positive updates
Company Guidance
The company guided Q1 2026 revenue of $41–43M with Q1 adjusted EBITDA of $10–11M, and updated full‑year 2026 revenue to $159–162M (raising the low end by $1M) with adjusted EBITDA margins of 23–25% (implying adjusted EBITDA of roughly $36.6M–$40.5M); management expects double‑digit revenue growth and GAAP profitability in 2026, models two additional rate cuts next year, expects recurring revenue to be in the low‑90s percent of sales, plans software capex/capitalized R&D of about $15–16M, ended 2025 with $25.2M cash and $67.6M debt, holds a contracted backlog of ≈$100M (up 18%) with ~41% of that backlog expected to convert in the next 12 months, targets a 2026 salesforce of ~150 reps (from ~118 today), and expects mid‑teens unlevered free cash flow after ~ $6M of interest—while targeting a medium‑term $180–200M revenue range at ~30% adjusted EBITDA (with longer‑term margin upside).Asure Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
52
Neutral
Cash Flow
68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 140.54M | 119.79M | 119.08M | 95.83M | 76.06M |
| Gross Profit | 94.87M | 82.11M | 85.54M | 62.51M | 46.56M |
| EBITDA | 20.58M | -10.74M | 15.81M | 10.49M | 23.85M |
| Net Income | -13.13M | -11.77M | -9.21M | -14.47M | 3.19M |
Balance Sheet | |||||
| Total Assets | 542.23M | 436.64M | 443.87M | 419.91M | 433.25M |
| Cash, Cash Equivalents and Short-Term Investments | 25.24M | 21.43M | 30.32M | 17.01M | 13.43M |
| Total Debt | 80.02M | 17.73M | 10.44M | 43.22M | 41.32M |
| Total Liabilities | 344.43M | 239.32M | 252.21M | 274.84M | 275.00M |
| Stockholders Equity | 197.80M | 197.31M | 191.66M | 145.07M | 158.24M |
Cash Flow | |||||
| Free Cash Flow | 21.43M | -14.75M | 2.64M | 4.84M | -28.42M |
| Operating Cash Flow | 22.22M | 9.39M | 18.90M | 13.67M | 1.38M |
| Investing Cash Flow | -86.68M | -19.26M | -29.52M | -36.00M | -36.97M |
| Financing Cash Flow | 83.45M | -22.04M | 24.20M | -12.38M | -90.65M |
Asure Technical Analysis
Negative
7.91
Price Trends
8.73
Negative
8.67
Negative
8.78
Negative
Market Momentum
-0.18
Positive
38.66
Neutral
13.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASUR, the sentiment is Negative. The current price of 7.91 is below the 20-day moving average (MA) of 8.78, below the 50-day MA of 8.73, and below the 200-day MA of 8.78, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 38.66 is Neutral, neither overbought nor oversold. The STOCH value of 13.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASUR.
Asure Risk Analysis
Asure disclosed 43 risk factors in its most recent earnings report. Asure reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Asure Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $224.43M | -19.69 | -6.71% | ― | 14.54% | -33.11% | |
55 Neutral | $225.70M | 13.24 | -2.93% | ― | 0.25% | 92.10% | |
46 Neutral | $151.58M | -3.15 | -145.86% | ― | -9.86% | 0.87% | |
46 Neutral | $233.05M | -10.79 | -32.94% | ― | 6.33% | -66.34% | |
44 Neutral | $125.49M | -0.93 | -34.75% | ― | 14.22% | -141.64% |
* Technology Sector Average
ASUR
Asure
7.91
-1.64
-17.17%
EGHT
8X8
1.62
-0.38
-19.00%
NRDY
Nerdy
0.80
-0.62
-43.45%
WALD
Waldencast
0.98
-2.02
-67.33%
LAW
CS Disco
3.68
-0.41
-10.02%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.