Asure (ASUR) AI Stock Analysis

• Market Cap: $229.82M
• Dividend Yield: N/A
• Average Volume (3M): 106.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: 8.48%
• EPS Growth: -37.74%
• Country: US
• Employees: 621
• Sector: Technology
• Sector Strength: 85
• Industry: Software - Application
• EPS (TTM): 0.08
• Shares Outstanding: 27,425,009
• 10 Day Avg. Volume: 99,735
• 30 Day Avg. Volume: 106,415
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 2.18
• Enterprise Value/Gross Profit: 3.20
• Enterprise Value/Ebitda: 40.39
• 1Y Price Target: $13.00
• Price Target Upside: 54.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 57 Neutral
• Price Target: $8.50 ▲(1.19% Upside)

Asure's overall stock score reflects a mix of moderate financial performance, bearish technical indicators, and concerning valuation metrics. The earnings call provided positive highlights with improved guidance and strategic acquisitions, but these are counterbalanced by profitability challenges and declining bookings.

Positive Factors

Acquisition Opportunity

The acquisition of Lathem Time Corporation should provide a significant opportunity to cross-sell human capital management services to Lathem’s 14,000 clients.

Contracted Backlog

The company’s contracted backlog is $82 million, up 68% YOY and remains at record levels.

Investment Rating

The investment rating on ASUR stock remains OUTPERFORM despite reducing the 12-month price target to $15.

Negative Factors

Bookings Decline

Bookings were down 53% year-over-year due to a difficult comparison with large enterprise deals.

Organic Growth Challenges

Organic growth of 1.2% year-over-year was below expectations, impacted by the ongoing HR Compliance bundling issue.

Revenue and EPS Performance

Asure reported Q2/25 revenue of $30.1 million, which was 3% less than both the forecast and the FactSet consensus forecast of $31.0 million.

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. The company's solutions include Asure Payroll & Tax, an integrated cloud-based solution automates regulations associated with payroll and taxes, including wages, benefits, overtime, garnishments, tips, direct deposits, and fair labor standard act, as well as federal, state, and local payroll taxes; Asure (human resource) HR, a cloud-based functionality that handles HR complexities, such as employee self-service that enable employees to access information, pay history, and company documents; and Asure Time & Attendance that provides cost savings and return on investment gains come in the form of strategic use of labor dollars and the elimination of time theft. It also provides HR services that offers services comprising on-demand HR resource library, phone and email support for any HR issues, and compliance and policy updates; support for strategic HR decision making; and HR outsourcing solution, as well as data integration with related third-party systems, such as 401(k), benefits, and insurance provider systems. Asure Software, Inc. was incorporated in 1985 and is headquartered in Austin, Texas.

How the Company Makes Money

Asure generates revenue primarily through subscription-based models for its software services. This includes recurring fees from clients who utilize its HCM and workforce management platforms, providing a stable income stream. Additionally, the company earns revenue from professional services such as implementation, training, and customer support. Partnerships with other technology firms and integrations with various payroll and HR systems further enhance its offerings, potentially leading to increased customer acquisition and retention. The company also benefits from upselling opportunities as clients expand their service usage over time.

Asure Financial Statement Overview

Summary

Asure exhibits consistent revenue growth but faces profitability challenges with negative net income and EBIT margins. The balance sheet is stable, yet there's a reliance on debt financing. Cash flow improvements are present in operating cash but free cash flow remains a concern due to capital expenditures.

Income Statement

Asure has demonstrated moderate revenue growth with a TTM (Trailing-Twelve-Months) revenue of $125 million, up from $119 million in the previous year. However, profitability remains a challenge as reflected by negative net income and EBIT margins. The company shows consistent gross profit margins but struggles to turn this into net profit.

Balance Sheet

The balance sheet is relatively stable with a manageable debt-to-equity ratio. However, the company's equity ratio has decreased slightly, indicating a higher reliance on debt financing. Despite these challenges, Asure maintains a strong cash position of $66 million, which provides some financial flexibility.

Cash Flow

Asure's cash flow results are mixed. The company has shown improvement in operating cash flow but faces challenges with free cash flow due to ongoing capital expenditures. The free cash flow to net income ratio is unfavorable, indicating difficulties in converting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	125.07M	119.79M	119.08M	95.83M	76.06M	65.51M
Gross Profit	85.15M	82.11M	85.54M	62.51M	46.56M	38.09M
EBITDA	6.75M	-10.74M	15.81M	10.49M	23.85M	1.42M
Net Income	-15.63M	-11.77M	-9.21M	-14.47M	3.19M	-16.31M
Balance Sheet
Total Assets	505.56M	436.64M	443.87M	419.91M	433.25M	515.42M
Cash, Cash Equivalents and Short-Term Investments	66.00M	21.43M	30.32M	17.01M	13.43M	28.58M
Total Debt	73.03M	17.73M	10.44M	43.22M	41.32M	31.73M
Total Liabilities	311.31M	239.32M	252.21M	274.84M	275.00M	369.77M
Stockholders Equity	194.25M	197.31M	191.66M	145.07M	158.24M	145.65M
Cash Flow
Free Cash Flow	1.24M	-14.75M	2.64M	4.84M	-28.42M	-5.34M
Operating Cash Flow	16.26M	9.39M	18.90M	13.67M	1.38M	-1.71M
Investing Cash Flow	-29.71M	-19.26M	-29.52M	-36.00M	-36.97M	-201.13M
Financing Cash Flow	78.99M	-22.04M	24.20M	-12.38M	-90.65M	202.59M

Asure Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 8.4 is above the 20-day moving average (MA) of 8.38, below the 50-day MA of 9.44, and below the 200-day MA of 9.92, indicating a bearish trend. The MACD of -0.32 indicates Negative momentum. The RSI at 38.78 is Neutral, neither overbought nor oversold. The STOCH value of 47.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASUR.

Asure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$35.62B	8.22	-10.94%	1.88%	8.86%	-10.36%
FRGE	58 Neutral	$260.47M	―	-28.14%	―	14.78%	21.87%
ASUR	57 Neutral	$229.82M	―	-8.02%	―	8.48%	-37.74%
EGHT	51 Neutral	$253.65M	―	-18.25%	―	-0.73%	67.98%
LAW	49 Neutral	$317.35M	―	-36.64%	―	4.05%	-100.64%
NRDY	48 Neutral	$250.83M	―	-105.81%	―	-10.85%	-15.09%
WALD	47 Neutral	$194.51M	―	-6.60%	―	25.55%	61.22%

Asure Corporate Events

Asure Completes Acquisition of Lathem Time 2025

On July 1, 2025, Asure Software, Inc. acquired Lathem Time 2025, LLC for $39.5 million, enhancing its portfolio in time and attendance solutions. Concurrently, Asure amended its Credit Agreement to include Lathem as a guarantor and increased its minimum liquidity threshold, reflecting strategic financial adjustments post-acquisition.

The most recent analyst rating on (ASUR) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Asure stock, see the ASUR Stock Forecast page.

Asure Software Approves Amended Rights Agreement at Meeting

Asure Software, Inc. announced that its Board of Directors approved a Fourth Amended and Restated Rights Agreement, which was subsequently approved by stockholders at the 2025 Annual Meeting of Stockholders on June 2, 2025. The agreement, effective October 28, 2025, extends the expiration date to October 28, 2028, and involves a change in the rights agent. Additionally, stockholders voted on several proposals, including the election of directors, ratification of the audit committee’s appointment of CBIZ CPAs PC, an amendment to the 2018 Incentive Award Plan, and advisory votes on executive compensation.

The most recent analyst rating on (ASUR) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Asure stock, see the ASUR Stock Forecast page.