Asure Software Inc (ASUR)
NASDAQ:ASUR
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Asure
(NASDAQ:ASUR)
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Rating:60Neutral
Price Target:
$9.00
▼(-1.64% Downside)
Action:Reiterated
Date:05/13/26
The score is driven primarily by improving fundamentals and a strong earnings-call outlook (accelerating growth, expanding margins, and a clearer path toward sustained profitability), partially offset by still-incomplete GAAP profitability in the financial statements. Technicals are currently weak versus key moving averages, and valuation is a notable headwind given the very high P/E and no dividend support.
Positive Factors
Strong unit economics & cash generation
High gross margins and recent positive operating and free cash flow provide durable coverage for investment and debt service. For a subscription-led HCM provider, strong unit economics lower break-even risk, support reinvestment in product and sales, and improve resilience through cycles if cash generation is sustained.
Negative Factors
Balance-sheet leverage
Net leverage with materially more debt than cash constrains financial flexibility and raises interest sensitivity, especially if cash flow proves volatile. Capital allocation choices (software capitalization, M&A, or sales hires) will be limited until leverage falls or cash balances build sustainably.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong unit economics & cash generation
High gross margins and recent positive operating and free cash flow provide durable coverage for investment and debt service. For a subscription-led HCM provider, strong unit economics lower break-even risk, support reinvestment in product and sales, and improve resilience through cycles if cash generation is sustained.
Read all positive factors
Asure (ASUR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$250.68M
Dividend YieldN/A
Average Volume (3M)69.74K
Price to Earnings (P/E)97.8
Beta (1Y)1.11
Revenue Growth20.69%
EPS Growth29.58%
CountryUS
Employees621
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.36
Shares Outstanding28,681,633
10 Day Avg. Volume61,855
30 Day Avg. Volume69,740
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 Cap1.23
Enterprise Value/Revenue2.08
Enterprise Value/Gross Profit3.06
Enterprise Value/Ebitda11.99
Forecast
1Y Price Target
$13.43Price Target Upside46.76% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)0.85
Revenue Forecast (FY)$160.81M
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:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call presented multiple meaningful operational and financial wins: strong Q1 revenue growth (+23% YoY), accelerating organic growth (7%), a move to profitability and significant adjusted EBITDA expansion (+69% YoY, +800 bps margin improvement), growing recurring revenue mix, platform adoption (Asure Central) and clear AI-driven efficiency gains from Luna. Management provided constructive guidance and a path to higher long-term margins, highlighted a promising managed-services initiative (AsureWorks) and detailed a plan to convert Lathem into recurring revenue. Offsetting these positives are seasonal effects and conservative full-year guidance, one-time volatility in professional services/hardware revenue as Lathem transitions, balance-sheet leverage (debt > cash), early-stage execution risk for AsureWorks, flat float revenue with interest-rate sensitivity, and moderate backlog conversion expectations. Overall, the highlights significantly outweigh the lowlights given the scale of revenue/margin improvements and platform/AI progress, while risks appear manageable and well-articulated.Positive Updates
Strong Top-Line Growth
Q1 2026 revenue of $42.8M, up 23% YoY from $34.9M, reflecting momentum across core business lines and validating platform and AI investments.
Negative Updates
Seasonality and Guidance Conservatism
Q1 is seasonally strong (W-2/ACA recognition); management is taking a conservative stance amid global uncertainty and set full-year margins guidance below Q1 adjusted EBITDA margin (Q1 29% vs. full-year guidance 23%–25%).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Q1 2026 revenue of $42.8M, up 23% YoY from $34.9M, reflecting momentum across core business lines and validating platform and AI investments.
Read all positive updates
Company Guidance
Management updated 2026 guidance after a strong Q1: revenue $42.8M (+23% YoY) with 7% organic growth, recurring revenue $37.8M (≈88% of total, +14% YoY), gross profit $30.5M, GAAP gross margin 71% and non‑GAAP gross margin 76%, net income $0.6M, EBITDA $9.4M, adjusted EBITDA $12.3M (+69% YoY) and adjusted EBITDA margin 29% (vs. 21% a year ago). For 2026 they now expect full‑year revenue of $159–$163M and adjusted EBITDA margin of 23–25%, Q2 revenue of $36–$38M and adjusted EBITDA of $6–$8M, positive unlevered free cash flow in the mid‑ to high‑teens (calculated from adjusted EBITDA midpoint less ~$15–$16M software capitalization and ~$6M cash interest), cash of $19.2M and debt of $68.8M at 3/31/26, an ~$85.6M contracted backlog with ~38% expected to convert in 12 months, recurring revenue to move into the low‑90% range, two modeled rate cuts in 2026 (partially offset by client fund balance growth), and continued operational targets including ~150 sales reps and a medium‑term goal of $180–$200M revenue with 30%+ adjusted EBITDA margins.Asure Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
68
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 148.44M | 140.54M | 119.79M | 119.08M | 95.83M | 76.06M |
| Gross Profit | 100.74M | 94.87M | 82.11M | 85.54M | 62.51M | 46.56M |
| EBITDA | 25.74M | 20.58M | -10.74M | 15.81M | 10.49M | 23.85M |
| Net Income | -10.10M | -13.13M | -11.77M | -9.21M | -14.47M | 3.19M |
Balance Sheet | ||||||
| Total Assets | 518.68M | 542.23M | 436.64M | 443.87M | 419.91M | 433.25M |
| Cash, Cash Equivalents and Short-Term Investments | 19.22M | 25.24M | 21.43M | 30.32M | 17.01M | 13.43M |
| Total Debt | 75.59M | 80.02M | 17.73M | 10.44M | 43.22M | 41.32M |
| Total Liabilities | 318.56M | 344.43M | 239.32M | 252.21M | 274.84M | 275.00M |
| Stockholders Equity | 200.12M | 197.80M | 197.31M | 191.66M | 145.07M | 158.24M |
Cash Flow | ||||||
| Free Cash Flow | 9.70M | 21.43M | -14.75M | 2.64M | 4.84M | -28.42M |
| Operating Cash Flow | 22.93M | 22.22M | 9.39M | 18.90M | 13.67M | 1.38M |
| Investing Cash Flow | -79.43M | -86.68M | -19.26M | -29.52M | -36.00M | -36.97M |
| Financing Cash Flow | 8.00M | 83.45M | -22.04M | 24.20M | -12.38M | -90.65M |
Asure Technical Analysis
Positive
9.15
Price Trends
8.70
Positive
8.84
Negative
8.57
Positive
Market Momentum
-0.04
Positive
50.43
Neutral
55.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASUR, the sentiment is Positive. The current price of 9.15 is above the 20-day moving average (MA) of 8.85, above the 50-day MA of 8.70, and above the 200-day MA of 8.57, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 50.43 is Neutral, neither overbought nor oversold. The STOCH value of 55.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
62 Neutral | $314.86M | 138.67 | 1.20% | ― | 2.89% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $250.68M | 97.76 | -5.15% | ― | 20.69% | 29.58% | |
51 Neutral | $246.28M | -6.32 | -32.73% | ― | 11.07% | 27.51% | |
49 Neutral | $168.02M | -0.92 | -47.81% | ― | -0.66% | -426.80% | |
45 Neutral | $154.29M | -6.22 | -141.94% | ― | -2.16% | 31.21% |
* Technology Sector Average
ASUR
Asure
8.79
-0.71
-7.47%
EGHT
8X8
2.13
0.46
27.54%
NRDY
Nerdy
0.77
-0.82
-51.57%
WALD
Waldencast
1.30
-1.06
-44.92%
LAW
CS Disco
3.72
-0.21
-5.34%
Asure Corporate Events
Executive/Board ChangesShareholder Meetings
Asure Stockholders Elect Directors and Ratify Auditor at Meeting
Positive
May 13, 2026
On May 12, 2026, Asure held its 2026 Annual Meeting of Stockholders, where shareholders voted on the election of seven directors to serve until the next annual meeting or until successors are duly elected and qualified. Benjamin Allen, W. Carl Dre...
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.