Asure (ASUR) AI Stock Analysis

• Market Cap: $259.33M
• Dividend Yield: N/A
• Average Volume (3M): 117.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: 14.54%
• EPS Growth: -33.11%
• Country: US
• Employees: 621
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.31
• Shares Outstanding: 28,373,354
• 10 Day Avg. Volume: 177,779
• 30 Day Avg. Volume: 117,644
• PEG Ratio: -2.95
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 1.84
• P/FCF Ratio: 12.06
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 2.19
• Enterprise Value/Gross Profit: 3.24
• Enterprise Value/Ebitda: 22.16
• 1Y Price Target: $15.85
• Price Target Upside: 73.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.91
• Revenue Forecast (FY): $159.59M

• Rating: 54 Neutral
• Price Target: $9.50 ▲(3.94% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is mainly supported by improved 2025 cash generation and constructive forward guidance on revenue and adjusted EBITDA margins. It is held back by continued net losses (negative P/E) and weaker technical momentum (negative MACD and sub-50 RSI), plus a meaningful increase in leverage versus 2024.

Positive Factors

Improved cash generation

A material inflection to positive operating and free cash flow in 2025 strengthens the company's ability to fund operations, service debt, and invest in product development. Sustained FCF reduces reliance on external financing and supports durable growth initiatives and M&A.

Resilient gross margins and revenue re‑acceleration

Re-accelerating top-line expansion alongside persistent high gross margins indicates sound unit economics in subscription and payroll services. This combination supports scalable profitability as revenue grows, making margin leverage likely if operating expenses are controlled.

Recurring revenue model and acquisition integration

High recurring subscription and pay-run linked fees provide predictable revenue and strong retention economics. Effective integration of Lathem Time and new client interface (Asure Central) expand cross-sell opportunities and diversify revenue, supporting durable ARR growth.

Negative Factors

Persisting net losses and weak operating profitability

Recurring net losses and historical EBITDA weakness mean the company has not yet converted strong gross margins into consistent operating profits. Continued losses constrain reinvestment, shareholder returns, and heighten dependence on cash conservation to reach sustainable profitability.

Rising leverage versus prior year

A notable increase in leverage reduces financial flexibility and raises interest and refinancing risk. For a company still working toward consistent profitability, higher debt amplifies downside during revenue volatility and can limit ability to invest in product and sales expansion.

Material bookings decline

A sharp drop in bookings signals potential slippage in new business momentum or fewer large deals, which can lead to slower future revenue growth. If bookings weakness persists, it could undermine forward ARR expansion and make margin targets harder to achieve.

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 fees from its cloud-based HCM solutions, which are typically billed on a monthly or annual basis. The company offers various service packages that include payroll, human resources, and compliance services, allowing clients to choose the level of support they need. Additional revenue streams come from value-added services such as consulting and implementation support. Asure also benefits from strategic partnerships with technology providers and payroll service companies, which help expand its market reach and enhance the functionality of its offerings. Continuous investment in product development and customer support further contribute to customer retention and revenue growth.

Asure Financial Statement Overview

Summary

Cash flow inflected strongly in 2025 (operating cash flow ~$22M; free cash flow ~$21M), but profitability remains weak with ongoing net losses and EBITDA-negative results in 2024–2025. Balance sheet leverage is still moderate (debt-to-equity ~0.38), though it increased meaningfully versus 2024, adding risk.

Income Statement

Revenue growth re-accelerated in 2025 (up ~6% after being roughly flat in 2024), and gross margins remain strong (~67–72%), indicating solid underlying unit economics. However, profitability is still a key weakness: net losses persisted in most years (including 2022–2025), and the company remains EBITDA-negative in 2024–2025, with net margin still around -9% in 2025. Overall, the income statement shows improving scale and resilient gross profit, but an incomplete path to consistent operating profitability.

Balance Sheet

Leverage is moderate on paper, with debt-to-equity at ~0.38 in 2025, but it rose meaningfully versus 2024 (~0.09), indicating increased reliance on debt. Equity is sizable (~$198M in 2025) and assets increased, providing balance sheet support. The main weakness is continued negative returns on equity (loss-making), which limits the quality of the capital base despite acceptable leverage metrics.

Cash Flow

Cash generation improved sharply in 2025, with operating cash flow of ~$22M and free cash flow of ~$21M, a major rebound from negative free cash flow in 2024. Free cash flow has been volatile historically (notably negative in 2020, 2021, and 2024), but the latest year shows strong conversion with free cash flow close to net loss in 2025, suggesting better working-capital and cash discipline. The key risk is consistency: prior-year swings imply cash flow durability still needs to be proven.

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	74.80M	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

• Technical Analysis Sentiment: Positive
• Last Price: 9.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 9.14 is above the 20-day moving average (MA) of 8.23, above the 50-day MA of 8.92, and above the 200-day MA of 8.88, indicating a bullish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 58.58 is Neutral, neither overbought nor oversold. The STOCH value of 75.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASUR.

Asure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
EGHT	60 Neutral	$298.14M	-67.72	-3.02%	―	0.25%	92.10%
ASUR	54 Neutral	$259.33M	-18.98	-6.64%	―	14.54%	-33.11%
FRGE	52 Neutral	$623.01M	-9.13	-28.65%	―	16.40%	22.80%
WALD	51 Neutral	$216.98M	-0.94	-36.11%	―	14.22%	-141.64%
LAW	46 Neutral	$205.82M	-4.51	-41.00%	―	6.33%	-66.34%
NRDY	44 Neutral	$180.74M	-2.92	-136.51%	―	-9.86%	0.87%