Asure Software Revenue Rises 10% to $40 Million in Third Quarter
Key Facts
Asure Software reported results on October 29 for the third quarter ended September 30, 2026, with revenue of $40.0 million, up 10% from the year-earlier period. The company said recurring revenue reached $36.9 million, up 16% from $31.8 million a year earlier. Net loss narrowed to $0.6 million from $5.4 million in the third quarter of 2025. It also posted operating income of $515 thousand, compared with an operating loss of $3.499 million a year earlier. Basic and diluted loss per share fell to $0.02 from $0.19 in the year-earlier period. The results came with a revenue outlook of $183–187 million for fiscal 2027.
The company attributed part of its growth to organic performance. Chief Executive Pat Goepel said total revenue rose 9% organically, while recurring revenue increased 14% organically during the quarter. Recurring revenue accounted for 92% of total revenue, compared with 88% in the year-earlier quarter, according to Investing.com. Non-GAAP gross profit rose to $30.2 million from $25.4 million. Gross margin on that basis widened to 75% from 70% a year earlier. EBITDA climbed to $7.9 million from $3.9 million, while adjusted EBITDA rose to $10.5 million from $8.1 million. Operating income was $515 thousand, after the company recorded an operating loss in the year-earlier period.
For the first nine months of 2026, Asure generated revenue of $119.9 million, up 18% year over year. Net loss for the period narrowed to $4.4 million from $13.9 million in the first nine months of 2025. The company is expanding its product sales channels through digital marketplaces. It announced that payroll tax management is available through Oracle Marketplace and established a relationship with AWS Marketplace that gives it access to more than 330 thousand active customers on the marketplace. Asure also launched AsureCentral for its reseller network, and the first resellers began using the platform in September. The company said its reseller network reaches nearly three times as many employers as its direct customer base. Alongside organic growth, these channels are part of the company's efforts to expand the reach of its payroll and human resources services.
On the acquisition front, Asure completed the purchase in October of a payroll processing business in the southeastern United States for $26.5 million. The company said the deal is intended to expand its presence in the mid-market. It also entered into a new credit agreement allowing it to borrow up to $115 million. At the agreement's closing on October 15, it received gross proceeds of $85 million, of which it used $62.6 million to repay its previous agreement in full. The acquisition and financing followed the reported quarter, combining expansion of the business base with refinancing of existing obligations. The disclosure in the information presented here did not specify the expected financial impact of the acquisition on results in coming periods.
Asure raised its outlook for fourth-quarter 2026 revenue to a range of $42 million to $44 million and estimated fiscal 2026 revenue at $162 million to $164 million. For fiscal 2027, the company set its revenue range at $183–187 million. It also forecast adjusted EBITDA of $10 million to $12 million in the fourth quarter and $40 million to $42 million for fiscal 2026. It set its expected adjusted EBITDA margin range for 2027 at 26%–28%. Goepel said the company would continue investing to support organic and inorganic growth, adding, "We expect to finish 2026 on a strong note." The earnings call was scheduled for October 29 at 4:30 p.m. Eastern time, with Goepel and Chief Financial Officer John Pence participating.
In trading, Asure shares rose 14.95% in after-hours trading following the close on October 29, to $8.311, according to Investing.com. The stock had ended the regular session at $7.23. The move reflected a share-price increase after the results announcement, while quarterly figures showed revenue growth and improved profitability metrics alongside a continuing net loss. The fourth-quarter and fiscal 2026 and 2027 outlooks are the figures the company set for coming periods. Its investment and expansion plans include organic growth, digital marketplace and reseller channels, and the acquisition completed in October.