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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on ASUR

The recent 3 months performance of Asure Software, Inc. was negatively impacted by several factors. The company's Q2 2025 earnings and revenues missed estimates, with quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.09 per share a year ago. The net loss of $6.1 million versus a net loss of $4.4 million during the prior year second quarter is also a concern. Additionally, the company's EBITDA(1) of $1.4 million versus $1.3 million during the prior year second quarter is a decline.

1.c. Company Highlights

2. Asure's Q3 2025 Earnings: A Strong Performance

Asure Software reported a robust third quarter, with revenues reaching $36.3 million, a 24% increase year-over-year. The company's gross profit expanded to $23.1 million, up from $19.7 million in the prior year period, although gross margins contracted to 64% from 67%. Non-GAAP gross margins were 70%, down from 73% in the same quarter last year. The company's EPS was $0.15, missing estimates of $0.22.

Publication Date: Nov -30

📋 Highlights
  • Q3 Revenue Growth:: Total revenue reached $36.3 million, a 24% YoY increase, driven by 11% growth in recurring revenues to $31.8 million.
  • Organic Growth Improvement:: Sequential organic growth rose to 4% in Q3 from 1% in Q2, with 7% expected in 2026 under a new product bundling strategy.
  • Lathem Time Acquisition Impact:: Lathem is projected to contribute $15 million in 12-month revenue (including $10 million recurring) and enable cross-sell opportunities to 15,000 existing customers.
  • 2026 Guidance:: Revenue expected to reach $158–162 million (+12–14% YoY), with adjusted EBITDA margins expanding to 23–25% from 22–23% in 2025.
  • Gross Margin Performance:: Gross profit increased to $23.1 million (64% margin) in Q3 2025 from $19.7 million (67% margin) in Q3 2024, with non-GAAP margins at 70% vs. 73% prior year.

Revenue Growth and Segment Performance

The company's organic growth improved sequentially to approximately 4% in Q3, up from 1% in Q2. The recent acquisition of Lathem Time is performing well, and the team is working to achieve revenue and cost synergies. Asure launched a new client interface, Asure Central, which is expected to enhance the client experience and improve workflow.

Guidance and Outlook

Asure provided guidance for Q4 2025, expecting revenues to be between $38 million and $40 million, with adjusted EBITDA ranging from $10 million to $12 million. For full-year 2025, the company expects revenues to be between $139 million and $141 million, with adjusted EBITDA margins of 22% to 23%. For 2026, Asure anticipates revenues to be between $158 million and $162 million, with adjusted EBITDA margins of 23% to 25%.

Valuation and Growth Prospects

Analysts estimate revenue growth of 14.0% for next year. Given the current valuation metrics, with a P/S Ratio of 1.64 and EV/EBITDA of 519.82, it is essential to assess whether the stock is priced for perfection. Asure's long-term goal is to achieve $180 million to $200 million in revenue with 30% margins. The company's focus on software and multiproduct sales is expected to drive revenue and efficiency.

Key Drivers and Initiatives

The rollout of Asure Central is expected to drive more adoption of cross-sell and increase revenue. The company is also integrating Lathem Time, which is expected to contribute $15 million in revenue over the next 12 months. Asure's attach rate trend has remained relatively consistent, with a 7% sequential improvement. The company is excited about the opportunities ahead, with a focus on becoming a back office for small businesses.

3. NewsRoom

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ASUR Calls for a Shareholders' Meeting

Dec -04

Source: prnewswire.com

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Asure Software Inc (NASDAQ:ASUR) Receives Average Rating of “Moderate Buy” from Brokerages

Dec -03

Source: defenseworld.net

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Asure Software: Attractive Scale Growth Despite Net Losses

Nov -30

Source: seekingalpha.com

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ASUR SIGNS DEAL TO ACQUIRE MOTIVA'S STAKE IN AIRPORT BUSINESS IN BRAZIL, ECUADOR, COSTA RICA AND CURAÇAO

Nov -18

Source: prnewswire.com

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ASUR Announces Total Passenger Traffic for October 2025

Nov -06

Source: prnewswire.com

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Asure Software Sets November and December 2025 Investor Conference Schedule

Nov -06

Source: globenewswire.com

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ASUR Announces at the request of the Mexican Stock Exchange ("BMV")

Nov -05

Source: prnewswire.com

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Asure Software Inc (ASUR) Q3 Earnings Miss Estimates

Oct -31

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.00%)

6. Segments

Recurring

Expected Growth: 8%

Asure Software's 8% recurring growth is driven by increasing adoption of its human capital management (HCM) solutions, expansion into new markets, and strategic acquisitions. The company's cloud-based offerings, such as AsureHR and Evolution, are experiencing high demand, contributing to the growth. Additionally, Asure's focus on innovation, customer satisfaction, and retention are key factors in sustaining its recurring revenue stream.

Professional Services, Hardware and Other

Expected Growth: 8%

Asure Software's 8% growth in Professional Services is driven by increased demand for HR consulting and implementation services. Hardware growth is fueled by rising sales of time-tracking devices and accessories. The 'Other' segment benefits from growing revenue in payroll processing and tax filing services, as well as increased adoption of Asure's software solutions.

7. Detailed Products

AsureHCM

A comprehensive human capital management platform that provides HR, payroll, time tracking, and benefits administration solutions.

Evolution

A workforce management platform that offers time and attendance tracking, scheduling, and leave management solutions.

iSystems

A provider of human capital management and payroll processing solutions for small to medium-sized businesses.

Payroll e.HR

A cloud-based payroll and HR management platform that offers automated payroll processing, benefits administration, and compliance reporting.

TimeOff

A leave management platform that offers automated time-off requests, approvals, and tracking solutions.

ExpenseWire

An expense management platform that offers automated expense tracking, approval, and reimbursement solutions.

8. Asure Software, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Asure Software, Inc. operates in a niche market, providing human capital management software solutions. While there are substitutes available, they are not as comprehensive as Asure's offerings, reducing the threat of substitutes.

Bargaining Power Of Customers

Asure Software, Inc. has a diverse customer base, and no single customer accounts for a significant portion of its revenue, reducing the bargaining power of customers.

Bargaining Power Of Suppliers

Asure Software, Inc. is not heavily dependent on a single supplier, and the market for its inputs is competitive, reducing the bargaining power of suppliers.

Threat Of New Entrants

While there are barriers to entry in the human capital management software market, new entrants can still disrupt the market. However, Asure Software, Inc.'s established brand and customer base provide some protection.

Intensity Of Rivalry

The human capital management software market is highly competitive, with several established players competing for market share. Asure Software, Inc. must continue to innovate and differentiate its offerings to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.94%
Debt Cost 7.49%
Equity Weight 97.06%
Equity Cost 7.49%
WACC 7.49%
Leverage 3.03%

11. Quality Control: Asure Software, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
eGain

A-Score: 4.8/10

Value: 2.5

Growth: 5.4

Quality: 8.5

Yield: 0.0

Momentum: 10.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Enfusion

A-Score: 4.5/10

Value: 0.7

Growth: 7.0

Quality: 5.7

Yield: 0.0

Momentum: 8.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
BigCommerce

A-Score: 3.9/10

Value: 4.7

Growth: 7.2

Quality: 2.5

Yield: 0.0

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Compass

A-Score: 3.8/10

Value: 4.4

Growth: 5.7

Quality: 2.8

Yield: 0.0

Momentum: 7.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
EZFill

A-Score: 3.7/10

Value: 8.4

Growth: 4.3

Quality: 4.9

Yield: 0.0

Momentum: 4.0

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Asure Software

A-Score: 3.5/10

Value: 4.8

Growth: 4.1

Quality: 4.5

Yield: 0.0

Momentum: 3.0

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.19$

Current Price

8.19$

Potential

-0.00%

Expected Cash-Flows