Asure Software (ASUR) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue increased 10% year-over-year to $34.9M, with recurring revenue at $33.2M, over 95% of total revenue, driven by payroll tax management, new product launches, and professional services.

• Net loss widened to $2.4M from $0.3M in Q1 2024, reflecting higher operating expenses and amortization.

• Adjusted EBITDA for Q1 2025 was $7.3M (21% margin), up from $6.8M last year.

• Contracted revenue backlog surged 339% year-over-year to $82M, providing strong visibility for future growth.

• Investments in technology, product suite expansion, and sales specialization are fueling growth and operational efficiency.

Financial highlights

• Q1 2025 revenue: $34.9M, up 10% year-over-year; recurring revenue at $33.2M, up 10%; professional services and other revenue rose 21% to $1.7M.

• Gross profit: $24.6M, up 9% year-over-year; gross margin steady at 71%; non-GAAP gross profit was $26.3M with a 75% margin.

• Adjusted EBITDA: $7.3M (21% margin), up from $6.8M last year; net loss widened to $2.4M from $308,000.

• Cash and equivalents at March 31, 2025, were $14.1M; debt stood at $14.1M.

• Q1 new bookings increased 45% year-over-year; client funds assets increased to $257M.

Outlook and guidance

• Full-year 2025 revenue guidance reiterated at $134–$138M, with adjusted EBITDA margin of 23–24%.

• Q2 2025 revenue expected at $30–$32M; adjusted EBITDA $5–$6M.

• Guidance excludes potential future acquisitions; revenue growth and margin expansion expected to accelerate in the second half.

• Management anticipates further improvements in attach rates and cross-selling throughout 2025.