Asure Software (ASUR) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $30.1M, up 7% year-over-year; recurring revenue was $28.6M, up 6% year-over-year.

• Net loss for Q2 was $6.1M ($0.22/share), compared to $4.4M ($0.17/share) in Q2 2024.

• Acquisition of Lathem Time Corporation completed July 1, 2025, for $39.5M, expanding time and attendance solutions and expected to enhance recurring revenue and cross-sell opportunities.

• Attach rates for multi-product clients increased to 29%, supporting long-term growth.

• Contracted revenue backlog reached a record $82M, up 68% year-over-year.

Financial highlights

• Recurring revenue for Q2 was $28.6M, 95% of total revenue; gross profit was $19.9M (66% margin); non-GAAP gross margin was 73%.

• Adjusted EBITDA for Q2 was $5.2M (margin 17.4%), up from $4.1M year-over-year.

• Cash and equivalents at June 30, 2025, were $66.0M; debt stood at $67.4M.

• Operating expenses for Q2 were $24.6M, up 7% year-over-year; R&D expenses decreased 35% due to increased software capitalization.

• Interest expense increased to $809K for the quarter, reflecting new debt financing.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $138M–$142M, with adjusted EBITDA margin expected at 22%–24%.

• Q3 2025 revenue guidance is $35M–$37M, with adjusted EBITDA of $7M–$9M.

• Management expects continued revenue growth from new applications, client base expansion, and cross-selling post-Lathem acquisition.

• Targeting 30%+ adjusted EBITDA margin at $180M–$200M revenue level in the medium term.

• Expectation for positive cash flow and potential GAAP profitability in Q4 2025.