Asure Software (ASUR) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $36.3 million, up 24% year-over-year, driven by broad-based growth across payroll, benefits, time and attendance, and acquisitions such as Lathem Time.

• Net loss for Q3 2025 was $5.4 million, compared to $3.9 million in the prior year, while adjusted EBITDA rose 49% to $8.1 million.

• The launch of Asure Central™, a unified client interface, is expected to accelerate cross-sell rates, enhance client experience, and support workflow efficiency.

• Strategic acquisitions, including Lathem Time and customer relationship assets, expanded timekeeping capabilities and the customer base.

• Product attach rates and integration efforts are showing positive momentum, supporting continued growth and profitability into 2026.

Financial highlights

• Q3 2025 recurring revenue was $31.8 million, up 11% year-over-year; professional services and hardware revenue rose to $4.4 million.

• Gross profit for Q3 2025 was $23.1 million (64% margin), with non-GAAP gross margin at 70% (down from 73%).

• Adjusted EBITDA for Q3 2025 was $8.1 million (22.3% margin), up 49% year-over-year.

• Cash and equivalents at September 30, 2025, were $21.5 million; debt was $70.4 million.

• Net loss for the nine months ended September 30, 2025, was $13.9 million, compared to $8.6 million in 2024.

Outlook and guidance

• Q4 2025 revenue is projected at $38–$40 million, with adjusted EBITDA of $10–$12 million.

• Full-year 2025 revenue expected between $139–$141 million, adjusted EBITDA margin 22–23%.

• FY 2026 guidance: revenue of $158–$162 million, adjusted EBITDA margin 23–25%, with expectations of consistent GAAP profitability.

• Management expects continued growth and improving profitability into 2026.

• Medium-term plan targets $180–$200 million in revenue and 30%+ adjusted EBITDA margin.