Asure Software (ASUR) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 10% YoY to $40.022M; recurring revenue grew 16% to $36.912M and organic growth accelerated to 9%.

• Recurring organic growth reached 14%; management cited Payroll Tax Management momentum, expanded sales capacity, product attachment and AsureWorks adoption.

• Adjusted EBITDA increased 29% to $10.5M, while net loss narrowed to $0.604M from $5.362M.

Financial highlights

• Q3 revenue was $40.022M versus $36.252M; recurring revenue was $36.912M versus $31.8M.

• Gross profit was $27.844M versus $23.538M; operating income was $0.515M versus an operating loss of $3.499M.

• EBITDA was $7.9M versus $3.9M; adjusted EBITDA was $10.5M versus $8.1M.

• Professional services, hardware and other revenue declined 29% to $3.110M, primarily as time-and-attendance hardware and services tied to prior-year tax deals decreased.

• Nine-month revenue increased 18% to $119.892M; net loss narrowed to $4.422M from $13.883M.

Outlook and guidance

• Q4 2026 guidance: revenue of $42M–$44M and adjusted EBITDA of $10M–$12M; recurring organic growth is expected to remain in double digits.

• FY 2026 guidance: revenue of $162M–$164M and adjusted EBITDA of $40M–$42M; guidance includes the October acquisition.

• FY 2027 guidance: revenue of $183M–$187M, adjusted EBITDA of $48M–$52M and adjusted EBITDA margin of 26%–28%; most implied growth is expected to be organic.

• 2027 gross margin outlook is ~72% GAAP and 76%–77% non-GAAP; software capex is expected to be ~$14M, with low-$20M indicative cash flow after software capex.