Asure Software Reports 23% Revenue Growth to $42.8 Million in Q1 2026

Asure Software, Inc. reported a significant increase in financial performance for the first quarter of 2026, with total revenue reaching $42.8 million, a 23% increase from $34.9 million in the same period last year. The growth was driven primarily by a 14% rise in recurring revenue, which amounted to $37.8 million, and a substantial 200% increase in professional services, hardware, and other revenue, which totaled $5 million. The company achieved a net income of $625, or $0.02 per share, compared to a net loss of $2.4 million, or $(0.09) per share, in the prior year.

In terms of operational metrics, Asure's gross profit for the quarter was $30.5 million, reflecting a gross margin of 71%, consistent with the previous year. The company’s total operating expenses increased to $28.1 million from $26.6 million, primarily due to higher general and administrative costs and increased amortization expenses related to acquisitions. Notably, the company’s interest expense rose significantly to $1.7 million from $451,000, attributed to its loan agreement with MidCap Financial Trust.

Asure has also made strategic moves to enhance its market position, including the acquisition of a customer relationship asset for $6.2 million during the quarter. This acquisition is expected to bolster its service offerings and expand its client base. The company continues to invest in research and development to enhance its cloud-based Human Capital Management (HCM) solutions, which serve over 100,000 clients across the United States.

The company’s balance sheet as of March 31, 2026, showed total assets of $518.7 million, a slight decrease from $531.4 million at the end of 2025. Cash and cash equivalents were reported at $19.2 million, down from $25.2 million, while total liabilities decreased to $318.6 million from $333.6 million. Asure's working capital was $12.8 million, reflecting a decrease due to cash expenditures related to acquisitions.

Looking ahead, Asure Software anticipates continued revenue growth driven by the expansion of its client base and the introduction of new applications. The company expects to maintain its focus on enhancing its product offerings and exploring further acquisition opportunities to complement its existing services. Despite the challenges posed by market conditions, Asure believes it has sufficient liquidity to support its operations and growth initiatives over the next twelve months.