Asure Software Reports $34.9 Million Revenue in Q1 2025, Despite Increased Net Loss

Asure Software, Inc. reported a total revenue of $34.9 million for the first quarter of 2025, marking a 10% increase from $31.7 million in the same period of 2024. The growth was primarily driven by a 10% rise in recurring revenue, which reached $33.2 million, and a 21% increase in professional services, hardware, and other revenue, totaling $1.7 million. Despite the revenue growth, the company experienced a net loss of $2.4 million, or $0.09 per share, compared to a loss of $308,000, or $0.01 per share, in the prior year. The increase in net loss was attributed to higher operating expenses, which rose to $26.6 million from $23.0 million year-over-year.

In terms of operational metrics, Asure's total assets increased to $498.9 million as of March 31, 2025, up from $436.6 million at the end of 2024. The company's cash and cash equivalents decreased to $14.1 million from $21.4 million, while funds held for clients rose significantly to $257.0 million from $192.6 million. The increase in client funds reflects the company's growth in payroll and tax filing services. Asure's customer base continues to expand, serving over 100,000 clients across the United States, with approximately 20% being direct clients and the remainder through reseller partners.

Strategically, Asure completed three customer relationship asset acquisitions during the quarter, totaling $7.7 million, which included cash payments and promissory notes. These acquisitions are expected to enhance the company's service offerings and market position. Additionally, the company has been investing in research and development to expand its product suite, which includes various human capital management solutions. The company also reported an increase in employee headcount, reflecting its commitment to growth and service delivery.

Looking ahead, Asure anticipates continued revenue growth driven by the expansion of its client base and the introduction of new applications. The company has entered into a Credit, Security, and Guaranty Agreement with MidCap Financial Trust, allowing it to borrow up to $60 million, with $20 million already funded. This financial flexibility is expected to support future acquisitions and operational needs. However, Asure also acknowledged the challenges posed by market conditions and the need to maintain sufficient liquidity to support its growth strategies. The company remains focused on enhancing its internal controls and addressing identified weaknesses in its financial reporting processes.