Asure Software delivered a first quarter marked by accelerating organic growth and operational improvements, supported by rapid adoption of its unified Asure Central platform and increased client engagement with additional offerings. Management credited the quarter’s momentum to higher attach rates, with more clients purchasing multiple products and the successful rollout of new managed service options. CEO Pat Goepel emphasized, “Our organic growth rate for the quarter was 7%, a significant acceleration compared to prior years.” The company also noted that professional services and hardware contributed to nonrecurring revenue, while recurring revenue remained the primary focus.
Is now the time to buy ASUR? Find out in our full research report (it’s free for active Edge members).
Asure Software (ASUR) Q1 CY2026 Highlights:
- Revenue: $42.76 million vs analyst estimates of $41.89 million (22.7% year-on-year growth, 2.1% beat)
- Adjusted EPS: $0.25 vs analyst estimates of $0.26 (in line)
- Adjusted Operating Income: $12.35 million vs analyst estimates of $717,800 (28.9% margin, significant beat)
- The company slightly lifted its revenue guidance for the full year to $161 million at the midpoint from $160.5 million
- EBITDA guidance for Q2 CY2026 is $7 million at the midpoint, below analyst estimates of $8.04 million
- Operating Margin: 5.4%, up from -5.8% in the same quarter last year
- Billings: $37.84 million at quarter end, up 21.9% year on year
- Market Capitalization: $249.2 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Asure Software’s Q1 Earnings Call
- Jeff Van Rhee (Craig-Hallum Capital Group) asked about client adoption patterns on Asure Central. CEO Pat Goepel said attach rates rose 15% and that platform triggers are prompting more cross-sell opportunities with clients as regulatory thresholds change.
- Joshua Reilly (Needham & Co.) questioned the sustainable impact of forms growth and the Lathem business transition. CFO John Pence noted forms growth had minimal headwind and expects Lathem’s hardware to transition to a recurring model over the next 18-24 months.
- Jared Levine (TD Cowen) probed the revenue potential from managed services like AsureWorks. Goepel projected a significant PEPM uplift and a $3-5 million revenue opportunity in the first year, with larger contributions expected longer term.
- Eric Martinuzzi (Lake Street) asked about the integration of Lathem customers onto Asure Central and the impact on multiproduct adoption. Goepel explained most Lathem clients will join Asure Central, adding velocity to cross-sell initiatives.
- Richard Baldry (ROTH Capital Partners) pressed on visibility into organic growth and the impact of AI on efficiency. Goepel and Pence described a strong pipeline, conservative forecasting, and broad internal use of AI to improve sales, operations, and support.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the rate of adoption and cross-sell success within Asure Central, (2) the scaling and financial impact of AsureWorks managed services, and (3) the ongoing transition of hardware revenue to recurring models following the Lathem acquisition. We will also watch for measurable cost efficiencies from further AI integration across the business.
Asure Software currently trades at $8.69, down from $9.05 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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