Asure Software reported higher revenue and improved profitability for the third quarter of 2026, with recurring revenue growing faster than total sales. The payroll and human-capital software provider also highlighted new distribution partnerships, a new credit facility that refinanced its existing debt, and an October acquisition of a payroll processing business.
Key details
- Third-quarter revenue rose 10% year over year to $40.0 million, from $36.3 million. Recurring revenue increased 16% to $36.9 million, compared with $31.8 million a year earlier.
- The net loss narrowed to $0.6 million from $5.4 million. EBITDA was $7.9 million, up from $3.9 million, while adjusted EBITDA increased to $10.5 million from $8.1 million. EBITDA and adjusted EBITDA are non-GAAP measures.
- Gross profit increased to $27.8 million from $23.5 million. Non-GAAP gross profit was $30.2 million, or a 75% margin, compared with $25.4 million and a 70% margin a year earlier.
- For the first nine months of 2026, revenue rose 18% and recurring revenue rose 16% from the same period last year, to $119.9 million and $108.6 million, respectively.
- The nine-month net loss narrowed to $4.4 million from $13.9 million. EBITDA increased to $21.9 million from $9.5 million, and adjusted EBITDA rose to $30.6 million from $20.7 million.
- Nine-month gross profit reached $83.4 million, compared with $68.2 million. Non-GAAP gross profit was $89.6 million, with a 75% margin, versus $73.5 million and a 73% margin a year earlier.
- Asure entered into a new credit agreement with a syndicate of banks led by MUFG Bank. It provides for borrowings of up to $115 million. At closing on October 15, Asure received $85 million in gross proceeds and used $62.6 million to repay its previous credit agreement with MidCap Financial Trust.
- Asure completed the October acquisition of a payroll processing business located primarily in the southeastern United States.
- The company made its Payroll Tax Management offering available through Oracle Marketplace, extending its reach among Oracle sales teams, systems integrators and customers. It also entered an agreement to offer its solutions through AWS Marketplace, which Asure said serves more than 330,000 active customers.
- Asure launched its AsureCentral unified platform to its reseller network and brought its first resellers live in September. The company said that network reaches about three times as many employers as its direct-client business.
Plain-English implications
Recurring revenue growth outpaced overall revenue growth in the quarter, while the net loss narrowed and reported gross margins improved. The new credit agreement replaces Asure’s prior facility and sets a borrowing capacity of up to $115 million. The Oracle and AWS marketplace arrangements and the reseller-platform rollout broaden the channels through which Asure can reach employers.