Asure Software (ASUR) investor relations material

Executive summary

• Q1 2026 revenue reached $42.8 million, up 23% year-over-year, driven by recurring and hardware-related revenues, marking the strongest start in recent history.

• Net income was $0.6 million, reversing a net loss of $2.4 million in Q1 2025.

• Adjusted EBITDA increased 69% year-over-year to $12.3 million, with margin expanding to 29% from 21%.

• Strong adoption of the central platform and improved multi-product attach rates, with a 15% increase in clients purchasing multiple payroll products year-over-year.

• Appointment of a new Chief Transformation & People Officer to support growth initiatives.

Financial highlights

• Recurring revenue for Q1 2026 was $37.8 million, up 14% year-over-year, representing 88% of total revenue.

• Professional services and hardware revenue rose to $5 million from $1.7 million in Q1 2025, mainly due to acquisitions.

• GAAP gross margin held steady at 71%; non-GAAP gross margin improved to 76% from 75% year-over-year.

• Cash and cash equivalents at quarter-end were $19.2 million, down from $25.2 million at year-end 2025.

• Net cash provided by operating activities was $2.7 million for Q1 2026.

Outlook and guidance

• Full-year 2026 revenue guidance is $159 million–$163 million, with adjusted EBITDA margin of 23%–25%.

• Q2 2026 revenue expected at $36 million–$38 million, adjusted EBITDA at $6 million–$8 million.

• Management expects continued growth and profitability, driven by investments in sales, marketing, and AI capabilities.

• Recurring revenue as a percentage of total revenue projected to trend into the low 90% range in 2026 and rise further in 2027.

• Sufficient liquidity is expected for at least the next twelve months, with potential for additional capital raises for growth or acquisitions.