Key Highlights

  • Total Revenue climbed 10% to $40.0 million in the third quarter, versus $36.3 million a year earlier.
  • Recurring revenue advanced 16% to $36.9 million, with Payroll solutions as the main contributor.
  • Gross profit margin hit 70%, compared with 65% in the prior year quarter.
  • The net loss shrank to $604 thousand, or $0.02 per share, down from $5.4 million, or $0.19 per share.
  • A new Credit agreement offering up to $115 million of capacity was entered on October 15, 2026.

A payroll-led quarter lifts Recurring Revenue by 16%

Asure Software (NASDAQ:ASUR) sells cloud-based Human Capital management software on a subscription basis, covering payroll and tax filing, HR compliance, time and attendance, recruiting and benefits. The company says it serves over 100,000 clients across the United States, with about 35% direct and the rest reached through resellers. The report was filed on October 29, 2026.

Total revenue reached $40.0 million, up $3.8 million, or 10%, from $36.3 million. Recurring revenue rose $5.1 million, or 16%, to $36.9 million, a gain the company mainly credited to payroll. Recurring revenue was over 92% of the total, up from 88%.

Hardware sales decline as margins expand

Professional services, hardware and other revenue came in at $3.1 million, a 29% drop from $4.4 million, chiefly due to fewer time and attendance hardware sales, which are non-recurring in nature.

Gross profit grew 18% to $27.8 million, and gross margin widened to 70% from 65%. The company pointed to the mix shift toward payroll, which earns higher margins than its other products.

Operating costs rise slowly, turning Operating Income positive

Operating expenses totaled $27.3 million against $27.0 million a year ago, an increase of about 1% on a calculated basis. General and administrative costs climbed 8% to $12.5 million on higher personnel compensation, while sales and Marketing eased 1% to $8.9 million on lower bad debt. Amortization of Intangibles dropped 12% to $4.2 million.

That combination generated income from operations of $515 thousand, versus a loss of $3.5 million in the third quarter of 2025. After interest expense of $1.8 million, down from $2.0 million, and an income tax benefit of $456 thousand, the net loss came to $604 thousand.

Nine-month figures and cash generation

For the nine months ended September 30, 2026, revenue increased 18% to $119.9 million from $101.2 million, aided by a full period of the time and attendance Business bought in July 2025. Recurring revenue grew 16% to $108.6 million, and the net loss totaled $4.4 million, or $0.15 per share, compared with $13.9 million, or $0.51 per share, a year earlier.

Net cash from Operating Activities came to $12.8 million, up from $10.9 million. Cash and cash equivalents, excluding funds held for clients, stood at $16.8 million on September 30, 2026, lower than $25.2 million at December 31, 2025.

A new $115 million Facility takes the place of the MidCap loan

On October 15, 2026, Asure signed a credit agreement with MUFG Bank acting as administrative agent. The package includes an $85.0 million term loan, fully drawn at closing, a $10.0 million revolving facility and a $20.0 million delayed-draw term loan. The opening rate is 7.04%, calculated as Term SOFR plus 3.00%, and the term Loan comes due on October 15, 2031.

Proceeds went toward repaying $62.6 million owed under the earlier MidCap Financial Trust agreement. Investors will likely watch principal repayments beginning April 1, 2027, the interest cost of the new facility, and whether payroll keeps lifting recurring revenue.