Asure Software (ASUR) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $34.9 million, up 10% year-over-year, driven by payroll tax management, benefits products, and professional services.

• Recurring revenue grew 10% to $33.2 million, now over 95% of total revenue, with strong cross-selling and attach rates.

• Net loss widened to $2.4 million from $0.3 million in Q1 2024, reflecting higher operating expenses and amortization.

• Adjusted EBITDA rose to $7.3 million from $6.8 million, with a margin of 21%.

• Contracted revenue backlog surged 339% year-over-year to $82 million, supporting a robust outlook.

Financial highlights

• Gross profit increased to $24.6 million; gross margin held steady at 71% GAAP and 75% non-GAAP.

• Operating expenses rose 15% to $26.6 million, mainly due to compensation, compliance, and acquisition costs.

• Amortization of intangibles rose 25% to $4.3 million, reflecting recent acquisitions.

• Cash and equivalents at March 31, 2025, were $14.1 million; debt stood at $14.1 million.

• Net cash provided by operating activities was $2.0 million; $12.6 million used in investing and $63.9 million provided by financing.

Outlook and guidance

• Full-year 2025 revenue guidance reiterated at $134–$138 million, with adjusted EBITDA margin of 23–24%.

• Q2 2025 revenue expected between $30–$32 million; adjusted EBITDA $5–$6 million.

• Guidance excludes potential future acquisitions and is subject to risks and uncertainties.

• Management anticipates accelerated revenue and EBITDA growth in the second half of 2025, with further improvements in attach rates and cross-selling.