Asure Software (ASUR) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $37.1 million, up 23% year-over-year, with recurring revenue of $34.0 million, up 19% year-over-year, and net loss narrowed to $4.4 million from $6.1 million in Q2 2025.

• Organic growth rate improved to 5% from 1% in Q2 2025, driven by platform migration, multi-product adoption, and time and attendance solutions.

• Majority of 30,000 direct clients migrated to Asure Central, supporting higher attach rates and AI adoption.

• AsureWorks administrative services outsourcing and enterprise tax business are scaling, contributing to durable, profitable growth.

• AI initiatives, including the Luna agent, are driving operational efficiencies, new revenue opportunities, and expanded partnerships.

Financial highlights

• Q2 2026 total revenue: $37.1 million (up 23% year-over-year); recurring revenue: $34.0 million (up 19%); adjusted EBITDA: $7.7 million (up 48%).

• Recurring revenue represented 91% of total revenue; professional services, hardware, and other revenue rose to $3.2 million.

• GAAP gross margin: 68% (up from 66%); non-GAAP gross margin: 73% (flat year-over-year); Q2 2026 non-GAAP gross margin: 74.9%.

• Net loss narrowed to $4.4 million from $6.1 million; adjusted EBITDA margin was 20.9%–21%.

• Cash and equivalents at $19.7 million; total debt at $68.9 million as of June 30, 2026.

Outlook and guidance

• Full-year 2026 revenue guidance: $159–$163 million; adjusted EBITDA margin: 24–25%.

• Q3 2026 revenue expected at $38–$40 million; adjusted EBITDA of $8–$10 million.

• Medium-term target: $180–$200 million revenue and 30%+ adjusted EBITDA margin.

• Guidance does not include potential M&A; recurring revenue expected to drive growth as non-recurring revenue declines.

• Management expects continued growth and profitability, focusing on product attach rates and AI capabilities.