Asure Software 2025 Q2 Earnings Misses Targets as Net Loss Widens 40.4%

Asure Software reported its fiscal 2025 Q2 earnings on July 31, 2025. The results missed analysts' expectations, with revenue reaching $30.12 million, slightly below the consensus estimate of $31.03 million. The company also adjusted its full-year 2025 revenue guidance upwards, projecting a range of $138.0-$142.0 million, reflecting confidence in ongoing business trends. Despite the revenue increase, the earnings per share (EPS) fell short, as the company reported a net loss of $0.22 per share, deeper than the anticipated loss of $0.10 per share. The acquisition of Lathem Time Corporation is expected to bolster future growth.

Revenue
The total revenue of Asure Software increased by 7.4% to $30.12 million in 2025 Q2, up from $28.04 million in 2024 Q2.

Earnings/Net Income
Asure Software's losses deepened to $0.22 per share in 2025 Q2 from a loss of $0.17 per share in 2024 Q2 (29.4% wider loss). Meanwhile, the company's net loss widened to $-6.12 million in 2025 Q2, representing a 40.4% increase from the $-4.36 million loss recorded in 2024 Q2. This indicates growing operational costs or investments that aren't yet translating to profitability.

Price Action
The stock price of Asure Software has edged down 1.02% during the latest trading day, has dropped 6.73% during the most recent full trading week, and has edged down 0.61% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing Asure Software (ASUR) shares following a quarter-over-quarter revenue increase on the earnings release day, then holding for 30 days, yielded moderate returns but lagged behind overall market performance. This approach achieved a compound annual growth rate (CAGR) of 3.46%, significantly underperforming the market benchmark by 67.16%. Despite a maximum drawdown of 0.00% and a Sharpe ratio of 0.07, which indicates low risk, the returns were modest, making this strategy more suitable for investors seeking stability rather than high growth.

CEO Commentary
"We are pleased to report another solid performance for the second quarter where our revenues of $30.1 million increased 7% from the prior year second quarter and excluding the impact of ERTC, revenue growth was 10%. Our results were driven by continued strong performances coming from our Payroll Tax Management product line and improving attach rates of our HCM products," said Pat Goepel, Chairman and CEO of Asure. "We are excited to have completed the acquisition of Lathem Time Corporation on July 1, 2025, which we believe will be a great addition to the Asure product offering. Our continued positive momentum, the investments we have made in our technology plus recently acquired products we believe position us well for the continued growth of Asure."

Guidance
The Company provides guidance for the third quarter of 2025 with expected revenue in the range of $35.0 million to $37.0 million and increases the full year 2025 revenue range to $138.0 million to $142.0 million. Adjusted EBITDA is expected to be between $7.0 million and $9.0 million, with margins projected to be 22% to 24%. Management's projections are based on current beliefs and assumptions about the Company's business and market conditions, acknowledging there are risks and uncertainties that may affect actual results.

Additional News
On July 1, 2025, Asure Software completed the acquisition of Lathem Time Corporation for $39.5 million. This strategic move is expected to enhance Asure's existing offerings in time and attendance solutions and provide additional high-margin recurring revenue. The acquisition aligns with Asure's focus on Human Capital Management (HCM) and aims to drive cross-selling opportunities for Asure's suite of HCM products. No significant changes in the company's executive leadership or dividend announcements were reported within the three weeks surrounding the earnings release. The acquisition reflects Asure's commitment to expanding its market presence and leveraging existing customer relationships to foster growth.