Asure Software delivered another strong quarter, reporting double-digit revenue growth, improving profitability, and higher recurring revenue as demand for its cloud-based Human Capital Management (HCM) platform continued to accelerate.
The HCM software provider reported second-quarter 2026 revenue of $37.1 million, a 23% year-over-year increase from $30.1 million. Recurring revenue, a key indicator of customer retention and predictable growth for SaaS companies, climbed 19% to $34 million, underscoring continued adoption of Asure’s payroll, HR, workforce management, and compliance solutions.
While the company remained unprofitable on a GAAP basis, its financial performance showed meaningful improvement. Net loss narrowed to $4.4 million, compared with $6.1 million a year earlier, while EBITDA more than tripled to $4.6 million. Adjusted EBITDA increased to $7.7 million, reflecting stronger operating efficiency and expanding margins.
The results reinforce Asure’s strategy of growing recurring software revenue while investing in AI capabilities and expanding customer relationships through additional product offerings.
Recurring Revenue Continues to Drive Growth
Recurring revenue remains the backbone of Asure’s business model.
Of the company’s $37.1 million in quarterly revenue, $34 million came from recurring subscriptions and services, representing nearly all of total revenue. This predictable revenue stream is increasingly important as enterprise software vendors prioritize long-term customer value over one-time sales.
Gross profit also improved significantly, rising to $25.1 million from $19.9 million a year earlier. On a non-GAAP basis, gross profit reached $27.1 million, maintaining a healthy 73% gross margin, consistent with the prior year despite continued investments in product development and growth initiatives.
For investors and HR technology buyers alike, stable margins alongside accelerating revenue growth suggest Asure is scaling efficiently without sacrificing profitability.
First-Half Performance Shows Momentum
The positive momentum extended beyond the second quarter.
For the first six months of 2026, Asure generated $79.9 million in revenue, up 23% year over year, while recurring revenue increased 16% to $71.7 million.
The company’s financial position also continued to strengthen.
Net loss improved to $3.8 million, compared with $8.5 million during the same period in 2025. EBITDA rose to $14 million, more than doubling from $5.6 million, while adjusted EBITDA climbed to $20.1 million.
Gross profit for the first half reached $55.5 million, with non-GAAP gross margin holding steady at 74%, demonstrating the resilience of Asure’s subscription-based business model.
AI and Product Expansion Fuel Future Growth
Beyond the financial results, Asure highlighted continued investment in artificial intelligence and product expansion as central drivers of its long-term strategy.
Chairman and CEO Pat Goepel said the company experienced broad-based growth across its business while also improving product attach rates—an important metric measuring how many additional solutions existing customers adopt.
The company also reported encouraging early momentum for AsureWorks™, its AI-powered platform, which management says is generating a healthy pipeline of customer opportunities.
“As we look to the second half of 2026, we remain focused on increasing product attach rates with our clients, continuing to advance our AI capabilities while building on our sales and marketing efforts,” Goepel said.
Across the HR technology market, vendors are increasingly embedding AI into payroll, workforce management, compliance, recruiting, and employee self-service platforms. Rather than positioning AI as a standalone product, many providers—including Asure—are integrating intelligent automation into broader HCM ecosystems to improve efficiency and customer value.
Restaurant Partnership Expands Market Reach
Asure also strengthened its distribution strategy during the quarter by expanding its partnership with Foodservice Restaurant Partners Group (FRPG) through the organization’s FRPG Restaurant Rewards program.
The expanded agreement gives Asure broader access to one of the nation’s largest group purchasing organizations serving independent restaurants, with a network spanning 20 states and approximately 3,000 member businesses.
The partnership is expected to increase Asure’s presence within the underserved independent restaurant market—a sector that continues to modernize HR, payroll, scheduling, and workforce management processes as labor shortages and compliance requirements evolve.
Industry partnerships like this have become increasingly important for HR technology providers seeking efficient customer acquisition through established business networks rather than relying solely on direct sales.
Guidance Signals Continued Confidence
Looking ahead, Asure reaffirmed its growth ambitions with guidance for both the third quarter and full year.
For Q3 2026, the company expects revenue between $38 million and $40 million, alongside adjusted EBITDA of $8 million to $10 million.
For the full year, Asure forecasts revenue between $159 million and $163 million, with an adjusted EBITDA margin of 24% to 25%.
The outlook suggests management expects demand for its HCM solutions to remain strong despite broader macroeconomic uncertainty and continued enterprise scrutiny over software spending.
Why It Matters for HR Technology
Asure’s latest results reflect several trends shaping today’s HR technology market.
Organizations continue to invest in cloud-based HCM platforms that combine payroll, HR, compliance, workforce management, and AI-powered automation into unified solutions. At the same time, software vendors are increasingly focused on expanding recurring revenue, increasing customer product adoption, and improving operational efficiency rather than pursuing growth at any cost.
The company’s improving profitability, expanding AI capabilities, and continued investment in vertical partnerships position it to compete in a crowded HCM market where differentiation increasingly depends on platform breadth, intelligent automation, and customer retention.
If Asure can sustain its current growth trajectory while continuing to narrow losses and expand AI-driven offerings, it could strengthen its position among mid-market HR technology providers navigating an increasingly competitive enterprise software landscape.
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