Summary
Asure Software reported first-quarter 2025 revenue of $34.9 million, up 10.1% from the prior-year quarter. Gross profit was $24.6 million, up 8.9%. Gross margin was 70.6%, down 0.8 percentage points. The company still posted an operating loss of $2.02 million, and that loss widened from the prior-year quarter. Net loss was $2.40 million, also a wider loss. Diluted EPS was -$0.09, down from -$0.01 in the prior-year quarter. Operating margin was -5.8%, down 4.4 percentage points. Revenue growth came with weaker profitability, as operating expenses rose.
Non-GAAP results were stronger. Adjusted EBITDA was $7.3 million versus $6.8 million, while EBITDA was $4.1 million versus $4.4 million. Non-GAAP gross profit was $26.3 million, with a 75% non-GAAP gross margin, compared with $23.8 million and 75% in the prior-year first quarter. Operating cash flow was $2.00 million, up from the prior-year quarter. Capital expenditures were $0.19 million, down from the prior-year quarter. Deferred revenue, current portion, was $4.66 million, up 31.4%. Remaining performance obligations were $82.12 million, up 338.9%. The deferred revenue balance is an obligation to perform future services, not a cash receipt.
The quarter included a new Payroll Tax Management solution designed for large Canadian companies and global enterprises with employees in Canada. The product is meant to integrate payroll tax services with platforms such as Workday, Oracle, and SAP. The solution addresses compliance needs for cross-border payroll, reducing complexity and ensuring accurate, timely filing. In April 2025, Asure entered a credit agreement with MidCap Financial Trust that allows borrowing up to $60 million. At closing on April 10, the company received $20 million of gross proceeds. The remaining $40 million is available through March 31, 2027, subject to conditions, and the loan matures April 1, 2030. Management said contracted revenue backlog is at an all-time high.
Guidance for the second quarter of 2025 covers $30.0 million to $32.0 million in revenue and $5.0 million to $6.0 million in adjusted EBITDA. Guidance for the full year 2025 covers $134.0 million to $138.0 million in revenue and a 23% to 24% adjusted EBITDA figure. The first set of figures is for the next quarter, and the second set is for the full fiscal year. The company excludes future acquisitions from both periods. The 10-Q notes that first-quarter revenue and margins are generally higher than in later quarters because payroll forms and ACA filings are processed then. It also says revenue often rises in the fourth quarter from unscheduled payroll runs.
Management attributed growth to Payroll Tax Management and initial contribution from recently acquired products. The company serves more than 100,000 clients, with about 20% direct and the rest through reseller partners. It sells through direct and partner channels, including a national network of reseller and referral partners. Its platform covers payroll and tax filing, recruiting, time and attendance, HR compliance, insurance and benefits administration, AsureMarketplace, and AsurePay. Risks remain visible. The 10-Q lists material weaknesses, privacy and data security laws, money transmitter and anti-money laundering laws, the expiration of ERTC and IRS measures on ERTC claims, liquidity risk on client funds held in trust, acquisition integration, competition, and issues with AI in HCM products. It also cites security breaches, software performance, dependence on third-party licensed software, debt and capital market access, and adverse tax law changes. Management said it believes it has sufficient liquidity for at least the next twelve months.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $34.9M | — | — | $31.7M | +10.1% |
| Gross profit | $24.6M | $20.9M | +17.6% | $22.6M | +8.9% |
| Gross margin | 70.6% | — | — | 71.4% | -0.8 pp |
| Research & development | $2.0M | $2.1M | -3.5% | $1.8M | +14.7% |
| Sales & marketing | $8.4M | $6.9M | +20.7% | $7.8M | +8.0% |
| General & administrative | $11.9M | $9.9M | +19.7% | $10.1M | +18.3% |
| Total operating expenses | $26.6M | $23.4M | +13.7% | $23.0M | +15.5% |
| Operating income (loss) | -$2.0M | -$2.5M | +19.1% | -$441.0K | -356.9% |
| Operating margin | -5.8% | — | — | -1.4% | -4.4 pp |
| Net income (loss) | -$2.4M | -$3.2M | +25.2% | -$308.0K | -678.6% |
| Net margin | -6.9% | — | — | -1.0% | -5.9 pp |
| Diluted EPS | -$0.09 | -$0.12 | +$0.03 | -$0.01 | -$0.08 |
Risks
Asure entered a new Credit, Security and Guaranty Agreement with MidCap Financial Trust and has seven subordinated promissory notes with a combined $11,345 principal balance. The filing states that ability to make scheduled payments or refinance depends on future performance, and default could allow lenders to declare all outstanding indebtedness due and payable.
The MidCap Loan Agreement restricts dividends, requires compliance with leverage ratios and other financial maintenance tests, and imposes stringent regulatory compliance requirements. It also limits the remaining $40,000 facility capacity to permitted acquisitions, reducing flexibility for general corporate purposes.
Cash and cash equivalents declined to $14,076 at March 31, 2025 from $21,425 at December 31, 2024, and working capital decreased $4,641 to $9,000. The current quarter net loss widened to $2.4 million from $0.3 million in the prior-year quarter, increasing dependence on operating cash flow or external capital.
The MidCap loan bears interest at Term SOFR plus 5.00% with a 2.00% SOFR floor, and interest expense was $451 for the three months ended March 31, 2025 versus $180 in the prior-year period. Higher debt service costs could pressure results if rates remain elevated.
SaaS KPIs
All quarters →Non-GAAP gross margin
Adjusted EBITDA margin
Adjusted EBITDA
Recurring Revenue
EBITDA
EBITDA margin
Non-GAAP gross profit
Recurring Revenue (% of Total Revenue)
Total customers
Summary, forecast, risks and KPIs are extracted from ASURE SOFTWARE INC's SEC filings for Q1 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.