Asure Software reports Q1 profit on organic growth, margin improvement
Overview
US HCM software firm's Q1 revenue rose 23% yr/yr, beating analyst expectations
Adjusted EBITDA for Q1 increased 69% and beat analyst expectations
Company returned to net profit after prior-year loss, citing organic growth and margin gains
Outlook
Asure sees Q2 revenue between $36.0 mln and $38.0 mln
Company expects full-year 2026 revenue of $159.0 mln to $163.0 mln
Asure targets Q2 adjusted EBITDA of $6.0 mln to $8.0 mln
Result Drivers
ORGANIC GROWTH - Co attributed revenue and profit gains to accelerating organic growth and margin improvement
STRATEGIC INVESTMENTS - Management cited ongoing investments in platform, personnel, and go-to-market as supporting growth
SEASONALITY - Q1 results benefited from seasonally strong recurring year-end W2/ACA revenue recognition
Company press release: ID:nGNX5Cf4Bj
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $42.80 mln | $41.87 mln (9 Analysts) |
Q1 Net Income |
| $600,000 |
|
Q1 Adjusted EBITDA | Beat | $12.30 mln | $10.68 mln (9 Analysts) |
Q1 Adjusted Gross Profit |
| $32.30 mln |
|
Q1 EBITDA |
| $9.40 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Asure Software Inc is $13.00, about 40.8% above its April 29 closing price of $9.23
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
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