Asure Software posts 23% revenue growth in Q2 2026
Asure Software has reported second-quarter 2026 revenue of $37.1 million, a 23% increase on the $30.1 million recorded in the same period a year earlier. Recurring revenue, which accounts for the bulk of the business, rose 19% year on year to $34.0 million. The Austin, Texas-based company simultaneously issued upgraded full-year 2026 revenue guidance of $159 million to $163 million.
The company remained loss-making on a GAAP basis, recording a net loss of $4.4 million for the quarter, though that narrowed from a $6.1 million loss in Q2 2025. Adjusted EBITDA improved more sharply, reaching $7.7 million against $5.2 million a year ago, representing a margin of roughly 21%. For the first half of 2026, adjusted EBITDA reached $20.1 million, up from $12.6 million in the same period of 2025.
Business highlights
Chairman and chief executive Pat Goepel attributed the performance to broad-based growth across business lines and improving organic growth trends. He also pointed to increasing product attach rates and early momentum from AsureWorks, the company's recently launched workforce management platform. "The launch of AsureWorks has continued its positive trends with a healthy pipeline of deals," Goepel said.
On the distribution side, Asure announced an expanded partnership with Foodservice Restaurant Partners Group's FRPG Restaurant Rewards programme, one of the United States' larger group purchasing organisations. The agreement extends Asure's reach into a network spanning 20 states and approximately 3,000 independent restaurant operators, a segment the company describes as large and underserved within the HCM market.
Third-quarter 2026 revenue guidance was set at $38 million to $40 million, with adjusted EBITDA expected to represent 24% to 25% of revenue.
Market context
The small and mid-market HCM software space is increasingly competitive, with Asure operating alongside larger platforms such as Paylocity, Paycom, and Paychex as well as a growing number of vertical-specific payroll and HR vendors targeting sectors like hospitality and food service. The independent restaurant segment that Asure is targeting through the FRPG partnership is one where legacy payroll providers have historically underinvested, creating a distribution opportunity for nimble cloud-native vendors.
Goepel noted that the company plans to continue advancing its AI capabilities through the second half of 2026. This aligns with a broader trend in the HCM sector, where vendors are embedding generative AI into compliance monitoring, benefits administration and workforce analytics to differentiate on automation depth rather than feature breadth alone. For a company of Asure's scale, AI-driven attach-rate improvements represent one of the more credible near-term margin levers, given the relatively modest additional capital required compared with outright customer acquisition.
The company held cash and equivalents of $19.7 million at 30 June 2026, with $62.2 million in long-term notes payable. Investors will be watching whether improved adjusted EBITDA conversion translates into a narrowing GAAP net loss as amortisation of acquired intangibles gradually rolls off.