Second Quarter 2026
Filed Jul 30, 2026Second Quarter 2026 Revenues of $37.1 Million up 23% year over year; Recurring Revenue of $34.0 Million up 19% year over year
Revenue, recurring revenue, gross profit, EBITDA and adjusted EBITDA all increased from the prior-year quarter, while net loss narrowed. Management also issued Q3 and full-year 2026 revenue guidance and Q3 adjusted EBITDA guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $37.1 million | – | 23% |
| Recurring revenueother | $34.0 million | – | 19% |
| Net lossGAAP | $4.4 million | – | – |
| EBITDAnon-GAAP | $4.6 million | – | – |
| Adjusted EBITDAnon-GAAP | $7.7 million | – | – |
| Gross profitGAAP | $25.1 million | – | – |
| Non-GAAP gross profitnon-GAAP | $27.1 million | – | – |
| Non-GAAP gross profit marginnon-GAAP | 73% | – | – |
| First Half 2026 RevenueGAAP | $79.9 million | – | 23% |
| First Half 2026 Recurring revenueother | $71.7 million | – | 16% |
| First Half 2026 Net lossGAAP | $3.8 million | – | – |
| First Half 2026 EBITDAnon-GAAP | $14.0 million | – | – |
| First Half 2026 Adjusted EBITDAnon-GAAP | $20.1 million | – | – |
| First Half 2026 Gross profitGAAP | $55.5 million | – | – |
| First Half 2026 Non-GAAP gross profitnon-GAAP | $59.4 million | – | – |
| First Half 2026 Non-GAAP gross profit marginnon-GAAP | 74% | – | – |
Q3-2026 and FY-2026 outlook
- RevenueQ3-2026: $ 38.0 M – 40.0 M; FY-2026: $ 159.0 M – 163.0 M
- NoteQ3-2026 Adjusted EBITDA: $ 8.0 M – 10.0 M
- NoteFY-2026 Adjusted EBITDA: 24% – 25%
What drove it
- Management said contributors to second-quarter success were broad based across business lines.
- Management reported improved organic growth and increased gross margins versus the prior-year period.
- Management reported improving product attach rates and a healthy pipeline of AsureWorks® deals.
- The expanded FRPG Restaurant Rewards agreement strengthens distribution within a network spanning 20 states and 3,000 members.
Concerns
- The Company reported a GAAP net loss of $4.4 million for the second quarter and a GAAP net loss of $3.8 million for the first half.
- Management did not provide a reconciliation of GAAP guidance to non-GAAP or adjusted disclosures because it is unable to predict the nature and materiality of non-recurring expenses without unreasonable effort.
- Second-quarter non-GAAP gross profit margin was 73%, unchanged from 73% in the prior-year quarter. First-half non-GAAP gross profit margin was 74%, unchanged from 74% in the prior-year first half.
What to watch
- Execution against Q3-2026 revenue guidance of $ 38.0 M – 40.0 M and adjusted EBITDA guidance of $ 8.0 M – 10.0 M.
- Progress toward FY-2026 revenue guidance of $ 159.0 M – 163.0 M and FY-2026 adjusted EBITDA guidance of 24% – 25%.
- Product attach rates, AI capability advances, sales and marketing efforts, and the AsureWorks® deal pipeline.
- The contribution from expanded distribution through FRPG Restaurant Rewards.
Analysis
Asure reported second-quarter revenue of $37.1 million, up 23% from $30.1 million, while recurring revenue rose 19% to $34.0 million from $28.6 million. Management characterized the quarter's contributors as broad based across business lines and cited improved organic growth. First-half revenue was $79.9 million, up 23% from the prior-year first half, and first-half recurring revenue was $71.7 million, up 16% from the prior-year first half.
Profitability improved in absolute terms. Second-quarter GAAP gross profit was $25.1 million versus $19.9 million, EBITDA was $4.6 million versus $1.4 million, and adjusted EBITDA was $7.7 million versus $5.2 million. The GAAP net loss narrowed to $4.4 million from a net loss of $6.1 million. For the first half, gross profit was $55.5 million versus $44.5 million, EBITDA was $14.0 million versus $5.6 million, adjusted EBITDA was $20.1 million versus $12.6 million, and the net loss narrowed to $3.8 million from a net loss of $8.5 million.
The reported non-GAAP gross-profit margins were stable year over year. Second-quarter non-GAAP gross profit was $27.1 million with a margin of 73%, versus $21.9 million with a margin of 73%. First-half non-GAAP gross profit was $59.4 million with a margin of 74%, versus $48.1 million with a margin of 74%. Management cited increased gross margins versus the prior-year period, but the disclosed non-GAAP gross-profit margin percentages were unchanged in both reported comparisons.
Management highlighted improving product attach rates, continued positive trends for AsureWorks® and a healthy deal pipeline. The expanded FRPG Restaurant Rewards agreement is intended to broaden distribution in an independent restaurant network that spans 20 states and 3,000 members. The Company also identified advancing AI capabilities and sales and marketing efforts as priorities for the second half.
For Q3-2026, Asure guided revenue to $ 38.0 M – 40.0 M and adjusted EBITDA to $ 8.0 M – 10.0 M. For FY-2026, it guided revenue to $ 159.0 M – 163.0 M and adjusted EBITDA to 24% – 25%. The Company did not provide a GAAP-to-non-GAAP reconciliation for its guidance, citing inability to predict the nature and materiality of non-recurring expenses without unreasonable effort.
Management, verbatim
We are very pleased to deliver another solid quarter of revenue growth for the second quarter of 2026 with revenues increasing 23% from a year ago to $37.1 million. The contributors to our success this quarter were broad based across business lines and during the quarter we experienced improved organic growth as well as increased gross margins versus the prior year period. We also continue to experience improving attach rates with our products and the launch of AsureWorks® has continued its positive trends with a healthy pipeline of deals.
Pat Goepel, Chairman and CEO
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 to further our growth trend. Given the investments we have made and the business trends we experienced in the first half of the year, we believe we are in a strong position to achieve our growth and profitability goals for 2026.
Pat Goepel, Chairman and CEO
Not in the filing
stated, not guessed- GAAP and non-GAAP EPS
- GAAP gross margin
- operating income or loss
- sales and marketing expense
- general and administrative expense
- research and development expense
- cash and cash equivalents
- debt
- operating cash flow
- free cash flow
- share repurchases
- dividends
- segment revenue disclosure
- second-quarter revenue prior-quarter comparison
- first-half revenue prior-year dollar amount
- first-half recurring revenue prior-year dollar amount
- prior outlook for comparison
- GAAP-to-non-GAAP reconciliation tables referenced in the release but not included in the provided filing text
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.