Asure Software, Inc. (ASUR): History, Ownership, Mission, How It Works & Makes Money

Asure Software, Inc. (ASUR) is a key player in the Human Capital Management (HCM) space, but with analysts projecting $142.41 million in 2025 revenue, are they just another payroll provider, or a true growth story ready to scale? The company is moving beyond basic HR tools, launching its unified Asure Central platform in Q3 2025 to streamline services for small and medium-sized businesses (SMBs). You need to understand how they plan to convert that 24% year-over-year Q3 revenue growth into consistent profitability-especially given the recent net loss of $5.4 million-before making a defintely informed investment decision.

Asure Software, Inc. (ASUR) History

If you're looking at Asure Software, Inc. (ASUR) today, you need to understand that the company is not a 40-year-old Human Capital Management (HCM) pure-play; it's a decades-long story of a strategic pivot, shedding a complex past to focus sharply on cloud-based payroll and HR for the small-to-midsize business (SMB) market. The key takeaway is that the current, focused business model is a relatively recent, deliberate creation, driven by key divestitures and a strong acquisition strategy that continues into 2025.

The company you see posting $36.25 million in revenue for Q3 2025 is the result of a long, intentional evolution away from its original identity, a process that finally solidified its position as a dedicated HCM solutions provider.

Given Company's Founding Timeline

Year established

The company's lineage begins in 1985, when it was founded under the name Forgent Networks.

Original location

The roots were planted and remain in Austin, Texas, which serves as the headquarters for the current Asure Software.

Founding team members

Details about the original 1985 Forgent team are historical footnotes now, less relevant than the leadership that guided the transformation. The company's modern identity is tied to key executives like Pat Goepel, who serves as Chairman and Chief Executive Officer as of November 2025.

Initial capital/funding

While the initial seed funding from 1985 is obscure, the company went public with an Initial Public Offering (IPO) in 1992. More recently, Asure continues to raise capital to fuel its growth, including a $1.7 million Post IPO funding round completed as recently as October 30, 2025.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The biggest shift in Asure's history wasn't the initial founding, but the calculated, multi-year process of becoming an HCM specialist. This wasn't just a name change; it was a complete overhaul of the business model, moving from a diversified tech company-notorious for patent litigation over the JPEG standard-to a Software-as-a-Service (SaaS) provider. Honestly, that takes guts and defintely clear strategic vision.

This pure-play focus is what drives the current financial health, evidenced by the $61.8 million in recurring revenue reported in the first half of 2025. For a deeper dive into the numbers that resulted from these pivots, you should check out Breaking Down Asure Software, Inc. (ASUR) Financial Health: Key Insights for Investors.

The most transformative decisions boil down to three strategic pillars:

• Divestiture for Focus (2019): Selling the Workspace Management business allowed management to pour all resources into the higher-growth, recurring-revenue HCM segment, improving operational efficiency.
• Acquisition-Led Expansion: A steady stream of strategic acquisitions, like Mangrove Employer Services and the 2025 purchase of Lathem Time, rapidly expanded their product suite (payroll, HR, time) and customer base for SMBs.
• Leaning into AI (2025): The partnership with AWS in March 2025, focusing on generative AI tools like Amazon Q in QuickSight, signals a commitment to future-proofing the platform with advanced predictive analytics.

This strategy is why Q3 2025 Adjusted EBITDA hit $8.11 million, demonstrating that the focus on high-margin, recurring HCM solutions is working.

Asure Software, Inc. (ASUR) Ownership Structure

Asure Software, Inc. (ASUR) is a publicly traded company on the NASDAQ, but its ownership structure is heavily weighted toward institutional investors, who control the majority of the stock and therefore the governance. This means major decisions are defintely influenced by large asset managers like Blackrock and Vanguard, not just individual shareholders.

Given Company's Current Status

Asure Software is a public company traded on the NASDAQ Stock Market under the ticker symbol ASUR. The company is a provider of cloud-based Human Capital Management (HCM) software solutions, primarily serving small and medium-sized businesses.

For the first nine months of the 2025 fiscal year, the company reported total revenues of $101.2 million, an increase of 14% from the prior year. This growth is driven by recurring revenue, which hit $93.6 million over the same period, showing strong subscription-based performance. The company's focus on its core HCM software-as-a-service (SaaS) model is clear, but their negative free cash flow of -$8,861,750 as of November 2025 signals a need for strategic financial management to ensure long-term sustainability.

To understand the strategic direction, you should also review the Mission Statement, Vision, & Core Values of Asure Software, Inc. (ASUR).

Given Company's Ownership Breakdown

Institutional investors hold the dominant stake, which is typical for a mid-cap technology company, but the concentration of insider ownership is still a significant factor in strategic control.

Here's the quick math: Institutional investors control nearly four-fifths of the company, so their collective vote is paramount, but the largest individual shareholder, David Sandberg, still holds a substantial 18.84% of the company's shares, giving him outsized influence.

Given Company's Leadership

The leadership team is seasoned, with an average tenure of five years, which provides stability in a fast-moving Human Capital Management (HCM) software market. The CEO, Patrick Goepel, has been with the company for over 16 years, ensuring long-term vision and consistency.

• Patrick Goepel: Chairman and Chief Executive Officer (CEO). His total yearly compensation is approximately $1.86 million.
• Eyal Goldstein: President and Chief Revenue Officer (CRO).
• John Pence: Chief Financial Officer (CFO), Principal Accounting Officer, and Corporate Secretary.
• Patrick McKillop: Vice President of Investor Relations.
• Yasmine Rodriguez: Senior Vice President and General Manager of Tax & Compliance.

The board of directors is also experienced, with an average tenure of 5.6 years, providing strong governance oversight. This stability is crucial when navigating the complexities of payroll, tax, and compliance for small and medium-sized businesses.

Asure Software, Inc. (ASUR) Mission and Values

Asure Software's core purpose is to simplify the complex world of Human Capital Management (HCM) for small and mid-sized businesses (SMBs), moving beyond just processing payroll. This focus is defintely working, with the company reaffirming its 2025 full-year revenue guidance in the range of $134 million to $138 million.

You're looking for the cultural DNA behind those numbers, and it centers on empowering the client to focus on growth. The company provides the resources necessary to stay compliant with dynamic federal, state, and local tax jurisdictions, which is a huge administrative burden for smaller firms.

Given Company's Core Purpose

Asure Software operates as a pure-play Software-as-a-Service (SaaS) provider, specializing in an integrated Human Capital Management (HCM) platform for SMBs. The entire business model is built around reducing administrative overhead so clients can reallocate financial capital toward business expansion.

Here's the quick math on their impact: recurring revenue, which highlights the stability of their subscription-based model, grew to $28.6 million in Q2 2025. That stability is what helps businesses plan for the long term. If you want a deeper dive into the ownership structure driving this strategy, you should check out Exploring Asure Software, Inc. (ASUR) Investor Profile: Who's Buying and Why?

Official mission statement

The company's formal mission statement is direct and client-focused, emphasizing ease of use and innovation:

• We deliver innovative technology with the passion to empower every client's workplace and a commitment to make each workday easier.

Vision statement

While a single, formal vision statement isn't always public, Asure Software's strategic intent is clear: to be the essential partner that enables SMBs to overcome the complexities of large enterprises-like payroll, taxes, and regulation-and unlock the full potential of their human capital.

• Help customers get to the next level by maximizing the value and productivity of their workforce.
• Provide the most comprehensive, integrated HCM platform for SMBs in the United States.

Given Company slogan/tagline

The most concise tagline used to communicate their value proposition to the market is:

• Payroll, HR, & Peace of Mind.

Also, their broader messaging emphasizes helping companies simplify their workplaces so they can do more, which is a powerful message when you consider the Q3 2025 adjusted operating income of $8.11 million shows their own operational efficiency is improving.

Asure Software, Inc. (ASUR) How It Works

Asure Software, Inc. operates as a cloud-based Human Capital Management (HCM) software provider, offering a unified suite of solutions to help small and medium-sized businesses (SMBs) manage their entire workforce lifecycle from hire to retire. The company simplifies complex processes like payroll, tax compliance, and time management, allowing clients to focus on their core business growth, and honestly, that's where the real value is created.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

Asure's operational model is built on a Software-as-a-Service (SaaS) foundation, which generates highly predictable revenue streams. For the first nine months of 2025, the company reported total revenue of $101.2 million, demonstrating the scale of its subscription base. This model is defintely a key component of their stability.

The core of value creation now centers on the recently launched Asure Central™ platform. This unified experience consolidates disparate HCM functions-like payroll, HR, and recruiting-into one secure, streamlined interface. This standardization reduces engineering complexity and support costs, which directly improves operational efficiency, helping to drive the Q3 2025 Adjusted EBITDA up to $8.1 million.

• Acquisition-Led Expansion: The company uses strategic acquisitions, such as the July 2025 purchase of Lathem Time Corporation, to quickly expand its product depth and client base.
• Cross-Sell Execution: The Lathem acquisition immediately added approximately 14,000 new clients, creating a massive opportunity to cross-sell Asure's core payroll, tax, and HR compliance products.
• Compliance Automation: A significant portion of the operational process involves automated payroll tax management and HR compliance services, often incorporating Artificial Intelligence (AI) to enhance scalability and accuracy for clients.

For a deeper dive into the numbers behind this growth, you should look at Breaking Down Asure Software, Inc. (ASUR) Financial Health: Key Insights for Investors.

Given Company's Strategic Advantages

The most compelling strategic advantage is the stability derived from a high-quality revenue base. Recurring revenue accounted for over 95% of total revenue in the first quarter of 2025, which gives the business significant financial predictability. This recurring nature is a hallmark of a strong SaaS business.

• SMB Focus & Localized Support: Asure has carved a defensible niche by focusing on the SMB market, offering personalized client support through 'Localized Centers of Excellence' that larger competitors often neglect.
• High Contracted Backlog: The contracted revenue backlog was a robust $82 million as of Q2 2025, representing a 68% increase year-over-year, which is a clear indicator of strong future revenue visibility.
• Product Integration & Attach Rate: The strategic integration of acquired products, like Lathem's time clocks, is designed to increase the 'attach rate'-the number of additional services a client uses. This strategy is central to achieving the full-year 2025 revenue guidance of $138 million to $142 million.

Asure Software, Inc. (ASUR) How It Makes Money

Asure Software, Inc. makes money primarily by selling cloud-based Human Capital Management (HCM) software and services on a subscription basis to small and mid-sized businesses (SMBs). This Software-as-a-Service (SaaS) model provides a highly predictable, recurring revenue stream from essential functions like payroll, tax management, and HR compliance.

Asure Software, Inc.'s Revenue Breakdown

In the third quarter of 2025, Asure Software, Inc. reported total revenue of $36.3 million, a 24% increase year-over-year, clearly showing where the company's financial engine gets its fuel.

The core business is that recurring revenue, which hit $31.8 million in Q3 2025. That's the high-margin, sticky money you want to see in a software company, and it's up 11% from the prior year.

The second stream, Professional Services and Hardware, brought in $4.4 million in Q3 2025, a massive jump from $700,000 in the same quarter last year. This surge is defintely tied to the recent acquisition of Lathem Time and the associated hardware sales for time and attendance solutions.

Business Economics

Asure Software, Inc.'s economic model is built on high-retention, subscription-based revenue, plus a valuable financial component called float revenue.

• Subscription Stickiness: The company provides mission-critical services-payroll and tax compliance-which means customer churn (when customers stop using the service) is naturally low. Small and mid-sized businesses don't switch payroll providers easily.
• Cross-Selling (Attach Rates): A key strategy is increasing the 'attach rate,' which is selling additional modules, like time and attendance or HR services, to existing payroll clients. This boosts the per-employee-per-month (PEPM) revenue without the high cost of acquiring a new customer. The launch of the unified platform, Asure Central, is designed to accelerate this cross-selling momentum.
• Float Revenue Dynamics: Asure Software, Inc. earns 'float revenue' by holding customer funds (like payroll and tax money) for a short period before remitting them. This money is invested, and the interest earned is a non-core revenue source. However, this revenue stream is sensitive to interest rate changes; management noted in Q3 2025 that float revenue was slightly down due to anticipated federal funds rate reductions.
• Acquisition Synergy: The July 2025 acquisition of Lathem Time was strategic, not just for the $4.4 million in Q3 hardware and services revenue, but for the long-term cross-selling opportunities it creates in the time and attendance market.

Asure Software, Inc.'s Financial Performance

The company is in a growth phase, prioritizing market share and operational scale, which is why you see a widening GAAP net loss alongside strong growth in adjusted profitability.

• Revenue Trajectory: For the first nine months of 2025, total revenue reached $101.2 million, up 14% year-over-year. Full-year 2025 revenue is projected to be between $139 million and $141 million.
• Adjusted Profitability: Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), a cleaner measure of operational cash flow for a SaaS business, was $8.1 million in Q3 2025, a 49% increase year-over-year. The adjusted EBITDA margin for the quarter was 22%.
• Gross Margin Health: The non-GAAP gross profit margin was a healthy 70% in Q3 2025, though this was down slightly from 73% in the prior year due to the revenue mix shift toward lower-margin, nonrecurring sales from the recent Lathem acquisition. This is a temporary trade-off for long-term growth.
• Net Loss: The GAAP net loss for Q3 2025 was $5.4 million, wider than the $3.9 million loss in the prior year, reflecting ongoing investments in technology and integration to support future scale.

To be fair, the widening GAAP loss is a risk, but the improving adjusted EBITDA and strong recurring revenue growth suggest the underlying business is getting more efficient. Here's the quick math: the nine-month adjusted EBITDA is already $20.7 million. For a deeper dive into the balance sheet and cash flow, you should look at Breaking Down Asure Software, Inc. (ASUR) Financial Health: Key Insights for Investors.

Asure Software, Inc. (ASUR) Market Position & Future Outlook

Asure Software, Inc. is strategically positioned as a high-growth, small-cap player in the fragmented Human Capital Management (HCM) market, focusing on the small and mid-sized business (SMB) segment where it can gain share through product integration and cross-selling. The company is on track for full-year 2025 revenue guidance of $139 million to $141 million, with an adjusted EBITDA margin targeted between 22% and 23%, signaling improving operational leverage as it scales.

The core of its near-term strategy is the successful rollout of the new unified platform, Asure Central, and the integration of its July 2025 acquisition of Lathem Time Corporation. Exploring Asure Software, Inc. (ASUR) Investor Profile: Who's Buying and Why?

Competitive Landscape

In the payroll and HCM software space, Asure Software competes against massive, established players and a host of mid-market specialists. Its focus is on the small business segment, particularly in overlooked smaller metropolitan markets, which is a key differentiator against the enterprise-focused giants.

Here's the quick math: Asure is a small-cap company, and its revenue of roughly $140 million is a tiny fraction of the multi-billion dollar SMB HCM market, but this small size means there's a huge runway for growth if its strategy works.

Opportunities & Challenges

The company's future trajectory hinges on its ability to execute on recent strategic moves while managing the financial strain of growth investments. This is a classic small-cap software dynamic.

Industry Position

Asure Software, Inc. is a niche player, but its position is strengthening through focused acquisitions and platform consolidation. The HCM industry is moving toward unified platforms that integrate payroll, HR, and time-and-attendance, and Asure Central is its answer to this trend.

• The company is prioritizing GAAP profitability by Q4 2025, a critical milestone for a high-growth software-as-a-service (SaaS) company.
• Its contracted revenue backlog is at a record level, up 68% year-over-year, which provides strong visibility into future recurring revenue.
• Analysts show strong support, with a consensus price target suggesting a potential upside of over 66% from the current price.

The real value here is the high-margin recurring revenue, which made up $31.8 million of the $36.3 million Q3 2025 revenue. That's a defintely solid base for future expansion.