Asure Software (NASDAQ:ASUR) outlined its growth strategy, product expansion and financial targets during an investor presentation, with management emphasizing cross-selling, reseller acquisitions, enterprise payroll-tax services and managed HR offerings as potential growth drivers.
Patrick McKillop, Asure Software’s vice president of investor relations, described the Austin, Texas-based company as a payroll and HR platform for growing businesses. The company said it serves more than 100,000 clients and more than 2 million employees across all 50 states, supported by approximately 641 employees.
Growth Through Products, Sales and Acquisitions
McKillop said Asure has expanded its product suite through acquisitions since 2020. Those deals included a payroll tax-management platform in 2020, PeopleStrategy, an HR and benefits brokerage firm, and recruiting technology provider HireClick in 2024. In July 2025, the company acquired time-and-attendance provider Lathem.
The company’s revenue base includes small- and medium-sized-business payroll clients, which McKillop said account for about 64% of revenue. Enterprise tax services represent about 18%, while indirect HCM platform customers, hardware sales and other acquired businesses comprise the remainder.
Asure sells directly and through a reseller network. The company has more than 120 sales representatives and plans to expand that number to about 150 during the second half of 2026 and into 2027, according to McKillop. In addition to pursuing new customers and cross-selling to existing clients, Asure has acquired roughly 20 resellers during the past 24 months.
McKillop characterized those reseller purchases as buying books of business rather than traditional mergers and acquisitions. Asure generally pays about two times a reseller’s revenue and issues a seller note for the remaining purchase price, he said.
Cross-Selling and Managed Services
The company has consolidated its acquired products under its AsureCentral platform, which provides a single sign-on and presents customers with products they currently use as well as products available for purchase.
In January, Asure introduced AsureWorks, a managed-services offering through which the company performs HR-related work for clients rather than solely providing software tools. McKillop compared the product with a professional employer organization, while noting that AsureWorks does not take ownership of client employees.
He said the service could provide an alternative for small businesses considering an in-house HR hire. As an example, McKillop said a full-time HR representative could cost roughly $125,000 annually, while AsureWorks could potentially provide services at about $50,000 per year.
Asure has also increased the range of products it can sell per customer. McKillop said the company’s maximum per-employee-per-month revenue opportunity increased from about $15 in 2020 to more than $100 in 2026. During the second quarter, the number of clients using two or more products increased about 6%, he said, and the company aims to move the average customer from two products to four or more.
Sales from new customers and existing customers have also become more balanced. McKillop said the split was 53% from new clients and 47% from existing clients at the end of the second quarter, compared with a historical mix of roughly 70% new and 30% existing.
Tax Business, AI and Financial Outlook
McKillop highlighted the company’s payroll tax-management operation as a particularly significant opportunity. He said the business handles tax filing and remittance to federal, state and local agencies, and that Asure is one of three U.S. companies with this capability, alongside ADP MasterTax and Dayforce, formerly Ceridian.
According to McKillop, the tax-management business generated approximately $2 million to $2.5 million in revenue when acquired in 2020 and is now roughly a $25 million business. He said the company believes it could eventually reach $100 million in revenue. The business serves clients including Kroger and Nucor and has partnerships with Workday, Oracle and SAP, he said.
When asked which of cross-selling, AsureWorks and enterprise tax services could be the largest contributor over the next three years, McKillop said all could contribute but identified enterprise tax as having the greatest upside due to limited competition and recent momentum.
The company also discussed its use of artificial intelligence. McKillop said its internally developed AI agent, Luna, can perform more than 50 functions and is used in areas including customer-service sentiment analysis, payroll preparation and employee-document tracking. He said 70% of the company’s new code is generated using tools such as GitHub Copilot and Claude.
For the second quarter of 2026, Asure reported total revenue growth of 23% year over year, recurring-revenue growth of 19%, a $1.7 million improvement in net loss and adjusted EBITDA growth of approximately 48%, according to the presentation. McKillop said organic growth contributed about 5.3 percentage points, reseller acquisitions contributed 3.5 points and strategic acquisitions contributed 14.5 points.
Looking further ahead, management said it expects approximately $18 million of free cash flow in 2026. McKillop said that at a medium-term revenue range of $180 million to $200 million, the company expects profitability to increase, and that adjusted EBITDA margins could exceed 30% at $200 million in revenue.
About Asure Software (NASDAQ:ASUR)
Asure Software, Inc (NASDAQ: ASUR) is a Texas‐based technology company specializing in cloud‐based workforce and workspace management solutions. The company develops software that streamlines human capital management (HCM), payroll processing, time and attendance tracking, and workspace reservation for businesses seeking to optimize employee experience and operational efficiency.
The Asure platform includes modules for payroll administration, benefits enrollment, performance management, applicant tracking and onboarding, as well as mobile and web‐based timekeeping.
