Asure Software's (NASDAQ:ASUR) Q4 CY2025 Sales Beat Estimates, Stock Soars

HR software provider Asure Software (NASDAQ:ASUR) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 27.7% year on year to $39.31 million. The company expects next quarter’s revenue to be around $42 million, close to analysts’ estimates. Its GAAP profit of $0.03 per share was significantly above analysts’ consensus estimates.

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“We are excited to report a strong fourth quarter to finish 2025. Our fourth quarter revenues were up an impressive 28% to $39.3 million versus a year ago and for the year our revenues totaled $140.5 million up 17% year over year. We continued to experience improved attach rates with our products and we believe the recent launch of our Asure Central™ client portal will further accelerate this activity.”

Company Overview

Operating in the often-overlooked smaller metropolitan markets where HR expertise can be scarce, Asure Software (NASDAQ:ASUR) provides cloud-based human capital management software and services that help small and medium-sized businesses manage payroll, taxes, time tracking, and HR compliance.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Asure Software grew its sales at a 16.5% annual rate. Though this growth is acceptable on an absolute basis, we need to see more than just topline growth for the software sector, which can display significant earnings volatility. This means our bar for the sector is particularly high, reflecting the non-essential and hit-driven nature of the products and services offered. Additionally, five-year CAGR starts around Covid, when revenue was depressed then rebounded.

We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. Asure Software’s recent performance shows its demand has slowed as its annualized revenue growth of 8.6% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs.

This quarter, Asure Software reported robust year-on-year revenue growth of 27.7%, and its $39.31 million of revenue topped Wall Street estimates by 1.4%. Company management is currently guiding for a 20.5% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 13.5% over the next 12 months. Although this projection suggests its newer products and services will spur better top-line performance, it is still below the sector average.

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Billings

Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.

Asure Software’s billings came in at $43.49 million in Q4, and over the last four quarters, its growth slightly lagged the sector as it averaged 14.2% year-on-year increases. This alternate topline metric grew slower than total sales, meaning the company recognizes revenue faster than it collects cash - a headwind for its liquidity that could also signal a slowdown in future revenue growth.

Customer Acquisition Efficiency

The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments.

Asure Software is extremely efficient at acquiring new customers, and its CAC payback period checked in at 4.6 months this quarter. The company’s rapid recovery of its customer acquisition costs means it can attempt to spur growth by increasing its sales and marketing investments.

Key Takeaways from Asure Software’s Q4 Results

We were impressed by how significantly Asure Software blew past analysts’ billings expectations this quarter. We were also glad its EBITDA outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 7.6% to $8.37 immediately following the results.

Asure Software had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).