Asure Software (ASUR) Stock Forecast & Price Target

Asure Software Inc. demonstrated strong financial performance with total revenue increasing by 28% year-over-year (YOY) on a reported basis and 7% YOY on an organic basis, excluding the impact of the Employee Retention Tax Credit (ERTC) program. Additionally, on an adjusted basis, bookings rose by 21% YOY, reinforcing the company's ability to grow sustainably through its core operations. The firm also reported a healthy sequential increase in cross-selling revenue, which was up 7%, indicating effective strategies to enhance its product offerings among existing customers.

Asure Software Inc. has experienced notable challenges reflected in its financials, including a flat adjusted gross margin of 72.6% in Q2/25, which declined sequentially from 75.4% in Q1/25, indicating waning profitability. The company also reported significant drops in bookings, declining 41% and 53% year-over-year, primarily due to lower performance in large enterprise deals and HR compliance revenue. Additionally, Asure's Q2/25 revenue of $30.1 million fell short of both internal forecasts and consensus estimates, highlighting ongoing issues in organic growth and adverse effects from its acquisition of Lathem, which contributed to declining gross margins.