Summary

  • Asure reported Q3 revenue of $40.0 million, up 10.4%; management said revenue grew 9% organically and recurring revenue 14% organically.
  • Its $183–$187 million 2027 revenue guide includes a payroll-processing acquisition completed in October. The company did not disclose that business’s revenue contribution.

Analysis

A forecast can absorb an acquisition faster than it can explain one. Asure’s first 2027 outlook folds a newly purchased payroll operation into the same sales range as its existing business, then leaves readers without the acquired revenue line.

The distinction matters because the base business was already growing. Third-quarter revenue reached $40.022 million, up 10.4% from a year earlier. Recurring revenue rose 15.9% to $36.912 million. Management’s organic measures were lower but still healthy: 9% growth in total revenue and 14% in recurring revenue. The quarter ended September 30, before the October acquisition closed, so the purchase did not produce those Q3 figures.

The new business serves mid-market employers in the southeastern United States with cloud HR, payroll and talent tools. Asure says its developed technology will help update some products. The purchase price was $26.5 million: $13.5 million in cash, $10 million in Asure shares and a $3 million note due in April 2028. That is the price paid, not a disclosed measure of the acquired operation’s annual sales.

For 2026, Asure guided to revenue of $162 million–$164 million. Its 2027 range is $183 million–$187 million, and the company says it includes the acquisition. The midpoint moves from $163 million to $185 million, a calculated 13.5% increase. That comparison shows the size of the combined-company plan; it cannot tell how much growth is organic or how much the acquisition adds. The release and quarterly filing provide no standalone revenue or EBITDA contribution for the acquired business.

Asure’s reported net loss narrowed to $604,000 from $5.362 million, while adjusted EBITDA rose to $10.5 million from $8.1 million. The 2027 outlook calls for adjusted EBITDA growth of 26%–28%. That is a much faster earnings-growth target than the midpoint sales increase, but the company has not supplied an acquisition-level bridge connecting the two.

The financing sits beside the deal, not inside its disclosed purchase-price split. Asure also announced a credit facility of up to $115 million and drew $85 million at closing; $62.6 million repaid the previous facility. The filings do not say that this refinancing funded the payroll acquisition. The useful next disclosure is simpler: show acquired revenue and adjusted EBITDA separately, then show how much of the combined guide remains organic.

Sources