Asure Software (ASUR) Stock Forecast & Price Target

Asure Software Inc demonstrates a strong financial performance, with total revenue increasing by 28% year-over-year (YOY) on a reported basis and 7% YOY on an organic basis, highlighting the company's ability to grow even without considering its participation in the Employee Retention Tax Credit (ERTC) program. The firm has also shown resilience in bookings, with a notable 21% YOY increase in Q3/25 when excluding enterprise deals, showcasing effective sales strategies and product demand. Furthermore, the company’s cross-selling revenue increased 7% sequentially, indicating effective integration of its cloud-based Human Capital Management solutions within existing client accounts.

Asure Software's financial outlook appears negative, primarily due to a significant year-over-year decline in adjusted gross margins, which fell from 73.0% to 70.1% in Q3/25, influenced by the acquisition of Lathem that introduced lower-margin business segments. Additionally, the company's bookings experienced a drastic 41% year-over-year decline attributed to the absence of large enterprise deals that benefited the previous period, indicating a weakening demand for its services. Furthermore, the reported non-GAAP EPS of $0.15 for Q3/25 missed both internal and consensus forecasts, reflecting the adverse impacts of higher interest expenses and an increased tax rate, compounding concerns regarding profitability amidst declining margins and bookings.