Asure Software Targets Growth With Tax Services, Cross-Selling and AsureWorks

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. For 2026, Asure is guiding for revenue of $159 million to $163 million and adjusted EBITDA margins of 24% to 25%. McKillop said approximately 91% of revenue is recurring, while net retention stood at about 98% at the end of 2025. He also said clients typically remain with the company for eight to 10 years. 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 payrol.