Accessibility StatementSkip Navigation Passenger traffic increased year-over-year in Puerto Rico by 4.6% and in Colombia by 2.7%, and decreased by 1.6% in Mexico. MEXICO CITY, Sept. 8, 2025 /PRNewswire/ -- Grupo Aeroportuario del Sureste, S.A.B. de C.V. (NYSE: ASR; BMV: ASUR), ASUR, a leading international airport group with operations in Mexico, the U.S. and Colombia, today announced that passenger traffic for August 2025 reached a total of 6.0 million passengers, representing an increase of 0.6% compared ...

AUSTIN, Texas, Sept. 03, 2025 (GLOBE NEWSWIRE) -- Asure Software, Inc. (Nasdaq: ASUR), a leading provider of cloud-based Human Capital Management (“HCM”) software solutions, is scheduled to participate at the following financial conferences during September 2025: Lake Street Best Ideas Growth ConferenceDate: Thursday, September 11, 2025Format: In Person 1x1 MeetingsLocation: New York, NY Barrington Research Fall Investment ConferenceDate: Tuesday, September 16, 2025Format: 1x1 MeetingsLocation: Virtual For ...

Passenger Traffic Overview - Passenger traffic in July 2025 reached 6.5 million, a 1.5% increase compared to July 2024 [1] - Year-on-year traffic increased by 3.5% in Colombia and 2.0% in Mexico, while Puerto Rico saw a decrease of 1.9% [2][4] Traffic Breakdown by Region Mexico - Total passenger traffic in Mexico for July 2025 was 3,617,941, up 2.0% from July 2024 [4] - Domestic traffic increased slightly by 0.4% to 1,796,925, while international traffic rose by 3.7% to 1,821,016 [5] - Year-to-date figures show a decline in total traffic by 2.6% to 24,579,607 [4] Puerto Rico - San Juan Airport reported a total of 1,381,674 passengers in July 2025, a decrease of 1.9% from the previous year [7] - Domestic traffic fell by 3.5% to 1,176,500, while international traffic increased by 8.0% to 205,174 [7] Colombia - Colombia's total passenger traffic for July 2025 was 1,511,049, reflecting a 3.5% increase [8] - Domestic traffic rose by 1.2% to 1,131,678, and international traffic surged by 10.7% to 379,371 [8] Year-to-Date Performance - Year-to-date total traffic across all regions showed a slight increase of 0.3% to 42,847,308 [4] - Domestic traffic year-to-date decreased by 0.5% to 26,224,235, while international traffic saw a decline of 1.6% to 16,623,073 [4] Company Profile - Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) operates 16 airports in the Americas, including major airports in Mexico and Colombia [9] - ASUR is listed on both the Mexican Bolsa and the NYSE, with a focus on maintaining and developing airport infrastructure [9]

Core Insights - Asure Software reported a GAAP net loss per share of $(0.22) for Q2 2025, missing the positive earnings estimate of $0.14 per share, despite improvements in underlying recurring revenue and adjusted EBITDA [1][2] - The company raised its full-year revenue guidance due to growth in key product lines and the acquisition of Lathem Time, indicating solid progress in strategic initiatives [1][14] Financial Performance - Q2 2025 revenue was $30.1 million, below the estimate of $31.03 million, with a year-over-year increase of 7% [2][5] - Adjusted EBITDA rose to $5.2 million from $4.1 million in Q2 2024, reflecting a 26.8% increase [2][5] - Recurring revenue reached $28.6 million, accounting for 95% of total revenue, and increased by 6% year-over-year [6][2] Business Overview - Asure Software provides cloud-based human capital management (HCM) and payroll solutions primarily to small and mid-sized businesses in the U.S. [3] - The company focuses on payroll processing, compliance, and related software services, distributed through direct sales and partnerships [3] Strategic Focus - Recent strategies emphasize innovation through product development and automation, including the use of robotic process automation (RPA) and artificial intelligence (AI) [4] - The company aims to grow recurring software subscription revenues and improve product adoption rates among existing customers [4] Recent Developments - The acquisition of Lathem Time, a time and attendance tracking solutions provider, is expected to enhance Asure's scale and recurring revenue base, although its impact will be seen in future quarters [7][14] - The Payroll Tax Management product line was a significant growth driver, supported by increased attach rates and cross-selling efforts [6][10] Outlook - Management increased the full-year 2025 revenue guidance to $138.0–$142.0 million, up from $134.0–$138.0 million, with Q3 2025 revenue projected at $35.0–$37.0 million [14] - Adjusted EBITDA for Q3 2025 is expected to improve to $7.0–$9.0 million, targeting an adjusted EBITDA margin of 22–24% for fiscal 2025 [14]

分组1 - Asure Software Inc (ASUR) reported quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.15 per share, representing an earnings surprise of -40.00% [1] - The company posted revenues of $30.12 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 3.49%, compared to year-ago revenues of $28.04 million [2] - Over the last four quarters, Asure Software has surpassed consensus EPS estimates just once and topped consensus revenue estimates only once [2] 分组2 - The current consensus EPS estimate for the coming quarter is $0.26 on revenues of $33.85 million, and for the current fiscal year, it is $0.90 on revenues of $135.27 million [7] - The Zacks Industry Rank for Internet - Delivery Services is currently in the top 13% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Asure Software's stock performance [5][6]

Financial Data and Key Metrics Changes - The company's second quarter revenues were $30.1 million, an increase of 7% year-over-year, and a 10% increase when excluding ERTC revenue [5][11][13] - Recurring revenues grew 6% year-over-year to $28.6 million, representing 95% of total revenue [13] - Gross profit increased to $19.9 million, with gross margins at 66% compared to 67% in the prior year [18] - Net loss for the quarter was $6.1 million, compared to a net loss of $4.4 million in the prior year [19] - Adjusted EBITDA increased to $5.2 million, with an adjusted EBITDA margin of 17% [19] Business Line Data and Key Metrics Changes - Payroll tax management product continued strong performance, contributing to revenue growth [5][10] - Attach rates for human capital management products improved by 400 basis points year-over-year [10][17] - Bookings for the second quarter declined by 53% year-over-year, but increased by 15% when excluding large enterprise deals from the previous year [11] Market Data and Key Metrics Changes - The company has a contracted revenue backlog of $82 million, up 68% year-over-year, indicating strong future revenue potential [11][25] - The acquisition of Latham Time Corporation is expected to enhance market presence and drive additional high-margin revenue [6][20] Company Strategy and Development Direction - The acquisition of Latham Time Corporation aims to enhance the company's workforce management capabilities and drive payroll sales [6][10] - The company is focused on integrating acquired point solutions to improve client experience and increase attach rates [10][24] - The long-term goal is to achieve adjusted EBITDA margins of over 30% at revenue levels of $180 million to $200 million [24][79] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2025, expecting a reduction in HR compliance-related headwinds [22][49] - The company is budgeting for increased capital spending to integrate acquired solutions and enhance service offerings [23][24] - Management anticipates continued growth in the high teens range for the full year of 2025 [25] Other Important Information - The company is increasing its full-year 2025 revenue guidance to a range of $138 million to $142 million, including the impact of the Latham acquisition [11][21] - The company is modeling for higher interest expenses due to the new debt from the acquisition [20] Q&A Session Summary Question: Update on payroll tax management revenue and large deals - Management confirmed progress in the tax business and noted that some large deals have experienced phased installations but no losses in backlog [27][29][30] Question: Growth rate of Latham's business and revenue expectations - Latham's business has grown at about 10%, and the acquisition is expected to contribute approximately $7 million in revenue for the second half of the year [33][35] Question: Penetration of time and attendance solutions within existing customer base - Management indicated that Latham's client base presents significant cross-sell opportunities, with expectations to increase attach rates [40][41][43] Question: Core payroll unit growth and organic revenue expectations - Management indicated that core payroll units are likely growing closer to 5% when excluding headwinds from HR compliance [47][49] Question: Cost synergies and integration timeline for Latham - Management expects to realize cost synergies over the next 18 months, with Latham contributing positively to adjusted EBITDA [81][84] Question: Future acquisition appetite post-Latham acquisition - Management remains open to further acquisitions but will focus on integrating Latham in the near term [89][90]

Financial Performance & Growth - Asure's Q2 2025 total revenue increased by 7% year-over-year to $30.1 million; excluding ERTC, revenue increased by 10%[13] - FY2025 revenue guidance is between $138 million and $142 million[15, 22] - Asure anticipates an adjusted EBITDA margin of 22%-24% for FY2025[17, 30] - The company has 93% net retention rate[15] Strategic Acquisitions & Business Model - Asure completed the acquisition of Lathem Time Corporation on July 1, 2025, adding scale to the time and attendance business and high-margin recurring revenue[13] - Asure serves over 100,000 clients and facilitates over $10 billion in money movement[15, 17] - The company's revenue model is shifting, with adjusted EBITDA approaching ~30% and operating income approaching ~20% as revenue scales[24] Market Opportunity & Strategy - The US HCM total addressable market (TAM) is projected to reach $90 billion, growing at a CAGR of 7.6% through 2025[38] - Asure's go-to-market strategy includes traditional organic growth, enhanced organic growth through resellers, and strategic inorganic growth via M&A[31, 33] - Approximately 60% of new clients come from trusted advisors like brokers, banks, and CPAs[51]

AUSTIN, TX – July 31, 2025 – Asure Software, Inc. ("we", "us", "our", "Asure" or the "Company") (Nasdaq: ASUR), a leading provider of cloud-based Human Capital Management ("HCM") software solutions, today reported results for the second quarter ended June 30, 2025. Exhibit 99.1 Asure Announces Second Quarter 2025 Results Second Quarter 2025 Total Revenues increased 7% to $30.1 million Recurring Revenues Grew 6% from Prior Year Second Quarter 2025 Financial Highlights First Half 2025 Financial Highlights Rec ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis of the company's financial performance and condition [ITEM 1. FINANCIAL STATEMENTS (Unaudited)](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including the balance sheets, statements of comprehensive loss, statements of changes in stockholders' equity, and statements of cash flows, along with their accompanying notes, for the periods ended June 30, 2025, and December 31, 2024 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased, driven by cash and client funds, while liabilities rose from notes payable and client obligations | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change ($) | Change (%) | | :----------------------------------- | :----------------------------- | :------------------------------- | :--------- | :--------- | | Total Assets | $505,565 | $436,638 | $68,927 | 15.78% | | Cash, cash equivalents, and restricted cash | $66,000 | $21,425 | $44,575 | 208.06% | | Funds held for clients | $213,972 | $192,615 | $21,357 | 11.09% | | Total Liabilities | $311,313 | $239,323 | $71,990 | 30.08% | | Notes payable, net | $67,382 | $12,717 | $54,665 | 430.02% | | Total Stockholders' Equity | $194,252 | $197,315 | $(3,063) | -1.55% | [Condensed Consolidated Statements of Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Net loss increased due to higher operating expenses and a significant rise in interest expense for both periods | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | Total Revenue | $30,124 | $28,044 | $2,080 | 7.42% | | Gross Profit | $19,911 | $18,868 | $1,043 | 5.53% | | Loss from Operations | $(4,652) | $(4,182) | $(470) | 11.24% | | Interest Expense | $(809) | $(208) | $(601) | 288.94% | | Net Loss | $(6,123) | $(4,360) | $(1,763) | 40.44% | | Basic Loss Per Share | $(0.22) | $(0.17) | $(0.05) | 29.41% | | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Total Revenue | $64,978 | $59,696 | $5,282 | 8.85% | | Gross Profit | $44,519 | $41,475 | $3,044 | 7.34% | | Loss from Operations | $(6,667) | $(4,623) | $(2,044) | 44.21% | | Interest Expense | $(1,260) | $(388) | $(872) | 224.74% | | Net Loss | $(8,521) | $(4,668) | $(3,853) | 82.54% | | Basic Loss Per Share | $(0.31) | $(0.18) | $(0.13) | 72.22% | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity slightly decreased due to net loss, partially offset by stock issuance and share-based compensation | Metric (in thousands) | December 31, 2024 | June 30, 2025 | | :-------------------- | :---------------- | :------------ | | Total Stockholders' Equity | $197,315 | $194,252 | | Accumulated Deficit | $(307,226) | $(315,747) | | Additional Paid-in Capital | $504,849 | $509,630 | | Common Stock Outstanding (shares) | 26,671 | 27,365 | - The company issued **451 shares** upon option exercise and vesting of restricted/performance stock units, and **54 shares** through ESPP during the six months ended June 30, 2025, contributing to an increase in additional paid-in capital[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash and equivalents significantly increased, driven by financing activities and new notes payable | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------- | | Net cash provided by (used in) operating activities | $5,151 | $(1,719) | $6,870 | | Net cash used in investing activities | $(17,814) | $(7,359) | $(10,455) | | Net cash provided by (used in) financing activities | $73,097 | $(27,935) | $101,032 | | Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | $60,434 | $(37,013) | $97,447 | | End of period cash, cash equivalents, restricted cash, and restricted cash equivalents | $206,146 | $140,609 | $65,537 | - Financing activities were significantly boosted by **$57,982 (in thousands)** in net proceeds from notes payable (MidCap Loan Agreement) and a **$20,461 (in thousands)** net increase in client fund obligations for the six months ended June 30, 2025[21](index=21&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's operations, accounting policies, financial instruments, assets, liabilities, and key events [NOTE 1 - THE COMPANY AND BASIS OF PRESENTATION](index=9&type=section&id=NOTE%201%20-%20THE%20COMPANY%20AND%20BASIS%20OF%20PRESENTATION) Asure Software, Inc. provides cloud-based HCM SaaS solutions, including payroll and HR, through direct and partner channels - Asure Software, Inc. provides cloud-based Human Capital Management (HCM) software solutions as **Software-as-a-Service (SaaS)**[25](index=25&type=chunk) - Core offerings include **Payroll & Tax filing**, **Recruiting**, **Time & Attendance software**, **HR management tools**, and **Benefits Administration**[25](index=25&type=chunk) - Solutions are delivered directly and through a national network of **Reseller Partners** and **Referral Partners**[25](index=25&type=chunk)[26](index=26&type=chunk) [NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES](index=10&type=section&id=NOTE%202%20-%20SIGNIFICANT%20ACCOUNTING%20POLICIES) The company operates as a single segment, primarily from US payroll services, with key accounting policies on estimates and restricted cash - The company has a **single reportable segment**, primarily generating revenue from **payroll services** in the United States[32](index=32&type=chunk) - As of June 30, 2025, **$40,000 (in thousands)** of restricted cash is held, designated solely for **Permitted Acquisitions** under the Loan Agreement with MidCap Financial Trust[35](index=35&type=chunk) - The FASB issued **ASU No. 2023-09, 'Improvements to Income Tax Disclosures,'** effective for public entities for annual periods beginning after December 15, 2024, which the company is currently evaluating[36](index=36&type=chunk) [NOTE 3 - BUSINESS COMBINATIONS AND ASSET ACQUISITIONS](index=11&type=section&id=NOTE%203%20-%20BUSINESS%20COMBINATIONS%20AND%20ASSET%20ACQUISITIONS) Asure completed four customer relationship acquisitions in H1 2025, following 2024 acquisitions of an applicant tracking company and other assets - During the six months ended June 30, 2025, Asure completed **four customer relationship asset acquisitions** for a total purchase price of **$8,086 (in thousands)**[38](index=38&type=chunk) - Effective July 11, 2024, Asure acquired an **applicant tracking technology company** for **$15,162 (in thousands)**, allocating **$2,700** to customer relationships, **$3,200** to developed technology, and **$8,713** to goodwill[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) - During the year ended December 31, 2024, Asure completed **eleven customer relationship asset acquisitions** for a total purchase price of **$15,202 (in thousands)**[42](index=42&type=chunk) [NOTE 4 - INVESTMENTS AND FAIR VALUE MEASUREMENTS](index=12&type=section&id=NOTE%204%20-%20INVESTMENTS%20AND%20FAIR%20VALUE%20MEASUREMENTS) Financial assets at fair value include money market funds and available-for-sale securities, totaling $77.109 million | Asset Category (in thousands) | June 30, 2025 (Fair Value) | December 31, 2024 (Fair Value) | | :---------------------------- | :------------------------- | :----------------------------- | | Money market funds | $3,283 | $8,105 | | Available-for-sale securities | $73,826 | $68,328 | | Total | $77,109 | $76,433 | - Available-for-sale securities primarily include **corporate debt securities ($66,671 thousand)**, **municipal bonds ($1,957 thousand)**, and **U.S. Government agency securities ($5,198 thousand)** as of June 30, 2025[48](index=48&type=chunk) - Funds held for clients, totaling **$213,972 (in thousands)** as of June 30, 2025, are invested in restricted cash, cash equivalents, and marketable securities to satisfy payroll and payroll tax filing obligations[49](index=49&type=chunk) [NOTE 5 - GOODWILL AND OTHER INTANGIBLE ASSETS](index=14&type=section&id=NOTE%205%20-%20GOODWILL%20AND%20OTHER%20INTANGIBLE%20ASSETS) Goodwill remained constant, while gross intangible assets increased due to acquisitions, with amortization expense totaling $8.481 million | Intangible Asset (in thousands) | December 31, 2024 | Acquisitions | June 30, 2025 | | :------------------------------ | :---------------- | :----------- | :------------ | | Goodwill | $94,724 | $— | $94,724 | | Customer relationships | $148,097 | $9,383 | $157,480 | | Developed technology | $15,201 | $— | $15,201 | | Trade names | $880 | $— | $880 | | Non-compete agreements | $1,032 | $— | $1,032 | | Total Gross Intangible Assets | $165,210 | $9,383 | $174,593 | | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Amortization expenses (operating expenses) | $8,481 | $7,495 | | Amortization expenses (cost of sales) | $420 | $100 | - Future estimated amortization expense for intangible assets is projected to be **$9,024 (in thousands)** for the remainder of 2025 and **$14,974 (in thousands)** for 2026[53](index=53&type=chunk) [NOTE 6 - NOTES PAYABLE](index=15&type=section&id=NOTE%206%20-%20NOTES%20PAYABLE) Gross notes payable significantly increased due to a new $60 million MidCap Loan Agreement, subject to financial covenants | Debt Category (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------------- | :------------ | :---------------- | | Notes Payable – Acquisitions | $11,345 | $9,943 | | Notes Payable – Other | $— | $5,000 | | Notes Payable – MidCap | $60,000 | $— | | Gross Notes Payable | $71,345 | $14,943 | - On April 10, 2025, the company entered into a Loan Agreement with **MidCap Financial Trust** for up to **$60,000 (in thousands)**, all of which was funded by June 30, 2025. The loan matures on **April 1, 2030**, with interest-only payments until **April 1, 2029**[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) - The MidCap loan has an annual interest rate of **Term SOFR plus 5.00% (9.33% as of June 30, 2025)** and requires compliance with a **Total Leverage Ratio (no greater than 5.50 to 1.00)** and a **minimum liquidity threshold (10.00% of outstanding principal)**[61](index=61&type=chunk) [NOTE 7 – CONTRACTS WITH CUSTOMERS AND REVENUE CONCENTRATION](index=17&type=section&id=NOTE%207%20%E2%80%93%20CONTRACTS%20WITH%20CUSTOMERS%20AND%20REVENUE%20CONCENTRATION) Receivables from customer contracts decreased, with significant revenue expected from remaining obligations and no major customer concentration | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Accounts receivable, net | $13,623 | $18,154 | | Contract assets | $2,885 | $1,712 | | Deferred commission costs | $13,317 | $12,351 | - Approximately **$82,390 (in thousands)** of revenue is expected to be recognized from remaining performance obligations as of June 30, 2025, with about **27%** recognized within the next twelve months[68](index=68&type=chunk) - No customer represented more than **10%** of net accounts receivable or consolidated revenue for the periods presented[64](index=64&type=chunk)[69](index=69&type=chunk) [NOTE 8 - COMMITMENTS AND CONTINGENCIES](index=17&type=section&id=NOTE%208%20-%20COMMITMENTS%20AND%20CONTINGENCIES) The company holds operating lease agreements with $6.912 million in minimum payments and no material legal proceedings | Lease Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :----------------------------- | :----------------------------- | | Operating lease cost | $1,054 | $953 | | Net rent expense | $1,054 | $949 | | Future Minimum Lease Payments (in thousands) | Amount | | :------------------------------------------- | :----- | | 2025 (Remaining) | $992 | | 2026 | $1,801 | | 2027 | $1,588 | | 2028 | $1,417 | | 2029 | $879 | | 2030 | $208 | | Thereafter | $27 | | Total minimum lease payments | $6,912 | | Less: imputed interest | $(1,260) | | Total lease liabilities | $5,652 | - As of June 30, 2025, the company was not a party to any **material legal proceedings**[73](index=73&type=chunk) [NOTE 9 - SHARE-BASED COMPENSATION](index=19&type=section&id=NOTE%209%20-%20SHARE-BASED%20COMPENSATION) Share-based compensation expense increased, with 2,428 options, RSUs, and PSUs outstanding, and new PSU grants | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Share-based compensation | $1,891 | $1,488 | $3,754 | $3,390 | - As of June 30, 2025, **2,428 options, restricted stock units (RSUs), and performance stock units (PSUs)** were outstanding under the 2018 Incentive Award Plan, with **2,602 shares** available for future grants[75](index=75&type=chunk) - Effective January 1, 2025, executive officers were granted **PSUs** under the 2018 Plan, convertible to **RSUs** based on **2025 recurring revenue and gross profit performance**[78](index=78&type=chunk) [NOTE 10 - NET LOSS PER SHARE](index=19&type=section&id=NOTE%2010%20-%20NET%20LOSS%20PER%20SHARE) Basic and diluted net loss per share increased to $(0.22) for three months and $(0.31) for six months, driven by higher net loss | Metric (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Loss | $(6,123) | $(4,360) | $(8,521) | $(4,668) |\n| Weighted-average shares outstanding | 27,237 | 25,840 | 27,100 | 25,587 | | Basic and Diluted Loss Per Share | $(0.22) | $(0.17) | $(0.31) | $(0.18) | [NOTE 11 - SEGMENT INFORMATION](index=20&type=section&id=NOTE%2011%20-%20SEGMENT%20INFORMATION) The company operates as a single reportable segment, with the CODM reviewing consolidated net loss for performance and resource allocation - The company operates as a **single reportable segment**, with the Chairman and CEO serving as the **Chief Operating Decision Maker (CODM)**[81](index=81&type=chunk) - The CODM uses **consolidated net loss** to assess financial performance and allocate resources, and does not review assets in evaluating segment results[81](index=81&type=chunk) [NOTE 12 - SUBSEQUENT EVENTS](index=20&type=section&id=NOTE%2012%20-%20SUBSEQUENT%20EVENTS) Asure acquired Lathem Time 2025 LLC for $39.5 million, funded by restricted cash and a promissory note, with subsequent loan amendments - On July 1, 2025, Asure acquired **Lathem Time 2025 LLC** for **$39,500 (in thousands)**, consisting of **$37,500** in restricted cash from the MidCap Loan Agreement and a **$2,000** promissory note[83](index=83&type=chunk) - In July 2025, amendments to the Loan Agreement increased the **minimum liquidity threshold** from **$6,000 (in thousands)** to **$10,000 (in thousands)** and the **final payment fee** from **1.00% to 2.00%** of the advanced amount[85](index=85&type=chunk) - **Lathem Time 2025 LLC** joined the Loan Agreement as a **Guarantor**, and the lenders consented to the Lathem acquisition[85](index=85&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=21&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses financial condition and results, covering revenue, expenses, liquidity, capital, and critical accounting policies [CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS](index=21&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) The report contains forward-looking statements about financial results, operations, and strategy, subject to various risks - The report contains **forward-looking statements** regarding financial results, operations, and strategy, identified by words like 'believe,' 'may,' 'will,' 'estimate,' 'projects,' 'anticipate,' 'intend,' 'expect,' 'should,' and 'plan'[86](index=86&type=chunk) - Risks and uncertainties include **security breaches**, **material weaknesses**, **financial and operating result fluctuations**, **privacy concerns**, **impacts of acquisitions**, **regulatory developments**, and **market volatility**[86](index=86&type=chunk) - The company assumes **no obligation to update** these forward-looking statements, except as required by law[87](index=87&type=chunk) [OVERVIEW](index=22&type=section&id=OVERVIEW) Asure Software, Inc. provides cloud-based HCM SaaS solutions, serving over 100,000 clients, and recently acquired Lathem Time - Asure provides cloud-based **Human Capital Management (HCM) software solutions** as **SaaS**, including **Payroll & Tax filing**, **Recruiting**, **Time & Attendance**, **HR management**, and **Benefits Administration**[90](index=90&type=chunk) - The company serves over **100,000 clients** across the United States, with approximately **20% direct clients** and **80% indirect clients** through reseller partners[92](index=92&type=chunk) - On **July 1, 2025**, Asure acquired **Lathem Time 2025, LLC** to enhance its time and attendance offerings and facilitate cross-selling of its full HCM suite[93](index=93&type=chunk) [RESULTS OF OPERATIONS](index=23&type=section&id=RESULTS%20OF%20OPERATIONS) Total revenue increased, but net loss widened from increased operating expenses and a significant rise in interest expense [Revenue](index=23&type=section&id=Revenue) Total revenue increased by 7-9%, driven by recurring revenue growth, primarily from tax management solutions | Revenue Category (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Variance ($) | Variance (%) | | :------------------------------ | :------------------------------- | :------------------------------- | :----------- | :----------- | | Recurring | $28,596 | $27,051 | $1,545 | 6% | | Professional services, hardware and other | $1,528 | $993 | $535 | 54% | | Total Revenue | $30,124 | $28,044 | $2,080 | 7% | | Revenue Category (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Variance ($) | Variance (%) | | :------------------------------ | :----------------------------- | :----------------------------- | :----------- | :----------- | | Recurring | $61,783 | $57,324 | $4,459 | 8% | | Professional services, hardware and other | $3,195 | $2,372 | $823 | 35% | | Total Revenue | $64,978 | $59,696 | $5,282 | 9% | - Recurring revenue consistently represented over **95% of total revenue** for the three and six months ended June 30, 2025, primarily driven by **tax management solutions**[95](index=95&type=chunk)[100](index=100&type=chunk) [Gross Profit and Gross Margin](index=25&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Consolidated gross profit increased, with gross margin slightly decreasing for three months but remaining flat for six months | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | Gross Profit | $19,911 | $18,868 | $1,043 | 6% | | Gross Margin | 66% | 67% | -1% | | | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Gross Profit | $44,519 | $41,475 | $3,044 | 7% | | Gross Margin | 69% | 69% | 0% | | [Sales and Marketing Expenses](index=25&type=section&id=Sales%20and%20Marketing%20Expenses) Sales and marketing expenses increased by 18-13%, primarily due to higher headcount and referral fees | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | Sales and marketing expenses | $8,149 | $6,924 | $1,225 | 18% | | As % of revenue | 27% | 25% | 2% | | | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Sales and marketing expenses | $16,535 | $14,691 | $1,844 | 13% | | As % of revenue | 25% | 25% | 0% | | - The company expects to continue expanding and increasing selling costs by hiring **direct sales personnel**, enhancing **brand recognition**, and generating **leads**[111](index=111&type=chunk) [General and Administrative Expenses](index=25&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses increased by 8-13%, primarily due to increased personnel compensation and service costs | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | General and administrative expenses | $10,968 | $10,118 | $850 | 8% | | As % of revenue | 36% | 36% | 0% | | | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | General and administrative expenses | $22,868 | $20,181 | $2,687 | 13% | | As % of revenue | 35% | 34% | 1% | | [Research and Development Expenses](index=25&type=section&id=Research%20and%20Development%20Expenses) R&D expenses decreased by 35-11%, primarily due to increased capitalization of software development expenses | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | R&D expenses | $1,273 | $1,962 | $(689) | -35% | | As % of revenue | 4% | 7% | -3% | | | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | R&D expenses | $3,302 | $3,731 | $(429) | -11% | | As % of revenue | 5% | 6% | -1% | | [Amortization of Intangible Assets](index=26&type=section&id=Amortization%20of%20Intangible%20Assets) Amortization expense increased by 3-13%, attributed to the company's ongoing acquisition strategy | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | Amortization expense | $4,173 | $4,046 | $127 | 3% | | As % of revenue | 14% | 14% | 0% | | | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Amortization expense | $8,481 | $7,495 | $986 | 13% | | As % of revenue | 13% | 13% | 0% | | [Interest Income and Expense](index=26&type=section&id=Interest%20Income%20and%20Expense) Interest income remained stable, but interest expense significantly increased due to the new MidCap Loan Agreement | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Interest income | $277 | $261 | $448 | $597 | | Interest expense | $(809) | $(208) | $(1,260) | $(388) | - The significant increase in interest expense for both periods is primarily attributable to the **new Loan Agreement with MidCap Financial Trust**[120](index=120&type=chunk)[121](index=121&type=chunk) [Other (Expense) Income, Net](index=26&type=section&id=Other%20(Expense)%20Income,%20Net) Other (expense) income, net, shifted to a $96 thousand expense for three months and $92 thousand income for six months | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Other (expense) income, net | $(96) | $— | $92 | $10 | [Income Taxes](index=26&type=section&id=Income%20Taxes) Income tax expense significantly increased to $843 thousand for three months and $1.134 million for six months | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income tax expense | $843 | $231 | $1,134 | $264 | [Net Loss](index=27&type=section&id=Net%20Loss) Net loss increased to $6.123 million for three months and $8.521 million for six months, with loss per share rising | Metric (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Loss | $(6,123) | $(4,360) | $(8,521) | $(4,668) | | Loss Per Share | $(0.22) | $(0.17) | $(0.31) | $(0.18) | | Loss as % of Total Revenue | 20% | 16% | 13% | 8% | [LIQUIDITY AND CAPITAL RESOURCES](index=27&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Working capital significantly increased, driven by cash from the MidCap Loan Agreement, with operating and financing activities impacting cash flows | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $66,000 | $21,425 | | Working Capital | $64,268 | $13,641 | | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $5,151 | $(1,719) | | Net cash used in investing activities | $(17,814) | $(7,359) | | Net cash provided by (used in) financing activities | $73,097 | $(27,935) | - The company has access to an **'at the market offering' program**, with **$25,000 (in thousands)** of common stock available for issuance as of June 30, 2025[137](index=137&type=chunk) [CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=28&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) Financial statement preparation involves significant management estimates, with no material changes to critical accounting estimates - The preparation of financial statements involves **significant management estimates and assumptions**[139](index=139&type=chunk) - No **material changes** have occurred to the critical accounting estimates since the 2024 Annual Report on Form 10-K[139](index=139&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=29&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) No material changes to the company's market risk exposure have occurred since the 2024 Annual Report on Form 10-K - No **material changes** to market risk exposure have occurred since the 2024 Annual Report on Form 10-K[140](index=140&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=29&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Disclosure controls were ineffective due to a material weakness in program change management, with remediation efforts underway [Evaluation of Disclosure Control and Procedures](index=29&type=section&id=Evaluation%20of%20Disclosure%20Control%20and%20Procedures) Disclosure controls were deemed ineffective due to a material weakness, though management believes financial statements fairly present the company's condition - As of June 30, 2025, **disclosure controls and procedures were deemed not effective** at the reasonable assurance level[143](index=143&type=chunk) - Management believes the consolidated financial statements **fairly present** the financial condition, results of operations, and cash flows, despite the material weakness[143](index=143&type=chunk) [Identified Material Weakness](index=29&type=section&id=Identified%20Material%20Weakness) A material weakness was identified in program change management controls due to incomplete logs, posing a risk of material misstatement - A **material weakness** was identified as of December 31, 2024, related to ineffective design and operation of controls over **program change management**[145](index=145&type=chunk) - The weakness stemmed from a lack of **complete program and data change logs** for certain financially relevant applications[145](index=145&type=chunk) - This deficiency created a **reasonable possibility** that a material misstatement to the consolidated financial statements would not be prevented or detected on a timely basis[146](index=146&type=chunk) [Status of Remediation](index=29&type=section&id=Status%20of%20Remediation) Automated tracking tools were implemented, but the material weakness is not yet fully remediated pending testing - **Automated tracking tools** were implemented and activated as of **April 29, 2025**, to ensure complete logging of program and data changes[147](index=147&type=chunk) - The material weakness is not considered **fully remediated** until updated controls have operated effectively for a sufficient period and management has confirmed their effectiveness through testing[148](index=148&type=chunk) [Planned Conclusion](index=30&type=section&id=Planned%20Conclusion) The company expects to conclude full remediation of the material weakness in a future reporting period, contingent on sustained testing - The company expects to conclude **full remediation** of the material weakness in a future reporting period, contingent on sustained effective operation and testing of the controls[149](index=149&type=chunk) [Change in Internal Controls over Financial Reporting](index=30&type=section&id=Change%20in%20Internal%20Controls%20over%20Financial%20Reporting) No other material changes in internal control over financial reporting occurred, apart from the identified material weakness and its remediation - No other **material changes** in internal control over financial reporting occurred during the period ended June 30, 2025, apart from the identified material weakness and its remediation[150](index=150&type=chunk) [PART II – OTHER INFORMATION](index=31&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section provides additional information including legal proceedings, risk factors, equity sales, defaults, mine safety, other disclosures, and a list of exhibits [ITEM 1. LEGAL PROCEEDINGS](index=31&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) As of June 30, 2025, the company was not a party to any material legal proceedings, though it may be involved in normal course actions - As of June 30, 2025, the company was not a party to any **material legal proceedings**[153](index=153&type=chunk) [ITEM 1A. RISK FACTORS](index=31&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section updates risk factors, emphasizing risks related to increased indebtedness, restrictive covenants, market volatility, and trade policies - The company's ability to make scheduled payments or refinance existing indebtedness, including the **MidCap Loan Agreement** and subordinated promissory notes, depends on future performance and is subject to economic, financial, and competitive factors[155](index=155&type=chunk) - **Restrictive covenants** in the MidCap Loan Agreement limit the company's ability to incur debt, pay dividends, and use funds (e.g., proceeds are restricted to permitted acquisitions), potentially affecting financial flexibility[156](index=156&type=chunk) - **Volatility in bank and capital markets** may adversely affect credit availability, increase interest and financing costs, and changes in **international trade policies** (e.g., tariffs) could increase the cost of goods sold for Time and Attendance products[158](index=158&type=chunk)[159](index=159&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=32&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) No unregistered sales of equity securities or use of proceeds were reported - No **unregistered sales of equity securities** or use of proceeds were reported[160](index=160&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=32&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) No defaults upon senior securities were reported - No **defaults upon senior securities** were reported[161](index=161&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=32&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) No mine safety disclosures were reported - No **mine safety disclosures** were reported[162](index=162&type=chunk) [ITEM 5. OTHER INFORMATION](index=33&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No directors or officers entered into 10b5-1 trading plans, and the Loan Agreement's minimum liquidity threshold increased to $10 million - No directors or officers entered into, amended, or terminated **10b5-1 trading plans** during the three months ended June 30, 2025[163](index=163&type=chunk) - On **July 31, 2025**, Amendment No. 2 to the Loan Agreement increased the **minimum liquidity threshold** to **$10,000 (in thousands)**[163](index=163&type=chunk) [ITEM 6. EXHIBITS, FINANCIAL STATEMENT SCHEDULES](index=34&type=section&id=ITEM%206.%20EXHIBITS,%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists all exhibits filed, including key agreements and Sarbanes-Oxley Act certifications - Key exhibits include the **Equity Purchase Agreement for Lathem Time 2025, LLC**, and the **Credit, Security and Guaranty Agreement with MidCap Financial Trust**, along with its amendments[164](index=164&type=chunk) - Certifications pursuant to **Sections 302 and 906 of the Sarbanes-Oxley Act of 2002** are also filed/furnished[164](index=164&type=chunk)

Core Insights - Asure Software, Inc. reported a 7% increase in total revenues for Q2 2025, reaching $30.1 million, with recurring revenues growing by 6% year-over-year [1][6][9] - The company completed the acquisition of Lathem Time Corporation for $39.5 million, which is expected to enhance its time and attendance solutions and drive cross-selling opportunities [5][7] Financial Highlights - Q2 2025 total revenue was $30.1 million, up 7% from the prior year, and 10% excluding the impact of Employee Retention Tax Credits (ERTC) [6][9] - Recurring revenue for Q2 2025 was $28.6 million, compared to $27.1 million in Q2 2024 [9] - The net loss for Q2 2025 was $6.1 million, compared to a net loss of $4.4 million in Q2 2024 [9] - Adjusted EBITDA for Q2 2025 was $5.2 million, up from $4.1 million in the prior year [9] Business Developments - The acquisition of Lathem Time Corporation is anticipated to add high-margin recurring revenue and enhance Asure's existing time and attendance business [5][7] - Management expressed confidence in the company's growth trajectory, driven by strong performance in Payroll Tax Management and improved attach rates of HCM products [6][7] Guidance - The company provided guidance for Q3 2025 revenue in the range of $35.0 million to $37.0 million and increased the full-year 2025 revenue range to $138.0 million to $142.0 million [10][11]