Financial Data and Key Metrics Changes - The company reported Q3 2025 revenues of $36.3 million, a 24% increase compared to Q3 2024 [5][9] - Recurring revenues grew 11% year-over-year to $31.8 million, while professional services and hardware revenue increased to $4.4 million from $0.7 million in the prior year [9][10] - Gross profit for Q3 was $23.1 million, with gross margins at 64%, down from 67% in the prior year [11] - The net loss for Q3 was $5.4 million, compared to a net loss of $3.9 million in the previous year [12] - Adjusted EBITDA increased 49% to $8.1 million, with an adjusted EBITDA margin of 22% [12][14] Business Line Data and Key Metrics Changes - Organic growth improved sequentially to approximately 4% in Q3 from 1% in Q2, with a 7% organic growth rate excluding HRC/ERTC-related churn [10][11] - Bookings for Q3 declined by 41% year-over-year due to large enterprise deals booked in Q3 2024, but were up 21% when excluding those deals [8] Market Data and Key Metrics Changes - The company noted a slight decline in float revenue due to federal funds rate reductions, but anticipated that increasing client fund balances would help offset this [11] - The Federal Reserve cut rates by a quarter point, with expectations for another cut later in the year [11] Company Strategy and Development Direction - The company is focused on integrating acquisitions and enhancing technology, with the recent launch of Asure Central aimed at improving client experience and cross-selling opportunities [6][16] - The company aims for a medium-term revenue target of $180 million to $200 million, with adjusted EBITDA margins exceeding 30% [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving GAAP profitability in Q4 2025 and for the full year 2026, citing strong demand for human capital management products [15][16] - The company anticipates continued organic growth and margin improvement, with a revenue guidance for 2026 between $158 million and $162 million [13][14] Other Important Information - The company plans to participate in several investor conferences in November and December to enhance investor outreach [3][4] - The integration of Latham Time is on schedule, with expectations for significant revenue synergies [39][40] Q&A Session Summary Question: Can you elaborate on the 2026 outlook regarding organic growth? - Management indicated that the balance sheet is strong and they are not modeling extraordinary enhanced organic growth for 2026, focusing instead on existing acquisitions [19][20] Question: What are the drivers behind the improved organic growth? - Management highlighted that attach rates are a key driver, with a 7% sequential increase in cross-sell results [25][50] Question: How is the integration of Latham Time progressing? - The integration is on schedule, with expectations for significant revenue synergies as they bundle offerings [39][40] Question: What is the expected impact of Asure Central on costs and competitive positioning? - Management noted that Asure Central is expected to reduce legacy support costs and enhance competitive positioning through improved client experience [46][66]