Accolade Inc Shares Surge After Q2 2025 Earnings

Shares in Accolade Inc (NASDAQ:ACCD) jumped following the company's fiscal Q2 2025 results, reporting a narrower-than-expected loss and strong margin growth.

During premarket trading on Tuesday, shares rose over 15%, settling around 5% later in the day.

Financial Highlights

• Loss Per Share: Accolade posted a loss of $0.30, outperforming analyst expectations of $0.44.
• Revenue: The company's revenue reached $106.4 million, slightly above the $105 million consensus.
• Adjusted Gross Margin: Improved to 47.3%, up from 44.2% year-over-year, beating estimates of 44.4%.
• Adjusted EBITDA Loss: Reported at $2.8 million, significantly better than the estimated $8.7 million loss, showing a 68% year-over-year improvement.

Future Outlook

For Q3 2025, Accolade anticipates revenue between $104 million and $107 million, missing the average expectation of $110.2 million. The company reaffirmed its fiscal year 2025 revenue guidance of $460 million to $475 million, aligning with consensus projections of $467 million. It expects adjusted EBITDA between $15 million and $20 million, slightly varying from the analyst estimate of $16.1 million.

Rajeev Singh, Accolade's Chairman and CEO, stated, “As we enter the second half of fiscal year 2025, we are well positioned to deliver our first full year of adjusted EBITDA profitability and positive cash flow. Accolade is proving the scalability and profitability of a business model and strategy that is fundamentally designed to improve the lives of millions of people and their families."