Accolade Shares Rise on Reduced Quarterly Loss and Margin Expansion

Shares of Accolade Inc experienced a significant rise following the announcement of its fiscal Q2 2025 financial results, which revealed a narrower-than-expected loss and impressive margin growth.

In premarket trading on Tuesday, the stock surged by more than 15% before stabilizing to a gain of about 5%.

The company reported a loss per share of $0.30 for the second quarter, outperforming analysts’ expectations of a $0.44 loss per share. Revenue for the quarter reached $106.4 million, surpassing the consensus estimate of $105 million.

Accolade’s adjusted gross margin also showed improvement, climbing to 47.3% from 44.2% in the same period the previous year, exceeding the forecast of 44.4%.

In terms of adjusted EBITDA, Accolade recorded a loss of $2.8 million, reflecting a significant 68% improvement year-over-year, and notably better than the anticipated loss of $8.7 million.

Looking ahead to Q3 2025, Accolade projects revenue between $104 million and $107 million, falling short of the average analyst estimate of $110.2 million. However, the company reaffirmed its FY2025 revenue guidance at $460 million to $475 million, slightly above the consensus projection of $467 million. It continues to expect adjusted EBITDA in the range of $15 million to $20 million, compared to the analyst estimate of $16.1 million.

Rajeev Singh, Chairman of the Board and CEO of Accolade, 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 demonstrating the scalability and profitability of a business model designed to improve the lives of millions of people and their families.”