Accolade Inc. (ACCD), a company specializing in personalized healthcare solutions, delivered a positive surprise in its fiscal second quarter of 2025, exceeding analysts’ expectations. The company reported a 10% increase in revenue, reaching $106.36 million, surpassing the consensus estimate of $105.01 million. This strong revenue performance was accompanied by a narrower adjusted EBITDA loss, which reached $2.83 million compared to $8.76 million in the previous year.
Accolade also demonstrated a significant improvement in adjusted gross profit, which climbed 17% year-over-year to $50.30 million. Furthermore, the company held a healthy cash position, with $234.35 million in cash and cash equivalents as of August 31.
Looking ahead, Accolade expressed confidence in its future prospects, projecting its first full year of adjusted EBITDA profitability and positive cash flow. For the third quarter of fiscal year 2025, the company anticipates revenue between $104 million and $107 million, while expecting an adjusted EBITDA loss of $3 million to $5 million. Accolade also reaffirmed its full-year fiscal 2025 revenue guidance of $460 million to $475 million, aligning with the consensus estimate of $466.97 million. Additionally, the company anticipates an adjusted EBITDA of $15 million to $20 million for the fiscal year.
Despite the positive earnings results, Accolade’s stock has faced significant challenges this year, plunging over 67% year-to-date. This decline can be attributed to analysts lowering their price targets on the stock following the previous two quarterly earnings releases. However, the company’s recent performance and optimistic outlook suggest a potential turnaround.
In pre-market trading on Tuesday, ACCD stock is currently up 0.25% at $3.98, indicating a positive market response to the strong Q2 earnings report. As Accolade continues to execute its growth strategy and deliver on its profitability targets, its stock performance may rebound and reflect the company’s potential within the personalized healthcare market.
