Accolade (ACCD) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Business evolution and strategy

• Transitioned from a satisfaction-focused advocacy model to a comprehensive platform integrating primary care, specialty care, and partner solutions to improve outcomes and satisfaction.

• Achieved first profitable year in FY25, with fiscal year running March–February.

• Diversified revenue streams through embedded primary care, expert medical opinion, and ecosystem partnerships.

• Focused on self-sustainability and scaling to serve a large national market.

Financial performance and guidance

• Lowered FY25 revenue guidance but maintained EBITDA, prioritizing profitability by reducing marginal spend in virtual primary care.

• Demonstrated strong operating leverage and improved unit economics, with gross margin per incremental dollar increasing.

• Adjusted long-term growth target from 20% to 15% to enable sustainable, profitable growth.

• B2B annual recurring revenue and platform-connected revenues have shown consistent growth.

• Projected 3–4% adjusted EBITDA margin in FY25, with plans to double EBITDA in FY26.

Market trends and customer needs

• Employers face rising healthcare costs, with 8–10% annual trend lines, driving demand for solutions that lower costs and improve outcomes.

• Cancer care and metabolic syndrome, including weight loss drugs, are top concerns for employers.

• Open platform and partnerships address these needs with targeted solutions.