Accolade (ACCD) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 revenue was $106.4 million, up 10% year-over-year, with net loss improving 27% to $(23.9) million and adjusted EBITDA loss narrowing 68% to $(2.8) million.

• Adjusted gross profit rose 17% to $50.3 million, and adjusted gross margin increased to 47.3% from 44.2% year-over-year.

• Company expects to achieve its first full year of adjusted EBITDA profitability and positive cash flow in FY25, reaffirming full-year guidance.

• Growth is driven by increased customer count, higher service utilization, and early performance guarantee revenue recognition.

• Focus remains on physician-led advocacy, scalable growth, and platform innovation.

Financial highlights

• Usage-based fee revenue grew 30% year-over-year to $33.7 million in Q2 FY2025; access fee revenue grew 2% to $72.6 million.

• Adjusted EBITDA loss improved to $(2.8) million from $(8.8) million year-over-year.

• Cash, cash equivalents, and marketable securities totaled $234.4 million as of August 31, 2024; cash and cash equivalents at quarter end were $173.3 million.

• Net cash used in operating activities for the first half was $(3.0) million, a significant improvement from $(27.3) million in the prior year.

• Net loss per share for Q2 FY2025 was $(0.30), improved from $(0.43) year-over-year; weighted average shares outstanding were 80.1 million.

Outlook and guidance

• Q3 FY2025 revenue expected between $104 million and $107 million; adjusted EBITDA loss between $3 million and $5 million.

• FY2025 revenue guidance is $460 million to $475 million; adjusted EBITDA expected between $15 million and $20 million.

• Company expects continued revenue growth and margin improvement, with confidence in achieving positive cash flow for the full year.

• Long-term targets include 50–55% adjusted gross margin and 15–20% adjusted EBITDA margin.

• Expectation to double adjusted EBITDA in each of the next two years based on current modeling.