Accolade, Inc.

Revenue for the quarter was $106.4 million, above the top of the guided range. Adjusted EBITDA was well ahead of guidance, helped by early recognized PG revenue, disciplined marketing spend, and some operating expense timing. Free cash flow was approximately $3.1 million, and cash, cash equivalents, and marketable securities totaled more than $234 million at quarter-end. Management reiterated full-year FY2025 revenue guidance of $460 million to $475 million and adjusted EBITDA of positive $15 million to $20 million. For Q3, the company guided to revenue of $104 million to $107 million and adjusted EBITDA loss of $3 million to $5 million.

Rajeev Singh framed the quarter as evidence that Accolade’s healthcare platform vision is resonating, pointing to DeVry as an example of how the company can help customers lower medical trend while expanding services. He stressed that demand is being driven by the broader need for navigation, advocacy, primary care, and expert medical opinion, especially as employers and plans face higher healthcare costs and GLP-1-related complexity. His tone was notably bullish on the market opportunity, the company’s differentiated model, and the team’s execution, while also emphasizing perseverance and a long-term approach.

Steve Barnes said Q2 revenue of $106.4 million and adjusted EBITDA both outperformed expectations, with early PG revenue boosting the quarter. He cited approximately $3.1 million of positive free cash flow, more than $234 million of cash and investments, and a net cash position of more than $23 million relative to convertible notes, adding that net cash improved by nearly $20 million versus a year ago. He also outlined that Q3 EBITDA will be pressured by early PG recognition shifting out of the quarter, while full-year guidance stays intact at $460 million to $475 million of revenue and positive $15 million to $20 million of adjusted EBITDA; he said the company expects around 50% gross margins for the year and reiterated confidence in refinancing or retiring the notes due in April 2026.

Analysts focused on the selling season, retention, pricing pressure, health-plan deployment timing, and the mix of usage-based versus PMPM/PEPM revenues. Management said the pipeline remains strong, most wins are still greenfield, and some competitive takeaways have occurred, including a notable second MD deal and a platform takeaway last quarter. On retention, Rajeev Singh said B2B gross retention should remain around 90% or above, and he argued that prior contract cleanups are largely behind the company. Steve Barnes added that usage-based revenue is about 32% of Q2 revenue and that Q4 typically carries a low-30s share of annual revenue, with more variability tied to launches and usage-based monetization.