Investing.com -- Shares in Accolade Inc (NASDAQ:ACCD) jumped after the company reported a narrower-than-expected loss and strong margin growth for the fiscal Q2 2025.

The company’s shares jumped more than 15% in premarket trading on Tuesday, but the gains later settled at around 5%.

For the second quarter, Accolade posted a loss per share of $0.30, better than the $0.44 loss per share expected by analysts. Revenue for the period reached $106.4 million, slightly above the consensus estimate of $105 million.

The company's adjusted gross margin improved to 47.3%, up from 44.2% in the same period last year, and ahead of the 44.4% estimate.

Accolade also reported an adjusted EBITDA loss of $2.8 million, a 68% year-over-year improvement, and significantly better than the estimated loss of $8.7 million.

For Q3 2025, Accolade forecasts revenue between $104 million and $107 million, missing the average analyst estimate of $110.2 million.

The company also reaffirmed its FY2025 revenue guidance of $460 million to $475 million, compared to the consensus projection of $467 million.

It still expects adjusted EBITDA between $15 million and $20 million, compared to the analyst estimate of $16.1 million.

“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,” said Rajeev Singh, Accolade Chairman of the Board of Directors and CEO.

“Accolade is proving the scalability and profitability of a business model and strategy that is fundamentally designed to improve the lives of millions of people and their families.”

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