2025 Q1 - Quarterly Report

UNITEDSTATESSECURITIESANDEXCHANGECOMMISSION Washington,D.C.20549 FORM10-Q xQUARTERLYREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934 ForthequarterlyperiodendedMay31,2024 OR oTRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934Forthetransitionperiodfromto CommissionFileNumber:001-39348 ACCOLADE,INC. (Exactnameofregistrantasspecifiedinitscharter) Delaware (StateorOtherJurisdictionofIncorporationorOrganization) 1201ThirdAvenue,Suite1700 Seattle,WA98101 (Addressofprincipalexecutiveofficesincludingzipcode) Registrant’stelephonenumber,includingareacode:(206)926-8100SecuritiesregisteredpursuanttoSection12(b)oftheAct: 01-0969591 (I.R.S.EmployerIdentificationNo.) Titleofeachclass Tradingsymbol Nameofeachexchangeonwhichregistered CommonStock,$0.0001parvaluepershare ACCD TheNasdaqStockMarketLLC(TheNasdaqGlobalSelectMarket) Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.YesxNoo IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyeveryInteractiveDataFilerequiredtobesubmittedpursuanttoRule405ofRegulationS-T(§232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitsuchfiles).YesxNoo Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,smallerreportingcompany,oranemerginggrowthcompany.Seethedefinitionsof“largeacceleratedfiler,”“acceleratedfiler,”“smallerreportingcompany,”and“emerginggrowthcompany”inRule12b-2oftheExchangeAct. Largeacceleratedfiler x Acceleratedfiler o Non-acceleratedfiler o Smallerreportingcompany o Emerginggrowthcompany o Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.o Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheExchangeAct).YesoNox AsofJune17,2024,80,008,376sharesoftheregistrant’scommonstockwereoutstanding. ACCOLADE,INC.INDEX PAGENUMBER SpecialNoteRegardingForwardLookingInformation2 PARTIFINANCIALINFORMATION Item1.FinancialStatements(Unaudited) CondensedConsolidatedBalanceSheetsasofMay31,2024andFebruary29,20243 CondensedConsolidatedStatementsofOperationsandComprehensiveLossforthethreemonthsended May31,2024and20234 CondensedConsolidatedStatementsofStockholders’Equity(Deficit)forthethreemonthsendedMay31, 2024and2023 5 CondensedConsolidatedStatementsofCashFlowsforthethreemonthsendedMay31,2024and2023 6 NotestoCondensedConsolidatedFinancialStatements 7 Item2. Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations 21 Item3. QuantitativeandQualitativeDisclosuresAboutMarketRisk 32 Item4. ControlsandProcedures 33 PARTIIOTHERINFORMATIONItem1. LegalProceedings 34 Item1A. RiskFactors 34 Item2. UnregisteredSalesofEquitySecuritiesandUseofProceeds 34 Item3. DefaultsUponSeniorSecurities 34 Item4. MineSafetyDisclosures 34 Item5. OtherInformation 34 Item6. Exhibits 35 1 SPECIALNOTEREGARDINGFORWARD-LOOKINGSTATEMENTS ThisQuarterlyReportonForm10-Qcontainsforward-lookingstatementsaboutusandourindustrythatinvolvesubstantialrisksanduncertainties.AllstatementsotherthanstatementsofhistoricalfactscontainedinthisQuarterlyReportonForm10-Qareforward-lookingstatements.Insomecases,youcanidentifyforward-lookingstatementsbecausetheycontainwordssuchas"anticipate,""believe,""contemplate,""continue,""could,""estimate,""expect,""intend,""may,""plan,""potential,""predict,""project,""should,""target,""will,"or"would"orthenegativeofthesewordsorothersimilartermsorexpressions.Forward-lookingstatementsincludeinformationrelatedtoourfinancialperformanceandpossibleorassumedfutureresultsofoperationsandexpenses,ouroutlook,businessstrategiesandplans,businessenvironment,marketsize,productcapabilities,timingofnewproductreleases,theimpactofourfocusareasandkeyinitiatives,andpotentialfuturegrowth.Forward-lookingstatementsincludeallstatementsthatarenothistoricalfacts. Youshouldnotrelyonforward-lookingstatementsaspredictionsoffutureevents.Wehavebasedtheforward-lookingstatementscontainedinthisQuarterlyReportonForm10-Qprimarilyonourcurrentexpectationsandprojectionsaboutfutureeventsandtrendsthatwebelievemayaffectourbusiness,financialcondition,andoperatingresults.Theoutcomeoftheeventsdescribedintheseforward-lookingstatementsissubjecttorisks,uncertainties,andotherfactorsdescribedinthesectiontitled"RiskFactors"andelsewhereinthisQuarterlyReportonForm10-Q.Moreover,weoperateinaverycompetitiveandrapidlychangingenvironment.Newrisksanduncertaintiesemergefromtimetotime,anditisnotpossibleforustopredictallrisksanduncertaintiesthatcouldhaveanimpactontheforward-lookingstatementscontainedinthisQuarterlyReportonForm10-Q.Theresults,events,andcircumstancesreflected