10 Hottest Smid-Cap Stocks So Far In 2025

2. Accolade (NASDAQ:ACCD)

YTD Performance: 101.2%

Accolade (NASDAQ:ACCD) is in the business of personalized healthcare solutions. The company makes most of its revenue from these personalized care and navigation products, which let plan sponsors (like large employers and some health plans) offer a single place for members to figure out their healthcare options, talk to clinicians, and get referrals. That is the big money-maker in their lineup, although they also offer telehealth visits and medical opinion services for various conditions.

Recent updates have drawn plenty of attention. Accolade reported second-quarter 2025 revenue of around $106.4 million, which was a jump of almost 10% year-over-year and slightly above analysts’ estimates. It still posted a net loss of about $23.9 million, but that was a narrower loss than in past quarters. Company leadership says they are on track to reach their first full year of adjusted EBITDA profitability plus positive cash flow in fiscal year 2025, which excited investors. Meanwhile, management reaffirmed its guidance for the rest of the fiscal year, another reason the market has taken a liking to the stock.

There’s also chatter about a potential acquisition by Transcarent. Sources say the two sides reached a deal valued at hundreds of millions, although the exact timing and final terms are not set in stone. In my opinion, the combination of beaten estimates, narrower losses, and talk of a possible acquisition has driven the stock higher this year. Then again, it helps that the company has been trying to control costs and pivot toward the black. A lot can still happen, but Accolade appears to be heading in a positive direction and proving that personalized healthcare might be a big deal in the industry.