Transcarent
ConvictionContext
B2B2C, and the payer identity is the point: the buyer is the self-insured employer's benefits budget (or a health plan reselling to one), never the provider's IT budget and never a CMS fee schedule. Revenue is recurring per-member-per-month subscription under contracts Accolade described as 'generally three years in length', plus usage-based fees on expert medical opinion and virtual primary care, plus performance-guarantee revenue contingent on delivering measured savings — a fee the employer can withhold. Small direct-to-consumer line (Accolade had 'more than 150,000 consumers subscribed to virtual primary care services through our PlushCare solution' at 30 Nov 2024). No CPT code, no NTAP, no FDA pathway: nothing in the product is a regulated device and nothing in it is reimbursed.
Revenue
Not disclosed for the combined entity — Transcarent has never published a revenue figureand Accolade's reporting obligation ended with its Form 15-12G on 18 Apr 2025. Hard anchors are Accolade's own audited and reviewed numbers: FY2024 $414.292M (FYE 29 Feb 2024), FY2023 $363.142M, FY2022 $310.021M, and $321.887M for the nine months to 30 Nov 2024. Management's December Projections put Q4 FY2025 at $119.8M — implying ~$441.7M for FY2025 (derived; management's own +7.4% assumption implies ~$445.0M instead, a ~$3.3M gap the projections do not reconcile) — and FY2026 at $465.0M, the only forward revenue figure ever disclosed for any part of the combined company and a pre-merger standalone plan superseded by the deal. Transcarent's own standalone revenue has never been disclosed at any vintage.Rev growth
Not disclosed post-mergerthe disclosed trajectory decelerates hard. Accolade grew +17.1% in FY2023 and +14.1% in FY2024, then +11.2% across the nine months to 30 Nov 2024 and only +5.7% in its final reported quarter ($105.061M vs $99.371M — derived). Management's December Projections then assumed +7.4% FY2025 — ~$445.0M, about $3.3M above the ~$441.7M its own Q4 figure implies, and the base off which +4.5% reaches FY2026's $465.0M — then +4.5% FY2026 and ~8% a year to FY2030 (a ~8.3% FY2026E–FY2030E CAGR, derived). For contrast, the two listed companies selling to the same self-insured employer grew +50.6% (Hinge Health, FY2025) and +53.2% (Omada, FY2025) over the same window.Gross margin
Not disclosed for the combined entity. Accolade's stated GAAP gross margin was 38.3%in FY2024 (gross profit $158,799K on $414,292K) and 36.5% in FY2023, with 40.6% for the nine months and 36.9% for the quarter to 30 Nov 2024 — all stated in the filings, not derived. Management's December Projections assumed an adjusted gross margin of 49.7% in FY2025 and a flat 50.0% every year to FY2030, i.e. the plan itself assumed no gross-margin leverage. This is the number that matters most: on the same employer payer, Hinge Health ran 85.6% in H1 2026 and Omada 62.4% in Q1 2026 (derived from SEC XBRL), against the board's layer-5 anchor of 89.1% at Doximity. Navigation sits at the bottom of that ladder because its cost of revenue is a staffed human care team.Op margin
Not disclosedthe disclosed base was deeply loss-making. Accolade's FY2024 operating loss was $114.453M on $414.292M — −27.6% (derived) — and the nine months to 30 Nov 2024 lost $176.507M, of which $96.460M was goodwill impairment, leaving ~−$80.0M or −24.9% ex-impairment (derived). Management's plan forecast positive Adjusted EBITDA of $22.2M in FY2026 (4.8% of revenue, derived) rising to $92.7M by FY2030 — a non-GAAP measure excluding stock compensation, impairment and integration costs, so not an operating margin.Capex intensity
Low and falling. Accolade spent $4.935M on property and equipment plus $7.547M capitalised on softwarein FY2024 — $12.482M, or 3.0% of revenue (derived) — then cut it to $1.037M plus $2.840M across the first nine months of FY2025, ~1.2% (derived). No data centre, no imaging fleet, no clinic estate. The heavy input is not capital but the salaried clinical care team inside cost of revenue, which is the direct reason gross margin sits near 38% rather than near 80%.Valuation
n/aprivate) — no listed equity, so no market capitalisation exists. Last mark Transcarent published itself: $2.2B post-money on the $126M Series D led by General Catalyst and 7wireVentures, 2 May 2024. That is ~5.7% dilution (derived) — a negotiated headline set by a small primary, not a clearing price — and 27 months stale. It also pre-dates the Accolade acquisition, which roughly quintupled the member base and added both a several-hundred-million revenue line and acquisition debt, so it describes neither today's business nor today's balance sheet. The Jan–Apr 2025 acquisition financing (a General Catalyst-led preferred round with 62 Ventures, plus J.P. Morgan-led debt) was announced without an amount or a price. CNBC's 2026 Disruptor 50 profile (19 May 2026) reports $957M raised and a $3B valuation: a data-provider figure carried by CNBC, not an announced priced round, recorded here as reported only.The read
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