Progyny announced its financial results for the three- and twelve-month periods ended December 31, 2025, compared to the same periods in 2024.

Progyny, Inc. (Nasdaq: PGNY) ("Progyny" or the "Company"), a global leader in women's health and family building solutions, today announced its financial results for the three- and twelve-month periods ended December 31, 2025 ("the fourth quarter of 2025" and "the full year", respectively), as compared to the three- and twelve-month periods ended December 31, 2024 ("the fourth quarter of 2024" and "the prior year period", respectively).

"We're pleased to report that 2025 ended strongly, concluding a record year for Progyny, one in which we achieved our highest ever levels of full year revenue, Adjusted EBITDA, and operating cash flow," said Pete Anevski, Chief Executive Officer of Progyny. "These results reflect how our model provides us with the ability to both expand the business while simultaneously investing for future growth. As 2026 begins, we're excited for the significant opportunities ahead as we continue to expand our presence with large self-insured employers, both in the US and globally, while also launching our newest program for the fully insured market."

"The fourth quarter and full year results reflect strong revenue growth and margin expansion," said Mark Livingston, Progyny's Chief Financial Officer. "Under our latest share repurchase program, we acquired more than 3.3 million shares during the fourth quarter, and approximately 6.5 million shares to date, returning approximately $160 million in capital to our shareholders."

Financial Highlights

4th Quarter

Revenue was $318.4 million, a 6.7% increase as compared to the $298.4 million reported in the fourth quarter of 2024, primarily as a result of the increase in our number of clients and covered lives. As previously disclosed, a large client did not renew its services agreement for 2025, though it provided for an extended transition period over the first half of 2025 for members meeting certain criteria. There was no contribution from this client in the fourth quarter of 2025, and excluding the $35.9 million of revenue from this client in the fourth quarter of 2024, revenue increased 21%.

Fertility benefit services revenue was $208.6 million, an 11% increase from the $187.5 million reported in the fourth quarter of 2024.

Pharmacy benefit services revenue was $109.8 million, a 1.1% decrease as compared to the $111.0 million reported in the fourth quarter of 2024.

Gross profit was $76.9 million, a 21% increase from the $63.4 million reported in the fourth quarter of 2024, primarily due to the higher revenue. Gross margin was 24.1%, as compared to the 21.3% reported in the prior year period primarily due to ongoing efficiencies realized in the delivery of our care management services.

Net income was $12.5 million, or $0.14 income per diluted share, as compared to the $10.5 million, or $0.12 income per diluted share, reported in the fourth quarter of 2024. The higher net income was due primarily to a lower provision for income taxes.

Adjusted EBITDA was $51.4 million, an increase of 8.2% as compared to the $47.5 million reported in the fourth quarter of 2024, as the higher gross profit more than offset increased investments to expand the platform and integrate recent acquisitions. Adjusted EBITDA margin was 16.1% as compared to the 15.9% Adjusted EBITDA margin in the fourth quarter of 2024. Refer to Annex A for a reconciliation of Adjusted EBITDA to net income.

Full Year

Revenue was $1,288.7 million, a 10% increase as compared to the $1,167.2 million reported in the prior year period, primarily as a result of the increase in our number of clients and covered lives. Excluding the $48.5 million and $136.1 million of revenue in 2025 and 2024, respectively, from the client under the previously disclosed transition of care agreement, revenue increased 20%.

Fertility benefit services revenue was $830.9 million, a 14% increase from the $729.6 million reported in the prior year period.

Pharmacy benefit services revenue was $457.7 million, a 4.6% increase as compared to the $437.7 million reported in the prior year period.

Gross profit was $304.5 million, an increase of 20% from the $253.4 million reported in the prior year period, primarily due to the higher revenue. Gross margin was 23.6% as compared to the 21.7% reported in the prior year period primarily due to ongoing efficiencies realized in the delivery of our care management services.

Net income was $58.5 million, or $0.65 income per diluted share, an increase of $4.2 million as compared to the net income of $54.3 million, or $0.57 income per diluted share, reported in the prior year period. The higher net income was due primarily to the higher operating profit, which was partially offset by lower interest and other income, net, and a higher provision for income taxes.

Adjusted EBITDA was $222.1 million, an increase of 12% as compared to the $198.8 million reported in the prior year period. Adjusted EBITDA margin was 17.2%, as compared to the 17.0% Adjusted EBITDA margin in the prior year period. Refer to Annex A for a reconciliation of Adjusted EBITDA to net income, as well as the calculation of Adjusted EBITDA margin on incremental revenue in 2025.

Cash Flow

Net cash provided by operating activities in 2025 was $210.2 million, as compared to $179.1 million provided by operating activities in the prior year period. Net cash provided by operating activities for the fourth quarter of 2025 was $54.2 million, compared to $52.2 million provided by operating activities in the fourth quarter of 2024. Cash flow reflects the timing impact of certain working capital items in both periods.

Balance Sheet and Financial Position

As of December 31, 2025, the Company had total working capital of approximately $349.4 million and no debt. This included cash and cash equivalents and marketable securities of $310.1 million, a decrease of $35.1 million from the balances as of September 30, 2025 due principally to share repurchase activity during the quarter. The Company's $200 million revolving credit facility remains undrawn and the Company has no planned use for the facility at this time.

Share Repurchase Activity

During the fourth quarter of 2025, the Company purchased 3,301,596 shares of its common stock for $83.6 million through its November 2025 share repurchase program, which provided for a total authorization of $200 million. To date, the Company has purchased approximately 6.5 million shares of its common stock in the program, and more than $40 million remains available under the existing authorization.

Key Metrics

The Company had 555 fertility and family building clients as of December 31, 2025, as compared to 473 clients as of December 31, 2024.

Financial Outlook

Substantially all of the clients added in the most recent selling season have already launched their benefit, with a handful expected to do so over the coming months. Once all new clients are live in 2026, the Company anticipates having approximately 600 clients, representing an estimated 7.2 million covered lives.

"As the first quarter begins, member activity continues to remain healthy. Even so, the 2026 guidance ranges we are issuing today reflect the potential for variability in member engagement, which is consistent with the approach we've been following for well over a year," said Mr. Anevski.

The Company is providing the following financial guidance for the full year period ending December 31, 2026 and the three-month period ending March 31, 2026:

Full Year 2026 Outlook:

Revenue is now projected to be $1.355 billion to $1.405 billion, reflecting growth of 5.1% to 9.0%; excluding the $48.5 million of revenue in 2025 from the large client who was under a transition agreement in the first half of 2025, revenue is expected to increase by 9.3% to 13.3%

Net income is projected to be $95.4 million to $106.1 million, or $1.10 to $1.22 per diluted share, on the basis of approximately 87 million assumed weighted-average fully diluted-shares outstanding

Adjusted EBITDA1 is projected to be $224.0 million to $239.0 million

Adjusted earnings per diluted share1 is projected to be $1.83 to $1.95

 

First Quarter of 2026 Outlook:

Revenue is projected to be $319.0 million to $332.0 million, reflecting growth of (1.6)% to 2.5%; excluding the $31.3 million of revenue in 2025 from the large client under a transition agreement, revenue is expected to increase by 9.0% to 13.4%

Net income is projected to be $20.8 million to $23.7 million, or $0.24 to $0.27 per diluted share, on the basis of approximately 87 million assumed weighted-average fully diluted-shares outstanding

Adjusted EBITDA1 is projected to be $51.0 million to $55.0 million

Adjusted earnings per diluted share1 is projected to be $0.42 to $0.45

 

Adjusted EBITDA and Adjusted earnings per diluted share are financial measures that are not required by, or presented in accordance with, GAAP. Please see Annex A of this press release for a reconciliation of forward-looking Adjusted EBITDA to forward-looking net income and Adjusted net income to net income, the most directly comparable financial measures stated in accordance with GAAP, for the period presented.

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