Progyny’s third quarter was marked by strong top-line and profitability outperformance, which drew a positive market response. Management attributed these results to robust new client acquisition, the successful addition of over 80 new employer logos, and continued high member engagement. CEO Peter Anevski highlighted the company’s “continued execution” despite macroeconomic headwinds, emphasizing the near 100% renewal rate among existing clients as a critical sign of their market position. The diversification of Progyny’s client base across industries and the growth in covered lives were also called out as essential contributors.
Is now the time to buy PGNY? Find out in our full research report (it’s free for active Edge members).
Progyny (PGNY) Q3 CY2025 Highlights:
- Revenue: $313.3 million vs analyst estimates of $299.3 million (9.3% year-on-year growth, 4.7% beat)
- Adjusted EPS: $0.45 vs analyst estimates of $0.39 (15.4% beat)
- Adjusted EBITDA: $54.97 million vs analyst estimates of $47.11 million (17.5% margin, 16.7% beat)
- Revenue Guidance for Q4 CY2025 is $300.2 million at the midpoint, below analyst estimates of $302.2 million
- Management raised its full-year Adjusted EPS guidance to $1.81 at the midpoint, a 3.7% increase
- EBITDA guidance for Q4 CY2025 is $47.3 million at the midpoint, above analyst estimates of $46.78 million
- Operating Margin: 6.9%, up from 4.3% in the same quarter last year
- Sales Volumes rose 7.2% year on year (-0.6% in the same quarter last year)
- Market Capitalization: $2.08 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Progyny’s Q3 Earnings Call
- Jailendra Singh (Truist Securities) asked if the slightly lower-than-expected number of new covered lives signaled softer demand. President Michael Sturmer responded that the difference was due to a handful of delayed decisions and that overall win rates remained strong.
- Brian Tanquilut (Jefferies) questioned whether recent layoffs among employer clients could impact utilization trends. CEO Peter Anevski answered that layoffs were minimal and not expected to affect overall engagement or financial performance.
- Michael Cherny (Leerink Partners) pressed on the impact of cash drug pricing announcements on Progyny’s pharmacy business. Anevski clarified that such programs have long existed and are unlikely to affect covered benefit pricing or demand from employer clients.
- Scott Schoenhaus (KeyBanc) inquired about the predictability of new client utilization and how the company manages variability. Anevski explained that historical data and plan design inputs allow them to forecast aggregate utilization reliably, even if individual client usage fluctuates.
- David Larsen (BTIG) requested details on the supplemental product for small and midsized businesses. Anevski described it as a robust, covered solution designed for cost predictability, not a cash-based product, and anticipates only modest additional investment to support its rollout.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the initial adoption and revenue contribution of the new supplemental plans for small and midsized employers, (2) the progress of Progyny Global in attracting multinational clients, and (3) the level of upsell activity among existing clients for expanded women’s health offerings. The pace of new client wins and integration of recent acquisitions will also be important indicators of execution.
Progyny currently trades at $23.90, up from $18.02 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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