Progyny Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.56%.
Did PGNY Beat Earnings? Q1 2025 Results
Progyny kicked off 2025 with a stronger-than-expected first quarter, posting adjusted EPS of $0.48 against a consensus estimate of $0.45, a 7.70% beat, while revenue of $324.04 million cleared Wall Street's $307.82 million forecast by 5.27% and grew 16.5% year over year. The primary driver was client base expansion, with the fertility and family building benefits provider growing its roster to 532 clients from 451 a year ago and lifting average covered members to 6.70 million, fueling top-line momentum even as the company absorbs the exit of a large client that did not renew for 2025. Gross margin widened to 23.4% from 22.4%, and adjusted EBITDA climbed 15% to $57.79 million, though increased platform investment and acquisition integration costs kept EBITDA margin slightly lower at 17.8%. On the strength of the quarter, management raised full-year revenue guidance to $1.19 billion to $1.24 billion and lifted adjusted EPS guidance to $1.54 to $1.64, even as executives flagged macroeconomic uncertainty as a potential factor in the year's trajectory.
- Increase in number of clients from 451 to 532 year-over-year
- Covered lives growth from 6,350,000 to 6,695,000 average members
- Organic revenue growth of 19% excluding the large non-renewing client
- ART cycles increased to 16,160 from 14,802 year-over-year
- Gross margin expansion to 23.4% from 22.4%
- Member engagement consistent with historical utilization range
“We're pleased with the strong start to the year, highlighted by both our solid financial results as well as the progress made with our investments to expand the platform and extend our leading position as the solution of choice in women's health and family building.”
Progyny CEO, on the earnings call
Forward Guidance & Outlook
Full Year 2025: Revenue projected at $1.185B–$1.235B (1.5%–5.8% growth), including $44M–$46M from the transitioning large client. Net income projected at $42.4M–$51.8M ($0.46–$0.56 per diluted share). Adjusted EBITDA projected at $190M–$203M. Adjusted EPS projected at $1.54–$1.64. Q2 2025: Revenue projected at $310M–$325M (1.9%–6.9% growth), including $12.7M–$14.7M from the transitioning client. Net income projected at $11.5M–$14.5M ($0.13–$0.16 per diluted share). Adjusted EBITDA projected at $49M–$53M. Adjusted EPS projected at $0.40–$0.43. Management raised full-year guidance due to the strong Q1 start. No contribution from the large departing client is expected in H2 2025. Investment spending on member experience and acquisition integration is expected to ramp in Q2 and continue through year-end.
PGNY YoY Financials
PGNY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.