Progyny Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.47%.
Did PGNY Beat Earnings? Q3 2025 Results
Progyny delivered a convincingly strong third quarter of 2025, with adjusted earnings per diluted share of $0.45 beating the $0.39 consensus estimate by 15.38% and revenue of $313.35 million topping expectations by 4.72% while rising 9.3% year-over-year. The headline growth figure understates the underlying momentum; stripping out the $32.80 million contribution from a large former client that did not renew for 2025, organic revenue expanded approximately 23%, demonstrating that new client additions and deeper member engagement more than absorbed the known headwind. Fertility benefit services revenue climbed 13% to $201.90 million, gross margin expanded 250 basis points to 23.2%, and adjusted EBITDA grew 18% to $54.97 million. The company's 2025 selling season added over 80 new clients representing roughly 900,000 new covered lives, with near 100% client retention reinforcing the durability of the model. Encouraged by the momentum, Progyny raised its full-year 2025 revenue guidance to $1.26 billion to $1.28 billion and authorized a new $200 million share repurchase program, backed by $345.20 million in cash and no debt.
- Growth in number of clients and covered lives driving revenue increase
- Member engagement and utilization exceeded expectations
- Ongoing efficiencies in care management services delivery expanding gross margins
- 23% revenue growth when excluding impact of large former client non-renewal
- 0.52 ART Cycles per Unique Female Utilizer in Q3, at high end of expected range
- Ongoing focus on revenue cycle management improved DSO by more than 15 days year-over-year
“Our strong results this quarter reflect that members have continued to pursue the care and services they need in order to best address both their family building goals and their overall health, and did so at levels that exceeded our expectations.”
Progyny CEO, on the earnings call
Forward Guidance & Outlook
Progyny raised its full year 2025 guidance. Full year revenue is now projected at $1.263 billion to $1.278 billion, reflecting growth of 8.2% to 9.5% (17.8% to 19.2% excluding the large former client). Full year net income is projected at $58.5 million to $61.5 million ($0.65-$0.68 per diluted share), and adjusted EBITDA of $216.0 million to $220.0 million. For Q4 2025, revenue is projected at $292.7 million to $307.7 million, net income of $12.5 million to $15.5 million ($0.14-$0.17 per diluted share), and adjusted EBITDA of $45.3 million to $49.3 million. Adjusted EPS is guided at $0.37-$0.40 for Q4 and $1.79-$1.82 for full year. The company anticipates over 600 clients and approximately 7.6 million covered lives once all new selling season clients are live in 2026. Member activity continues to remain healthy entering Q4. Full 2026 financial guidance is expected when year-end results are reported in February 2026.
PGNY YoY Financials
PGNY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.