{"id":959948,"date":"2026-05-07T16:06:20","date_gmt":"2026-05-07T20:06:20","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/progyny-inc-announces-first-quarter-2026-results\/"},"modified":"2026-05-07T16:06:20","modified_gmt":"2026-05-07T20:06:20","slug":"progyny-inc-announces-first-quarter-2026-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/progyny-inc-announces-first-quarter-2026-results\/","title":{"rendered":"Progyny, Inc. Announces First Quarter 2026 Results"},"content":{"rendered":"
\n

Reports Record First Quarter Revenue of $328.5 Million
Early Selling Season Activity Reflects Robust Demand for Women’s Health and Family Building Solutions
Returned Value to Shareholders Through Repurchase of 8.8 Million Shares to Date Since November<\/p>\n

NEW YORK, May 07, 2026 (GLOBE NEWSWIRE) — Progyny, Inc. (Nasdaq: PGNY) (\u201cProgyny\u201d or the \u201cCompany\u201d), a global leader in women’s health and family building solutions, today announced its financial results for the three-month period ended March 31, 2026 (\u201cthe first quarter of 2026\u201d), as compared to the three-month period ended March 31, 2025 (\u201cthe first quarter of 2025\u201d or \u201cthe prior year period\u201d).<\/p>\n

\u201cWe’re pleased with the strong start to the year, as member engagement trended to the higher end of our expectations, reflecting that people are pursuing the services they need in order to address their family building and overall health and well-being goals,\u201d said Pete Anevski, Chief Executive Officer of Progyny.<\/p>\n

\u201cThe CDC recently reported that, while overall birth rates in the US continued to decline in 2025 – extending a trend that began nearly two decades ago – the only age cohorts to increase were women 30 and over. Women over 30 have been accounting for more than half of all births since 2021, and now comprise their highest proportion of total births ever,\u201d continued Anevski. \u201cThese macro shifts reflect how society has increasingly deferred family building to later in life, when natural conception becomes more difficult for many, thereby increasing the demand for fertility benefits solutions that can cost-effectively address this fundamental need.<\/p>\n

\u201cFor more than a decade, Progyny has been meeting this need with our solutions, which are proven to drive favorable clinical outcomes and overall cost containment for both the employer and the patient. This is just one reason why our programs continue to be a priority for all types of companies. Our current selling season is in its early stages and we’re off to a good start. Activity is healthy, overall pipeline and the early build of new pipeline is substantially favorable versus a year ago, and early commitments are pacing ahead of this time last year, all of which positions us well for this selling season.\u201d<\/p>\n

\u201cThis quarter’s results reflect topline growth, increased gross margin, and a high conversion of Adjusted EBITDA to operating cash flow. During the quarter, we also continued to make our planned investments to further enhance both our platform and the member experience,\u201d said Mark Livingston, Chief Financial Officer of Progyny. \u201cAdditionally, through the share repurchase program that began in November, we returned value to our investors by repurchasing 8.8 million shares.\u201d<\/p>\n

\n First Quarter 2026 Highlights:<\/strong>\n <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
(unaudited; in thousands, except per share amounts)<\/td>\n\n 1Q 2026<\/strong>\n <\/td>\n\u00a0<\/td>\n\n 1Q 2025<\/strong>\n <\/td>\n<\/tr>\n
Revenue<\/td>\n$<\/td>\n328,504<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n324,038<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Gross Profit<\/td>\n$<\/td>\n83,071<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n75,795<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n Gross Margin<\/em>\n <\/td>\n\u00a0<\/td>\n\n 25.3<\/em>\n <\/td>\n\n %<\/em>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\n 23.4<\/em>\n <\/td>\n\n %<\/em>\n <\/td>\n<\/tr>\n
Net Income<\/td>\n$<\/td>\n24,232<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n15,059<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net Income per Diluted Share1<\/sup><\/td>\n$<\/td>\n0.29<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n0.17<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Adjusted Earnings per Diluted Share2<\/sup><\/td>\n$<\/td>\n0.50<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n0.48<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Adjusted EBITDA2<\/sup><\/td>\n$<\/td>\n56,583<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n57,790<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n Adjusted EBITDA Margin<\/em>
\n
\n 2<\/em>
\n <\/sup>\n <\/td>\n		\u00a0<\/td>\n\n 17.2<\/em>\n <\/td>\n\n %<\/em>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\n 17.8<\/em>\n <\/td>\n\n %<\/em>\n <\/td>\n<\/tr>\n<\/table>\n
    \n
  1. Net income per diluted share reflects weighted-average shares outstanding as adjusted for potential dilutive securities, including options, restricted stock units, and shares issuable under the employee stock purchase plan.<\/li>\n
  2. Adjusted Earnings per Diluted Share, Adjusted EBITDA, and Adjusted EBITDA margin are financial measures that are not required by, or presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Please see Annex A of this press release for a reconciliation of Adjusted Earnings per Diluted Share to earnings per share, and Adjusted EBITDA to net income, the most directly comparable financial measures stated in accordance with GAAP for each of the periods presented. We calculate Adjusted Earnings per Diluted Share as net income per diluted share excluding the impact of stock-based compensation, adjusted for the impact of taxes. We calculate Adjusted EBITDA margin as Adjusted EBITDA divided by revenue.<\/li>\n<\/ol>\n

    \n Financial Highlights<\/strong>
    \n
    Revenue was $328.5 million, a 1.4% increase as compared to the $324.0 million reported in the first quarter of 2025, as the increase in our number of clients and covered lives was largely offset by the impact of the previously disclosed large client who did not renew its services 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 first quarter of 2026, and excluding the $31.3 million of revenue from this client in the prior year period, revenue increased 12.2%.<\/p>\n

      \n
    • Fertility benefit services revenue was $209.4 million, a 1.5% increase from the $206.4 million reported in the first quarter of 2025.<\/li>\n
    • Pharmacy benefit services revenue was $119.1 million, a 1.3% increase as compared to the $117.6 million reported in the first quarter of 2025.<\/li>\n<\/ul>\n

      Gross profit was $83.1 million, an increase of 10% from the $75.8 million reported in the first quarter of 2025, reflecting ongoing efficiencies realized in the delivery of our care management services as well as a decrease in stock based compensation expense. Gross margin was 25.3%, as compared to 23.4% reported in the prior year.<\/p>\n

      Net income was $24.2 million, or $0.29 income per diluted share, as compared to the $15.1 million, or $0.17 income per diluted share, reported in the first quarter of 2025. The higher net income was due primarily to the higher operating profit and lower stock based compensation expense, which was partially offset by lower interest and other income, net, as well as a higher provision for income taxes.<\/p>\n

      Adjusted EBITDA was $56.6 million, a decrease of 2.1% as compared to the $57.8 million reported in the first quarter of 2025, as the higher gross profit was more than offset by planned investments to expand the features and functionality of our platform. Adjusted EBITDA margin was 17.2% as compared to the 17.8% Adjusted EBITDA margin in the first quarter of 2025. Refer to Annex A for a reconciliation of Adjusted EBITDA to net income.<\/p>\n

      \n Cash Flow<\/strong>
      \n
      Net cash provided by operating activities in the first quarter of 2026 was $45.9 million, as compared to $49.8 million provided by operating activities in the prior year period. Cash flow reflects the timing impact of certain working capital items in both periods as well as the customary build in accounts receivable in the first quarter of the year as we establish the payment flows for our newest clients.<\/p>\n

      \n Balance Sheet and Financial Position<\/strong>
      \n
      As of March\u00a031, 2026, the Company had total working capital of approximately $265.8 million and no debt. This included cash and cash equivalents and marketable securities of $225.1 million, a decrease of $85.0 million from the balances as of December\u00a031, 2025 due principally to share repurchase activity during the quarter.\u00a0\u00a0 The Company’s $200 million revolving credit facility remains undrawn, and the Company has no planned use for the facility at this time.<\/p>\n

      \n Share Repurchase Activity<\/strong>
      \n
      During the first quarter of 2026, the Company purchased more than 5.5 million shares of its common stock for a total cost of $116.4 million through its November 2025 share repurchase program, which provided for a total authorization of up to $200 million. The Company purchased a cumulative 8.8 million shares of its common stock under the program, and as of March 31, 2026, the program was completed and no amounts remained available for repurchase.<\/p>\n

      The Company’s Board is currently evaluating potential options for a new share repurchase program. We anticipate a decision around the end of May, and the Company expects to make an announcement at that time.<\/p>\n

      \n Key Metrics<\/strong>
      \n
      The Company had 595 fertility and family building clients as of March\u00a031, 2026, as compared to 532 clients as of March\u00a031, 2025.<\/p>\n\n\n\n\n\n\n\n
      \u00a0<\/td>\n\n Three Months Ended<\/strong>
      \n
      \n March 31,<\/strong>\n <\/td>\n<\/tr>\n
      \u00a0<\/td>\n\n 2026<\/strong>\n <\/td>\n\u00a0<\/td>\n\n 2025<\/strong>\n <\/td>\n<\/tr>\n
      Assisted Reproductive Treatment (ART) Cycles(*)<\/sup><\/td>\n15,647<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n16,160<\/td>\n\u00a0<\/td>\n<\/tr>\n
      Utilization – All Members(**)<\/sup><\/td>\n0.56<\/td>\n%<\/td>\n\u00a0<\/td>\n0.54<\/td>\n%<\/td>\n<\/tr>\n
      Utilization – Female Only(**)<\/sup><\/td>\n0.48<\/td>\n%<\/td>\n\u00a0<\/td>\n0.46<\/td>\n%<\/td>\n<\/tr>\n
      Average Members(***)<\/sup><\/td>\n7,185,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n6,695,000<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

      * Represents the number of ART cycles performed, including IVF with a fresh embryo transfer, IVF freeze all cycles\/embryo banking, frozen embryo transfers, and egg freezing. Includes ART cycles performed in the first half of 2025 under the extended transition of care agreement with the large client who did not renew its service agreement.
      ** Represents the member utilization rate for all fertility and family building services, including, but not limited to, ART cycles, initial consultations, IUIs, and genetic testing. The utilization rate for all members includes all unique members (female and male) who utilize the benefit during that period, while the utilization rate for female only includes only unique females who utilize the benefit during that period. For purposes of calculating utilization rates in any given period, the results reflect the number of unique members utilizing the benefit for that period. Individual periods cannot be combined as member treatments may span multiple periods. Utilization for 2025 excludes activity under the extended transition of care agreement that ended June 30, 2025 with the large client who did not renew its service agreement, as only members meeting certain criteria were eligible to use the benefit.
      ***Includes approximately 300,000 members from a single client who are not reflected in utilization as a result of the client’s chosen benefit design. 2025 excludes the limited number of members who were eligible to use the benefit under the extended transition of care agreement that ended June 30, 2025 with the large client who did not renew its service agreement.<\/p>\n

      \n Financial Outlook<\/strong>
      \n
      The majority of the clients that were added in the most recent selling season went live in the first quarter of 2026, with a handful of additional clients expected to launch their benefit in the second quarter. Once all new clients are live in 2026, the Company continues to anticipate having over 600 clients, representing approximately 7.2 million covered lives.<\/p>\n

      As the second quarter begins, member engagement is pacing consistent with the typical seasonal patterns following the start of the year. Given the variability in member engagement experienced in prior periods, as well as the potential for any impact from ongoing macroeconomic uncertainty, the guidance issued today reflects a range of member engagement. The ranges also reflect the impact of the Company’s previously announced investments in member experience.<\/p>\n

      The Company is providing the following financial guidance for both the three-month and full year periods ending June 30, 2026.<\/p>\n