Progyny, Inc. Announces Fourth Quarter 2025 Results

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.

* 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 services 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 ending June 30, 2025 with the large client who did not renew its services 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 ending June 30, 2025 with the large client who did not renew its services agreement.

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
    

About Progyny
Progyny (Nasdaq: PGNY) is a global leader in women's health and family building solutions, trusted by the nation's leading employers, health plans and benefit purchasers. We envision a world where everyone can realize their dreams of family and ideal health. Our outcomes prove that comprehensive, inclusive and intentionally designed solutions simultaneously benefit employers, patients, and physicians.

Our benefits solution empowers patients with concierge support, coaching, education, and digital tools; provides access to a premier network of fertility and women's health specialists who use the latest science and technologies; drives optimal clinical outcomes; and reduces healthcare costs.

Headquartered in New York City, Progyny has been recognized for its leadership and growth as a TIME100 Most Influential Company, CNBC Disruptor 50, Modern Healthcare's Best Places to Work in Healthcare, Forbes' Best Employers, Financial Times Fastest Growing Companies, INC. 5000, INC. Power Partners and Crain's Fast 50 for NYC. For more information, visit

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our financial outlook for the first quarter and full year 2026, including the impact of our sales season and client launches; our anticipated number of clients and covered lives for 2026; our expected utilization rates and average revenue per utilizing member; the demand for our solutions; our positioning to successfully manage economic uncertainty on our business; the timing of client decisions; our ability to retain existing clients and acquire new clients; and our business strategy, plans, goals and expectations concerning our market position, future operations, and other financial and operating information. The words“anticipates,”“assumes,”“believe,”“contemplate,”“continues,”“could,”“estimates,”“expects,”“future,”“intends,”“may,”“plans,”“predict,”“potential,”“project,”“seeks,”“should,”“target,”“will,” and the negative of these or similar expressions and phrases are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions.

Forward-looking statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, without limitation, failure to meet our publicly announced guidance or other expectations about our business; competition in the market in which we operate; our history of operating losses and ability to sustain profitability; unfavorable conditions in our industry or the United States economy; our limited operating history and the difficulty in predicting our future results of operations; our ability to attract and retain clients and increase the adoption of services within our client base; the loss of any of our largest client accounts; changes in the technology industry; changes or developments in the health insurance market; negative publicity in the health benefits industry; lags, failures or security breaches in our computer systems or those of our vendors; a significant change in the utilization of our solutions; our ability to offer high-quality support; positive references from our existing clients; our ability to develop and expand our marketing and sales capabilities; the rate of growth of our future revenue; the accuracy of the estimates and assumptions we use to determine the size of target markets; our ability to successfully manage our growth; reductions in employee benefits spending; seasonal fluctuations in our sales; the adoption of new solutions and services by our clients or members; our ability to innovate and develop new offerings; our ability to adapt and respond to the changing medical landscape, regulations, and client needs, requirements or preferences; our ability to maintain and enhance our brand; our ability to attract and retain members of our management team, key employees, or other qualified personnel; risks related to any litigation against us; our ability to maintain our Center of Excellence network of healthcare providers; our strategic relationships with and monitoring of third parties; our ability to maintain our pharmacy distribution network if there is a disruption to our network or its associated supply chains; our relationship with key pharmacy program partners or any decline in rebates provided by them; our ability to maintain our relationships with benefits consultants; exposure to credit risk from our members; risks related to government regulation; risks related to our business with government entities; our ability to protect our intellectual property rights; risks related to acquisitions, strategic investments, or partnerships; federal tax reform and changes to our effective tax rate; the imposition of state and local state taxes; our ability to utilize a portion of our net operating loss or research tax credit carryforwards; our ability to develop or maintain effective internal control over financial reporting; and our ability to adapt and respond to the changing SEC or stakeholder expectations regarding environmental, social and governance practices. For a detailed discussion of these and other risk factors, please refer to our filings with the Securities and Exchange Commission (the“SEC”), including in the section entitled“Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and subsequent reports that we file with the SEC, which are available at and on the SEC's website at.

Forward-looking statements represent our management's beliefs and assumptions only as of the date of this press release. Our actual future results could differ materially from what we expect. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons.

Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release and the accompanying tables include the non-GAAP financial measures Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA margin on incremental revenue and Adjusted earnings per diluted share.

Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA margin on incremental revenue and Adjusted earnings per diluted share are supplemental financial measures that are not required by, or presented in accordance with, GAAP. We believe that these non-GAAP measures, when taken together with our GAAP financial results, provide meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA margin on incremental revenue and Adjusted earnings per diluted share are helpful to our investors as they are measures used by management in assessing the health of our business, determining incentive compensation, evaluating our operating performance, and for internal planning and forecasting purposes.

Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA margin on incremental revenue and Adjusted earnings per diluted share are presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of the limitations of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA margin on incremental revenue and Adjusted earnings per diluted share include: (1) it does not properly reflect capital commitments to be paid in the future; (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures; (3) it does not consider the impact of stock-based compensation expense; (4) it does not reflect other non-operating income and expenses, including interest and other income, net; and (5) it does not reflect tax payments that may represent a reduction in cash available to us. In addition, our non-GAAP measures may not be comparable to similarly titled measures of other companies because they may not calculate such measures in the same manner as we calculate these measures, limiting their usefulness as comparative measures. Because of these limitations, when evaluating our performance, you should consider Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA margin on incremental revenue and Adjusted earnings per diluted share alongside other financial performance measures, including our net income, gross margin, and our other GAAP results.

We calculate Adjusted EBITDA as net income, adjusted to exclude depreciation and amortization; stock-based compensation expense; interest and other income, net; and provision for income taxes. We calculate Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. We calculate Adjusted EBITDA margin on incremental revenue as incremental Adjusted EBITDA in 2025 divided by incremental revenue in 2025. We calculate Adjusted earnings per diluted share as net income per diluted share excluding the impact of stock-based compensation, adjusted for the associated impact of taxes. Please see Annex A:“Reconciliation of GAAP to Non-GAAP Financial Measures” elsewhere in this press release.

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Costs of Services, Gross Margin and Operating Expenses Excluding Stock-Based Compensation Calculation
The following table provides a reconciliation of cost of services, gross profit, sales and marketing, and general and administrative expenses to each of these measures excluding the impact of stock-based compensation expense for each of the periods presented:

Note: percentages shown in the table may not cross foot due to rounding.

Adjusted Earnings Per Diluted Share Calculation
The following table provides a reconciliation of net income to Adjusted Earnings Per Diluted Share for each of the periods presented:

Adjusted EBITDA and Adjusted EBITDA Margin on Incremental Revenue Calculation
The following table provides a reconciliation of Net income to Adjusted EBITDA for each of the periods presented:

^1. Includes impact of $7.7M to Stock based compensation expense in the three- and twelve-month periods ending December 31, 2025 related to the previously disclosed departure of Progyny's president as of December 31, 2025 primarily due to the accelerated vesting of equity awards.

Reconciliation of Non-GAAP Financial Guidance for the Three Months Ending March 31, 2026 and Year Ending December 31, 2026

* All of the numbers in the tables above reflect our future outlook as of the date hereof. Net income, Adjusted Net Income and Adjusted EBITDA ranges do not reflect any estimate for other potential activities and transactions, nor do they contemplate any discrete income tax items, including the income tax impact related to equity compensation activity.

Assisted Reproductive Technology (ART) Cycles per Unique Female Utilizer

The following tables provide historical trend and guidance assumptions for average members, female utilization rate, and ART Cycles per Unique Female Utilizer for the full year and quarterly periods presented:

¹Calculations for 2024, 2025 and 2026 exclude approximately 300,000 members from a single client not reflected in female utilizers as a result of the client's chosen benefit design.
² Calculations exclude activity from a large client whose program discontinued for 2025, but who allowed for an extended period of transition of care for certain members.

Quarterly ART Cycles per Unique Female Utilizer

*Calculations for 2024, 2025 and 2026 exclude approximately 300,000 members from a single client not reflected in female utilizers as a result of the client's chosen benefit design.
E indicates the estimated value assumed.

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