Progyny’s first quarter results for 2025 exceeded Wall Street’s revenue and profit expectations, but the market reacted negatively following the announcement. Management attributed the period’s double-digit growth to increased client count and covered lives, as well as continued expansion of channel partnerships. CEO Pete Anevski highlighted shifts in family-building trends, noting, “people are increasingly deferring family building to later in life,” which has driven demand for fertility and women’s health solutions. Despite strong revenue growth, engagement metrics largely returned to historical norms, and the reported growth was also shaped by client transitions and mix effects from the prior year.
Is now the time to buy PGNY? Find out in our full research report (it’s free).
Progyny (PGNY) Q1 CY2025 Highlights:
- Revenue: $324 million vs analyst estimates of $308.7 million (16.5% year-on-year growth, 5% beat)
- Adjusted EPS: $0.48 vs analyst estimates of $0.45 (7.7% beat)
- Adjusted EBITDA: $57.79 million vs analyst estimates of $54.71 million (17.8% margin, 5.6% beat)
- The company slightly lifted its revenue guidance for the full year to $1.21 billion at the midpoint from $1.2 billion
- Management raised its full-year Adjusted EPS guidance to $1.59 at the midpoint, a 1.3% increase
- EBITDA guidance for the full year is $196.5 million at the midpoint, in line with analyst expectations
- Operating Margin: 7.5%, in line with the same quarter last year
- Sales Volumes rose 9.2% year on year (12.4% in the same quarter last year)
- Market Capitalization: $1.88 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 Progyny’s Q1 Earnings Call
- Anne Samuel (JPMorgan) asked about seasonality in utilization, noting guidance implies less of a second-quarter step-up. CEO Pete Anevski replied that guidance reflects uncertainty rather than changes in utilization patterns.
- Jailendra Singh (Truist Securities) questioned whether employers are delaying decisions or pausing RFPs during the sales cycle. President Michael Sturmer said the pipeline remains healthy, and Anevski clarified they are not seeing notable slowdowns or pauses.
- Unidentified Analyst (Leerink Partners) inquired about which new modules are receiving the most interest. Anevski highlighted higher engagement with the menopause product due to its broader addressable audience compared to maternity services.
- David Michael (BTIG) raised concerns about potential tariffs on pharmaceutical inputs and their impact on costs. Anevski stated that tariffs on end-state drugs are not currently expected, and the company would work with partners to mitigate any cost increases.
- Unidentified Analyst (Bank of America) asked about pricing benefits in ART cycles and pharmacy revenue. Anevski confirmed that growth is driven by utilization and engagement rather than price increases, with only modest drug price inflation affecting pharmacy revenue.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace of adoption and upsell of newly launched women’s health modules, (2) whether management can maintain or accelerate client and covered lives growth in a competitive market, and (3) margin performance as investments in product and platform scale up. The evolving regulatory environment around fertility benefits and any macroeconomic shifts will also be important drivers to monitor.
Progyny currently trades at $22, down from $23.37 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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