Progyny, Inc. Announces First Quarter 2025 Results

Core Insights - Progyny, Inc. reported record revenue of $324.0 million for Q1 2025, reflecting a 16.5$278.1 million in Q1 2024, driven by an increase in clients and covered lives [4][5][14] - The company raised its full-year guidance due to a strong start to the year and ongoing demand in women's health and family building solutions [1][16] - Member engagement remains consistent with historical levels, indicating a strong desire for family building among members [3][12] Financial Performance - Revenue for Q1 2025 was $324.0 million, a 16.5$278.1 million in Q1 2024 [4][5] - Gross profit increased by 21% to $75.8 million, with a gross margin of 23.4$15.1 million, or $0.17 per diluted share, compared to$16.9 million, also $0.17 per diluted share, in Q1 2024 [8][34] - Adjusted EBITDA rose 15$57.8 million, with an adjusted EBITDA margin of 17.8%, slightly down from 18.1% in Q1 2024 [9][14] Cash Flow and Financial Position - Net cash provided by operating activities was $49.8 million in Q1 2025, compared to$25.7 million in Q1 2024, attributed to higher profitability [10] - As of March 31, 2025, the company had total working capital of approximately $330.6 million and no debt, with cash and cash equivalents totaling$256.1 million [11] Client Metrics - The company had 532 fertility and family building clients as of March 31, 2025, up from 451 clients a year earlier [12] - Fertility benefit services revenue was $206.4 million, a 22$169.8 million in Q1 2024, while pharmacy benefit services revenue increased by 9% to $117.6 million [14] Guidance and Outlook - For the full year 2025, revenue is projected to be between$1.185 billion and $1.235 billion, reflecting growth of 1.5$310.0 million and $325.0 million, with net income projected between$11.5 million and $14.5 million [20]