Progyny, Inc. Announces Third Quarter 2025 Results

Core Insights - Progyny, Inc. reported revenue of $313.3 million for Q3 2025, reflecting a 9.3% growth compared to Q3 2024, driven by an increase in clients and covered lives [1][6] - The company raised its full-year guidance due to strong member engagement and performance in the selling season, which added over 80 new clients and approximately 900,000 new lives [1][18] - Progyny generated a record $156 million in operating cash flow over the first nine months of 2025 and authorized a share repurchase program of up to $200 million [1][3] Financial Performance - Revenue for Q3 2025 was $313.3 million, up from $286.6 million in Q3 2024, marking a 9.3% increase [4][6] - Gross profit increased to $72.8 million, a 23% rise from $59.2 million in the prior year, with a gross margin of 23.2% compared to 20.7% [7][4] - Net income for Q3 2025 was $13.9 million, or $0.15 per diluted share, up from $10.4 million, or $0.11 per diluted share, in Q3 2024 [8][4] - Adjusted EBITDA reached $55.0 million, an 18% increase from $46.5 million in Q3 2024, with an adjusted EBITDA margin of 17.5% [9][4] Client and Market Engagement - The recent selling season resulted in commitments from over 80 new clients, representing approximately 900,000 new lives, with nearly 100% retention of existing clients [3][20] - Progyny's new programs, including pregnancy-postpartum and menopause services, are gaining traction, with over 2.7 million lives expected to access these solutions in 2026 [3][20] - The company had 553 fertility and family building clients as of September 30, 2025, compared to 468 clients a year earlier [12] Cash Flow and Financial Position - Net cash provided by operating activities in Q3 2025 was $50.7 million, compared to $44.5 million in Q3 2024 [10] - As of September 30, 2025, the company had total working capital of approximately $411.5 million and no debt, with cash and cash equivalents totaling $345.2 million [11] - The company entered into a revolving credit facility of up to $200 million, which remains undrawn [11] Financial Outlook - For the full year 2025, revenue is projected to be between $1.263 billion and $1.278 billion, reflecting growth of 8.2% to 9.5% [21] - Net income for the full year is expected to be between $58.5 million and $61.5 million, or $0.65 to $0.68 per diluted share [21] - The fourth quarter revenue is projected to be between $292.7 million and $307.7 million, with a potential increase of 11.5% to 17.2% when excluding revenue from a large client that did not renew its services agreement [21]