Progyny (NASDAQ:PGNY) Reports Upbeat Q3, Stock Soars

Core Insights - Progyny's annualized revenue growth of 10.8% over the last two years is below its five-year trend, but the results are still considered respectable [1] - The company achieved a compounded annual growth rate of 32.6% in sales over the last five years, outperforming the average healthcare company [2] - Progyny has an industry-leading patient satisfaction score of +80, indicating strong customer resonance with its offerings [3] Financial Performance - Progyny reported Q3 CY2025 results with sales up 9.3% year on year to $313.3 million, exceeding Wall Street's revenue expectations by 4.7% [5][7] - The operating margin for Q3 was 6.9%, an increase from 4.3% in the same quarter last year, reflecting improved efficiency [4][10] - The company provided EBITDA guidance for Q4 CY2025 at $47.3 million, above analyst estimates, while revenue guidance of $300.2 million was slightly below expectations [4] Revenue Dynamics - The number of units sold in the latest quarter reached 15,981, with a year-on-year decline of 4.5% over the last two years, indicating that revenue growth was driven by price increases [6] - Analysts expect revenue to grow by 5.5% over the next 12 months, which is a deceleration compared to the previous two years but still above average for the sector [7] Profitability Metrics - Progyny's EPS grew at a compounded annual growth rate of 64.1% over the last five years, indicating improved profitability on a per-share basis [11] - The adjusted EPS for Q3 was reported at $0.45, surpassing analysts' estimates and showing an increase from $0.40 in the same quarter last year [13] Market Reaction - Following the earnings results, Progyny's stock traded up 5.5% to $19.01, reflecting positive market sentiment despite some mixed guidance for the next quarter [14]