Progyny, Inc.

Progyny reported record quarterly revenue, gross profit, and adjusted EBITDA in Q2. Revenue rose 5.3% on a reported basis and 11% excluding the contribution from a large former client under a transition-of-care agreement in the prior-year period; management did not state Q2 EPS in the prepared remarks. Gross margin expanded 180 basis points year over year, and trailing 12-month adjusted EBITDA margin was 17.2%. For 2026, management guided to revenue of $1.36 billion to $1.385 billion, up 5.5% to 7.5%, or 9.7% to 11.7% excluding $48.5 million of first-half 2025 transition revenue. Full-year adjusted EBITDA is expected to be $233 million to $240 million, with net income of $104.8 million to $109.9 million, EPS of $1.26 to $1.32, and adjusted EPS of $2.04 to $2.10. For Q3, revenue is expected to be $335 million to $345 million, adjusted EBITDA $56 million to $59 million, net income $24.5 million to $26.7 million, EPS $0.30 to $0.33, and adjusted EPS $0.50 to $0.52.

Peter Anevski framed the quarter as evidence of durable execution, saying the company delivered strong growth, record profitability, and continued cash generation. He emphasized that employer demand remains supported by high medical-cost inflation, and said Progyny’s mix of cost control, quality, member satisfaction, and transparent reporting is resonating in the market. He was upbeat on the sales season, saying early commitments are meaningfully ahead of last year and that the company feels well positioned to meet its annual goal of adding 1 million or more new lives.

Mark Livingston focused on the financial discipline behind the results. He said gross margin expanded 180 basis points year over year, adjusted EBITDA margin expanded as well, and trailing 12-month adjusted EBITDA margin was 17.2% even as the company invested in product expansion. He said Q2 operating cash flow again exceeded the company’s 75% conversion target, with over $50 million generated for the fourth time in the last five quarters, and noted $201 million in trailing 12-month operating cash flow, $237 million in cash/cash equivalents/marketable securities, no borrowings on the $200 million revolver, and no debt. He also highlighted share repurchases of nearly 1.2 million shares for $31.5 million in Q2 and 10.8 million shares bought since November, reducing shares outstanding by about 12.5%.

Analysts pressed management on whether the softer summer engagement reflected a new trend or just normal seasonality, and management repeatedly said it was a more pronounced but temporary summer pattern, with visibility improving into September and no sign of a broader change. Questions also focused on pricing and revenue per cycle; management said fertility pricing can be raised modestly with CPI, while pharmacy cost increases are often absorbed to keep clients whole, and the sequential revenue-per-cycle move was explained mainly by normal seasonal mix between consults and ART cycles. Analysts asked about the mix of new logos versus competitive conversions, and management said this year’s activity is more brownfield than greenfield, driven by employer cost pressure and a desire to control medical trend. They also said the new fully insured offering, Progyny Select, is still not expected to be meaningful in 2027 and is mainly a medium- to long-term growth opportunity.