PGNY · Progyny, Inc.

Progyny’s Q1 2026 results reflect solid top-line execution amid structural headwinds from the loss of a major client, with revenue growing 1.4% year-over-year to $328.5 million — or 12.2% excluding the $31.3 million contribution from that client in Q1 2025. Gross margin expanded meaningfully to 25.3% (up 190 bps), driven by operational efficiencies in care management delivery and a reduction in stock-based compensation expense. Net income surged 61% to $24.2 million ($0.29 diluted EPS), supported by higher gross profit and lower SBC, partially offset by lower interest income and higher taxes. Adjusted EBITDA declined 2.1% to $56.6 million (17.2% margin), as planned investments to enhance platform functionality more than offset gross profit gains — consistent with management’s stated strategy of prioritizing long-term scalability over near-term margin optimization. The Company completed its $200 million November 2025 share repurchase program, retiring 8.8 million shares total, signaling strong capital discipline and confidence in intrinsic value. Guidance for full-year 2026 reflects continued momentum: revenue outlook of $1.365–$1.405 billion implies 5.9–9.0% growth (or 10.1–13.3% ex-client), while adjusted EBITDA guidance of $232–$244 million suggests modest margin compression versus prior-year levels, likely reflecting sustained investment in member experience and platform capabilities. Management highlighted robust early selling season activity, with new clients launching in Q1 and additional go-lives expected in Q2, positioning Progyny to exceed 600 clients and ~7.2 million covered lives by year-end. The commentary underscores durable demand dynamics — citing CDC data showing rising birth rates among women aged 30+ — reinforcing the secular tailwind for fertility benefits solutions.