Progyny (PGNY) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 revenue of $324 million, up 16.5–17% year-over-year, driven by growth in fertility benefits and pharmacy solutions, and expanded client base to 532 covering 6.7 million members.

• Adjusted EBITDA rose 15% to $57.8 million, with gross margin improving to 23.4%; net income was $15.1 million, down from $16.9 million due to higher tax provisions and expenses.

• Raised full-year guidance following a strong start and robust early selling season activity, with member engagement and ART cycle consumption consistent with Q1 levels.

• Expanded product portfolio with new maternity, postpartum, menopause, and parent/child well-being programs, and completed the acquisition of Benefit Bump LLC to enhance family benefits offerings.

• Ongoing demand for women's health and family building solutions, with continued diversification across more than 40 industries.

Financial highlights

• Q1 2025 revenue grew 16.5–17% year-over-year to $324 million, with fertility benefits revenue up 22% and pharmacy benefits up 9%.

• Gross profit rose 21% to $75.8 million, with gross margin improving to 23.4% from 22.4% a year ago.

• Adjusted EBITDA increased 15% to $57.8 million, though margin declined to 17.8% due to planned investments.

• Net income was $15.1 million ($0.17 per diluted share), down from $16.9 million due to higher tax provisions.

• Operating cash flow nearly doubled to $49.8–$50 million; cash and equivalents $256 million, no debt.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $1.185–$1.235 billion (1.5–5.8% growth), or 11–15% growth excluding the transitioning client.

• Full-year adjusted EBITDA expected at $190–$203 million; net income $42.4–$51.8 million.

• Q2 2025 revenue projected at $310–$325 million (2–7% growth), with 11–16% growth excluding the transitioning client.

• Guidance reflects investments in member experience, acquisition integration, and wind-down of large client transition.

• Utilization expected at 1.02–1.04%; ART cycles per unique at 0.89–0.91.