Progyny reported record third-quarter results, beating analyst expectations for both revenue and earnings. The company demonstrated stabilization in utilization trends while concluding its strongest selling season to date, securing record new membership for 2027 and maintaining near 100% client retention.
Key Highlights
- Revenue Growth: Total revenue increased 8.9% year-over-year to $341.3 million, driven by client base expansion and a 6.2% increase in average members.
- Operational Efficiency: Gross margin expanded by 130 basis points to 24.5%, reflecting care management efficiencies and lower stock-based compensation.
- Sales Momentum: The recent selling season yielded a record 1.3 million new covered lives and over 85 new clients, positioning the company for approximately 8.3 million total lives in 2027.
- Capital Allocation: Progyny repurchased approximately 3 million shares for $82.7 million during the quarter, bringing year-to-date repurchases to nearly 11 million shares.
- Guidance Raise: Management raised the midpoint of its full-year 2026 revenue guidance to a range of $1.365 billion to $1.385 billion.