Progyny, Inc. (PGNY): Results of Operations and Financial Condition
Progyny, Inc. (PGNY) filed an SEC Form 8-K — Results of Operations and Financial Condition. Progyny, Inc. Announces Second Quarter 2026 Results Reports Record Quarterly Revenue, Gross Profit and Adjusted EBITDA Robust Selling Season Activity Continues to Reflect Strong Demand for Women's Health, Family Building Solutions Value Returned to Shareholders Through the Repurc
How this was made
The 30-second read
Why it matters
Key disclosed items include record quarterly revenue, gross margin expansion, higher net income and adjusted EBITDA, a no-debt balance sheet, and continued share repurchases under an authorization.
Market read
Traders can update models immediately using the disclosed quarterly financials, margin trajectory, cash position, and the pace of share repurchases.
What to watch
Renewal risk is described as reduced for largest accounts, but the text also references a large non-renewing client in the prior year, so investors may focus on sustainability of client retention and utilization trends.
Reports Record Quarterly Revenue, Gross Profit and Adjusted EBITDA
Revenue increased 5.3%, gross margin expanded to 25.5% from 23.7%, and net income increased to $28,052 from $17,112. Results also included lower quarterly operating cash flow and modest pharmacy benefit services revenue growth.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $350,511 | – | 5.3% |
| Gross ProfitGAAP | $89,301 | – | 13% |
| Gross MarginGAAP | 25.5% | – | – |
| Net IncomeGAAP | $28,052 | – | – |
| Net Income per Diluted ShareGAAP | $0.34 | – | – |
| Adjusted Earnings per Diluted Sharenon-GAAP | $0.55 | – | – |
| Adjusted EBITDAnon-GAAP | $62,104 | – | 7.2% |
| Adjusted EBITDA Marginnon-GAAP | 17.7% | – | – |
| Net cash provided by operating activitiesGAAP | $50.4 million | – | – |
| Trailing Twelve-Month Operating Cash FlowGAAP | $201,248 | – | – |
| Fertility and family building clientsother | 604 | – | – |
| Assisted Reproductive Treatment (ART) Cycles, Three Months Ended June 30other | 16,998 | – | – |
| Utilization - All Members, Three Months Ended June 30other | 0.56% | – | – |
| Utilization - Female Only, Three Months Ended June 30other | 0.49% | – | – |
| Average Members, Three Months Ended June 30other | 7,185,000 | – | – |
| Assisted Reproductive Treatment (ART) Cycles, Six Months Ended June 30other | 32,645 | – | – |
| Utilization - All Members, Six Months Ended June 30other | 0.85% | – | – |
| Utilization - Female Only, Six Months Ended June 30other | 0.71% | – | – |
| Average Members, Six Months Ended June 30other | 7,176,000 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Fertility benefit services revenueIncrease from the $213.9 million reported in the second quarter of 2025. | $230.2 million | – | 7.6% |
| Pharmacy benefit services revenueIncrease as compared to the $118.9 million reported in the second quarter of 2025. | $120.3 million | – | 1.2% |
Full Year 2026 and Third Quarter of 2026 outlook
- RevenueFull Year 2026: $1.360 billion to $1.385 billion, reflecting growth of 5.5% to 7.5%; excluding the $48.5 million of revenue in 2025 from the large client who was under a transition agreement in the first half of 2025, revenue is expected to increase by 9.7% to 11.7%. Third Quarter of 2026: $335.0 million to $345.0 million, reflecting growth of 6.9% to 10.1%.
- NoteFull Year 2026 net income: $104.8 million to $109.9 million, or $1.26 to $1.32 per diluted share, on the basis of approximately 83 million assumed weighted-average fully diluted-shares outstanding.
- NoteFull Year 2026 Adjusted EBITDA: $233.0 million to $240.0 million.
- NoteFull Year 2026 adjusted earnings per diluted share: $2.04 to $2.10.
- NoteThird Quarter of 2026 net income: $24.5 million to $26.7 million, or $0.30 to $0.33 per diluted share, on the basis of approximately 82 million assumed weighted-average fully diluted-shares outstanding.
- NoteThird Quarter of 2026 Adjusted EBITDA: $56.0 million to $59.0 million.
- NoteThird Quarter of 2026 adjusted earnings per diluted share: $0.50 to $0.52.
Capital returns
- During the second quarter of 2026, the Company repurchased nearly 1.2 million shares of its common stock for a total cost of $31.5 million through its May 2026 share repurchase program.
- To date, the Company has repurchased a cumulative 2 million shares of its common stock under this most recent program.
- Approximately $142.5 million remains under the existing authorization.
- The Company has repurchased an aggregate 10.8 million shares under both its May 2026 and November 2025 share repurchase programs.
What drove it
- The increase in the number of clients and covered lives was partially offset by the impact of the previously disclosed large client who did not renew its services for 2025.
- Excluding the $17.2 million of revenue from the large client in the second quarter of 2025, revenue increased 11.0%.
- Gross profit reflected ongoing efficiencies realized in the delivery of care management services and a decrease in stock-based compensation expense.
- Higher net income was due primarily to higher operating profit and lower stock-based compensation expense.
- Adjusted EBITDA growth reflected higher gross profit, partially offset by planned investments to expand the features and functionality of the platform.
Concerns
- Pharmacy benefit services revenue increased 1.2%.
- Net cash provided by operating activities was lower than the prior year period, reflecting the timing impact of certain working capital items in both periods.
- Higher operating profit and lower stock-based compensation expense were partially offset by lower interest and other income, net, and a higher provision for income taxes.
- Member engagement typically lessens during the peak of the summer months, and third quarter guidance reflects a slightly more pronounced seasonal impact on member activity.
What to watch
- Activity in September, which the Company stated is consistent with engagement seen over the first half of the year.
- New lives and expected contribution from early commitments, which the Company stated are pacing meaningfully ahead of this time last year.
- Renewal commitments with the Company's largest accounts.
- The impact of planned investments to expand platform features and functionality on Adjusted EBITDA.
Balance sheet and cash flow
- As of June 30, 2026, the Company had total working capital of approximately $272.9 million and no debt.
- Cash and cash equivalents and marketable securities were $236.9 million, an increase of $11.8 million from the balances as of March 31, 2026.
- The Company's $200 million revolving credit facility remains undrawn.
- Net cash provided by operating activities in the second quarter of 2026 was $50.4 million, as compared to $55.5 million provided by operating activities in the prior year period.
- Trailing Twelve-Month Operating Cash Flow was $201,248, as compared to $201,997.
Analysis
Progyny reported record quarterly revenue, gross profit and Adjusted EBITDA. Revenue growth reflected an increase in clients and covered lives, while the lapsed large client remained a reported headwind to the year-over-year comparison. The Company stated that, excluding revenue from that client in the prior-year quarter, revenue increased 11.0%. Fertility benefit services produced stronger growth than pharmacy benefit services.
Profitability improved across gross profit, gross margin, net income and Adjusted EBITDA. Management attributed gross-profit improvement to care-management delivery efficiencies and lower stock-based compensation expense. Net income also benefited from higher operating profit and lower stock-based compensation expense, although lower interest and other income, net, and a higher income-tax provision partly offset those gains. Planned platform investment partly offset the benefit of higher gross profit in Adjusted EBITDA.
Engagement indicators were constructive in the reported quarter. Fertility and family building clients, average members, all-member utilization and female-only utilization were all higher than the respective prior-year measures shown in the release. ART cycles were largely stable for the three-month period, while the six-month ART-cycle measure was below the prior-year figure. The release notes that the first-half 2025 ART-cycle measure included activity under the extended transition-of-care agreement for the large client that did not renew.
Operating cash flow was below the prior-year period, with management citing the timing of certain working-capital items in both periods. The Company ended the period with no debt, cash and cash equivalents and marketable securities, and an undrawn revolving credit facility. It also used capital for share repurchases during the quarter and retained substantial availability under the current authorization.
The outlook calls for full-year revenue growth and a third-quarter revenue range that incorporates summer seasonality. Management stated that September activity is consistent with engagement in the first half of the year. Selling-season commentary was favorable, with new lives and expected contribution from early commitments pacing meaningfully ahead of the same point last year, while management said it had removed the vast majority of client retention risk with its largest accounts based on commitments received to date.
Management, verbatim
The strong second quarter results reflect that member engagement trended to the higher end of our expectations, as members continued to pursue the services they need in order to address their family building and overall health and well-being goals.
Pete Anevski, Chief Executive Officer of Progyny
As we enter the heart of the selling season, momentum continues to be favorable and we're extremely pleased with our overall progress.
Pete Anevski, Chief Executive Officer of Progyny
The second quarter results reflect strong topline growth, gross margin expansion, and the continued high conversion of Adjusted EBITDA to operating cash flow, which has given us the flexibility to continue investing in our platform while also returning value to shareholders through the repurchase of 2 million shares to date under the most recent authorization.
Mark Livingston, Chief Financial Officer of Progyny
Not in the filing
stated, not guessed- Prior-quarter comparisons for revenue, gross profit, gross margin, net income, earnings per diluted share, Adjusted EBITDA, Adjusted EBITDA margin, operating cash flow, segments and operating metrics
- GAAP operating income
- Operating expenses
- Free cash flow
- Dividend information
- Income-tax rate
- Guidance for gross margin, operating expenses and tax rate
- Previous-period outlook for comparison with actual results
- Quarter-end cash and cash equivalents separately from marketable securities
- Segment-level profitability
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is Progyny’s SEC 8-K Item 2.02 with an attached earnings release (EX-99.1) covering 2Q 2026 results and financial condition.
Ticker impact
Progyny reported 2Q 2026 revenue of $350.5M, gross margin expansion to 25.5%, and adjusted EBITDA of $62.1M.
Likely positive bias for the stock versus prior quarter expectations, with upside sensitivity to continued renewal risk reduction and selling-season demand.
The filing discloses multiple directionally favorable operating metrics (revenue growth, margin expansion, higher net income) plus capital return activity and no debt, which are typically market-moving for earnings-driven names.
Market effects
Reinforces demand strength and margin expansion dynamics in women’s health and family-building services, potentially supporting peer sentiment.
Primarily US-listed healthcare services sentiment; limited direct regional spillover beyond Nasdaq small/mid-cap growth.
Low global macro linkage; mostly company-specific fundamentals and capital return.
Counterpoint
Operating cash flow was lower year over year ($50.4M vs $55.5M), so the quality of earnings and working-capital timing may temper enthusiasm.
Key entities
- companyProgyny, Inc.
Women’s health and family-building solutions provider reporting 2Q 2026 results and buyback activity.
- executivePete Anevski
CEO quoted on member engagement, selling-season momentum, and renewal risk reduction.
- executiveMark Livingston
CFO quoted on topline growth, gross margin expansion, and cash flow conversion.
