PGNY

Progyny’s second quarter results were met with a negative market reaction, despite the company delivering revenue and non-GAAP profit above Wall Street expectations. CEO Peter Anevski attributed the quarter’s growth to continued demand from employers for family building and women’s health solutions, emphasizing strong retention and early client commitments. Management noted that higher engagement levels and operational efficiencies contributed to margin expansion, while a more pronounced summer seasonality affected sales volumes. CFO Mark S. Livingston acknowledged the importance of maintaining healthy margins and highlighted the company’s ability to invest in platform expansion while returning value to shareholders through share repurchases. Is now the time to buy PGNY? Find out in our full research report (it’s free). Revenue: $350.5 million vs analyst estimates of $348.5 million (5.3% year-on-year growth, 0.6% beat) Adjusted EPS: $0.55 vs analyst estimates of $0.52 (6.2% beat) Adjusted EBITDA: $62.1 million vs analyst estimates of $60.73 million (17.7% margin, 2.3% beat) The company dropped its revenue guidance for the full year to $1.37 billion at the midpoint from $1.39 billion, a 0.9% decrease EBITDA guidance for the full year is $236.5 million at the midpoint, below analyst estimates of $239.1 million Operating Margin: 11.4%, up from 7.3% in the same quarter last year Sales Volumes were flat year on year (8.8% in the same quarter last year) Market Capitalization: $1.95 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Brian Tanquilut (Jefferies) asked about the reasons behind the summer seasonality and its impact on member engagement. CFO Mark S. Livingston reiterated this seasonality is typical and not indicative of a broader trend change. Jailendra Singh (Truist Securities) questioned whether the flat sales volumes reflected softer demand or prudent guidance. CEO Peter Anevski said early client commitments are ahead of last year and are expected to contribute meaningfully. Michael Cherny (Leerink Partners) inquired about how improved forecasting algorithms affect visibility into utilization. Anevski explained that algorithms offer better predictability, though seasonality can still drive short-term deviations. Scott Schoenhaus (KeyBanc) asked if the pronounced seasonality was concentrated in certain client cohorts or regions. Livingston responded that the softness was broad-based and not attributable to any specific group. David Larsen (BTIG) pressed for details on upsell opportunities and international expansion. Anevski clarified that while the company is seeing some product expansion, its primary growth remains in the U.S. and multinational clients with U.S. headquarters. In the coming quarters, our team will be monitoring (1) whether engagement rebounds as seasonality wanes and member activity normalizes, (2) the pace of new client additions and retention, especially among large employers seeking cost control, and (3) the initial progress of new channel partnerships and Progyny Select. Demonstrated improvement in utilization and expanded platform adoption will serve as key indicators of execution. Progyny currently trades at $25.46, down from $30.21 just before the earnings. Is there an opportunity in the stock? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 4:45 p.m. ET Chief Executive Officer - Peter Anevski Chief Financial Officer - Mark S. Livingston Investor Relations - James Hart Operator: Good day, ladies and gentlemen, and welcome to the Progyny Inc. Second Quarter 26 Earnings Conference Call. At this time, all participants are on a listen-only mode. And the floor will be open for questions and comments after the presentation. If you wish to join the queue at any time to ask a question, you can press star 1 on your telephone keypad. Should you wish to remove yourself from queue, you can press star 2. It is now my pleasure to turn the call over to your host, James Hart. James, the floor is yours. James Hart: Thank you, Tom, and good afternoon, everyone. Welcome to our second quarter conference call. With me today are Peter Anevski, CEO of Progyny and Mark S. Livingston, CFO. We will begin with some prepared remarks before we open the call for your questions. Before we begin, I would like to remind you that our comments and responses to your questions today reflect management's views as of today only. We will include statements related to our financial outlook for both the third quarter and full-year 2026 and the assumptions and drivers underlying such guidance, the demand for our solutions, our expectations for our selling season for 2027 launches, anticipated employment levels of our clients in the industries that we serve, the timing of client decisions, our expected utilization rates and mix, the potential benefits of our solution, our ability to acquire new clients and retain and upsell existing clients, our market opportunity, and our business strategy, plans, goals, and expectations concerning our market position, future operations, and other financial and operating information. Are forward looking statements under the federal securities law. Actual results may differ materially from those contained in or implied by these forward looking statements due to risks and uncertainties associated with our business as well as other important factors. For a discussion of the material risks, uncertainties, assumptions, and other important factors that could impact our actual results please refer to our SEC filings and today's press release. Both of which can be found on our Investor Relations website. Any forward looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. During the call, we will also refer to non GAAP financial measures such as adjusted EBITDA. More information about these non GAAP financial measures including reconciliations with the most comparable GAAP measures, are available in the press release, which is available at investors.progeny.com. I would now like to turn the call over to Peter. Peter Anevski: Thanks, James, and thanks everyone for joining us this afternoon. We are pleased to report a strong second quarter highlighted by solid growth over the prior year period. Resulting in record quarterly revenue, gross profit, and adjusted EBITDA. As well as further gross margin expansion and the continued generation of significant cash flow. Fueled by the strength and consistency of this performance, not just in the most recent quarter, but really over the past several years, We have created flexibility. Both to invest in the business by laying a foundation for future growth through the expansion of our platform while also returning value to shareholders through significant share repurchases. Mark will take you through the details of both that and the quarterly and the quarter shortly. But before that, I would like to give you some color on how our latest sales season is progressing. Because as you know, new sales in any year have the largest impact on our growth trajectory. I am pleased to report our momentum from last quarter has continued. And we enter our most critical time of year for closing new clients in a favorable position. Strong momentum is driven by an acceleration in both early commitments for new sales as well as retention across our existing book of business. Led by our largest clients. Which has largely derisked client turnover for 2027 and positioned us for another year of strong retention. In short, we are seeing meaningful momentum in the market, and I think it would be useful to help you understand why we believe our solutions continue to resonate so strongly with employers. Starts with the reality that family building and women's health solutions continue to be a priority for employers of all sizes and across all industries. We are addressing a very real and highly prevalent medical need and 1 that can be costly to employers when it is not managed well or not managed at all. Employers are also experiencing high cost trends in their traditional medical and pharmacy coverage with increases of 10% or more projecting further increases next year. In response, they are turning to solutions and benefit managers with a proven record of not only controlling trend, but helping to bend that curve. The buying criteria for employers evaluating options in the market continues to hone in on cost quality, and member satisfaction with a heightened focus on accountability within each area. They wanna see a track record in achieving total cost and quality management. With a high quality member experience consistently. And success is measured on the strength of hard ROI savings back to the employer and members yielding short and long term trend control. While the competitive environment remains active, as we look across the landscape, we see the other solutions falling short in 1 or many of these categories. By contrast, Progyny, on the strength of our detailed transparent reporting, remains the only solution in our opinion that has consistently demonstrated the ability to deliver across every 1 of them. And we have done this over a prolonged period giving buyers confidence that we have the right solution that has been proven to work over the longest period of time. This is why we feel uniquely well positioned to compete and win. Whether it is a buyer with an existing solution or 1 who is adding coverage for the first time. The result of this enhanced focus from employers has us well positioned across our 3 areas for growth, adding new logos, maintaining high client retention, and expanding new partners to enhance our position and extend our reach. Looking a bit deeper within each area, our new client acquisition, early commitments are pacing meaningfully ahead of this time last year. While the sales season will not conclude until November, we have seen a meaningful number of early decisions. More than we would expect at this point in the year. On that strength, we are confident we will meet our annual target of adding 1 million or more new lives. On client retention, based on current conversations and commitments, we believe we have removed the vast majority of retention risk which is also earlier than usual at this point in the think it is not a coincidence that employers have been able to come to their decisions earlier this year and have chosen Progyny at the point when managing their escalating medical cost trend is a top priority. The winds thus far represent the typical diverse cross section of the economy including employers in energy, construction, manufacturing, aerospace, health care, labor, financial services, and education. This includes 1 of the oldest and most prestigious universities in the country. Their early commitments have also been diverse in terms of size, spanning from 1 thousand covered lives to the jumbos we see every year. Turning to retention in any season, roughly 1-third of the book is up for renewal. As discussed last quarter, when we described the comprehensive review 1 of our longest standing clients had recently done to measure and validate the efficacy of our program over many years. Existing clients are often in the strongest position to directly see the cost control and sustained savings our solutions deliver. That not only yields positive renewal activity, but also an opportunity for expansions, which is when a client adds more services with us beyond core fertility, and we take that business away from the competitors who have been previously providing some of those services. For those same reasons, our newest clients are selecting the typical level of coverage that we have historically seen, and we are not seeing existing clients look to reduce their benefit with us for the next year either. Lastly, we are satisfied with our momentum at this point in the year amongst our traditional self insured employers. We are also pleased with the progress we are making across a number of other strategic areas including health plan partnerships, public sector clients, and continuing to advance our new fully insured market offering called Progyny Select. Seeing good results with our existing partnerships as well as a strong increase in productivity from our health plan partnerships, many of which are now in their second year with us. Additionally, we are pleased with our pipeline of potential new health plan partnerships. We also continue to advance Progyny Select with a focus on building relationships across key distribution areas, like leading general agents, and brokers who are focused on the fully insured market. These partnerships are an important step, and no different from other relationships we built and curated. We expect the first year will focus largely on forging those channel partners. Versus driving meaningful new volume. As we have said previously, we are not expecting Select to be a meaningful contributor in 2027. And instead view this as an important addition to the portfolio and a significant contributor to our medium and longer term growth. To conclude, we are pleased with our strong performance over the first half of the year. And given the momentum we are seeing in the market, we are comfortable that we positioned ourselves exceptionally well to meet our traditional target of adding 1 million or more lives. Let me turn the call now over to Mark. Mark S. Livingston: Thank you, Peter, and good afternoon, everyone. Before I begin, please note that the 8-Ks we filed a short while ago includes our customary slide presentation. Summarizing the results in the quarter while also highlighting some of the longer term trends that we believe are important in understanding the health and direction of the business. That material has also been posted on our website. Rather than repeating what those slides address, my remarks today will focus on the 4 key themes that impacted both the quarter and how we think about the rest of 2026 and beyond. So let's begin with the first theme. Over the first half of the year, member engagement has remained consistent with our long established ranges. As it relates to the second quarter specifically, engagement was closer to the higher end of expectations reflected in our May guidance. We believe both data points demonstrate how members are continuing to pursue the care and services they need and when the time is right for them to do so. Likewise, second quarter revenue was also closer to the higher end of our guidance reflecting a 5.3% increase on a reported basis and 11% when you exclude the contribution from a large former client who is under a transition of care agreement in the second quarter of 25. I will remind you that the transition agreement pertaining to this client ended on June 30. Accordingly, the second quarter is the last quarterly period where you have to take that client's contribution into account when looking at our comparative results. Moving on to our second theme, we continue to maintain healthy margins. Even as we continue to invest to expand our product platform enhance features for our members, and also lay the foundation to support our future growth. Gross margin expanded 180 basis points from the second quarter last year, comparable to the level of expansion we also saw in the first quarter. This is due to the efficiencies we have continued to realize in our care management and service delivery as well as a reduction in stock compensation expense. Adjusted EBITDA margin also expanded from the year ago period though at a lesser rate than we have seen with gross margin as the platform investments we are making are more concentrated within our operating expense lines. Nonetheless, we are pleased with our ability to consistently maintain a level of overall profitability. As measured on a 12-month basis--trailing 12-month basis, adjusted EBITDA margin was 17.2% consistent with where it is trended throughout this period of increased investment. Demonstrating our ability to invest to grow while simultaneously creating efficiencies throughout the business. As it relates to those investments, second quarter CapEx was $6.2 million This was in line with our first quarter spend as well as $1 million increase over the prior year period. Although it is premature to offer detailed commentary beyond this year, we continue to expect that this investment program will begin to taper down starting in 2027. Turning now to the third theme, Through the ongoing disciplined and prudent management of the business, we have continued to achieve a high conversion of adjusted EBITDA to operating cash flow. This allowed us to once again meet and somewhat exceed our 75% conversion target both in the second quarter and over the first half of the year. For the fourth time in the last 5 quarters, we generated more than $50 million in operating cash flow. This yielded $201 million on a trailing 12 month basis and we have now exceeded $200 million in last trailing--sorry, last trailing 12 months operating cash flow for 6 consecutive quarters. Through our ongoing focus on managing the revenue to cash process, we drove further improvements in our DSOs, which ended the second quarter more than 7 days lower from where it was in the year ago period. DSO also improved on a sequential basis from March 31 this year, reflecting the typical dynamic we see as the payment flows with our newest clients get up and running. As of June 30, we had approximately $273 million in total working capital, which includes $237 million in cash, cash equivalents, and marketable securities. There were no borrowings against our $200 million revolving credit facility, and no debt of any kind, and we have no planned use for the facility at this time. And finally, our fourth theme is how our strong and consistent financial performance has provided us with the flexibility to both invest in the business while simultaneously returning value to our shareholders through ongoing share repurchases. In late May, we announced our latest share repurchase program through a $200 million authorization which permits us to acquire shares via open market purchases as well as under structured plans. Under this latest program, which was in effect for a little over a month during the second quarter, we purchased nearly 1.2 million shares by June 30, for $31.5 million. Including the activity that is happened subsequent to June 30, we have now purchased a cumulative 2 million shares to date under the most recent program and approximately $142.5 million remains available under the existing authorization. On an aggregate basis, combining this current program as well as our prior $200 million program, which concluded earlier this year, have now purchased an aggregate 10.8 million shares overall since November. This has reduced our overall shares outstanding by approximately 12.5%. Turning now to our expectations for the third quarter and the remainder of 2026. As the third quarter begins, encompassing the peak of the summer as seasonally a less active time for members, we have seen a slightly more pronounced seasonal impact and have reflected that in our third quarter guidance. We view this to be the ordinary rhythm of activity and not an indication of a new macro trend or a change in the overall trajectory of engagement. Although our view into September is inherently limited at this point, we are not seeing this seasonality extend beyond the summer. Accordingly, we continue to expect that our engagement metrics for the full year will remain consistent with our long established historical ranges with the low end of our range consistent with our 5-year low for annual utilization. The table at the back of today's press release outlines our assumptions at both ends of the full year guidance ranges. On the basis of these assumptions, we are projecting revenue in 2026 of between $1.36 billion to $1.385 billion reflecting growth of between 5.5% to 7.5%. If we exclude the $48.5 million in revenue from the client who was under a transition of care agreement over the first half of 25, our full year revenue growth is projected to be between 9.7% to 11.7%. With respect to profitability, we expect a $233 million to $240 million in adjusted EBITDA, with net income of $104.8 million to $109.9 million This equates to $1.26 and $1.32 in earnings per diluted share and $2.04 and $2.10 of adjusted EPS on the basis of approximately 83 million fully diluted shares. As it relates to the third quarter, we expect between $335 million to $345 million in revenue, reflecting growth of 6.9% to 10.1%. With the sequential change in second quarter revenue, reflecting the slightly more pronounced seasonality and activity this year. On profitability, we expect between $56 million to $59 million in adjusted EBITDA in the quarter along with net income of between $24.5 million to $26.7 million This equates to $0.30 and $0.33 of earnings per diluted share or $0.50 and $0.52 of adjusted EPS on the basis of approximately 82 million fully diluted shares. At the midpoints of the ranges for both the quarter and the year, you can see we expect to maintain a consistent EBITDA adjusted EBITDA margin even with the investment to grow the business. And with that, we would like to open the call for questions. Operator, can you please provide the instructions? Operator: Certainly. The floor is now open for questions. If you wish to join the queue to ask a question at this time, We do ask if listening on speakerphone today that you pick up your handset while asking your question to provide optimal sound quality. Once again, please press *1 on your keypad at this time if you wish to join queue. Please hold a moment while we poll for questions. And our first question today is coming from Brian Tanquilut from Jefferies. Brian, your line is live. Please go ahead. Brian Tanquilut: Thank you. Good afternoon, guys. Maybe just on the comments on AR cycle seasonality. Just curious if you can expand further on that slowdown that you are seeing this summer and you know, if you have any thoughts on what drove this increased seasonality, and when do you think this peaks and when do we get back to more normal trends? Mark S. Livingston: So I think what is important, Brian, is to also look at, you know, what we have done here for the first half of the year. Although, we have had a good strong Q1 and Q2, we have not hit the high end of our ranges. And so of what we are doing here is recalibrating and narrowing the year just in recognition of where we are at here. 6 months in. As far as the third quarter, the, you know, comments around that slightly, you know, more pronounced seasonality, it is really limited to just this middle part of the summer here. And we do have some visibility, as we get into September as the appointment scheduling builds there. So, look, we do not see it as anything that is you know, prolonged or, you know, any kind of change in trend. And so our guidance reflects, you know, really more of a stable utilization and consumption pattern consistent with what we have seen in other years. Brian Tanquilut: Got it. And then when I think about the sequential improvement in fertility revs, per cycle, what is driving that? Is that ancillary? So then maybe another part of that question would just be any comment you can share on pricing both on the PBM side and on the services side? Mark S. Livingston: Yeah. So on the you know, on fertility pricing, we do have the ability to modestly increase pricing based on CPI. So on the fertility side, that is something that we have done over the last couple of years. So that contributes, but we are talking, you know, low single digit percentages. And then, you know, on the on the pharmacy side, we have looked to absorb some of the cost increases that we see in order to keep our clients whole. Peter Anevski: I think if you are I think if you are focused on sequential, sequential is impacted by a lower proportion of cycles in the art cycles in the first quarter. And a higher proportion of initial consults. But the average is calculated in terms of revenue per cycle. Second quarter, seasonally has a bump up in cycles in our cycles. Versus the first quarter, and so and a lower proportion of initial consults. that is normal every year. So as you talk about sequential revenue, that per cycle, that is what impact that. Brian Tanquilut: Got it. Thank you. Thank you. Operator: Your next question is coming from Jailendra Singh from Truist Securities. Jalendra, your line is live. Please go ahead. Jailendra Singh: Yeah. Thank you, and thanks for taking my question. So I want to go back to the seasonality point you raised. I know it is only 1 month of data, but given the experience the company has had in the past couple of years back. What additional data points or observations you have which makes you believe this is really more of the seasonal softness you are seeing outside of being a prudent in your guidance approach, anything else you are doing correctly to make sure you do not get caught off guard once you get out of this seasonal week period? Peter Anevski: Just to answer your first question, in terms of data points, every year we see seasonality. This in the summer, in the middle of the summer. This year is a little bit more pronounced. If you recall, you know, I think 3 or 4 years ago, we saw the same thing and then exiting the quarter, we saw the same thing in terms of engagement returning. To normal levels. Of the visibility we have so far, for September, that appears to be the case for this year as well. And so that is why we added the color and commentary relative to what we are seeing not only this year, but in periods past. We do see that seasonality, as, you know, more pronounced in this quarter and then and then coming back to normal engagement levels in the balance of the year. it is just a little bit more pronounced this year than normal. Okay. Jailendra Singh: And then my follow-up, and thanks for all the color on the selling season, Peter. it is good to see you feel good about, meeting or exceeding annual target of 1 million lives. A quick follow-up there. As you look at these type of lives, industries these lives are coming from, expected utilization or number of offerings they might have access to, how do you think about the revenue attached to these lives, do you think it is similar to, this year or better or worse Any color would be helpful. Peter Anevski: You know, obviously, we are not gonna quantify it, but I think my commentary spoke to not only the commitments, but the contribution from them, which is where is sort of what you are alluding to being you know, meaningfully ahead of last year at this point. Jailendra Singh: Got it. Thank you. Thank you. Operator: Your next question is coming from Michael Cherny from Leerink Partners. Michael, your line is live. Please go ahead. Michael Cherny: Good afternoon, and thanks for taking the question. I started to harp on this same topic, but this is not the first time, obviously, we have seen summer seasonality you will you have alluded to. Maybe a bit more than before. When you think about the visibility you had at this point last quarter, you talked about utilization improving, but, yeah, I guess, how much was this on the foresight given that, again, you are seeing already an uptick in September? Like, as the work you have done over the years to improve your visibility has been significant, like, how did that play out specifically tied to ending the quarter and into the print? Peter Anevski: The visibility, Mike, has not changed. The algorithms that we use have improved. Which is what you are referring to in terms of the work we have done. But the visibility is still the same. Right? We have visibility, good visibility, into the month ahead and a little less build visibility into the month after that. that is not new. that is generally how far ahead people are scheduling appointments, and then we look at a lot of things underlying that data. And so you know, and that is what we use when we guide always, and that is what we used last quarter when we reported in May, and that is what we are using now as we report Q2. And what we are seeing, you know, so far exiting the quarter. And then also looking at past history relative to that being normal in terms of normalizing back to normal levels of engagement, you know, for the remainder of the year. Michael Cherny: Got it. And just 1 more additional question. I mean, cash flow build has been very strong. You obviously have Select going on. You have some of the other ancillary programs. How do you think about the future usage of capital deployment for both internal external investments as you continue to broaden your lead in the market? Peter Anevski: Well, like I mentioned, in my remarks, the good news is we have strong enough cash flow to continue to invest. We need to, the level of investment will come down as we had mentioned, a couple times on the last couple of calls. Next year and in the future based on what we have planned. Our large investments happened over the last 2 years. And we will finish out in terms of incremental investments. You know, through the end of this year. But as you as you mentioned, we had to the capital to make decisions whether there are, you know, any opportunities around M&A, whether they are, you know, tuck-ins or otherwise, whether there is you know, additional repurchases that we are gonna do or any other additional investments. You know, we have the cash flow to do all 3. Operator: Your next question is coming from Sarah James from Cantor Fitzgerald. Sarah James: Thank you. On the improved algorithm that you were talking about, can you give us an idea of what the slope of level of confidence looks like? So, you how is your confidence in your 2-week out, 4 versus 4 versus 6? What does that look like for you now? Peter Anevski: Well, given the actual visibility we have, and given that it is a consumption model, right, you know, obviously, any periods further out, inherently are going to have you know, less. But again, the algorithms have improved significantly. They have proven to be pretty predictable. But things like, you know, more pronounced seasonality than you otherwise did not have visibility into can happen. And what we are experiencing. And by the way, I mean, overall, it is a if you look at toward the midpoint, it is a it is a 1% adjustment. So we are not talking about a large adjustment and change in consumption. But either way, it is a, you know, it is a bad question. Sarah James: And then you mentioned also the growing pipeline of your broker relationships Can you talk about how material that channel is now to your business and where you think it could go over time? Peter Anevski: Sure. it is not material today. And as I mentioned in my prepared remarks, not expected to be material at all relative to what it is going to contribute in terms of new lives next year. that is consistent with the comments we have been making. That those channel partners will take time both in terms of signing up as we have been successful in doing so far. But more importantly, in getting throughput from them relative to the reality of when their renewals happen, the majority of which are for 1/1, the reality of getting through those organizations because many of them are inherently roll ups to a lot of small companies. And a little bit more of a grassroots effort in terms of getting the through to all their brokers, etcetera. And so and so it just, it will the relationships we have built so far are positive. And they are inclined to work with us and work with their people to do that. But it-- that is why it is more of a medium to long term strategy. So I would say it is more important to the medium and long term in terms of being additive as opposed to, you know, looking for something for 2027. Sarah James: Thank you. Thank you. Operator: Your next question is coming from Scott Schoenhaus from KeyBanc. Scott, your line is live. Please go ahead. Scott Schoenhaus: Thanks guys for taking my question. Just to drill in a little bit more on the summertime softness here. You know, if I think about it, is there a way to is there anything that is glaringly different than, you know, you expected in terms of a certain cohort. Right? Is it this new cohort that you onboarded from new wins this year that you saw, you know, a less amount of egg retrievals happening into the summer, but now you are starting to see those appointments being booked for those surgeries or you are seeing the medications. Being ordered, now for September into the fall. Was it a regional softness? Any, like, color on to as to explain to why this was more pronounced this year? Versus other years and, you know, what if you are actually seeing it from a 1 from 1 delay, in a certain population of employees, from a certain employer that delayed an egg retrieval with medication in the summer and now you are seeing that pickup in the fall. Mark S. Livingston: Yeah. The short answer is that there is not anything pronounced in any 1 of those that you described. We certainly take a look at that to see if there is anything that would be, different than a seasonality event. it is more across the board really, in all those categories that you are describing. Scott Schoenhaus: Okay. And then on the selling season, the 1 comment that I thought was really interesting was that you are seeing the sort of competitive, you know, customer conversations from people that had previously had, you know, competitors benefit. Maybe can you go dive into more color, Peter, on what exactly they are telling you and why they are coming to you to explore options? Is it ROI? Is it the fact that their employees want a more robust benefit? You know, this is, I think, the first time you have ever commented on something like this, and kind of want to hear what the customers are saying when they are coming to you. Thanks. Peter Anevski: Sure. it is important to note that the reason only reason why I am calling it out is because it is more than what we have seen in the past. But we are getting all sorts of opportunities from Brownfield and some Greenfield as well. When you do get these opportunities, you do not always get the opportunity to understand everything they are unhappy about. They just simply are out there, and they are just out there in more volume this year. Until you compete for them. So you spend more time talking about your solution and you just infer that something is not right when they are when they are going out to RFP. Or a lot of them are doing, you know, many times do market checks, but either way. There is not a lot of discussion around sort of what is not working. there is some anecdotal stuff, but I do not wanna comment on the anecdotal stuff as opposed to, you we are hearing sort of, you know, something constant and systemic. But, you know, I think the more insightful commentary is that it is happening and that we are winning a lot of it. Mark S. Livingston: Yes, Scott, the only thing I maybe I would add to that is Peter's prepared remarks around cost containment and the pressures on employers now, which I think we believe is part of that root cause of why they are coming to us. We obviously have a proven model that helps control, costs and so, you know, we believe that is part of what is driving that is helpful. Thanks. Scott Schoenhaus: Thanks. Thank you. Operator: Your next question is coming from Allen Lutz from Bank of America. Alan, your line is live. Please go ahead. Analyst: Good afternoon, and thanks for taking the questions. 1 for Peter or Mark here. Around--I guess, to follow-up on the selling season piece here. Is there any way to bifurcate between the, engagement you are getting from prospects that are looking at fertility benefits for the first time versus those that are, potential competitive conversions? Would love to get a if anything's changed there with those that currently do not offer a fertility benefit. And then, second, you know, we have talked about this a little bit in the past, but the conversation around GLP ones continues to evolve. Some of the big PBMs are talking about employers just offering that type of benefit less. If employers are not offering GLP 1 coverage, are you seeing any increased interest in fertility benefits? Just trying to get a sense of to triangulate if any of those things are hitting your prospects or if it is just too early. Thanks. Peter Anevski: Yeah. I will try and capture, the spirit of all the asks, Alan. The first thing is building on Mark's comment. What we are seeing more of this year is more brownfield than greenfield. Start with that. It is from all competitors, not just the VC backed competitors, but also those that have a carrier solution today. We still view them and always view them as a competitor. Probably the largest competitor is still relative to where others are getting a fertility benefit beyond our VC backed competitors. And that is not surprising given the fact that as we sort of talked about, you know, ending last year and coming into this year, medical cost inflation is real. A lot of what is driving that is some of what you are alluding to, which is GLP ones. And other sort of, you know, new drugs in the market that are driving higher utilization overall, you know, increase in medical costs. So it is not surprising that it is those that are looking to, you know, contain costs or save money, i.e., in a brownfield situation are the ones that are doing more looking and more committing this year. Versus the greenfield. Right? We are still getting greenfield, but it is more pronounced than the brownfield. And so that is probably the easiest way I could answer, I think, most of what you have. Well and really specifically the GLP ones, I do not know that I have enough good information to say As a result of companies cutting back on GLP ones, now they feel that they are they are in a in a better position to, you know, sort of buy fertility or not. I think it just there is an overall reality that they are trying to manage costs overall and that, you know, higher utilization from things like GLP ones and therefore are adjusting just to just to keep you know, doing what they can to bend that cost curve a little bit for themselves. Operator: Thank you. Your next question is coming from Peter Warendorf from Barclays. Peter, your line is live. Please go ahead. Analyst: Hey. Yes. Thanks for the question. It looks like clients maybe ticked up slightly in the second quarter, but membership was closer to flat. I mean, it is not a huge difference, but I am just curious if you are seeing any impact from the broader employment trends. And maybe a weaker employment environment. And then what you are assuming in guidance over the second half of the year in terms of membership at current clients? Thanks. Mark S. Livingston: Yeah. So just as a reminder, we typically count only those clients that have a thousand lives or more. We have a number of them that are smaller, but we have always excluded them. We include the lives, but not the counts. So there were a handful of clients that graduated beyond the thousand life level. Obviously, in and of themselves, not gonna drive your overall averages. So and then, you know, as far as lives are, they have been, you know, pretty consistent. That we have seen, you know, some clients go up a little, some go down a little, but it is been relatively stable. And then from a projection standpoint, we are projecting the same. We have the same level of full year estimate, as we have been maintaining for a couple of couple of quarters now. And so, yeah, we do have a couple of very small clients that are starting here in the second half, not anything meaningful from a revenue contribution or whatnot. So you see a little bit in the coming quarters, but, you know, frankly, it is just more rounding than anything. Analyst: Great. And then just quickly on the selling season. it is encouraging that you guys reiterated the million target for this year. Just curious how much visibility you guys have into that target for next year at this point. And then maybe what the expectation might be for how many of those lives come from select versus traditional membership. Thanks. Peter Anevski: Well, I will start by saying our target our target is always that pretty much every year. We do have a pretty nice pipeline build for the next year selling season so far. And also, we expect more pipeline to come in from now going forward, most of which will be carryover pipeline into next year. But there is some pretty good activity particularly from some jumbo opportunities for next year. it is early to comment on whether or not they will or will not get us to a million lines. And so I cannot reiterate sort of you know, the same kind of clarity around achieving that target. But I can tell you that we are pleased with the overall pipeline build even for next year as well as sit here now. Thanks a lot. And then as it relates to select, as I said in my previous comments, I as soon as we have more clarity into how much and when Select will start to contribute, you know, more meaningfully. We will add that color in our commentary. But as I said before, most of what is gonna happen now and over the next you know, I will call it 12 to 18 months is gonna be us, you know, signing up those relationships, and then, you know, work working with those companies and these to get to as many of their brokers through, you know, tactics that we both will do. The companies and us, in order to get adoption going. Great. Analyst: Thank you. Thank you. Operator: Your next question is coming from John Pinney from Canaccord Genuity. John, your line is live. Please go ahead. John Pinney: Hi. Yeah. John Pinney on for Close. Thanks for the questions. Good to hear about the selling season. I guess I just right. You provide any commentary about, like, how what gives you the confidence for anyone who has not been signed as of yet at this point? Season that they are that they are their intent is to sign by the end of the year for next year. I guess it is just, like, what gives you the confidence they will not turn into not nows? Peter Anevski: Yeah. As you might have we have a lot of tracking and tools, and, obviously, then conversations with our Salesforce and our sales leaders, you know, in particular around the larger that are in pipeline. But we track, you know, a lot of activities A lot of our criteria is to what we call pipeline is objective. In terms of sales progression. And it is it is, you know, a combination of the commentary from, our sales teams. The objective data that we have around the sales activity, what they are looking at, buying questions, that kind of thing, and then our past history around that to estimate where we are gonna get to. John Pinney: Okay. And just as a follow-up there is there any way you can quantify, like, how much the investments that the investments for this year are like factoring into like EBITDA guidance for the year? Mark S. Livingston: Yeah. We have never, like, quantified it, but, you know, what we have said historically and still the case is that the increase in CapEx that you have seen over from 2024 to 2025 and now sort of equivalent here in 2026, there is about an equivalent amount of OpEx running through the p and l as well. John Pinney: But related to the investment? Mark S. Livingston: Related to the investments. Yeah. John Pinney: Alright. Thank you. Thank you. Operator: And our final question this afternoon is coming from David Larsen from BTIG. David, your line is live. Please go ahead. David Larsen: Hi. We spoke recently with a benefits consultant, and he said that of his, you know, 12 or 13 clients that he supports, Progyny, was in about 7 of them, which I was positively surprised to hear. It makes me think that you have somewhat of a dominant, you know, fertility support position in the market. So I guess, what are your thoughts in terms of, like, growing your revenue and what are opportunities there are to in sell additional services into your existing base What products or services may you develop that could drive incremental revenue growth? And then can you also comment on international expansion efforts since you are doing so well in The US? I mean, it seems like, you know, Europe and the international markets are the next frontier. Peter Anevski: As it relates to our existing base, we do not we do not own as much market share in the market as what that you know, consultant said. So that is not representative. Nonetheless, we do we are, you know, 1 of the larger providers of the facility and family benefits in the country for sure. As it relates to opportunities with existing clients, it is the stuff we already do. Which is, you know, whether, you know, it is any of the expanded products that we have and or whether it is them expanding the fertility benefit with us. Most clients start with the 2- to 3-cycle benefit. Not everybody starts with egg freezing. And over time and we have we have shown in the past charts around this. But over time, each sales year cohort generally buys up a little bit more, whether they add more cycles, whether they add egg freezing. Small portion that does not buy pharmacy every year, whether they add that, whether they add any of the expanded products. Or the opportunities to run the existing base. The opportunities for us still as I mentioned in my prepared remarks, is still around adding new logos all the time. So although others you know although the what we are winning this year is more pronounced in Brownfields, that does not mean there is an significant opportunity out there for Brownfield and Greenfield as indicated by our expectations for the sales year so far. It relates to opportunities, OUS, the OUS opportunity is not the same in terms of financial contribution as it is in The US. it is more of an opportunity around winning multinational companies, in particular, whose parent is in The US. And having a solution that will address the needs of their global population, that is at least similar in terms of what it is addressing even if it is not the same type of solution due to many limitations like regulatory limitations etcetera, OUS. So it continues to be an opportunity that we invest in, and have invested and we continue to invest in. In order to win as many multinational companies you know, as we continue forward, you know, fueling the overall fertility and family building business that we have today. David Larsen: Okay. Thanks very much. Congrats on a good quarter. Operator: Thank you. This does conclude today's question and answer session. I would now like to hand the floor back to James Hart for closing remarks. James Hart: Thank you, Tom, and, thank you, everyone, for joining us this afternoon. Please feel free to reach out, of course, if you have any follow-up questions. We will also be attending a conference next week, so perhaps we will see some of you there. Otherwise, enjoy the rest of the summer. Thank you. Operator: This does conclude today's conference call. You may disconnect at this time, and have a wonderful day. Thank you once again for your participation. Before you buy stock in Progyny, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Progyny wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Progyny. The Motley Fool has a disclosure policy. Progyny (PGNY) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Progyny stock has delivered a 38.8% decline over the past five years, even though the valuation checks currently suggest the shares may be pricing in cautious expectations. Recent gains over the last year now sit alongside a high value score and a recent pullback, which raises questions about how the market is weighing Progyny's long term prospects against its current valuation. Over the past five years, Progyny has declined 38.8%. This shows that long term holders have faced a material drawdown despite the recent recovery. Progyny's ability to grow its fertility benefits platform and maintain attractive margins can support the current share price. Any slowdown in employer adoption or pressure on healthcare benefit budgets may weigh on how much investors are willing to pay. Progyny is screened as undervalued on the broader checks, with the company passing 6 of 6 valuation tests. This points to a stock that screens cheap across multiple yardsticks based on the detailed work behind these 6 checks. The issue now is whether Progyny's recent share price pullback is giving investors a genuine discount or simply reflecting fair caution after a mixed longer term return profile. Find out why Progyny's 29.2% return over the last year is lagging behind its peers. The P/E ratio is a relevant metric for Progyny because the company is already generating earnings and the market is clearly pricing those profits. Progyny trades on a P/E of about 19.2x, which is below the Healthcare industry average of roughly 24.9x and also below the peer group average of about 41.1x. That places the stock at a sizable discount to many other healthcare companies on headline earnings. The fair P/E ratio implied by the broader checks is about 26.7x, which is higher than Progyny's current multiple. This indicates the market is valuing Progyny at a lower price than the framework would suggest based on its profile within the Healthcare sector. For investors who focus on earnings-based valuation, Progyny appears to be priced cautiously rather than aggressively. On the P/E multiple, Progyny stock currently screens as undervalued compared with both its tailored fair ratio and wider healthcare peers. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Progyny pick up where this valuation puzzle leaves off. They clarify what would need to happen to Progyny's growth, margins and earnings for the stock to be worth materially more or less than today's price, and they sit on the company's Community page. Each one ties a fair value to a clear storyline about Progyny's potential catalysts and key risks, so you can see over time which version of events is starting to play out. Community views on Progyny sit quite far apart, with one camp focused on fertility demand upside and another worried about policy and benefit coverage risk. Bull case: 30% undervalued Read the full Bull Case to see why Progyny could be undervalued Bear case: 6% overvalued Read the full Bear Case to see why Progyny could be overvalued Do you think there's more to the story for Progyny? Head over to our Community to see what others are saying! Progyny screens as undervalued on earnings multiples, which suggests the current price builds in cautious expectations rather than optimism. The broader valuation checks also look supportive, so the bigger question for you is whether that discount is compensation for real risk or a potential opportunity. Everything hinges on how confident you are that Progyny can keep employer demand healthy and protect its margins if benefit budgets come under pressure. The crux of the debate is whether those business fundamentals hold up well enough for the market to reconsider how much it is willing to pay for the stock over time. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PGNY. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed strong second quarter performance to the consistent priority employers are placing on family building and women's health solutions across all industries. The company is seeing an acceleration in early sales commitments and retention for 2027, which management believes has largely derisked client turnover for the upcoming year. Strategic momentum is being driven by a shift toward 'brownfield' opportunities, where employers are replacing existing carrier or competitor solutions to better manage escalating medical cost trends. Management noted that buying criteria have sharpened around hard ROI and accountability, positioning Progyny's transparent reporting as a key competitive advantage. The company is successfully expanding its reach through health plan partnerships and the development of Progyny Select for the fully insured market, though these are viewed as longer-term growth drivers. Operational efficiencies in care management and service delivery, combined with lower stock-based compensation, drove a 180 basis point expansion in gross margin. Full-year 2026 guidance assumes engagement metrics will remain within historical ranges, with the low end aligned with the company's five-year low for annual utilization. Management expects to meet its annual target of adding 1 million or more new lives for 2027, supported by a higher volume of early decisions than typically seen at this point in the year. The investment program for platform expansion and product features is expected to peak in 2026 and begin tapering down starting in 2027. Progyny Select is not expected to be a meaningful revenue contributor in 2027, as the current focus remains on forging channel partnerships with general agents and brokers. Guidance for the third quarter reflects a slightly more pronounced seasonal impact during the summer months, though management does not view this as a change in the overall trajectory of member engagement. The transition of care agreement for a large former client ended on June 30, meaning Q2 was the final period where this client's contribution impacted comparative results. Management has utilized its strong cash flow to reduce overall shares outstanding by approximately 12.5% since November through aggressive share repurchase programs. The company is absorbing some pharmacy cost increases to keep clients whole, while fertility pricing is being adjusted by low single-digit percentages based on CPI. A slightly more pronounced summer seasonality in member activity led to a 1% adjustment to the midpoint of the full-year revenue guidance. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that the softness is limited to the middle of the summer and is not indicative of a new macro trend or systemic change in consumption. Visibility into September appointment scheduling suggests engagement is returning to normal levels, consistent with patterns seen three to four years ago. Peter Anevski noted that the current selling season features more 'brownfield' (replacement) activity than 'greenfield' (new coverage) compared to previous years. Employers are increasingly seeking to replace carrier solutions or VC-backed competitors due to rising medical cost inflation, often driven by GLP-1 drug costs. The fully insured market offering is currently in a 'grassroots' phase, focusing on signing general agents and educating their broker networks. Management emphasized that because most fully insured renewals occur on January 1, the throughput from these partnerships will be a medium-to-long-term growth contributor rather than a 2027 driver. The OUS (Outside U.S.) opportunity is primarily viewed as a way to win and support U.S.-based multinational companies rather than a standalone high-margin revenue driver. Regulatory limitations OUS mean the solution is not identical to the U.S. offering, but it addresses the global population needs of large enterprise clients.

This article first appeared on GuruFocus. Revenue: Second quarter revenue increased 5.3% on a reported basis, or 11% excluding the contribution from a large former client under a transition of care agreement in Q2 2025. Gross Margin: Expanded 180 basis points year-over-year, driven by efficiencies in care management and service delivery, as well as a reduction in stock compensation expense. Adjusted EBITDA: Record quarterly adjusted EBITDA; margin expanded from the prior-year period, with trailing 12-month margin at 17.2%. Operating Cash Flow: Generated more than $50 million in operating cash flow for the fourth time in the last five quarters; $201 million on a trailing 12-month basis. Capital Expenditures: Q2 CapEx was $6.2 million, in line with Q1 and up $1 million from the prior-year period. Working Capital: Approximately $273 million in total working capital, including $237 million in cash equivalents and marketable securities; no debt. Share Repurchases: Purchased nearly 1.2 million shares for $31.5 million in Q2 under the latest $200 million program; cumulative 10.8 million shares repurchased since November, reducing shares outstanding by approximately 12.5%. Full-Year 2026 Guidance: Revenue projected between $1.36 billion and $1.385 billion (growth of 5.5% to 7.5%); adjusted EBITDA of $233 million to $240 million; net income of $104.8 million to $109.9 million. Q3 2026 Guidance: Revenue expected between $335 million and $345 million; adjusted EBITDA of $56 million to $59 million; net income of $24.5 million to $26.7 million. Warning! GuruFocus has detected 2 Warning Sign with KRMN. Is PGNY fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record quarterly revenue, gross profit, and adjusted EBITDA in Q2 2026, with revenue up 5.3% year-over-year (11% excluding transition agreement impact). Gross margin expanded by 180 basis points year-over-year, driven by efficiencies in care management and service delivery. Strong selling season momentum with early commitments for new clients pacing meaningfully ahead of last year, positioning the company to meet its target of adding 1 million or more new lives. High client retention with most attrition risk for 2027 already de-risked, led by strong renewals from largest clients. Continued strong cash flow generation, with over $50 million in operating cash flow for the fourth time in five quarters and DSO improved by more than 7 days year-over-year. Significant shareholder returns through share repurchases, reducing shares outstanding by approximately 12.5% since November. Strategic progress in health plan partnerships and the new fully insured offering, Progyny Select, with a growing pipeline for future growth. Slightly more pronounced summer seasonality in member engagement, leading to a modest downward adjustment in Q3 guidance. Revenue growth for the full year is projected at 5.5% to 7.5% (9.7% to 11.7% excluding transition agreement), reflecting a slowdown from prior years. Continued investment in platform expansion and new offerings like Progyny Select is expected to pressure operating expenses, with adjusted EBITDA margin growth lagging gross margin expansion. The transition of a large former client under a care agreement ended in Q2 2025, creating a headwind to year-over-year revenue comparisons. Progyny Select is not expected to be a meaningful contributor to 2027 results, with the focus on building channel partnerships rather than driving volume. The competitive environment remains active, with other solutions in the market, though Progyny believes it differentiates on cost, quality, and member satisfaction. Q: Can you expand on the slightly more pronounced summer seasonality you're seeing, what drove it, and when do you expect engagement to return to normal trends? A: Mark Livingston (CFO) explained that the seasonality is limited to the middle of the summer and is not a prolonged trend or a change in the overall trajectory of engagement. He noted that the company has visibility into September as appointment scheduling builds, and they have seen similar, though less pronounced, seasonality in past years. The guidance reflects a stable utilization pattern consistent with historical ranges, and the adjustment is relatively small, representing about a 1% change at the midpoint. Q: What is driving the sequential improvement in fertility revenue per cycle, and can you comment on pricing on both the PBM and services side? A: Mark Livingston (CFO) stated that fertility pricing can be modestly increased based on CPI, contributing low single-digit percentage growth. On the pharmacy side, they have absorbed some cost increases to keep clients whole. The sequential improvement in revenue per cycle is driven by a seasonal mix shift, with a higher proportion of ART cycles and a lower proportion of initial consults in the second quarter compared to the first quarter. Q: Given the strong selling season momentum, can you provide color on the revenue attached to the new lives won so far, and how it compares to this year's cohort? A: Peter Anevski (CEO) confirmed that early commitments are pacing meaningfully ahead of last year, and the contribution from these new clients is also ahead. He expressed confidence in meeting the annual target of adding 1 million or more new lives, noting that the wins represent a diverse cross-section of the economy, including energy, construction, manufacturing, aerospace, healthcare, labor, financial services, and education. Q: How should we think about the future usage of capital deployment for both internal and external investments as you continue to broaden your market lead? A: Mark Livingston (CFO) stated that the company has strong enough cash flow to continue investing if needed, but the level of investment will taper down starting in 2027. The large investments made over the last two years will be completed by the end of this year. The company has the capital to make decisions around M&A, tuck-ins, additional share repurchases, or other investments, given its strong cash flow generation. Q: Can you provide more detail on the improved forecasting algorithm and the level of confidence in forecasts at different time horizons? A: Mark Livingston (CFO) explained that the algorithms have improved significantly and have proven to be predictable, though events like more pronounced seasonality can still occur. The visibility remains the same, with good visibility into the month ahead and less into the month after. The company uses historical data and current trends to guide expectations, and the recent adjustment was relatively minor. Q: How material is the broker relationship channel to your business now, and where could it go over time? A: Peter Anevski (CEO) stated that the broker channel is not material today and is not expected to contribute meaningfully to new lives in 2027. The relationships built so far are positive, but it will take time to get throughput from these organizations, many of which are roll-ups of small companies. This is a medium to long-term strategy that will be additive in the future. Q: Is there anything glaringly different in terms of a specific cohort driving the summer softness, such as new clients or regional trends? A: Mark Livingston (CFO) stated that there isn't anything pronounced in any one category. The softness is across the board in all categories, and the company has looked at the data to see if there is anything different from a seasonality event, but it appears to be a broad-based seasonal pattern. Q: Can you bifurcate the selling season engagement between prospects looking at fertility benefits for the first time versus competitive conversions, and are you seeing any impact from GLP-1 coverage decisions? A: Peter Anevski (CEO) noted that the company is seeing more brownfield (competitive conversions) than greenfield (first-time buyers) opportunities this year, from all competitors including carrier solutions. This is driven by medical cost inflation, partly due to GLP-1s and other new drugs. He couldn't directly attribute GLP-1 cutbacks to increased fertility interest, but noted employers are managing overall costs and looking for solutions that help control trend. Q: Client counts ticked up slightly in the second quarter, but membership was close to flat. Are you seeing any impact from broader employment trends, and what are you assuming in guidance for membership? A: Mark Livingston (CFO) explained that the company only counts clients with 1,000 lives or more, and a handful of clients graduated beyond that level, which doesn't drive overall averages. Lives have been relatively stable, with some going up and some down. The full-year estimate remains consistent with what has been maintained for a couple of quarters, with a couple of very small clients starting in the second half, but nothing meaningful from a revenue contribution perspective. Q: What gives you confidence that prospects who haven't signed yet will convert by the end of the year, and can you quantify how much investments are factoring into EBITDA guidance? A: Peter Anevski (CEO) stated that the company uses a lot of tracking tools and conversations with the sales force and sales leaders, particularly around larger opportunities. They track objective data on sales progression, buying questions, and past history to estimate where they will get to. Mark Livingston (CFO) added that the increase in CapEx from 2024 to 2025 and into 2026 has an equivalent amount of OpEx running through the P&L related to the investment, though they haven't quantified it specifically. Q: What opportunities exist to in-sell additional services into your existing base, and can you comment on international expansion efforts? A: Peter Anevski (CEO) stated that opportunities with existing clients include expanding the fertility benefit, adding more cycles, egg freezing, pharmacy coverage, or other expanded products. The international opportunity is not the same in terms of financial contribution as the US, but it's about winning multinational companies, particularly those with US parents, by offering a solution that addresses the needs of their global population. The company continues to invest in this area to win more multinational companies. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Progyny, Inc.? Here are five stocks we like better. Record Q2 performance: Progyny reported record revenue, gross profit and adjusted EBITDA, with revenue up 5.3% year over year, or 11% excluding a former client’s transition-of-care revenue. Gross margin expanded 180 basis points, while trailing 12-month operating cash flow reached $201 million. Strong financial flexibility and capital returns: The company had $237 million in cash and marketable securities, no debt, and repurchased nearly 1.2 million shares for $31.5 million during the quarter. Including subsequent purchases, Progyny has repurchased 2 million shares under its latest authorization and reduced shares outstanding by about 12.5% since November. 2027 sales outlook remains favorable: Early new-client commitments are ahead of last year, retention risks have largely been addressed, and Progyny continues to target at least 1 million new covered lives for 2027. Management maintained full-year 2026 guidance of $1.36 billion-$1.385 billion in revenue and $233 million-$240 million in adjusted EBITDA, while citing a temporary summer slowdown in Q3 activity. 3 Best Stocks to Buy That You’ve Probably Never Heard Of Progyny (NASDAQ:PGNY) reported record quarterly revenue, gross profit and adjusted EBITDA for the second quarter of 2026, while management said early sales commitments and client-retention activity have positioned the company favorably for the 2027 selling season. Chief Executive Officer Pete Anevski said the quarter also featured gross-margin expansion and significant cash-flow generation. He said the company has used its financial performance to support investments in its platform while also repurchasing shares. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Second-quarter revenue increased 5.3% from the prior-year period on a reported basis, Chief Financial Officer Mark Livingston said. Excluding revenue associated with a large former client that remained under a transition-of-care agreement during the second quarter of 2025, revenue rose 11%. That transition agreement ended June 30, 2025, meaning the second quarter was the last comparison period affected by the former client's contribution. Gross margin expanded 180 basis points from a year earlier, matching the level of expansion reported in the first quarter, Livingston said. He attributed the improvement to continuing efficiencies in care management and service delivery, as well as lower stock-compensation expense. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Adjusted EBITDA margin also rose from the prior-year quarter, although at a slower pace than gross margin because platform investments were concentrated in operating expenses. On a trailing 12-month basis, adjusted EBITDA margin was 17.2%, Livingston said. Capital expenditures totaled $6.2 million during the second quarter, consistent with first-quarter spending and about $1 million above the year-earlier period. Management expects its investment program to begin tapering in 2027, though Livingston said it was too early to provide detailed commentary beyond this year. → Ulta's Growth Is Real, But So Are the Risks Operating cash flow exceeded $50 million for the fourth time in the past five quarters. Trailing 12-month operating cash flow was $201 million, and the company said it has generated more than $200 million in last-12-month operating cash flow for six consecutive quarters. Working capital totaled about $273 million as of June 30. Cash, cash equivalents and marketable securities totaled $237 million. The company had no debt and no borrowings under its $200 million revolving credit facility. Days sales outstanding were more than seven days lower than a year earlier. Progyny announced a new $200 million share-repurchase authorization in late May. During the portion of the second quarter in which the program was active, the company repurchased nearly 1.2 million shares for $31.5 million. Including purchases after June 30, Progyny had bought 2 million shares under the latest authorization, with approximately $142.5 million remaining available. Across the current and prior $200 million programs, the company has repurchased 10.8 million shares since November, reducing shares outstanding by approximately 12.5%, Livingston said. Anevski said the company expects its cash flow to provide flexibility for continued investment, potential acquisitions or tuck-in opportunities, further share repurchases and other uses of capital. Management said new-client commitments are pacing meaningfully ahead of the same point last year, with a higher-than-expected number of decisions occurring early in the selling season. Progyny maintained its target of adding 1 million or more new lives for 2027 launches. Anevski said retention activity has also accelerated, led by the company’s largest clients. Based on current discussions and commitments, he said Progyny believes it has removed most of its retention risk earlier than usual. Roughly one-third of the company’s client book is up for renewal in a typical season. The company said early wins span industries including energy, construction, manufacturing, aerospace, healthcare, labor, financial services and education, as well as clients ranging from 1,000 covered lives to large employers. Management said employer interest is being shaped by rising costs in traditional medical and pharmacy coverage. Anevski said employers are increasingly focused on cost management, quality and member satisfaction, and that prospects moving through the sales cycle this year have been more weighted toward employers replacing an existing solution rather than first-time buyers of fertility benefits. Progyny also cited progress with health-plan partnerships, public-sector clients and its fully insured offering, Progyny Select. The company expects Select’s initial phase to focus on building distribution relationships with general agents and brokers. Management does not expect the offering to make a meaningful contribution in 2027, instead describing it as a medium- and long-term growth initiative. For the third quarter, Progyny projected revenue of $335 million to $345 million, representing growth of 6.9% to 10.1%. The company expects adjusted EBITDA of $56 million to $59 million, net income of $24.5 million to $26.7 million, and adjusted earnings per share of $0.50 to $0.52 based on approximately 82 million fully diluted shares. Livingston said the outlook incorporates a somewhat more pronounced seasonal slowdown during the middle of the summer. Management characterized the pattern as limited to the seasonally less-active summer period rather than evidence of a broader change in engagement trends. The company said appointment scheduling data provided some visibility into September and did not indicate the softer activity was extending beyond summer. For full-year 2026, Progyny forecast revenue of $1.36 billion to $1.385 billion, representing reported growth of 5.5% to 7.5%. Excluding $48.5 million of transition-of-care revenue from the former client in the first half of 2025, the company projected growth of 9.7% to 11.7%. The company expects full-year adjusted EBITDA of $233 million to $240 million, net income of $104.8 million to $109.9 million, and adjusted earnings per share of $2.04 to $2.10 based on approximately 83 million fully diluted shares. Progyny, Inc is a New York-based fertility benefits management company that partners with employers and health plans to design and administer comprehensive family-building programs. The company's digital health platform integrates clinical expertise, patient support tools and data analytics to help members navigate fertility treatments, from in vitro fertilization (IVF) and egg freezing to surrogacy and adoption. By focusing on outcomes-based care, Progyny aims to improve success rates while controlling costs for its clients. The core of Progyny's offering is its proprietary Smart Cycle® benefit, which bundles clinical, emotional and logistical support into a single package. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Progyny Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Reports Record Quarterly Revenue, Gross Profit and Adjusted EBITDARobust Selling Season Activity Continues to Reflect Strong Demand for Women's Health, Family Building SolutionsValue Returned to Shareholders Through the Repurchase of Over 2 Million Shares Under Current Authorization NEW YORK, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Progyny, Inc. (Nasdaq: PGNY) (“Progyny” or the “Company”), a global leader in women's health and family building solutions, today announced its financial results for the three-month period ended June 30, 2026 (“the second quarter of 2026”), as compared to the three-month period ended June 30, 2025 (“the second quarter of 2025” or “the prior year period”). “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,” said 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,” continued Anevski.  “New lives and expected contribution from early commitments are pacing meaningfully ahead of this time last year; regarding renewals, based on commitments received to date, we've removed the vast majority of client retention risk with our largest accounts as well.” “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,” said Mark Livingston, Chief Financial Officer of Progyny. Second Quarter 2026 Highlights: Net income per diluted share reflects weighted-average shares outstanding as adjusted for potential dilutive securities, including options, restricted stock units, and shares issuable under the employee stock purchase plan. Adjusted Earnings per Diluted Share, Adjusted EBITDA, and Adjusted EBITDA margin are financial measures that are not required by, or presented in accordance with U.S. generally accepted accounting principles ("GAAP"). Please see Annex A of this press release for a reconciliation of Adjusted Earnings per Diluted Share to earnings per share, and Adjusted EBITDA to net income, the most directly comparable financial measures stated in accordance with GAAP for each of the periods presented.  We calculate Adjusted Earnings per Diluted Share as net income per diluted share excluding the impact of stock-based compensation, adjusted for the impact of taxes.  We calculate Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. Financial Highlights Revenue was $350.5 million, a 5.3% increase as compared to the $332.9 million reported in the second quarter of 2025, as 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, though it provided for an extended transition period over the first half of 2025 for members meeting certain criteria.  There was no contribution from this client in the second quarter of 2026, and excluding the $17.2 million of revenue from this client in the second quarter of 2025, revenue increased 11.0%. Fertility benefit services revenue was $230.2 million, a 7.6% increase from the $213.9 million reported in the second quarter of 2025. Pharmacy benefit services revenue was $120.3 million, a 1.2% increase as compared to the $118.9 million reported in the second quarter of 2025. Gross profit was $89.3 million, an increase of 13% from the $79.0 million reported in the second quarter of 2025, reflecting ongoing efficiencies realized in the delivery of our care management services as well as a decrease in stock-based compensation expense.  Gross margin was 25.5%, as compared to 23.7% reported in the prior year. Net income was $28.1 million, or $0.34 income per diluted share, as compared to the $17.1 million, or $0.19 income per diluted share, reported in the second quarter of 2025.  The higher net income was due primarily to the higher operating profit and lower stock-based compensation expense, which was partially offset by lower interest and other income, net, and a higher provision for income taxes. Adjusted EBITDA was $62.1 million, a increase of 7.2% as compared to the $57.9 million reported in the second quarter of 2025, as the higher gross profit was partially offset by planned investments to expand the features and functionality of our platform.  Adjusted EBITDA margin was 17.7% as compared to the 17.4% Adjusted EBITDA margin in the second quarter of 2025.  Refer to Annex A for a reconciliation of Adjusted EBITDA to net income. Cash FlowNet 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.  Cash flow reflects the timing impact of certain working capital items in both periods. Balance Sheet and Financial PositionAs of June 30, 2026, the Company had total working capital of approximately $272.9 million and no debt.  This included cash and cash equivalents and marketable securities of $236.9 million,  an increase of $11.8 million from the balances as of March 31, 2026 as the operating cash flow generated during the quarter was partially offset by share repurchase activity during the quarter. The Company's $200 million revolving credit facility remains undrawn, and the Company has no planned use for the facility at this time. Share Repurchase ActivityDuring 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, which provided for a total authorization of up to $200 million.  To date, the Company has repurchased a cumulative 2 million shares of its common stock under this most recent program, and approximately $142.5 million remains under the existing authorization.  In combination with its predecessor program which began in November 2025 and concluded earlier this year, the Company has now repurchased an aggregate 10.8 million shares under both its May 2026 and November 2025 share repurchase programs. Key MetricsThe Company had 604 fertility and family building clients as of June 30, 2026, as compared to 542 clients as of June 30, 2025. Financial Outlook Member engagement typically lessens during the peak of the summer months, and the third quarter guidance reflects a slightly more pronounced seasonal impact on member activity.  With our present visibility, activity in September is consistent with the engagement seen over the first half of the year, and this is reflected in the assumptions for the remainder of the year. The Company is providing the following financial guidance for both the three-month and full year periods ending September 30, 2026. Full Year 2026 Outlook: Third Quarter of 2026 Outlook: Adjusted EBITDA and Adjusted earnings per diluted share are financial measures that are not required by, or presented in accordance with, GAAP.  Please see Annex A of this press release for a reconciliation of forward-looking Adjusted EBITDA to forward-looking net income and Adjusted net income to net income, the most directly comparable financial measures stated in accordance with GAAP, for the period presented. Conference Call InformationProgyny will host a conference call at 4:45 P.M. Eastern Time (1:45 P.M. Pacific Time) today, August 6, 2026, to discuss its financial results. Interested participants from the United States may join by calling 1.866.825.7331 and using conference ID 265484. Participants from international locations may join by calling 1.973.413.6106 and using the same conference ID. A replay of the call will be available until August 13, 2026 at 5:00 P.M. Eastern Time by dialing 1.800.332.6854 (U.S. participants) or 1.973.528.0005 (international) and entering passcode 265484. A live audio webcast of the call and subsequent replay will also be available through the Events & Presentations section of the Company’s Investor Relations website at investors.progyny.com. About ProgynyProgyny (Nasdaq: PGNY) is a global leader in women's health and family building solutions, trusted by the nation's leading employers, health plans and benefit purchasers. We envision a world where everyone can realize their dreams of family and ideal health. Our outcomes prove that comprehensive, inclusive and intentionally designed solutions simultaneously benefit employers, patients, and physicians. Our benefits solution empowers patients with concierge support, coaching, education, and digital tools; provides access to a premier network of fertility and women's health specialists who use the latest science and technologies; drives optimal clinical outcomes; and reduces healthcare costs. Headquartered in New York City, Progyny has been recognized for its leadership and growth as a TIME100 Most Influential Company, CNBC Disruptor 50, Modern Healthcare’s Best Places to Work in Healthcare, Forbes' Best Employers, Financial Times Fastest Growing Companies, INC. 5000, INC. Power Partners and Crain’s Fast 50 for NYC. For more information, visit www.progyny.com. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our financial outlook for the third quarter and full year 2026, including the impact of our sales season and client launches; our anticipated number of clients and covered lives for 2026; our expected utilization rates and mix; the demand for our solutions; our expectations for our selling season for 2027 launches; our positioning to successfully manage economic uncertainty on our business; the timing of client decisions; our ability to retain existing clients and acquire new clients; and our business strategy, plans, goals and expectations concerning our market position, future operations, and other financial and operating information.  The words “anticipates,” “assumes,” “believe,” “contemplate,” “continues, ” “could,” “estimates,” “expects,” “future,” “intends,” “may,” “plans,” “predict,” “potential,” “project,” “seeks,” “should,” “target,” “will,” and the negative of these or similar expressions and phrases are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. Forward-looking statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, without limitation, failure to meet our publicly announced guidance or other expectations about our business; competition in the market in which we operate; our history of operating losses and ability to sustain profitability; unfavorable conditions in our industry or the United States economy; our limited operating history and the difficulty in predicting our future results of operations; our ability to attract and retain clients and increase the adoption of services within our client base; the loss of any of our largest client accounts; changes in the technology industry; changes or developments in the health insurance market; negative publicity in the health benefits industry; lags, failures or security breaches in our computer systems or those of our vendors; a significant change in the utilization of our solutions; our ability to offer high-quality support; positive references from our existing clients; our ability to develop and expand our marketing and sales capabilities; the rate of growth of our future revenue; the accuracy of the estimates and assumptions we use to determine the size of target markets; our ability to successfully manage our growth; reductions in employee benefits spending; seasonal fluctuations in our sales; the adoption of new solutions and services by our clients or members; our ability to innovate and develop new offerings; our ability to adapt and respond to the changing medical landscape, regulations, and client needs, requirements or preferences; our ability to maintain and enhance our brand; our ability to attract and retain members of our management team, key employees, or other qualified personnel; risks related to any litigation against us; our ability to maintain our Center of Excellence network of healthcare providers; our strategic relationships with and monitoring of third parties; our ability to maintain our pharmacy distribution network if there is a disruption to our network or its associated supply chains; our relationship with key pharmacy program partners or any decline in rebates provided by them; our ability to maintain our relationships with benefits consultants; exposure to credit risk from our members; risks related to government regulation; risks related to our business with government entities; our ability to protect our intellectual property rights; risks related to acquisitions, strategic investments, or partnerships; federal tax reform and changes to our effective tax rate; the imposition of state and local state taxes; our ability to utilize a portion of our net operating loss or research tax credit carryforwards; our ability to develop or maintain effective internal control over financial reporting; and our ability to adapt and respond to the changing SEC or stakeholder expectations regarding environmental, social and governance practices. For a detailed discussion of these and other risk factors, please refer to our filings with the Securities and Exchange Commission (the “SEC”), including in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and subsequent reports that we file with the SEC, which are available at http://investors.progyny.com and on the SEC’s website at https://www.sec.gov. Forward-looking statements represent our management’s beliefs and assumptions only as of the date of this press release. Our actual future results could differ materially from what we expect. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons. Non-GAAP Financial MeasuresIn addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release and the accompanying tables include the non-GAAP financial measures Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted earnings per diluted share. Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted earnings per diluted share are supplemental financial measures that are not required by, or presented in accordance with, GAAP. We believe that these non-GAAP measures, when taken together with our GAAP financial results, provide meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted earnings per diluted share are helpful to our investors as they are measures used by management in assessing the health of our business, determining incentive compensation, evaluating our operating performance, and for internal planning and forecasting purposes. Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted earnings per diluted share are presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of the limitations of Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted earnings per diluted share include: (1) it does not properly reflect capital commitments to be paid in the future; (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures; (3) it does not consider the impact of stock-based compensation expense; (4) it does not reflect other non-operating income and expenses, including interest and other income, net; and (5) it does not reflect tax payments that may represent a reduction in cash available to us. In addition, our non-GAAP measures may not be comparable to similarly titled measures of other companies because they may not calculate such measures in the same manner as we calculate these measures, limiting their usefulness as comparative measures. Because of these limitations, when evaluating our performance, you should consider Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted earnings per diluted share alongside other financial performance measures, including our net income, gross margin, and our other GAAP results. We calculate Adjusted EBITDA as net income, adjusted to exclude depreciation and amortization; stock-based compensation expense; interest and other income, net; and provision for income taxes. We calculate Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. We calculate Adjusted earnings per diluted share as net income per diluted share excluding the impact of stock-based compensation, adjusted for the associated impact of taxes. Please see Annex A: “Reconciliation of GAAP to Non-GAAP Financial Measures” elsewhere in this press release. ANNEX A PROGYNY, INC.Reconciliation of GAAP to Non-GAAP Financial Measures(Unaudited)(in thousands, except share and per share amounts) Costs of Services, Gross Margin and Operating Expenses Excluding Stock-Based Compensation CalculationThe following table provides a reconciliation of cost of services, gross profit, sales and marketing and general and administrative expenses to each of these measures excluding the impact of stock-based compensation expense for each of the periods presented: Note: percentages shown in the table may not cross foot due to rounding. Adjusted Earnings Per Diluted Share CalculationThe following table provides a reconciliation of net income to Adjusted Earnings Per Diluted Share for each of the periods presented: Adjusted EBITDA CalculationThe following table provides a reconciliation of net income to Adjusted EBITDA for each of the periods presented: Reconciliation of Non-GAAP Financial Guidance for the Three Months Ending September 30, 2026 and Year Ending December 31, 2026 * All of the numbers in the tables above reflect our future outlook as of the date hereof.  Net income, Adjusted Net Income and Adjusted EBITDA ranges do not reflect any estimate for other potential activities and transactions, nor do they contemplate any discrete income tax items, including the income tax impact related to equity compensation activity. Assisted Reproductive Technology (ART) Cycles per Unique Female Utilizer The following tables provide historical trend and guidance assumptions for average members, female utilization rate, and ART Cycles per Unique Female Utilizer for the full year and quarterly periods presented: 1 Calculations for 2024, 2025, and 2026 exclude approximately 300,000 members from a single client not reflected in female utilizers as a result of the client's chosen benefit design.2 Calculations exclude activity from a large client whose program discontinued for 2025, but who allowed for an extended period of transition of care for certain members during the first half of 2025. Quarterly ART Cycles per Unique Female Utilizer *Calculations for 2024, 2025, and 2026 exclude approximately 300,000 members from a single client not reflected in female utilizers as a result of the client's chosen benefit design.E indicates the estimated value assumed.

Progyny (PGNY) came out with quarterly earnings of $0.55 per share, beating the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.48 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +7.84%. A quarter ago, it was expected that this provider of fertility and family building benefits would post earnings of $0.44 per share when it actually produced earnings of $0.5, delivering a surprise of +13.64%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Progyny, which belongs to the Zacks Medical Services industry, posted revenues of $350.51 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.38%. This compares to year-ago revenues of $332.87 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Progyny shares have added about 22.2% since the beginning of the year versus the S&P 500's gain of 12.8%. While Progyny has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Progyny was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.52 on $352.05 million in revenues for the coming quarter and $2.04 on $1.38 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Auna S.A. (AUNA), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 18. This company is expected to post quarterly earnings of $0.26 per share in its upcoming report, which represents a year-over-year change of -21.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Auna S.A.'s revenues are expected to be $350.52 million, up 13.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Progyny, Inc. (PGNY) : Free Stock Analysis Report Auna S.A. (AUNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research