Progyny (PGNY) AI Stock Analysis

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Progyny

(NASDAQ:PGNY)

Rating:77Outperform

Price Target:

$24.00

▲(12.68%Upside)

Progyny's overall stock score is driven by robust financial performance and positive earnings call sentiment, reflecting strong growth potential. The technical analysis shows mixed signals, and high valuation suggests some caution. Strategic expansions and a diversified client base support a positive long-term outlook, despite macroeconomic challenges.

Positive Factors

Earnings

Progyny posted a second consecutive quarter of solid results well ahead of analyst and consensus estimates.

Revenue Growth

Revenue growth was driven by higher clients and utilization, with a 16.5% year-over-year increase.

Negative Factors

Macro-economic Concerns

Incremental uncertainty is present due to market-wide macro concerns.

Market Uncertainty

Continuation services for Amazon customers are expected to contribute more revenue, creating noise and uncertainty.

Progyny (PGNY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.88B

Dividend YieldN/A

Average Volume (3M)1.04M

Price to Earnings (P/E)37.6

Beta (1Y)0.81

Revenue Growth9.47%

EPS Growth-7.81%

CountryUS

Employees675

SectorHealthcare

Sector Strength41

IndustryMedical - Healthcare Information Services

Share Statistics

EPS (TTM)0.17

Shares Outstanding85,718,025

10 Day Avg. Volume897,189

30 Day Avg. Volume1,042,123

Financial Highlights & Ratios

PEG Ratio-10.72

Price to Book (P/B)4.45

Price to Sales (P/S)0.00

P/FCF Ratio10.77

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$27.25

Price Target Upside27.93% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering6

Progyny Business Overview & Revenue Model

Company DescriptionProgyny, Inc., a benefits management company, specializes in fertility and family building benefits solutions for employers in the United States. Its fertility benefits solution includes differentiated benefits plan design, personalized concierge-style member support services, and selective network of fertility specialists. The company also offers Progyny Rx, an integrated pharmacy benefits solution that provides its members with access to the medications needed during their treatment. In addition, it provides surrogacy and adoption reimbursement programs for employers. The company was formerly known as Auxogyn, Inc. and changed its name to Progyny, Inc. in 2015. Progyny, Inc. was incorporated in 2008 and is headquartered in New York, New York.

How the Company Makes MoneyProgyny makes money through its fertility benefits management services provided to self-insured employers. The company's revenue model is largely based on contracts with these employers, who pay Progyny for administering its fertility benefits plans to their employees. The key revenue streams include service fees for managing the fertility benefits, as well as fees for each fertility treatment cycle covered under the plan, such as IVF or egg freezing. Progyny leverages partnerships with a network of fertility specialists and clinics to provide high-quality care and negotiate favorable rates, which also contributes to its profitability. The company's ability to deliver better clinical outcomes and cost savings for employers further enhances its value proposition and aids in securing and retaining clients.

Progyny Key Performance Indicators (KPIs)

Any

Member Utilization Rate

Chart InsightsProgyny's member utilization rate has stabilized around the mid-50s since 2023, reflecting consistent engagement despite macroeconomic uncertainties. The latest earnings call highlights robust revenue growth and expanded partnerships, which may support future utilization. However, slight decreases in female utilization and ART cycles suggest variability in member engagement. Progyny's strategic focus on product expansion and a diversified client base positions it well for continued growth, even as it navigates the transition of a large client and broader economic challenges.

Data provided by:

Main Street Data

Progyny Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: -8.86%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Positive

Progyny's earnings call reflects strong financial performance and growth potential, highlighted by record revenues, expanded partnerships, and a raised guidance. However, challenges include the transition of a large client and macroeconomic uncertainties impacting pipeline growth. Despite these challenges, the company's strategic expansions and diversified client base provide a positive outlook.

Q1-2025 Updates

Positive Updates

Strong Revenue Growth and Guidance Increase

First quarter revenue grew 16.5% to $324 million, primarily due to an increase in the number of clients and covered lives. Full-year guidance has been raised, projecting revenue growth between 1.5% and 5.8% with expectations excluding a large client to be 11% to 15%.

Record Quarterly Results and Cash Flow

The company reported record quarterly results for both revenue and adjusted EBITDA, along with significant quarterly cash flow generation, nearly doubling operating cash flow compared to the prior year.

Expansion of Product Portfolio and Partnerships

Progyny made meaningful progress in expanding its product portfolio and platform, enhancing member experience, and extending its position in women's health and family building. New partnerships include Cigna and large regional plans.

High Client Diversification and Growth in Covered Lives

Progyny reported 532 clients and an average of 6.7 million covered lives, with diversification across 45 industries, showing resilience and growth even after losing a large client.

Negative Updates

Large Client Transition and Impact on Revenue

A large former client is providing an extended transition period, contributing approximately $31 million in the first quarter. This transition impacts comparability and revenue growth metrics.

Slight Decrease in Utilization Metrics

Female utilization and ART cycles per unique female utilizer showed slight decreases compared to the prior year, reflecting some variability in member engagement.

Macroeconomic Uncertainty Affecting Sales Pipeline

The average number of lives in the sales pipeline is lower than the previous year, possibly due to macroeconomic uncertainties affecting decision-making processes of potential clients.

Company Guidance

During the first quarter 2025 earnings call, Progyny Inc. reported robust financial results with double-digit growth in both revenue and adjusted EBITDA compared to the prior year. Revenue increased 16.5% to $324 million, driven primarily by an uptick in the number of clients and covered lives. The company saw a record 16,160 ART cycles, reflecting a 9% growth year-over-year. Progyny raised its full-year guidance, projecting revenue between $1.185 billion and $1.235 billion and adjusted EBITDA between $190 million and $203 million. The guidance assumes a contribution of $44 million to $46 million from a large client under a transition of care agreement. The company also reported record gross margins and significant quarterly cash flow, with a focus on expanding its product portfolio and platform to enhance member experience. With stable utilization rates and a diversified client base across 45 industries, Progyny remains optimistic about its growth trajectory and market position in women's health and family building solutions.

Progyny Financial Statement Overview

Summary

Progyny has shown substantial revenue growth and maintains healthy gross profit margins. The balance sheet is strong with low debt levels and significant shareholder equity growth. Cash flow statements indicate effective cash management, although there are fluctuations in profit margins and equity ratios.

Income Statement

Very Positive

Progyny has demonstrated robust revenue growth over the years, with a significant increase from $229.7M in 2019 to $1.17B in 2024. The company maintains healthy gross profit margins, averaging around 20% over the past few years. Net profit margin has seen improvement, though it remains somewhat volatile, with a decrease from 2023 to 2024. The EBIT and EBITDA margins indicate steady operational efficiency, further supporting a positive outlook.

Balance Sheet

Positive

Progyny's balance sheet is strong with low debt levels, evident by a low debt-to-equity ratio. The company's stockholders' equity has grown significantly, indicating strong shareholder returns. However, the equity ratio has slightly declined over the years, suggesting an increasing reliance on liabilities. Overall, the balance sheet reflects financial stability and a conservative capital structure.

Cash Flow

Positive

The company exhibits a consistent positive operating cash flow, with strong free cash flow generation. Though free cash flow growth has been inconsistent, the operating cash flow to net income ratio indicates efficient cash management. The reliance on financing activities has decreased, showcasing a self-sustaining cash flow profile.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.17B	1.09B	786.91M	500.62M	344.86M
	Gross Profit
253.36M	238.80M	167.32M	112.14M	70.06M
	EBIT
67.45M	62.18M	23.34M	32.34M	8.35M
	EBITDA
67.45M	64.47M	24.94M	33.64M	10.25M
	Net Income Common Stockholders
54.34M	62.04M	30.36M	65.77M	46.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
227.95M	371.09M	189.30M	119.42M	109.30M
	Total Assets
607.10M	756.62M	542.99M	358.06M	253.93M
	Total Debt
19.27M	19.39M	7.71M	7.42M	8.32M
	Net Debt
-143.04M	-77.91M	-112.36M	-83.99M	-61.99M
	Total Liabilities
185.04M	203.19M	166.02M	106.24M	86.98M
	Stockholders Equity
422.06M	553.43M	376.97M	251.82M	166.95M
Cash Flow		Free Cash Flow
173.70M	185.17M	77.15M	23.91M	35.17M
	Operating Cash Flow
179.10M	188.81M	80.39M	26.04M	36.20M
	Investing Cash Flow
195.79M	-200.53M	-43.87M	8.77M	-40.03M
	Financing Cash Flow
-309.88M	-11.07M	-7.86M	-13.70M	-6.25M

Progyny Technical Analysis

Technical Analysis Sentiment

Negative

Last Price21.30

Price Trends

50DMA

22.09

Negative

100DMA

21.98

Negative

200DMA

19.69

Positive

Market Momentum

MACD

-0.22

Negative

RSI

45.42

Neutral

STOCH

71.80

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PGNY, the sentiment is Negative. The current price of 21.3 is below the 20-day moving average (MA) of 21.67, below the 50-day MA of 22.09, and above the 200-day MA of 19.69, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 45.42 is Neutral, neither overbought nor oversold. The STOCH value of 71.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PGNY.

Progyny Risk Analysis

Progyny disclosed 57 risk factors in its most recent earnings report. Progyny reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Progyny Peers Comparison

Overall Rating

UnderperformOutperform

Sector (53)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PGNY	77 Outperform	$1.88B	37.59	10.11%	―	9.47%	-7.81%
PINC	76 Outperform	$1.88B	40.04	6.05%	3.64%	-17.69%	-10.24%
GDRX	62 Neutral	$1.41B	53.97	4.43%	―	4.35%	―
PHR	58 Neutral	$1.48B	―	-15.97%	―	16.29%	66.01%
SDGR	56 Neutral	$1.59B	―	-43.33%	―	22.29%	-32.89%
Sector *	53 Neutral	$5.25B	3.24	-45.38%	2.81%	16.79%	-0.06%
TDOC	48 Neutral	$1.24B	―	-54.49%	―	-2.54%	-322.03%

* Healthcare Sector Average

Performance Comparison

PGNY

Progyny

21.30

-6.63

-23.74%

PINC

Premier

23.17

4.98

27.38%

TDOC

Teladoc

7.12

-3.91

-35.45%

PHR

Phreesia

25.22

5.47

27.70%

SDGR

Schrodinger

23.73

0.33

1.41%

GDRX

GoodRx Holdings

4.01

-4.78

-54.38%

Progyny Corporate Events

Executive/Board ChangesShareholder Meetings

Progyny Stockholders Meeting Highlights Governance Decisions

Neutral

May 28, 2025

On May 22, 2025, Progyny, Inc. held its Annual Meeting of Stockholders where key decisions were made regarding the company’s governance and financial oversight. Stockholders elected Class III directors, ratified Ernst & Young LLP as the independent accounting firm, but did not approve the executive compensation package, indicating potential concerns among stakeholders about executive pay.

The most recent analyst rating on (PGNY) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Progyny stock, see the PGNY Stock Forecast page.

Executive/Board ChangesShareholder Meetings

Progyny Director Fred Cohen to Step Down

Neutral

Apr 11, 2025

On April 9, 2025, Dr. Fred E. Cohen informed Progyny, Inc. that he will not seek reelection at the company’s 2025 Annual Meeting of Stockholders. His decision is not due to any disagreement with the company’s operations, policies, or practices, and he will remain a director until the end of his current term.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.