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Progyny
(NASDAQ:PGNY)
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Rating:78Outperform
Price Target:
$29.00
▲(9.97% Upside)
Action:Reiterated
Date:08/07/26
The score is driven primarily by strong financial performance (cash flow strength, low leverage, and improving profitability) and a constructive earnings outlook with continued buybacks. Offsetting factors are a premium valuation (high P/E and no dividend yield provided) and only moderate/neutral near-term technical momentum.
Positive Factors
Strong cash generation
Robust operating and free cash flow gives Progyny internal funding for technology, platform expansion, and shareholder returns. Strong cash conversion also reduces reliance on external financing, helping preserve strategic flexibility through changing utilization patterns or investment cycles.
Negative Factors
Moderating revenue growth
Although growth remains positive, the guided pace is below Progyny's earlier high-growth trajectory and includes a meaningful transition-client comparison effect. Slower expansion can limit operating leverage and places greater importance on new sales, client retention, and successful product adoption.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Robust operating and free cash flow gives Progyny internal funding for technology, platform expansion, and shareholder returns. Strong cash conversion also reduces reliance on external financing, helping preserve strategic flexibility through changing utilization patterns or investment cycles.
Read all positive factors
Progyny Key Performance Indicators (KPIs)
Any
Fertility and Family Building Clients
Counts employer groups and other clients that buy Progyny’s fertility and family-building benefits, revealing sales momentum, market penetration, contract scale, and concentration risk from large customers.
Counts employer groups and other clients that buy Progyny’s fertility and family-building benefits, revealing sales momentum, market penetration, contract scale, and concentration risk from large customers.
Data provided by:
The Fly
The FlyProgyny (PGNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.93B
Dividend YieldN/A
Average Volume (3M)1.09M
Price to Earnings (P/E)25.8
Beta (1Y)0.63
Revenue Growth5.54%
EPS Growth57.30%
CountryUS
Employees846
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Plans
Share Statistics
EPS (TTM)0.97
Shares Outstanding76,726,800
10 Day Avg. Volume1,296,075
30 Day Avg. Volume1,087,286
Financial Highlights & Ratios
PEG Ratio2.48
Price to Book (P/B)4.24
Price to Sales (P/S)1.70
P/FCF Ratio11.41
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$34.18Price Target Upside29.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)1.28
Revenue Forecast (FY)$1.38B
Progyny Business Overview & Revenue Model
Company Description
Progyny, Inc. functions as a benefits management corporation, dedicated to providing specialized solutions for fertility and broader family-building initiatives to employers throughout the United States. Its core fertility offering is characterize...
How the Company Makes Money
Progyny makes money primarily by selling fertility and family-building benefits solutions to employers (especially self-insured employers) on a contractual basis and administering those benefits for employer clients. Key revenue streams include: (...
Progyny Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented multiple strong financial and operational positives: record quarterly results, margin expansion, robust operating cash flow ($201M TTM), a clean balance sheet, sizable share repurchases, and meaningful early sales momentum with confidence to add 1M+ lives. The primary negatives were a slightly more pronounced summer seasonality that tempered near-term visibility and required modest guidance recalibration, comparability noise from a prior transition client, and early-stage nature of new channels (Progyny Select). Overall the positive financial performance, cash generation, and sales/retention momentum materially outweigh the transitory seasonality and execution timing risks described.Positive Updates
Record Quarterly Financials
Reported record quarterly revenue, gross profit, and adjusted EBITDA. Second quarter revenue rose 5.3% year-over-year on a reported basis and ~11% YoY excluding a large former client under a transition-of-care agreement. Company reiterated full-year 2026 revenue guidance of $1.36B to $1.385B (growth of 5.5% to 7.5%) and, excluding the $48.5M transition-client contribution from 1H25, a pro forma growth range of 9.7% to 11.7%.
Negative Updates
Pronounced Summer Seasonality and Near-Term Softness
Management observed a slightly more pronounced mid-summer seasonality this year that reduced sequential activity and prompted a recalibration/narrowing of guidance. They noted a modest (~1%) adjustment toward guidance midpoints and provided a third-quarter revenue outlook of $335M to $345M (growth of 6.9% to 10.1%) reflecting this seasonal softness.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Financials
Reported record quarterly revenue, gross profit, and adjusted EBITDA. Second quarter revenue rose 5.3% year-over-year on a reported basis and ~11% YoY excluding a large former client under a transition-of-care agreement. Company reiterated full-year 2026 revenue guidance of $1.36B to $1.385B (growth of 5.5% to 7.5%) and, excluding the $48.5M transition-client contribution from 1H25, a pro forma growth range of 9.7% to 11.7%.
Read all positive updates
Company Guidance
Management guided full‑year 2026 revenue of $1.36B–$1.385B (growth 5.5%–7.5%; 9.7%–11.7% excluding $48.5M from a transition client), adjusted EBITDA of $233M–$240M and net income of $104.8M–$109.9M (diluted EPS $1.26–$1.32; adjusted EPS $2.04–$2.10 on ~83M fully diluted shares). Q3 guidance is $335M–$345M revenue (growth 6.9%–10.1%), adjusted EBITDA $56M–$59M and net income $24.5M–$26.7M (EPS $0.30–$0.33; adjusted EPS $0.50–$0.52 on ~82M shares). At the midpoints they expect to maintain adjusted EBITDA margin (trailing‑12M adjusted EBITDA margin was 17.2%), full‑year engagement/utilization to remain within historical ranges (low end in line with the 5‑year low), and investment spend to taper starting in 2027 (Q2 CapEx $6.2M). Liquidity and cash metrics cited include >$50M operating cash flow in the quarter (T12M operating cash flow $201M), >75% adjusted‑EBITDA‑to‑cash conversion, working capital ≈$273M (≈$237M cash/cash equivalents/marketable securities), no debt and no revolver borrowings, DSOs >7 days better Y/Y, and ongoing share repurchases (≈1.2M shares/$31.5M in Q2; 2M under the current program, 10.8M total since November, ~12.5% reduction in shares outstanding, ≈$142.5M authorization remaining).Progyny Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
91
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.31B | 1.29B | 1.17B | 1.09B | 786.91M | 500.62M |
| Gross Profit | 322.09M | 304.48M | 253.36M | 238.80M | 167.32M | 112.14M |
| EBITDA | 127.06M | 100.38M | 86.38M | 72.97M | 26.04M | 33.74M |
| Net Income | 78.63M | 58.52M | 54.34M | 62.04M | 30.36M | 65.77M |
Balance Sheet | ||||||
| Total Assets | 715.84M | 742.43M | 607.10M | 756.62M | 542.99M | 358.06M |
| Cash, Cash Equivalents and Short-Term Investments | 152.63M | 310.10M | 227.95M | 371.09M | 189.30M | 119.42M |
| Total Debt | 26.97M | 27.73M | 19.27M | 19.39M | 7.71M | 8.65M |
| Total Liabilities | 262.58M | 226.39M | 185.04M | 203.19M | 166.02M | 106.24M |
| Stockholders Equity | 453.26M | 516.04M | 422.06M | 553.43M | 376.97M | 251.82M |
Cash Flow | ||||||
| Free Cash Flow | 217.99M | 191.78M | 173.70M | 185.17M | 77.15M | 23.91M |
| Operating Cash Flow | 247.20M | 210.19M | 179.10M | 188.81M | 80.39M | 26.04M |
| Investing Cash Flow | 162.25M | -159.01M | 195.79M | -200.53M | -43.87M | 8.77M |
| Financing Cash Flow | -372.87M | -99.36M | -309.88M | -11.07M | -7.86M | -13.70M |
Progyny Technical Analysis
Negative
26.37
Price Trends
27.34
Negative
27.35
Negative
24.21
Positive
Market Momentum
-0.55
Positive
35.37
Neutral
20.21
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 26.37 is below the 20-day moving average (MA) of 26.45, below the 50-day MA of 27.34, and above the 200-day MA of 24.21, indicating a neutral trend. The MACD of -0.55 indicates Positive momentum. The RSI at 35.37 is Neutral, neither overbought nor oversold. The STOCH value of 20.21 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.93B | 25.78 | 15.98% | ― | 5.54% | 57.30% | |
76 Outperform | $909.00M | 42.45 | 6.01% | 0.45% | 8.78% | 7.61% | |
66 Neutral | $641.19M | 59.90 | 3.01% | ― | 12.93% | ― | |
56 Neutral | $2.52B | 89.42 | 0.01% | ― | 24.10% | 84.08% | |
52 Neutral | $394.58M | -0.75 | -99.16% | ― | -4.50% | -184.71% | |
52 Neutral | $1.05B | -5.83 | -13.08% | ― | -2.08% | 16.88% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
PGNY
Progyny
24.85
4.30
20.92%
HSTM
HealthStream
30.36
2.99
10.94%
EVH
Evolent Health
3.39
-4.50
-57.03%
TDOC
Teladoc
5.67
-2.81
-33.14%
PHR
Phreesia
10.36
-12.48
-54.64%
PRVA
Privia Health Group
20.03
-4.43
-18.11%
Progyny Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Progyny Posts Record Q2 Results, Expands Client Base
Positive
Aug 6, 2026
On August 6, 2026, Progyny reported record second‑quarter 2026 results, with revenue rising 5.3% year on year to $350.5 million and gross profit climbing 13% to $89.3 million, despite the loss of a large client that had contributed $17.2 mil...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.