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Mar 31
Progyny Q1 2025 Earnings Report
Reported Record Revenue of $324.0 Million, Reflecting 16.5% Growth
Key Takeaways
Progyny reported a strong start to 2025 with record first-quarter revenue of $324.0 million, a 16.5% increase year-over-year. The growth was primarily driven by an increase in clients and covered lives. The company also raised its full-year guidance.
First quarter 2025 revenue reached $324.0 million, a 16.5% increase compared to the same period in 2024.
Fertility benefit services revenue grew by 22% to $206.4 million.
Gross profit increased by 21% to $75.8 million, with gross margin at 23.4%.
Net cash provided by operating activities was $49.8 million, significantly higher than the prior year period.
Progyny
Progyny
Progyny Revenue by Segment
Revenue by Segment
Fertility Benefit Services Revenue
CapyFin.comPharmacy Benefit Services Revenue
CapyFin.com Forward Guidance
For the full year 2025, Progyny projects revenue between $1.185 billion and $1.235 billion, and net income between $42.4 million and $51.8 million. Second quarter 2025 revenue is projected to be between $310.0 million and $325.0 million.
Positive Outlook
- Raised full-year revenue guidance due to a strong start to the year.
- Early selling season activity reflects ongoing demand in women's health and family building solutions.
- Member engagement is pacing consistent with the first quarter.
- Multiple pathways to meet sales goals for the year.
- Continued investments to expand the platform and extend market leadership.
Challenges Ahead
- Impact of a large client not renewing its services agreement for 2025 (with an extended transition period).
- Ongoing macroeconomic uncertainty could impact how the year unfolds.
- Guidance reflects a range of engagement and activity due to variability experienced in 2024 and macro uncertainty.
- Investments in member experience and acquisition integration expected to ramp in Q2 and continue.
- Wind down and no contribution from the transition of care agreement with the large client over the second half of the year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income