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Jun 30
Progyny Q2 2025 Earnings Report
Progyny reported record revenue and strong gross profit growth in Q2 2025, driven by increased member engagement.
Key Takeaways
Progyny, Inc. announced strong financial results for the second quarter of 2025, with record revenue of $332.9 million, a 9.5% increase year-over-year. The company also reported significant growth in gross profit and net income, alongside robust operating cash flow. This performance was primarily attributed to increased member engagement and an expanded client base.
Record revenue of $332.9 million, marking a 9.5% increase from Q2 2024.
Gross profit rose by 16% to $79.0 million, with gross margin expanding to 23.7%.
Net income increased to $17.1 million, or $0.19 per diluted share.
Generated $55.5 million in quarterly operating cash flow, contributing to a record $105.3 million over the first half of 2025.
Progyny
Progyny
Progyny Revenue by Segment
Revenue by Segment
Fertility Benefit Services Revenue
CapyFin.comPharmacy Benefit Services Revenue
CapyFin.com Forward Guidance
Progyny has raised its full-year 2025 guidance for revenue, net income, and Adjusted EBITDA, reflecting strong first-half results and higher expectations for member engagement. The guidance accounts for variability in member engagement, ongoing macroeconomic uncertainty, and the expiration of a large client's transition agreement.
Positive Outlook
- Raised full-year 2025 revenue guidance to $1.235 billion to $1.270 billion, reflecting 5.8% to 8.8% growth.
- Increased full-year 2025 net income projection to $52.3 million to $58.9 million.
- Adjusted EBITDA for full-year 2025 is projected to be $205.5 million to $214.5 million.
- Adjusted earnings per diluted share for full-year 2025 is projected to be $1.70 to $1.78.
- Member activity continues to remain healthy and more consistent with historical seasonal patterns as the third quarter begins.
Challenges Ahead
- Guidance reflects a range of member engagement due to variability experienced in prior periods.
- Potential for impact from ongoing macroeconomic uncertainty.
- Guidance reflects the impact of previously announced investments in member experience and acquisition integration.
- The extended transition of care agreement with a large client expired on June 30th, meaning no further contribution from that client in the second half of the year.
- Third-quarter 2025 revenue growth is projected to be lower (1.2% to 6.4%) compared to Q2 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income