Progyny, Inc. reported fourth‑quarter 2025 results that included a $318.4 million revenue figure, up 6.7% from the $298.4 million reported in the same period a year earlier. The revenue beat the consensus estimate of roughly $303.93 million, a $14.47 million lift that reflects stronger demand across its core fertility‑benefits business and a higher mix of high‑margin services. However, the company’s earnings per share fell short of expectations, reporting $0.14 versus the analyst estimate of $0.38—a miss of $0.24 or 63% below consensus. The EPS shortfall is largely attributable to the loss of a large client that did not renew its 2025 services agreement, eliminating $35.9 million of revenue in the quarter and adding a one‑time cost impact that weighed on profitability.
The fourth‑quarter gross profit rose to $76.9 million, a 21% year‑over‑year increase, and the gross margin expanded to 24.1% from 21.3% a year earlier. The margin lift is driven by ongoing efficiencies in the delivery of care‑management services and a favorable shift in the mix toward higher‑margin programs. Operating cash flow reached $54.2 million, underscoring the company’s ability to generate cash even as it invests in growth initiatives and returns capital to shareholders through a share‑repurchase program that added 3.3 million shares in the quarter, bringing the cumulative repurchase total to 6.5 million shares.
Progyny reaffirmed its full‑year 2026 guidance, projecting revenue between $1.355 billion and $1.405 billion—slightly below the consensus estimate of $1.427 billion. The company also guided first‑quarter 2026 revenue to $319 million–$332 million, again below the analyst estimate of $325.5 million. The guidance reflects management’s cautious outlook amid the transition of a major client and the need to balance growth with margin preservation. Despite the conservative outlook, Progyny highlighted continued expansion of its client base, adding 82 new employers in 2025 and launching “Progyny Select,” a program targeting smaller, fully insured employers.
Investors reacted to the earnings release with a muted response, largely because the EPS miss and the conservative 2026 guidance tempered enthusiasm. The revenue beat was offset by the EPS shortfall, and the guidance figures fell short of analyst expectations, signaling potential headwinds in the near term. Management emphasized that the company remains confident in its long‑term trajectory, citing strong demand for its fertility‑benefits platform and ongoing investments in technology and market expansion.
The company’s strategic focus on expanding into the fully insured market with Progyny Select and its continued client acquisition momentum suggest a solid growth path, but the EPS miss and cautious guidance highlight the importance of managing client transitions and maintaining margin discipline as the business scales.
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