- Revenue Growth Excluding Transitioning Client: Revenue increased 18% YoY to $332.9 million, driven by 79 new clients and 6.74 million covered lives.
- Fertility & Pharmacy Revenue Growth: Fertility benefits rose 11% to $214 million, while pharmacy revenue grew 8% to $119 million.
- Gross Margin Expansion: Gross margin improved to 23.7% from 22.5% YoY, despite adjusted EBITDA margin slipping to 17.4% due to investments.
- Full-Year Revenue Guidance Raised: Projected revenue now $1.235B–$1.270B (5.8–8.8% growth), surpassing prior expectations.
- Strong Cash Flow & Utilization: Generated $55.5 million operating cash flow in Q2 and raised full-year utilization forecast to 1.04–1.06%.
Key Drivers of Growth
The company's success stems from its robust sales strategy, which resulted in over 79 new client wins in the quarter, bringing the total client count to 542. These new clients, coupled with an increase in covered lives, contributed significantly to the revenue growth. Notably, Progyny observed strong demand across diverse industries, highlighting the broad appeal of its fertility and family planning solutions.
Positive Outlook and Guidance
Fueled by this positive momentum, Progyny raised its full-year 2025 guidance. The company now projects revenue between $1.235 billion and $1.270 billion, representing a growth of 5.8% to 8.8%. Adjusted EBITDA is expected to be in the range of $205.5 million to $214.5 million, and net income is projected between $52.3 million and $58.9 million. This upward revision reflects the company's confidence in its ability to continue delivering strong financial results.
Valuation Metrics
Progyny's shares are currently trading at a P/E ratio of 37.21, which indicates that investors are willing to pay a premium for the company's growth prospects. The P/B ratio of 4.18 suggests that the market values the company's assets at a significant premium to their book value. The EV/EBITDA multiple of 25.1 further reinforces the market's high expectations for the company's future earnings power.