Progyny (PGNY) Barclays 28th Annual Global Healthcare Conference summary

Business performance and outlook

• Achieved strong utilization and growth in 2024, with 99% client retention and 30% of clients expanding benefits.

• Investments in 2025 and 2026 are expected to position the business well for future growth.

• Membership estimate for 2026 was revised slightly down to 7.2 million due to administrative updates, not layoffs or industry concentration.

• Adjustments affected lower-utilizing clients and are considered a reporting true-up rather than a material event.

• Guidance does not assume in-year member growth beyond planned launches; most new clients launch in Q1.

Utilization trends and macro environment

• Historical utilization rates have been stable, ranging from 1.03% to 1.09%, with 2024 ending at 1.04%.

• Early 2025 utilization aligns with guidance, with variability factored into projections.

• Utilization is driven by the biological need for fertility services, largely unaffected by macroeconomic factors or tax refunds.

• Seasonality impacts utilization, with more consults in Q1 and increased treatment cycles in later quarters.

Competitive landscape and market expansion

• Main competition comes from payers (MCOs) with fertility benefits, not standalone competitors.

• MCOs lack financial incentive and specialized services, making them less competitive in this space.

• High win rates continue when clients decide to add fertility benefits.

• Expanded offerings include menopause, postpartum, adoption, surrogacy, and fertility preservation, with strong client interest.