Progyny (PGNY) Q4 2025 earnings summary

Executive summary

• Achieved record full-year revenue of $1.29 billion in 2025, up 10% year-over-year, with adjusted EBITDA of $222.1 million and operating cash flow of $210.2 million, both exceeding guidance.

• Q4 2025 revenue grew 6.7% to $318.4 million, with gross margin expanding to 24.1% and adjusted EBITDA margin at 16.1%.

• Client retention remained near 100%, including all largest employers, and the client base grew to 555 by year-end.

• Returned $160 million to shareholders through repurchase of 6.5 million shares, with over $40 million remaining under authorization.

• Diversified client and industry base, with no single client over a single-digit percent of revenue and no industry over 15% of lives.

Financial highlights

• Full-year 2025 revenue grew 10% (20% excluding a large former client); gross profit up 20% to $304.5 million; adjusted EBITDA up 12% to $222.1 million (17.2% margin).

• Q4 2025 gross profit rose 21% year-over-year; gross margin expanded by 280 basis points to 24.1%.

• CapEx for 2025 was $18.4 million, up from $5.4 million in 2024.

• No debt outstanding; $310 million in cash and equivalents at year-end.

• Days sales outstanding improved to 62.3 days at year-end, down over 8 days year-over-year.

Outlook and guidance

• 2026 revenue projected at $1.355–$1.405 billion, up 5.1%–9% year-over-year; excluding the former client, growth is 9.3%–13.3%.

• Adjusted EBITDA expected at $224–$239 million; net income $95.4–$106.1 million; adjusted EPS $1.83–$1.95.

• First quarter 2026 revenue guidance: $319–$332 million; adjusted EBITDA $51–$55 million; net income $20.8–$23.7 million.

• Covered lives expected at 7.2 million in 2026, revised downward due to administrative updates, not workforce reductions.

• Stock-based compensation to decrease by ~35% in 2026, to about 6% of revenue.