Progyny 2025 Q2 Earnings Net Income Grows 3.8% Despite Stock Sell-Off

Progyny (PGNY) reported its fiscal 2025 Q2 earnings on August 8, 2025. The company delivered a 9.5% year-over-year revenue increase, and raised full-year guidance, signaling sustained business performance and member engagement momentum.

Progyny’s second quarter results exceeded expectations, with revenue growth outpacing the prior year and a 3.8% rise in net income. The company’s continued profitability for seven consecutive years, coupled with an upward revision to full-year guidance, indicates robust operational strength and confidence in future performance.

Revenue
Total revenue for Progyny surged 9.5% year-over-year to $332.87 million in 2025 Q2, driven by strong performance in both core business segments. The fertility benefits services division remained the company’s primary growth engine, generating $213.94 million, while pharmacy benefits services added $118.93 million to the top line. Together, these segments accounted for the entire revenue figure, underscoring the company’s diversified yet focused service offerings.

Earnings/Net Income
Progyny’s earnings continued to show positive momentum, with earnings per share (EPS) rising 11.1% year-over-year to $0.20 in Q2 2025 from $0.18 in the same period in 2024. The company’s net income also posted a modest but consistent increase, reaching $17.11 million compared to $16.48 million in Q2 2024, a 3.8% year-over-year gain. This marks the seventh consecutive year of profitability for the company in the corresponding fiscal quarter, reinforcing its stable and predictable financial performance.

Price Action
Despite the positive earnings report, Progyny’s stock experienced a mixed reaction in the short term. Shares fell 12.82% during the latest trading day, while recovering slightly with a 1.60% gain over the previous full trading week. However, the stock declined 3.91% month-to-date, signaling investor uncertainty and volatility following the earnings release.

Post-Earnings Price Action Review
The performance of a strategy to purchase Progyny shares following a revenue growth quarter has been notably disappointing over the past three years. Holding the stock for 30 days post-earnings yielded a return of -45.96%, far underperforming the benchmark return of 47.91%. This negative excess return of -93.87% and a compound annual growth rate of -18.75% highlight the significant risks associated with the strategy. A Sharpe ratio of -0.36 and a maximum drawdown of 0% further underscore the strategy’s poor risk-adjusted returns and lack of resilience in market fluctuations.

CEO Commentary
Pete Anevski, Chief Executive Officer, attributed the strong Q2 results to an increase in member engagement across care and services aimed at addressing health and family-building goals. He emphasized early client commitments comparable to the prior year, although the number of lives for early wins lagged due to differing client demographics. Anevski expressed confidence in normalization during the most active months of the selling season, which includes new sales, renewals, upsells, and expansions.

Guidance
Mark Livingston, Chief Financial Officer, outlined the company’s expectations for continued revenue growth and margin expansion. He highlighted a high conversion of Adjusted EBITDA to cash flow, resulting in a record $105.3 million in operating cash flow for the first half of 2025. In response to the positive momentum, Progyny raised its full-year guidance to reflect the increased pacing of member engagement and anticipated progress in the final months of the selling season.

Additional News
Nigeria’s stock market lost approximately N516 billion in value following a weeks-long bullish rally, marking one of the largest market corrections in recent months. In another notable development, the country’s Federal Government rejected a proposed deportee agreement with the United States, drawing comparisons to deals offered to Rwanda and South Sudan. Politically, former President Goodluck Jonathan has been endorsed as the Peoples Democratic Party's (PDP) preferred presidential candidate for the 2027 election by a prominent Lamido figure. On the corporate front, Sterling HoldCo directors invested N341.6 million in company shares, signaling confidence in the firm’s future performance.