Progyny 2025 Q3 Earnings Beats Expectations with 33% Net Income Growth

Progyny (PGNY) reported Q3 2025 earnings on Nov 8, 2025, surpassing revenue and EPS estimates. The company raised full-year guidance, reflecting strong performance amid market volatility.

Revenue

Progyny’s total revenue rose 9.3% to $313.35 million in Q3 2025, driven by a 13% increase in Fertility Benefits Services revenue ($201.9 million) and a 3% rise in Pharmacy Benefits Services revenue ($111.4 million). The company serves over 550 employers with 6.7 million covered lives, up from 6.5 million in 2024.

Earnings/Net Income

Earnings per share (EPS) increased 33.3% to $0.16, with net income growing 33.0% to $13.86 million. This marks the 7th consecutive year of profitability for the quarter, underscoring operational strength and cost efficiency. The improved performance reflects disciplined management and scalable business practices.

Price Action

The stock surged 8.22% in a single trading day, 19.56% over the week, and 8.70% month-to-date. The strategy of buying shares on revenue beat announcements has historically delivered 70.68% cumulative returns over three years, outperforming the S&P 500’s 28.09%. This robust approach highlights investor confidence despite healthcare sector challenges.

Post-Earnings Price Action Review

The strategy of buying Progyny (PGNY) shares on the date of its revenue raise announcement and holding for 30 days yielded strong returns over the past three years. The cumulative return reached 70.68%, significantly outperforming the market benchmark (S&P 500: 28.09%) over the same period. This indicates a robust approach, especially considering the recent market volatility and competitive dynamics in the healthcare sector.

The stock’s post-earnings rally reflects strong market validation of Progyny’s growth trajectory. Despite macroeconomic uncertainties, the company’s near-100% client renewal rate and expansion into new markets, such as small and mid-sized businesses, have bolstered investor sentiment. The $200 million share repurchase program further signals management’s confidence in long-term value creation.

CEO Commentary

CEO Peter Anevski emphasized Progyny’s resilience in a challenging environment, citing high client retention and strategic product diversification. “Our ability to maintain near-perfect renewal rates and expand benefit offerings positions us to capitalize on the growing demand for fertility and family-building solutions,” he stated. The leadership tone was optimistic, with a focus on innovation and operational efficiency.

Guidance

Progyny raised full-year 2025 revenue guidance to $1.26 billion and adjusted EPS to $1.74. For Q4, management expects revenue between $298.4 million and $302 million, with adjusted EPS of $0.43–$0.45. The guidance reflects confidence in sustained client growth and expanded product adoption.

Additional News

Progyny announced a $200 million share repurchase program, underscoring its commitment to returning capital to shareholders. The company also launched supplemental fertility benefit plans targeting small and mid-sized employers, expanding its market reach. These initiatives align with its strategy to enhance client retention and diversify revenue streams.