Progyny Inc. (PGNY): A Fertility Healthcare Leader Poised for Liftoff Post-Q1 Earnings

The fertility healthcare sector is booming, and Progyny, Inc. (PGNY) just delivered a blockbuster quarter that proves its dominance. With record revenue growth, expanding employer partnerships, and a clear path to unlocking further value, this is a stock that investors should act on now. Let’s break down why PGNY is primed to soar post-earnings—and why you shouldn’t wait for H2 data to jump in.

Q1 2025 Results: Growth on Steroids (Literally)

Progyny reported $324 million in Q1 revenue, a 16.5% year-over-year surge, even after losing a large client that didn’t renew its contract. Excluding that client, growth rockets to 19%, showcasing the power of its expanding client base. The real star here is fertility benefit services, which jumped 22% to $206.4 million—a clear sign that employers are prioritizing family-building benefits like never before.

The company now serves 532 clients, up 18% from last year, with an average of 6.695 million members—a 5.6% increase. Utilization rates remain stable at 0.54% for all members, proving demand isn’t waning despite macroeconomic headwinds. Progyny isn’t just selling services; it’s building a lifeline for employers seeking to retain talent in a competitive market.

Why the Growth Engine Will Keep Firing

1. Employer Partnerships Are Going Viral:
   Companies are doubling down on women’s health and family-building benefits. Progyny’s 532 clients (up from 451 in Q1 2024) are a testament to this trend. CEO Pete Anevski noted that 2026 benefit decisions are already prioritizing these services—a huge tailwind for H2 enrollment.

2. Fertility Benefits Are the New Retirement Plans:
   Employers know that offering fertility support isn’t just compassionate—it’s a retention tool. Progyny’s 22% growth in fertility services vs. 9% in pharmacy shows where the real demand lies. This isn’t a fad; it’s a structural shift.

3. Cost Efficiency Meets Smart Investing:
   Gross margin expanded to 23.4%, up from 22.4%, thanks to scale. While Adjusted EBITDA margin dipped slightly to 17.8%, this was due to strategic investments in platform upgrades and acquisition integration. Think of this as paying now to dominate later—a move that will pay dividends in 2026 and beyond.

Valuation: Buying Growth at a Discount

Here’s where it gets juicy. Progyny’s stock is trading at a P/S ratio of just 4.2x based on its full-year 2025 revenue guidance of $1.2 billion. Compare this to peers like Medtronic (MDT) (P/S ~2.9x) or UnitedHealth (UNH) (P/S ~1.5x)—wait, no, actually those are healthcare giants, but even in specialized markets, this is a steal.

But let’s get granular:
- EV/EBITDA: Progyny’s 2025 EBITDA guidance is $190–$203 million, putting its EV at roughly $1.2B (assuming current market cap of ~$800M plus no debt). That’s an EV/EBITDA of ~6x, which is half the multiple of telehealth peers with less proven growth.

• Adjusted EPS is on Fire: Progyny’s $0.48 in Q1 Adjusted EPS is up 20% year-over-year. Full-year guidance of $1.54–$1.64 suggests a P/E of ~15x at current prices—a bargain for a company growing revenue at +16% annually.

The Catalysts Coming in H2: Don’t Miss the Inflection Point

Investors often wait for “data points” before buying, but here’s why you shouldn’t:
1. 2026 Enrollment Surge: By Q4, we’ll see how many employers added Progyny’s benefits for next year. With HR leaders already prioritizing family-building plans, this could be a record-breaking enrollment quarter.

1. Transition Client Wind-Down: The large client’s revenue contribution drops to zero post-H2, but Progyny’s organic growth (19% ex-client) proves it’s not reliant on any single partner.

2. Margin Expansion Ahead: Those platform investments? They’ll start paying off in 2026, squeezing more profit from every dollar of revenue.

Final Verdict: Buy PGNY Now—Before the Crowd Catches On

Progyny isn’t just a fertility services company—it’s the Amazon of family-building benefits, scaling its network and locking in long-term contracts. With a P/S of 4.2x, EV/EBITDA of 6x, and a client base growing at 18%, this is a stock that’s undervalued relative to its growth trajectory.

The H2 enrollment data will be the spark, but why wait? Buy PGNY now at these levels—and get ready to cheer when the market finally recognizes this fertility titan for what it is: a buy-and-hold gem with 20%+ annual growth baked in.

Action Item: Add PGNY to your portfolio at current levels. Set a target of $25–$30 by year-end based on its guidance—and hold on for the ride. This is not a stock to miss.