Progyny, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for the third quarter of 2026 was $341.3 million, an 8.9% increase compared to $313.3 million in the third quarter of 2025.
• Fertility benefit services revenue was $223.4 million, a 10.6% increase year-over-year.
• Pharmacy benefit services revenue was $117.9 million, a 5.8% increase year-over-year.
• Gross profit was $83.7 million, a 15% increase from $72.8 million in the prior year period.
• Gross margin improved to 24.5% from 23.2% in the third quarter of 2025.
• Net income was $26.3 million, or $0.32 per diluted share, compared to $13.9 million, or $0.15 per diluted share, in the prior year period.
• Adjusted EBITDA was $58.4 million, a 6.3% increase from $55.0 million in the prior year period.
• Adjusted EBITDA margin was 17.1%, down from 17.5% in the third quarter of 2025.
• Net cash provided by operating activities for the quarter was $56.6 million, compared to $50.7 million in the prior year period.
• Trailing twelve-month operating cash flow was $207.2 million, compared to $208.2 million in the prior year period.

Guidance and Future Outlook:

• The midpoint of full-year 2026 revenue guidance was raised to a range of $1.365 billion to $1.385 billion, reflecting 5.9% to 7.5% growth (or 10.1% to 11.7% excluding $48.5 million in revenue from a large client's transition agreement in 2025).
• Full-year 2026 net income is projected to be $107.0 million to $110.6 million, or $1.30 to $1.35 per diluted share.
• Full-year 2026 Adjusted EBITDA is projected to be $235.0 million to $240.0 million.
• Full-year 2026 Adjusted earnings per diluted share is projected to be $2.09 to $2.13.
• Fourth quarter 2026 revenue is projected to be $344.7 million to $364.7 million, reflecting 8.3% to 14.6% growth.
• Fourth quarter 2026 net income is projected to be $28.5 million to $32.1 million, or $0.36 to $0.41 per diluted share.
• Fourth quarter 2026 Adjusted EBITDA is projected to be $57.9 million to $62.9 million.
• Fourth quarter 2026 Adjusted earnings per diluted share is projected to be $0.53 to $0.58.
• The Company anticipates having in excess of 660 clients representing approximately 8.3 million covered lives once all new clients from the recent selling season are live in 2027.
• The majority of clients and lives added in the most recent selling season are expected to go live in the first quarter of 2027, with a meaningful number launching mid-year.
• Financial guidance for 2027 will be provided when reporting year-end results in February.

Business Segments and Product Lines:

• The Company added over 85 new clients during the selling season.
• The selling season yielded a record 1.3 million new covered lives.
• Retention for 2027 was near 100%.
• There is strong demand from existing accounts to expand relationships through more comprehensive coverage and adoption of new services in pregnancy, parenting, and menopause support.
• As of September 30, 2026, the Company had 607 fertility and family building clients, up from 553 clients as of September 30, 2025.
• Assisted Reproductive Treatment (ART) cycles performed in the third quarter of 2026 were 16,723, compared to 15,981 in the prior year period.
• Utilization for all members in the third quarter of 2026 was 0.56%, compared to 0.54% in the prior year period.
• Utilization for female-only members in the third quarter of 2026 was 0.49%, compared to 0.47% in the prior year period.
• Average members for the third quarter of 2026 were 7.176 million, compared to 6.757 million in the prior year period.

Market and Competitive Landscape:

• The Company attributes growth to an increase in the number of clients and covered lives.
• Management notes that results reflect the critical importance of these benefits to employers facing broader medical cost inflation.
• The Company believes its ability to effectively bend the cost curve positions it well for continued success.
• The Company exited the year with its strongest set of opportunities and the overall size and quality of its pipeline.

Risks and Challenges:

• The press release includes a standard Safe Harbor statement noting that forward-looking statements involve known and unknown risks, uncertainties, and other important factors that may cause actual results to differ materially from expectations.
• Specific risks mentioned include competition, the ability to sustain profitability, loss of large client accounts, changes in the health insurance market, technology industry changes, and potential security breaches.
• Risks also include the rate of growth of future revenue, accuracy of market size estimates, and the ability to manage growth.

Management Commentary and Tone:

• CEO Pete Anevski expressed being "exceptionally pleased" with the results, noting momentum extended into the latest stages of the selling season.
• Management highlighted that the results affirm the critical importance of these benefits to employers and Progyny's unique position to deliver value and cost trend control.
• CFO Mark Livingston stated the Company achieved strong top- and bottom-line growth and maintained a high conversion of Adjusted EBITDA to operating cash flow.
• Management expressed confidence in extending momentum into 2027 due to the strength of the pipeline and demonstrated ability to bend the cost curve.

Other Key Points:

• The Company repurchased nearly 3 million shares of common stock in the third quarter of 2026 for a total cost of $82.7 million.
• To date in 2026, the Company has repurchased nearly 11 million shares, with approximately $51 million remaining under the current $200 million authorization.
• Overall, the Company has repurchased approximately 14.3 million shares since November 2025.
• As of September 30, 2026, the Company had total working capital of approximately $224.4 million and no debt.
• Cash and cash equivalents and marketable securities totaled $195.6 million, a decrease of $41.3 million from June 30, 2026, due to share repurchase activity offsetting operating cash flow.
• The Company's $200 million revolving credit facility remains undrawn with no planned use at this time.
• Stock-based compensation expense decreased in the third quarter of 2026 compared to the prior year, contributing to higher gross profit and net income.