Progyny Lifts Financial Forecast, Signaling Robust Growth in Fertility Benefits Market

NEW YORK, NY – January 12, 2026 – In a strong display of confidence ahead of a major industry event, Progyny, Inc. (Nasdaq: PGNY) today announced it expects to surpass its previously issued financial guidance for the fourth quarter and full year of 2025. The women's health and family-building benefits leader attributed the upbeat forecast to stronger-than-anticipated member activity, sending a bullish signal about the resilience and growth of the corporate fertility benefits sector. The news, released just before the company's presentation at the prestigious 44th Annual J.P. Morgan Healthcare Conference, triggered a wave of positive analyst revisions and pushed Progyny's stock to new 52-week highs.

In the announcement, Progyny CEO Pete Anevski pointed to sustained client activity as the key driver. “As the fourth quarter progressed, we were pleased to see that member engagement has paced favorably as compared to the guidance we issued in November,” he stated. “Accordingly, we now expect our fourth quarter results for revenue, net income and Adjusted EBITDA to be slightly above the ranges that we provided in November.”

By the Numbers: Decoding the Upgraded Outlook

The company's pre-announcement indicates it will exceed the guidance it provided to investors during its third-quarter earnings report in November 2025. At that time, Progyny had projected:

• Fourth Quarter 2025 Revenue: $292.7 million to $307.7 million
• Fourth Quarter 2025 Net Income: $12.5 million to $15.5 million
• Fourth Quarter 2025 Adjusted EBITDA: $45.3 million to $49.3 million

For the full year 2025, the company had forecasted revenue between $1.263 billion and $1.278 billion, with Adjusted EBITDA in the range of $216.0 million to $220.0 million. While the company described the expected outperformance as “slightly above” these ranges, the update continues a pattern of strong execution and positive revisions.

This momentum builds on a powerful third-quarter performance where Progyny reported revenue of $313.3 million, a 9.3% year-over-year increase, and an earnings per share (EPS) of $0.45, comfortably beating analyst consensus estimates of $0.39. This growth was particularly impressive as it was achieved even after accounting for the departure of a large client, with underlying growth estimated at 23% when excluding that impact. The November guidance was initially set with a degree of caution, assuming member activity would be flat to down compared to the prior year, making the current upward revision a significant indicator of operational strength.

The Engine of Growth: 'Favorable Member Engagement' Unpacked

The phrase “favorable member engagement” is more than just corporate jargon; it represents the core of Progyny’s successful business model. The company’s growth is fueled not only by attracting new corporate clients but also by the active utilization of its services by employees at those companies. Research into the company's recent performance reveals several key drivers behind this engagement.

First, Progyny has seen remarkable success in expanding its client roster. During its most recent selling season for the 2026 plan year, the company added over 80 new clients, bringing its total to more than 553. This expansion translated into approximately 900,000 new covered lives gaining access to Progyny’s services. Just as crucial is the company's near-perfect retention rate, achieving nearly 100% retention of existing clients and their covered lives heading into 2026.

Second, existing clients are deepening their relationship with the company. Nearly 30% of Progyny's current clients chose to expand their benefits packages for 2026. This upselling resulted in over 2.7 million existing members gaining access to new services, such as pharmacy benefits or additional women's health solutions, representing a substantial increase of 1.2 million members with expanded coverage. This demonstrates strong satisfaction and a recognition of the value Progyny’s comprehensive platform provides.

Finally, underlying utilization rates have remained stable and healthy. Data from Q3 2025 showed a female utilization rate of 0.47%, indicating consistent and predictable demand for fertility and family-building treatments among its eligible members. This stability allows for more accurate forecasting and underscores the non-discretionary nature of the healthcare services Progyny facilitates.

Strategic Moves and Wall Street's Bullish Response

The timing of Progyny's announcement is strategically significant. By releasing positive news on the eve of the J.P. Morgan Healthcare Conference—a premier event where healthcare leaders and investors converge—the company effectively sets a positive tone for its presentation and captures the attention of the investment community. The conference is a critical venue for shaping industry narratives, and Progyny has positioned itself as a growth leader in the women's health space.

The company also clarified that its updated net income forecast excludes any non-cash impacts related to the departure of former President Michael Sturmer, whose employment concluded at the end of 2025. Sturmer will continue to serve as a consultant through 2026. Rather than seeking a replacement, Progyny has opted to distribute the president's responsibilities across its expanded C-suite, a move that suggests confidence in its current leadership depth and a more decentralized operational strategy.

Wall Street has responded to the news with resounding enthusiasm. In the wake of the announcement and recent positive commentary, Progyny's stock (PGNY) climbed to a new 52-week high, with its share price having increased by approximately 47% over the past year, far outpacing the broader market. The positive outlook prompted a flurry of activity from financial analysts:

• Truist Securities upgraded its rating on PGNY from “Hold” to “Buy,” establishing a new price target of $34.00.
• BofA Securities reiterated its “Buy” rating and a $30.00 price target.
• KeyBanc recently maintained its “Overweight” rating, raising its price target to $30.00.
• Cantor Fitzgerald also boosted its price target to $31.00 while maintaining an “Overweight” rating.

This consensus reflects a growing belief that Progyny is well-positioned to capitalize on a burgeoning market. The broader fertility benefits industry is projected to expand significantly, with some analysts suggesting it could double in size in the coming years. This growth is driven by increasing awareness, a corporate push for more inclusive benefits, and a greater emphasis on employee well-being. Furthermore, regulatory tailwinds, such as the full implementation of the California IVF mandate effective January 1, 2026, are expected to further fuel demand for the exact services in which Progyny specializes.