Progyny Q3 revenue rises driven by new clients

By Reuters News


Overview

  • U.S. women's health benefits provider's Q3 revenue rose 8.9%, slightly beating analyst expectations

  • Adjusted EBITDA for Q3 slightly exceeded analyst consensus

  • Company repurchased nearly 3 mln shares in Q3, totaling almost 11 mln in 2026


Outlook

  • Progyny raises midpoint of full-year 2026 guidance

  • Company sees 2026 revenue of $1.365 bln to $1.385 bln

  • Company expects 2026 net income of $107 mln to $110.6 mln


Result Drivers

  • CLIENT GROWTH - Q3 revenue growth was driven by more clients and covered lives

  • EFFICIENCY GAINS - Co attributed higher gross profit to improved care management efficiencies and lower stock-based compensation expense

  • PLATFORM INVESTMENT - Co said planned investments in platform features partially offset higher gross profit


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$341.25 mln

$340.92 mln (10 Analysts)

Q3 EPS

$0.32

Q3 Net Income

$26.25 mln

Q3 Adjusted EBITDA

Slight Beat*

$58.44 mln

$57.94 mln (11 Analysts)

Q3 Gross Profit

$83.74 mln

Q3 Pretax Profit

$36.42 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the managed healthcare peer group is "buy"

  • Wall Street's median 12-month price target for Progyny, Inc. is $35.00, about 20.4% above its November 3 closing price of $29.06

  • The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 22 three months ago


Reuters Recommended Reads

  • Nov 3 - Senior care provider InnovAge's Q1 revenue beats as participants increase

  • Nov 3 - Addus HomeCare Q3 adjusted EPS beats estimates; to acquire AccentCare personal care division

  • Nov 2 - Hinge Health Q3 revenue jumps 52%, beats estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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