Progyny demonstrates high cash conversion efficiency with an OCF/NI ratio that reached 4.95 in 2024Q4, supporting a lean capital expenditure model where CapEx/Revenue remains consistently below 2%.
| Cash from Operations | 203.25M | 210.19M | 179.1M | 188.81M | 80.39M | 26.04M | 36.2M | -1.53M | 2.27M | -9.47M |
| Operating CF Margin % | - | 16.31% | 15.34% | 17.34% | 10.22% | 5.2% | 10.5% | -0.67% | 2.16% | -19.5% |
| Operating CF Growth % | 0.97% | 17.36% | -5.14% | 134.86% | 208.77% | -28.08% | 2460.04% | -167.52% | 123.98% | - |
| Net Income | 67.69M | 58.52M | 54.34M | 62.04M | 30.36M | 65.77M | 46.46M | -8.57M | 661K | -12.45M |
| Depreciation & Amortization | 5.32M | 4.95M | 3.17M | 2.28M | 1.6M | 1.3M | 1.91M | 2.13M | 1.88M | 1.56M |
| Stock-Based Compensation | 32.38M | 131.87M | 128.13M | 122.61M | 100.75M | 0 | 12.82M | 5.06M | 3M | 1.56M |
| Deferred Taxes | -8.12M | -8.12M | -10.46M | 3.75M | -6.62M | -33.3M | -37.97M | 12K | -1.78M | -3K |
| Other Non-Cash Items | 102.85M | 20.17M | 15.7M | 15.56M | 13.79M | 43.53M | 5.64M | 19.78M | -1.85M | 1.29M |
| Working Capital Changes | 3.11M | 2.8M | -11.78M | -17.42M | -59.49M | -51.26M | 7.35M | -19.95M | 354K | -1.43M |
| Change in Receivables | 16.84M | -5.12M | -9.87M | -21.74M | -119.3M | -68.68M | -35.34M | -25.34M | -12.78M | -2.04M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.58M | 1.81M |
| Change in Payables | 12.77M | 28.75M | -30.27M | 16.23M | 47.69M | 17.84M | 25.01M | 3.5M | 10.45M | -909K |
| Cash from Investing | 32.19M | -159.01M | 195.79M | -200.53M | -43.87M | 8.77M | -40.03M | -2.76M | 1.9M | -612K |
| Capital Expenditures | -21.91M | -18.41M | -5.41M | -3.64M | -3.24M | -2.13M | -1.04M | -2.96M | -579K | -612K |
| CapEx % of Revenue | 1.69% | 1.43% | 0.46% | 0.33% | 0.41% | 0.43% | 0.3% | 1.29% | 0.55% | 1.26% |
| Acquisitions | 0 | -9.34M | -5.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 200K | 2.48M | 0 |
| Cash from Financing | -216.1M | -99.36M | -309.88M | -11.07M | -7.86M | -13.7M | -6.25M | 84.55M | -8.74M | 11.77M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -253K | -5.1M | -3.26M |
| Equity Issued (Net) | -198.99M | -80.43M | -300.28M | 6.13M | 4.22M | 4.27M | 2.68M | 81.03M | -3.71M | 15M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -200.26M | -81.66M | -300.28M | 0 | 0 | 0 | 0 | -185K | -3.71M | 0 |
| Other Financing | -17.11M | -18.93M | -9.6M | -17.2M | -12.09M | -17.97M | -8.93M | 3.76M | 65K | 25K |
| Net Change in Cash | 23.44M | -48.12M | 65.02M | -22.78M | 28.66M | 21.11M | -10.08M | 80.25M | -4.56M | 1.68M |
| Free Cash Flow | 181.33M | 191.78M | 173.7M | 185.17M | 77.15M | 23.91M | 35.17M | -4.49M | 1.69M | -10.09M |
| FCF Margin % | 14.02% | 14.88% | 14.88% | 17.01% | 9.8% | 4.78% | 10.2% | -1.95% | 1.61% | -20.76% |
| FCF Growth % | -7.38% | 10.41% | -6.19% | 140% | 222.71% | -32.01% | 883.21% | -365.21% | 116.79% | - |
| FCF per Share | 2.14 | 2.14 | 1.82 | 1.84 | 0.77 | 0.24 | 0.36 | -0.05 | 0.02 | -1.77 |
| FCF Conversion (FCF/Net Income) | 2.68x | 3.59x | 3.30x | 3.04x | 2.65x | 0.40x | 0.78x | 0.18x | 3.44x | 0.76x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 176K | 0 | 0 |
| Taxes Paid | 23.94M | 0 | 40.45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Enterprise client churn vulnerability
According to reported financial statements, PGNY consistently generates operating cash flow significantly higher than net income, with an OCF/NI ratio peaking at 4.95 in 2024Q4, suggesting that non-cash charges and working capital timing differences play a substantial role in the company's reported cash generation profile.
The persistent gap between net income and operating cash flow indicates that GAAP earnings may understate the actual cash-generating capacity of the business model. Investors should monitor whether this divergence is driven by sustainable operational efficiencies or merely by favorable timing in the settlement of medical claims and pharmacy payables.
As reported in quarterly filings, Progyny's free cash flow margins have remained relatively stable, fluctuating between 8.9% and 18.4% over the last ten quarters, despite the recent deceleration in top-line growth and the loss of significant enterprise-level clients that previously anchored the company's revenue base.
While FCF remains positive, the volatility in margin performance suggests that the company's cash flow is highly sensitive to the timing of large-scale client payments and the underlying utilization of fertility services. The lack of consistent margin expansion warrants caution regarding the company's ability to scale FCF in a more competitive and saturated market environment.
Based on recent SEC filings, Progyny maintains a lean capital expenditure profile, with CapEx/Revenue ratios consistently below 2% over the past ten quarters, reflecting a service-oriented business model that requires minimal investment in physical infrastructure to support its ongoing clinical and pharmacy benefit operations.
The minimal capital intensity allows the company to convert a high proportion of its operating cash flow into free cash flow, providing flexibility for capital allocation. However, this low investment level may also suggest limited opportunities for internal reinvestment to drive future growth, potentially explaining the company's recent focus on share repurchases.
As evidenced by financial data, Progyny has utilized a significant portion of its cash reserves for share repurchases, including a notable $118.6M outflow in 2026Q1, which appears to be a primary mechanism for capital deployment in the absence of major strategic acquisitions or dividend payments.
The reliance on share buybacks as a primary capital allocation tool may indicate a lack of high-return internal growth projects or external M&A opportunities. Investors should consider whether this aggressive return of capital is sustainable if the company's growth trajectory continues to face pressure from enterprise client churn.
Financial statements reveal that stock-based compensation has historically been a material non-cash expense, reaching as high as $33.2M in 2024Q3, which effectively bridges the gap between GAAP net income and the cash-based performance metrics often highlighted by management in their adjusted earnings presentations.
The significant historical reliance on SBC suggests that the company's true economic cost of labor is higher than what is reflected in net income. Analysts should adjust for these charges to gain a clearer understanding of the company's underlying cash-based profitability and the potential for future shareholder dilution.
Quick answers to the most common questions about buying PGNY stock.
Progyny, Inc. (PGNY) generated $210.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Progyny, Inc. (PGNY) generated $191.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Progyny, Inc. (PGNY) spent $18.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Progyny, Inc. (PGNY) spent $81.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.