Free cash flow margin improved to 23.9% in Q2 2026, with operating cash flow at 3.4x net income, but stock-based compensation of $40.2M exceeded operating income, clouding cash quality.
Progyny, Inc. (PGNY) cash flow statement — 9-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Cash from Operations | 253.13M | 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 % | 81.49% | 17.36% | -5.14% | 134.86% | 208.77% | -28.08% | 2460.04% | -167.52% | 123.98% | - |
| Net Income | 91.02M | 58.52M | 54.34M | 62.04M | 30.36M | 65.77M | 46.46M | -8.57M | 661K | -12.45M |
| Depreciation & Amortization | 8.11M | 4.95M | 3.17M | 2.28M | 1.6M | 1.3M | 1.91M | 2.13M | 1.88M | 1.56M |
| Stock-Based Compensation | 115.83M | 131.87M | 128.13M | 122.61M | 100.75M | 33.71M | 12.82M | 5.06M | 3M | 1.56M |
| Deferred Taxes | -8.11M | -8.12M | -10.46M | 3.75M | -6.62M | -33.3M | -37.97M | 12K | -1.78M | -3K |
| Other Non-Cash Items | 26.71M | 20.17M | 15.7M | 15.56M | 13.79M | 9.82M | 5.64M | 19.78M | -1.85M | 1.29M |
| Working Capital Changes | -4.66M | 2.8M | -11.78M | -17.42M | -59.49M | -51.26M | 7.35M | -19.95M | 354K | -1.43M |
| Change in Receivables | -62.9M | -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 | 58.53M | 28.75M | -30.27M | 16.23M | 47.69M | 17.84M | 25.01M | 3.5M | 10.45M | -909K |
| Cash from Investing | 199.98M | -159.01M | 195.79M | -200.53M | -43.87M | 8.77M | -40.03M | -2.76M | 1.9M | -612K |
| Capital Expenditures | -33.89M | -18.41M | -5.41M | -3.64M | -3.24M | -2.13M | -1.04M | -2.96M | -579K | -612K |
| CapEx % of Revenue | 2.53% | 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 | -454.78M | -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) | -430.48M | -80.43M | -297.88M | 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 | -431.67M | -81.66M | -300.28M | 0 | 0 | 0 | 0 | -185K | -3.71M | 0 |
| Other Financing | -24.3M | -18.93M | -12M | -17.2M | -12.09M | -17.97M | -8.93M | 3.76M | 65K | 25K |
| Net Change in Cash | 3.27M | -48.12M | 65.02M | -22.78M | 28.66M | 21.11M | -10.08M | 80.25M | -4.56M | 1.68M |
| Free Cash Flow | 219.24M | 191.78M | 173.7M | 185.17M | 77.15M | 23.91M | 35.17M | -4.49M | 1.69M | -10.09M |
| FCF Margin % | 16.38% | 14.88% | 14.88% | 17.01% | 9.8% | 4.78% | 10.2% | -1.95% | 1.61% | -20.76% |
| FCF Growth % | 13.32% | 10.41% | -6.19% | 140% | 222.71% | -32.01% | 883.21% | -365.21% | 116.79% | - |
| FCF per Share | 2.70 | 2.14 | 1.82 | 1.84 | 0.77 | 0.24 | 0.36 | -0.05 | 0.02 | -1.77 |
| FCF Conversion (FCF/Net Income) | 2.41x | 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 | 13.66M | 0 | 40.45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
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.
Key Metrics
Top Statement Risk
Client concentration and utilization volatility
Metrics are mathematically derived from official filings.
Cash Conversion Far Exceeds Earnings
Operating cash flow averaged 3.4x net income over the last four quarters, per reported figures, indicating substantial non-cash add-backs and working capital timing that inflate cash conversion relative to GAAP earnings.
The OCF/NI ratio has consistently exceeded 3.0, reaching 3.44 in Q2 2026, driven largely by stock-based compensation of $40.2M, which alone exceeds operating income. This suggests that reported earnings understate the company's cash-generating ability, but investors should recognize that SBC is a real economic cost that dilutes shareholders. The gap between net income and operating cash flow is primarily attributable to non-cash charges and favorable working capital movements, not operational efficiency.
FCF Margin Expansion Despite Headwinds
Free cash flow margin improved to 23.9% in Q2 2026 from 18.4% a year earlier, per financial statements, even as revenue growth decelerated to 5.3%, suggesting disciplined cost management and favorable working capital dynamics.
FCF has grown from $24.9M in Q1 2024 to $83.8M in Q2 2026, with margins expanding from 8.9% to 23.9%. This improvement appears driven by lower capital intensity and efficient cash collection, but the deceleration in revenue growth and the loss of a major client may limit future FCF expansion. The FCF margin now exceeds the peer average, indicating strong cash generation relative to revenue, though sustainability depends on maintaining utilization rates.
Minimal Capital Intensity Supports Cash Flow
Capital expenditures averaged only 1.6% of revenue over the past year, as reported, reflecting a asset-light model that requires minimal investment in physical infrastructure, allowing most operating cash flow to convert to free cash flow.
CapEx/Revenue has remained below 4% in all quarters, with Q2 2026 at 3.6% due to a one-time increase, but the trend is clearly low. This suggests that the company's growth does not require significant capital reinvestment, which is typical for a technology-enabled benefits manager. The low capital intensity enhances FCF durability, but investors should monitor whether any expansion into new service lines could increase capital needs.
Working Capital Swings Reflect Claims Timing
Working capital changes have been volatile, ranging from -$27.0M to +$24.0M over the past eight quarters, per reported data, indicating that cash flow timing is heavily influenced by claims payment cycles and IBNR estimates.
The working capital line shows significant quarterly swings, with Q1 2024 and Q1 2026 showing negative impacts of -$27.0M and -$5.4M, respectively, while Q4 2024 and Q4 2025 saw positive contributions of +$24.0M and +$8.8M. This volatility suggests that the company's cash conversion is not purely operational but also reflects the timing of medical claims payments. Investors should expect continued variability, which may obscure underlying earnings quality.
Aggressive Buybacks Offset Client Loss
Share repurchases totaled $148.6M in Q2 2026 alone, as reported, representing a significant capital deployment that may signal management's confidence in cash flow stability despite the loss of a major client.
The company has ramped up buybacks from $23.8M in Q1 2024 to $148.6M in Q2 2026, with no dividends paid. This aggressive repurchase activity appears to be a response to the stock's valuation and a way to return capital to shareholders, but it also reduces the cash buffer. Given the client concentration risk, the buyback program may be viewed as a positive signal, but it also limits financial flexibility if growth opportunities arise.
SBC and Client Losses Cloud Cash Quality
Stock-based compensation of $40.2M in Q2 2026 exceeded operating income, per financials, suggesting that reported cash flow is partly funded by non-cash charges, while the loss of a major client may pressure future cash generation.
The cash flow statement obscures the dilutive impact of SBC, which has been a consistent bridge between GAAP earnings and operating cash flow. Additionally, the reported loss of a significant enterprise client could reduce future revenue and cash flow, but the Q2 2026 beat suggests resilience. Investors should monitor whether the company can replace lost client revenue and whether SBC levels will moderate as growth slows.