Operating margins expanded to 10.8% in 2026Q1 from 5.1% in 2023Q4, even as year-over-year revenue growth plummeted to a marginal 1.4%.
| Sales/Revenue | 1.29B | 1.29B | 1.17B | 1.09B | 786.91M | 500.62M | 344.86M | 229.68M | 105.4M | 48.58M |
| Revenue Growth % | 6.59% | 10.4% | 7.22% | 38.34% | 57.19% | 45.17% | 50.15% | 117.92% | 116.94% | - |
| Cost of Goods Sold | 981.37M | 984.18M | 913.86M | 849.8M | 619.59M | 388.49M | 274.8M | 184.18M | 85.97M | 41.18M |
| COGS % of Revenue | - | 76.37% | 78.29% | 78.06% | 78.74% | 77.6% | 79.68% | 80.19% | 81.56% | 84.77% |
| Gross Profit | 311.76M | 304.48M | 253.36M | 238.8M | 167.32M | 112.14M | 70.06M | 45.51M | 19.43M | 7.4M |
| Gross Margin % | 24.11% | 23.63% | 21.71% | 21.94% | 21.26% | 22.4% | 20.32% | 19.81% | 18.44% | 15.23% |
| Gross Profit Growth % | - | 20.18% | 6.1% | 42.72% | 49.22% | 60.06% | 53.96% | 134.15% | 162.62% | - |
| Operating Expenses | 215.27M | 219.21M | 185.91M | 176.62M | 143.98M | 79.8M | 61.71M | 35.83M | 22.89M | 18.41M |
| OpEx % of Revenue | - | 17.01% | 15.93% | 16.22% | 18.3% | 15.94% | 17.89% | 15.6% | 21.71% | 37.88% |
| Selling, General & Admin | 215.27M | 219.21M | 185.91M | 176.62M | 143.98M | 79.8M | 61.71M | 35.83M | 22.89M | 18.41M |
| SG&A % of Revenue | - | 17.01% | 15.93% | 16.22% | 18.3% | 15.94% | 17.89% | 15.6% | 21.71% | 37.88% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 96.49M | 85.28M | 67.45M | 62.18M | 23.34M | 32.34M | 8.35M | 9.68M | -3.45M | -11.01M |
| Operating Margin % | 7.46% | 6.62% | 5.78% | 5.71% | 2.97% | 6.46% | 2.42% | 4.21% | -3.28% | -22.65% |
| Operating Income Growth % | - | 26.42% | 8.48% | 166.42% | -27.83% | 287.4% | -13.73% | 380.33% | 68.63% | - |
| EBITDA | 100.33M | 90.22M | 70.63M | 64.47M | 24.94M | 33.64M | 10.25M | 11.81M | -1.57M | -9.45M |
| EBITDA Margin % | 7.76% | 7% | 6.05% | 5.92% | 3.17% | 6.72% | 2.97% | 5.14% | -1.49% | -19.44% |
| EBITDA Growth % | 30.86% | 27.74% | 9.56% | 158.46% | -25.86% | 228.08% | -13.18% | 852.71% | 83.39% | - |
| D&A (Non-Cash Add-back) | 3.84M | 4.95M | 3.17M | 2.28M | 1.6M | 1.3M | 1.91M | 2.13M | 1.88M | 1.56M |
| EBIT | 104.27M | 95.43M | 67.45M | 62.18M | 23.34M | 32.34M | 8.35M | 9.68M | -3.45M | -11.01M |
| Net Interest Income | 2.72M | 0 | 15.75M | 8.51M | 814K | 461K | 121K | -58K | -497K | -740K |
| Interest Income | 2.72M | 0 | 15.75M | 8.51M | 814K | 461K | 121K | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 58K | 497K | 740K |
| Other Income/Expense | 9.29M | 10.15M | 15.75M | 8.51M | 1.1M | 95K | 331K | -18.23M | -3.44M | -1.45M |
| Pretax Income | 105.78M | 95.43M | 83.2M | 70.69M | 24.44M | 32.44M | 8.68M | -8.56M | -6.89M | -12.46M |
| Pretax Margin % | 8.18% | 7.41% | 7.13% | 6.49% | 3.11% | 6.48% | 2.52% | -3.73% | -6.54% | -25.64% |
| Income Tax | 38.09M | 36.91M | 28.87M | 8.65M | -5.92M | -33.33M | -37.78M | 12K | -1.78M | -3K |
| Effective Tax Rate % | 36% | 38.68% | 34.69% | 12.24% | -24.21% | -102.77% | -435.3% | -0.14% | 25.78% | 0.02% |
| Net Income | 67.69M | 58.52M | 54.34M | 62.04M | 30.36M | 65.77M | 46.46M | -8.57M | 661K | -12.45M |
| Net Margin % | 5.23% | 4.54% | 4.66% | 5.7% | 3.86% | 13.14% | 13.47% | -3.73% | 0.63% | -25.63% |
| Net Income Growth % | 28.95% | 7.7% | -12.41% | 104.35% | -53.84% | 41.56% | 642.18% | -1396.37% | 105.31% | - |
| Net Income (Continuing) | 67.69M | 58.52M | 54.34M | 62.04M | 30.36M | 65.77M | 46.46M | -8.57M | -5.12M | -12.46M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.78M | 4K |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.80 | 0.65 | 0.57 | 0.62 | 0.30 | 0.66 | 0.47 | -0.10 | 0.01 | -2.19 |
| EPS Growth % | 35.09% | 14.04% | -8.06% | 106.67% | -54.55% | 40.43% | 570% | - | 100.37% | - |
| EPS (Basic) | - | 0.68 | 0.59 | 0.65 | 0.33 | 0.74 | 0.54 | -0.10 | 0.01 | -2.19 |
| Diluted Shares Outstanding | 84.76M | 89.46M | 95.45M | 100.67M | 99.96M | 100.36M | 99.06M | 83.57M | 81.56M | 5.69M |
| Basic Shares Outstanding | 80.92M | 85.23M | 91.48M | 95.02M | 92.2M | 89.11M | 85.72M | 83.57M | 81.56M | 5.69M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Client concentration and churn
As reported in recent financial filings, PGNY's year-over-year revenue growth has decelerated significantly to 1.4% in 2026Q1, reflecting a marked departure from the double-digit expansion observed in prior periods and highlighting the vulnerability of the company's top-line to enterprise client churn within the technology sector.
The sharp decline in growth rates suggests that the company's reliance on a concentrated base of large-cap employers is becoming a liability rather than a stable foundation. Investors should monitor whether this deceleration is a temporary cyclical adjustment or a permanent shift in the competitive landscape for fertility benefits.
Based on the company's income statement data, gross margins reached 25.3% in 2026Q1, representing a notable improvement from the 21.1% level seen in 2023Q4, though this expansion appears sensitive to the underlying mix of fertility benefits and pharmacy utilization rates across the member base.
While the margin improvement is encouraging, it remains constrained by the high-variable-cost nature of the business, where clinical claims represent the bulk of COGS. The inability to achieve software-like margins suggests that the company's value proposition is fundamentally tied to clinical service delivery rather than scalable technology.
According to the latest quarterly results, operating income surged to $35.4M in 2026Q1, as the company successfully decoupled SG&A growth from revenue expansion, resulting in an operating margin of 10.8% compared to the 5.1% margin reported in the final quarter of 2023.
This trend suggests that management is finding efficiencies in administrative overhead, potentially through the optimization of Patient Care Advocates. However, the sustainability of this leverage is questionable if the company must increase marketing or sales spend to replace lost enterprise clients.
Financial statements indicate that net income quality has been historically impacted by significant stock-based compensation, which reached $32.4M in 2025Q2, though the absence of such charges in 2026Q1 suggests a potential shift in accounting presentation that warrants further investigation by institutional analysts.
The sudden disappearance of stock-based compensation in the most recent quarter creates a disconnect that may artificially inflate reported EPS. Investors should be cautious of this volatility, as it obscures the true economic cost of talent retention and the underlying profitability of the core operations.
As evidenced by the loss of a major enterprise client, the company's growth narrative faces a credible challenge, as the 1.4% revenue growth in 2026Q1 suggests that the addressable market for high-end fertility benefits may be reaching a saturation point among early-adopter technology firms.
Short-sellers would likely focus on the risk that mega-cap employers may move toward self-management of these benefits to reduce costs. This potential for disintermediation poses a significant threat to the company's long-term revenue durability and its ability to maintain current valuation premiums.
Quick answers to the most common questions about buying PGNY stock.
For fiscal year 2025, Progyny, Inc. (PGNY) reported total revenue of $1.29B. This represents a 2552.4% increase compared to $48.6M in 2017.
Progyny, Inc. (PGNY) is profitable, generating $58.5M in net income for the fiscal year ending 2025 with a net profit margin of 4.5%.
Progyny, Inc. (PGNY) reported an operating income of $85.3M, resulting in an operating profit margin of 6.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Progyny, Inc. (PGNY) generated $304.5M in gross profit for the year, representing a gross profit margin of 23.6%. This demonstrates the company's core pricing power and production efficiency.