Revenue growth decelerated to 5.3% year-over-year in Q2 2026, but gross margin expanded to 25.5% and operating margin reached 11.4%, reflecting favorable mix and disciplined cost control.
Progyny, Inc. (PGNY) annual income statement — 9-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Sales/Revenue | 1.34B | 1.29B | 1.17B | 1.09B | 786.91M | 500.62M | 344.86M | 229.68M | 105.4M | 48.58M |
| Revenue Growth % | 5.52% | 10.4% | 7.22% | 38.34% | 57.19% | 45.17% | 50.15% | 117.92% | 116.94% | - |
| Cost of Goods Sold | 1.01B | 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 | 332.99M | 304.48M | 253.36M | 238.8M | 167.32M | 112.14M | 70.06M | 45.51M | 19.43M | 7.4M |
| Gross Margin % | 24.87% | 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 | 207.21M | 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 | 208.31M | 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 | -1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 125.79M | 85.28M | 67.45M | 62.18M | 23.34M | 32.34M | 8.35M | 9.68M | -3.45M | -11.01M |
| Operating Margin % | 9.4% | 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 | 133.89M | 90.22M | 70.63M | 64.47M | 24.94M | 33.64M | 10.25M | 11.81M | -1.57M | -9.45M |
| EBITDA Margin % | 10% | 7% | 6.05% | 5.92% | 3.17% | 6.72% | 2.97% | 5.14% | -1.49% | -19.44% |
| EBITDA Growth % | 48.29% | 27.74% | 9.56% | 158.46% | -25.86% | 228.08% | -13.18% | 852.71% | 83.39% | - |
| D&A (Non-Cash Add-back) | 8.11M | 4.95M | 3.17M | 2.28M | 1.6M | 1.3M | 1.91M | 2.13M | 1.88M | 1.56M |
| EBIT | 132.29M | 95.43M | 83.2M | 70.69M | 24.44M | 32.44M | 8.35M | 9.68M | -3.45M | -11.01M |
| Net Interest Income | 4.14M | 10.15M | 15.75M | 8.51M | 814K | 461K | 121K | -58K | -497K | -740K |
| Interest Income | 4.14M | 10.15M | 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 | 6.5M | 10.15M | 15.75M | 8.51M | 1.1M | 95K | 331K | -18.23M | -3.44M | -1.45M |
| Pretax Income | 132.29M | 95.43M | 83.2M | 70.69M | 24.44M | 32.44M | 8.68M | -8.56M | -6.89M | -12.46M |
| Pretax Margin % | 9.88% | 7.41% | 7.13% | 6.49% | 3.11% | 6.48% | 2.52% | -3.73% | -6.54% | -25.64% |
| Income Tax | 41.27M | 36.91M | 28.87M | 8.65M | -5.92M | -33.33M | -37.78M | 12K | -1.78M | -3K |
| Effective Tax Rate % | 31.2% | 38.68% | 34.69% | 12.24% | -24.21% | -102.77% | -435.3% | -0.14% | 25.78% | 0.02% |
| Net Income | 91.02M | 58.52M | 54.34M | 62.04M | 30.36M | 65.77M | 46.46M | -8.57M | 661K | -12.45M |
| Net Margin % | 6.8% | 4.54% | 4.66% | 5.7% | 3.86% | 13.14% | 13.47% | -3.73% | 0.63% | -25.63% |
| Net Income Growth % | 60.91% | 7.7% | -12.41% | 104.35% | -53.84% | 41.56% | 642.18% | -1396.37% | 105.31% | - |
| Net Income (Continuing) | 91.02M | 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) | 1.12 | 0.65 | 0.57 | 0.62 | 0.30 | 0.66 | 0.47 | -0.10 | 0.01 | -2.19 |
| EPS Growth % | 73.02% | 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 | 81.17M | 89.46M | 95.45M | 100.67M | 99.96M | 100.36M | 99.06M | 83.57M | 81.56M | 5.69M |
| Basic Shares Outstanding | 76.23M | 85.23M | 91.48M | 95.02M | 92.2M | 89.11M | 85.72M | 83.57M | 81.56M | 5.69M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Client concentration and utilization volatility
Metrics are mathematically derived from official filings.
Growth Deceleration Amid Client Loss
Revenue growth slowed to 5.3% year-over-year in Q2 2026, down from 9.5% in Q2 2025, reflecting the reported loss of a major enterprise client and maturing base.
The sequential revenue increase from Q1 to Q2 2026 (6.7%) suggests some seasonal strength, but the year-over-year deceleration is pronounced. The loss of a significant client like Amazon appears to have removed a high-growth contributor, and the maintained guidance implies management does not expect a near-term reacceleration. Investors should monitor whether new client wins can offset the lost lives and whether utilization trends remain at the higher end of expectations.
Gross Margin Expansion from Mix Shift
Gross margin improved to 25.5% in Q2 2026 from 23.7% a year earlier, likely driven by a favorable mix toward higher-margin Progyny Rx and disciplined medical cost management.
The 180 basis point year-over-year gross margin expansion suggests that the company is capturing more value per cycle, possibly through better contracting or a shift in service mix. However, the structurally high variable cost base (COGS at ~74.5% of revenue) limits the potential for software-like margin expansion. The sustainability of this margin improvement depends on utilization rates not spiking unexpectedly, which could pressure the take-rate.
Operating Leverage Emerging in 2026
Operating margin expanded to 11.4% in Q2 2026 from 7.3% in Q2 2025, as SG&A grew only 9.7% year-over-year while gross profit grew 13.0%, indicating positive operating leverage.
The 410 basis point operating margin improvement is notable, especially given the revenue deceleration. SG&A as a percentage of revenue fell to 14.1% in Q2 2026 from 16.4% in Q2 2025, suggesting that the company is scaling its fixed cost base more efficiently. However, the elevated stock-based compensation (SBC) of $40.2M in Q2 2026, nearly equal to operating income, indicates that reported operating margins are significantly flattered by non-cash charges; investors should adjust for SBC to assess true cash-based leverage.
SBC Distorts Reported Earnings
Stock-based compensation of $40.2M in Q2 2026 exceeded operating income of $40.0M, implying that reported net income of $28.1M is entirely dependent on non-cash adjustments and favorable tax items.
The gap between GAAP net income and cash-based earnings is substantial. With SBC running at roughly 11.5% of revenue, the quality of reported EPS is questionable; adjusted metrics likely present a more conservative picture. The effective tax rate appears low (net income is 70% of operating income), which may be due to one-time benefits or deferred tax items. Investors should monitor the cash conversion cycle and the sustainability of the tax rate.
COGS Dominates Cost Structure
COGS accounted for 74.5% of revenue in Q2 2026, reflecting the pass-through nature of medical and pharmacy claims, while SG&A at 14.1% of revenue shows disciplined overhead control.
The high variable cost structure means that gross margin is the primary lever for profitability, and it has been improving. SG&A growth of 9.7% year-over-year is below revenue growth, indicating cost discipline, but the absolute level of SBC within SG&A is a concern. R&D is not separately disclosed, suggesting that product development is embedded in SG&A or minimal, which may limit long-term innovation but supports near-term margins.
Client Concentration and Utilization Risk
The reported loss of a major enterprise client and the reliance on a few large employers for revenue concentration pose a significant risk to growth, as historical growth rates may not be repeatable.
The deceleration in revenue growth to 5.3% in Q2 2026 from 9.5% a year earlier suggests that the client loss is already impacting the top line. If utilization rates were to spike, gross margins could compress, as the administrative fee structure may not scale proportionally with claims costs. Additionally, the high SBC and low tax rate inflate reported earnings, and a normalization of these items could reveal weaker underlying profitability. Short-sellers would likely focus on the sustainability of the gross margin expansion and the ability to replace lost client lives.