GET DAILY SIGNALSProgyny (PGNY) Delivers Steady Q3 Results with Record Client Additions
Key Takeaways
- Progyny reported third quarter 2026 revenue of $341.3 million, up 8.9% year over year and essentially in line with consensus estimates of $340.9 million.
- Adjusted earnings per share (EPS) came in at $0.52, about 2% above the analyst consensus estimate of $0.51.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached $58.4 million, reflecting a 17.1% margin and slightly beating expectations.
- Management guided fourth quarter 2026 revenue to a midpoint of roughly $354.7 million and lifted full-year adjusted EPS guidance to a midpoint near $2.11.
- The company added a record 1.3 million new covered lives and more than 85 new clients during its 2026 selling season, with near 100% client retention.
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Why These Results Matter
PGNY provides fertility and family-building benefits to employers and health plans. Its quarterly updates offer insight into employer demand for these benefits and the company’s ability to turn that demand into steady, profitable growth. After navigating the loss of a major client through mid-2025, the firm spent much of 2026 rebuilding its base. This quarter drew attention for any signs of renewed momentum, margin consistency, and the strength of the annual selling season that sets client and covered-lives targets for the year ahead.
Breaking Down the Quarter
Revenue reached $341.3 million, an 8.9% rise from the prior year and above the midpoint of company guidance, essentially matching the $340.9 million consensus. Excluding the former large client, revenue grew about 11% over the first nine months. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Adjusted EPS of $0.52 topped estimates by roughly 2%, while adjusted EBITDA of $58.4 million edged past the $57.9 million forecast. Gross margin improved 130 basis points year over year thanks to care-management efficiencies and lower stock-based compensation. Guidance for the fourth quarter points to a revenue midpoint near $354.7 million, with full-year adjusted EPS centered around $2.11. Operating cash flow topped $56 million, marking seven straight quarters above $200 million on a trailing twelve-month basis.
Market Reaction and Sentiment
The report supported the view that PGNY has moved past the prior client-related revenue drag and is back on a clearer growth path. Results that met or slightly exceeded expectations, paired with a record selling season, suggested stabilizing demand for employer-sponsored fertility coverage. Before the release, focus centered on whether mid-to-high single-digit growth could continue while margins held steady; the numbers largely confirmed that outlook. Utilization returned to the higher end of historical ranges, and retention stayed near 100% for the 2027 plan year.
What to Watch Going Forward
Attention now turns to whether the record selling season carries through into sustained revenue growth in 2027. The addition of 1.3 million new covered lives and more than 85 new clients creates a visible tailwind, though the timing of revenue recognition from those additions will influence near-term results.
Margin trends remain important. The company continues to invest in its platform while keeping trailing twelve-month adjusted EBITDA margin near 17.1%. Converting efficiency gains into both margin stability and competitive pricing will signal long-term profitability.
Competitive dynamics and newer offerings such as Progyny Select, the fully insured product, also merit watching. While Select contributed little this season, management expects it to become a more meaningful growth driver. Pharmacy program adoption among new clients, near 100%, offers another potential source of incremental revenue.
Using Tickeron’s AI Screener in My Process
When reviewing earnings releases like this one, I often turn to Tickeron’s AI Screener to quickly filter healthcare and benefits stocks by fundamentals, patterns, and performance metrics. It helps surface comparable names and spot sector trends without manual effort, which keeps my research focused and efficient.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
PGNY's RSI Oscillator ascending out of oversold territory
The RSI Indicator for PGNY moved out of oversold territory on September 30, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 42 similar instances when the indicator left oversold territory. In 40 of the 42 cases the stock moved higher. This puts the odds of a move higher at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 07, 2026. You may want to consider a long position or call options on PGNY as a result. In 73 of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 79%.
The Moving Average Convergence Divergence (MACD) for PGNY just turned positive on October 07, 2026. Looking at past instances where PGNY's MACD turned positive, the stock continued to rise in 42 of 51 cases over the following month. The odds of a continued upward trend are 82%.
PGNY moved above its 50-day moving average on October 07, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for PGNY crossed bullishly above the 50-day moving average on October 14, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 85%.
Following a +3.56% 3-day Advance, the price is estimated to grow further. Considering data from situations where PGNY advanced for three days, in 231 of 304 cases, the price rose further within the following month. The odds of a continued upward trend are 76%.
The Aroon Indicator entered an Uptrend today. In 160 of 214 cases where PGNY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 75%.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PGNY declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 80%.
PGNY broke above its upper Bollinger Band on October 07, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 37 (best 1 - 100 worst), indicating fairly steady price growth. PGNY’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 50 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 53 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.095) is normal, around the industry mean (3.512). P/E Ratio (31.354) is within average values for comparable stocks, (126.100). PGNY's Projected Growth (PEG Ratio) (0.090) is slightly lower than the industry average of (0.786). Dividend Yield (0.000) settles around the average of (0.009) among similar stocks. PGNY's P/S Ratio (1.816) is very high in comparison to the industry average of (0.569).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PGNY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.
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General Information
a medical device company, which engages in the field of reproductive medicine, translating scientific discoveries related to early embryo development into clinical tools
Industry ManagedHealthCare
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