Progyny, Inc. Q4 FY2025 earnings call

• 2025 was a strong year with record revenue, adjusted EBITDA, and operating cash flow. - Near 100% client retention, including all largest employers. - Value proposition includes total program management in member satisfaction, clinical quality/outcomes, and cost management. - 30% of base expanded benefits in 2026. - Entering 2026 with momentum, strong pipeline, and focus on expanding to smaller employers with Progeny Select. - Investments in product platform and technology, with CapEx increasing in 2025. - High conversion rate of adjusted EBITDA to cash, allowing investment and shareholder value return.

2025 was an exceptionally strong year for Progeny with record revenue of $1.29 billion and adjusted EBITDA of $222 million, both up double digits from 2024. Revenue contribution by product segment not specifically detailed but overall performance was strong with near 100% client retention, including all large employers. Expansion of services led to over 2.7 million members having access to new services in 2026. Diversification of client and industry concentration also noted.

• Expect 7.2 million covered lives in 2026, lower than original estimate due to administrative updates. - First quarter revenue expected between $319 - $332 million, growth of -1.6% to 2.5% (excluding transition client revenue, growth 9% - 13.4%). - Full-year revenue projected $1.355 - $1.405 billion, growth 5.1% - 9% (excluding transition client, growth 9.3% - 13.3%). - Adjusted EBITDA expected $224 - $239 million, net income $95.4 - $106.1 million. - First quarter adjusted EBITDA $51 - $55 million, net income $20.8 - $23.7 million.

• Administrative updates from clients leading to lower than expected covered lives estimate, but not expected to negatively impact utilizers. - Uncertainty in the structure of pharmacy model rebates and fees, but net economics expected to remain intact. - Macro uncertainties could potentially impact utilization or treatment mix, but nothing unusual noted currently.

Q: Were mismatches in membership outlook related to new or existing clients?

A: Related to existing clients, administrative updates from lower utilization rates.

Q: Thoughts on Progeny Rx model?

A: No pushback seen, net economics expected to remain based on value delivered.

Q: Strategy on pricing Progeny Select?

A: Priced using experience from smaller clients as starting point with guardrails.

Q: Swing factors in guidance?

A: Low factors include incremental variability, high factors include faster treatments, improved mix.

Q: Contribution of maternal health services?

A: Growing but not material yet.

Q: Critical mass for Progeny Select predictability?

A: Not there now, needs scale with distributors.

Q: CapEx expectations for 2026?

A: Step up from 2025 but not doubling.

Q: Conversations with clients on labor market?

A: No change, pipeline from carryover and early season starts.