Progyny NASDAQ: PGNY CEO Pete Anevski said the company expects member engagement and utilization to rebound following a more pronounced summer seasonal slowdown, while early renewal and new-client commitments have increased management’s confidence in its outlook for the remainder of the year.
Speaking at the 46th Annual Canaccord Genuity Growth Conference, Anevski said Progyny has visibility into scheduled appointments for approximately the next six weeks and uses models to forecast utilization beyond that period. He said the company typically experiences seasonality in the second half of July and August, as some members delay fertility treatment because of summer travel, weddings and other personal plans.
This year’s slowdown has been sharper than in recent years and more comparable to 2022, he said. However, Anevski said September appointment visibility indicates engagement and utilization returning to levels seen during the first half of the year.
“We wouldn’t put out guidance and expectations if we weren’t” comfortable with the outlook, Anevski said, adding that the early September activity is consistent with first-half trends.
Renewal commitments arrive earlier
Anevski said Progyny has received enough renewal commitments to “essentially de-risk” its renewal rates for next year earlier than it normally would in a sales cycle. About one-third of the company’s clients come up for renewal annually, generally under three-year contracts, he said.
Some employer clients renew directly, while others conduct requests for proposals or market checks. Anevski attributed the earlier decisions in part to broader medical-cost pressures facing employers. He said clients have not identified issues with Progyny’s reporting, member experience or performance.
Progyny also is seeing stronger early new-business commitments than it did at the same point last year, both in covered lives and expected contribution from those lives, according to Anevski. The company’s annual sales target is generally at least 1 million lives, and he said management expects to reach that goal based on current activity and the remaining pipeline.
While it is too early to quantify expansion activity at renewing clients, Anevski said Progyny historically sees roughly 20% to 30% of clients add something to their benefits. Potential additions include egg freezing, additional fertility treatment cycles, adoption and surrogacy coverage, global coverage, and ancillary postpartum maternity and menopause offerings.
He added that the company has received no indications that clients plan to reduce benefits.
More competitive replacement opportunities
The mix of early new-business commitments has included a higher proportion of “brownfield” opportunities than greenfield opportunities, Anevski said. He defined brownfield opportunities as employers that already offer fertility coverage through a health plan or another specialized provider.
According to Anevski, employers facing elevated medical-cost inflation are examining programs where they already spend money and seeking ways to improve efficiency. He said Progyny’s average cost per utilizer has risen relatively modestly over time compared with broader medical-cost inflation, which he characterized as running in the high-single-digit to low-double-digit range and expected to remain elevated next year.
Anevski also said the company’s client base has broadened substantially since its early years. Progyny began with five clients across two industries, including four technology clients, and has expanded into more than 45 industries, he said. The company generally sells into at least two-thirds of the industries it serves in a given year, although the specific industries vary.
He said adoption by major employers can encourage other companies within an industry to add the benefit as they compete for talent. Anevski cited the average age of women undergoing in vitro fertilization as 36, with much of Progyny’s utilization occurring among people ages 32 to 40. He said infertility affects one in five people in the U.S.
ROI, health-plan partnerships and cost management
Anevski distinguished Progyny’s offerings from traditional wellness programs, arguing that the company provides employers with hard-dollar savings calculations and detailed quarterly reporting. He said transparency around program costs, member outcomes and savings has supported Progyny’s 99% retention rate for 10 consecutive years.
He said health plans historically have not focused heavily on fertility-benefit management because their administrative-services business model does not necessarily produce more revenue from offering the coverage. In contrast, Progyny operates a proprietary provider network, offers care advocates and tracks outcomes, Anevski said.
The company has partnered with health plans, including Cigna, which began an expanded partnership effective in September of the prior year. Anevski said the current cycle is the first full sales season for that relationship and that Progyny is holding discussions with additional health plans regarding similar partnerships.
On medical-cost trends, Anevski said Progyny’s scale and network relationships have helped it contain provider rates, which he described as flat to down over time depending on the clinic. He also said the company’s improving outcomes contribute to savings for clients.
Expanded products and small-employer market
Progyny has approximately 7 million covered lives, with roughly 2.7 million having access to one or more expanded products, Anevski said. Those offerings include postpartum maternity and menopause programs, as well as Progyny Select.
Progyny Select is designed for employers with as few as 100 employees that typically purchase benefits on a fully insured, premium-based model. The product provides more predictable costs for smaller employers while placing them in a broader risk pool, Anevski said.
He said the company is working with channel partners, general agents and professional employer organizations to expand distribution of Progyny Select through broker networks. The offering increased Progyny’s estimated total addressable market by 50 million lives, to 155 million lives from 105 million previously, according to Anevski.
About Progyny (NASDAQ:PGNY)
Progyny, Inc is a New York-based fertility benefits management company that partners with employers and health plans to design and administer comprehensive family-building programs. The company's digital health platform integrates clinical expertise, patient support tools and data analytics to help members navigate fertility treatments, from in vitro fertilization (IVF) and egg freezing to surrogacy and adoption. By focusing on outcomes-based care, Progyny aims to improve success rates while controlling costs for its clients.
The core of Progyny's offering is its proprietary Smart Cycle® benefit, which bundles clinical, emotional and logistical support into a single package.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Before you consider Progyny, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Progyny wasn't on the list.
While Progyny currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Discover the 10 Best High-Yield Dividend Stocks for 2026 and secure reliable income in uncertain markets. Download the report now to identify top dividend payers and avoid common yield traps.
Get This Free Report
