Progyny reported 15% adjusted EPS growth but guided Q3 sales to rise only 7-11%, triggering a sell-off despite strong margins.
Progyny (NASDAQ: PGNY) shares fell 6% Friday after second-quarter earnings showed a 5% sales increase, or 11% excluding a prior-year client departure, alongside a 15% jump in adjusted earnings per share. The results surpassed Wall Street expectations, but management’s Q3 guidance for 7-11% sales growth disappointed investors.
Gross profit margins expanded by 180 basis points, reflecting the company’s shift toward profitability. Covered members rose 7% to 7.2 million, with utilization rates climbing, while retention rates neared 100% in 2026. Progyny is expanding its Progyny Select offering to smaller firms, aiming to broaden its market reach.
The stock’s decline reflects investor sensitivity to guidance, despite strong underlying metrics and margin improvement.