The quarter landed above its own profit expectations. Prior guidance called for revenue of $342.0–$355.0 million, Adjusted EBITDA of $58.0–$62.0 million, and Adjusted EPS of $0.50–$0.53; actual results reached $350.5 million, $62.1 million, and $0.55, respectively. That puts revenue toward the upper half of the range and both profit measures slightly above the high end.
| Metric | 2Q 2026 | 2Q 2025 / prior expectation | Read |
|---|---|---|---|
| Revenue | $350.5M | $332.9M; prior guide $342.0–$355.0M | +5.3% year over year; within guide |
| Gross profit | $89.3M | $79.0M | +13%; margin expanded to 25.5% |
| Net income | $28.1M | $17.1M; prior guide $25.8–$28.7M | Above prior-year period; near high end |
| Adjusted EPS | $0.55 | $0.48; prior guide $0.50–$0.53 | Above the high end |
| Adjusted EBITDA | $62.1M | $57.9M; prior guide $58.0–$62.0M | Slightly above the high end |
| Adjusted EBITDA margin | 17.7% | 17.4% | Modest expansion |
| Operating cash flow | $50.4M | $55.5M | Lower year over year in the quarter |
Underlying growth was stronger than the headline revenue increase suggests. The discontinued large client contributed $17.2 million in the prior-year quarter but nothing in 2Q 2026; excluding that distortion, revenue grew 11.0%. Average members increased to 7.185 million from 6.743 million, while utilization also improved, supporting the view that demand and engagement were better than the reported 5.3% growth rate implies (Financial Highlights; Key Metrics).
Margin execution was the clearest operational positive. Gross margin rose to 25.5% from 23.7%, and operating income increased to $40.0 million from $24.4 million as gross profit expanded faster than operating expenses (Income Statement). Adjusted EBITDA margin improved only modestly to 17.7%, however, because Progyny continued investing in its platform (Adjusted EBITDA reconciliation). The EPS improvement also benefited from a much smaller share count—82.1 million diluted shares versus 89.6 million—following substantial repurchases (Income Statement; Balance Sheet).
The forward picture is not a clean raise. Full-year revenue guidance moved from $1.365–$1.405 billion to $1.360–$1.385 billion, lowering both the midpoint and the ceiling. Full-year Adjusted EBITDA guidance was narrowed from $232–$244 million to $233–$240 million, while Adjusted EPS rose from $1.98–$2.09 to $2.04–$2.10 (Financial Outlook). The combination says current profitability is holding up better than feared, but management is being more cautious on top-line conversion and the upside range for the year.
Net read: a good quarter offset by a more cautious outlook. The earnings beat is real—especially on Adjusted EPS and EBITDA—but it is modest relative to the prior range, and the revenue-guidance trim prevents this from reading as a broad upside revision. The $200 million buyback authorization, no debt, and $236.9 million of cash and marketable securities add financial support, but the main expectation reset is mixed rather than decisively positive (Balance Sheet; Cash Flow statement; Share Repurchase Activity).
Read the original 8-K on SEC EDGAR ↗