Progyny (PGNY): Laying Fertile Ground for Gains

By Corbin Buff, Financial Writer and Stock Researcher

September 18, 2025 6:13 AM UTC

Progyny (PGNY): Laying Fertile Ground for Gains

Progyny (NASDAQ: PGNY) isn’t your typical healthcare stock. The company runs fertility benefits programs for large employers, giving workers access to IVF and other reproductive health services while cutting costs for companies.

That combination (better outcomes for patients, lower costs for employers, and higher efficiency for providers) has made Progyny a leader in a niche but fast-growing corner of healthcare.

The stock got hit after losing Amazon as a client, but the business remains profitable, cash-rich, and positioned for long-term growth as demand for fertility support grows. Here’s why it’s B-rated in our Zen Ratings system, and why it could be a growth engine in the healthcare space.

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PGNY’s Recent Struggles

First off, I’ll touch on why PGNY has struggled recently. Losing Amazon as a client (13% of sales) was a blow for obvious reasons. But management also over-promised based on record 2023 numbers, and later had to revise down.

These factors created skepticism on Wall Street … and the stock sold off hard. But in my opinion, they don’t really affect the secular bull case for the stock.

Why the Bull Case Holds

The bull case for PGNY is simple: demand for fertility treatments keeps rising as more employers add reproductive health benefits. IVF is expensive, and employers who add benefits stand out in a growing competition for labor.

Fertility demand in general is set to grow long-term because the trend is for people having children later in life than in the past:

Source: Northwell.edu

Fertility peaks in the mid-20s and declines steadily afterward. As more couples delay children into their 30s, demand for fertility treatments like IVF, egg freezing, and advanced diagnostics rises. They go from being a “nice to have” to a “need to have.”

The rising age trend essentially guarantees that IVF and related treatments shift from optional to essential for a growing share of the population. This is a structural, demographic driver of demand for decades to come.

Beyond the structural tailwinds, there are a few reasons PGNY stands out:

Best-in-Class Model: Progyny’s Smart Cycle program is designed to reduce costs while improving success rates, giving it an edge over traditional insurers.
Balance Sheet Strength: Net cash makes up about 20% of market cap, giving PGNY flexibility for growth investments.

The balance sheet strength is one reason PGNY scores a B in its Financials Component Grade. And as we like to say around here: “financial data is the needle that points to serious outperformance.”

PGNY also scores Bs in Sentiment and Artificial Intelligence.

Click here to see our full breakdown on PGNY stock.

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Looking Ahead

By 2026, as the Amazon loss is lapped and utilization normalizes, I think growth should reaccelerate. Management has reset expectations and adopted more conservative guidance, rebuilding credibility with investors.

With EBITDA projected at ~$300M by 2027 and strong free cash flow generation, PGNY could deliver 20%+ annualized returns if it simply re-rates to industry-average multiples. However, as it stands … PGNY is scoring a C in both Growth and Value right now. I’m personally waiting for at least one of those to tick up into the B level before getting some shares. In the meantime, this one is watchlist-worthy.

You can add it to your watchlist here.

See our other top-rated health information service stocks here.

What to Do Next?

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