Progyny: Utilization Trends and Early Selling Season Commentary Both Positive for F26; Reit OW

Research evidence excerpt

Progyny: Utilization Trends and Early Selling Season Commentary Both Positive for F26; Reit OW

Equity Research

U.S. Healthcare Technology & Distribution

15 May 2026

Progyny

Utilization Trends and Early

Selling Season Commentary Both

PGNY OVERWEIGHTPositive for F26; Reit OW

Unchanged

PGNY benefitted from better-than-expected utilization in the U.S. Healthcare Technology NEUTRAL & Distribution

Unchangedquarter, and management noted that early conversations

from the current selling season have been positive. With Price Target USD 27.00 raised 17% from USD 23.00

expectations at a reasonable level and shares at just 6.5x, we Price (14-May-26) USD 22.87

Potential Upside/Downside +18.1%are raising our PT to $27 and reiterating our Overweight

Source: Bloomberg, Barclays Research

rating.

Market Cap (USD mn) 1791

Raising estimates. We are raising our estimates to reflect better utilization and encouraging Shares Outstanding (mn) 78.33

commentary from management on initial selling season conversations. We now estimate F26-28 Free Float (%) 90.53

rev/EBITDA will be $1,385M/$238M, $1,536M/$265M, and $1,666M/$290M, respectively (vs 52 Wk Avg Daily Volume (mn) 1.4

$1,382M/$235M, $1,530M/$264M, and $1,686M/$295M, previously). Dividend Yield (%) N/A

Return on Equity TTM (%) 14.93

Valuation. Shares are now trading at ~6.5x our C27E EBITDA as recent results have eased some Current BVPS (USD) 5.61

of the recent concerns around membership and utilization in the current environment. We are Source: Bloomberg

raising our price target to $27, which is based on ~8x our C27E EBITDA (from $23 based on 7x).

While we appreciate that shares are now up more than 23% MTD (SPX +3%), we still believe the Price Performance Exchange-Nasdaq

risk/reward presents an opportunity at this level.