Progyny's stock fell sharply by 5.71% during pre-market trading on Friday, extending losses from the previous session.
The decline follows the company's latest financial update released post-market on Thursday, which revealed a concerning growth trajectory. Investors reacted negatively to Progyny's projection of slower revenue growth for fiscal year 2026, estimated between 5.1% and 9%, a deceleration from the 10% growth achieved in 2025. Furthermore, first-quarter 2026 revenue growth guidance of just 2.5% fell significantly below analyst expectations.
Additional pressure stemmed from the confirmed loss of a large client that did not renew its contract for 2025, resulting in no revenue contribution in the fourth quarter. The company's pharmacy benefit services segment also reported a 1.1% revenue decline during the quarter, raising further concerns about the stability of its business lines.
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