Progyny - Investment Thesis

In this episode of The Investor's Compass, we dive deep into Progyny ($PGNY), the leader in fertility benefits whose stock has fallen nearly 75% from its highs. While recent quarters have shown unexpected changes in how members pursue fertility treatments and the company faces the loss of Amazon as a client in 2025, our analysis reveals a fundamentally strong business masked by temporary challenges.

We explore why utilization rates remain near record highs even as revenue growth has slowed, and examine how new partnerships with major health insurers could transform the competitive landscape. With the stock trading at historic low valuations despite maintaining 99% client retention and adding over a million new covered lives, Progyny presents an intriguing opportunity for investors who understand the difference between temporary execution challenges and permanent business deterioration.

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