Fertility benefits company Progyny is bracing for a drop-off in revenue growth this year after losing its largest client.
The slowdown comes after a successful end-of-year performance for the Midtown-based company, which sells fertility benefits to employers. Progyny earned $1.2 billion in revenue last year – up 7% from 2023 – after picking up nearly 100 new clients, according to an earnings report released Thursday.
But a revenue decline stemming from the loss of its largest client, Amazon, led Progyny to hedge its earnings predictions for the coming year. The tech giant, which made up 12% of Progyny’s revenue last year, broke off its contract this year to obtain fertility benefits through Lower Manhattan-based Maven Clinic.
Executives projected that Progyny’s 2025 revenue will land somewhere between $1.1 to $1.2 billion, reflecting a year-over-year growth range of 1% to 4%.
Progyny expects to book between $37 million and $40 million in revenue from Amazon through the second quarter of this year, as some of the company’s employees will still get fertility care through Progyny as they transition to their new provider, said Michael Sturmer, president of Progyny, during an earnings call Thursday.
Progyny sells its benefits to 530 employers and covers 6.7 million lives, the company said.
Despite Amazon’s departure, Progyny’s strong performance at the end of the year led its stock price to jump on Thursday from $24.58 to $28.50 at the close of business.
The company’s results also come as the Trump administration signaled its interest in bolstering access to fertility treatments such as in vitro fertilization. The president signed an executive order last week directing the office that oversees domestic policy to submit a list of recommendations “promoting IVF access and aggressively reducing out-of-pocket and health plan costs for IVF treatment,” stating that fertility treatments can run families between $12,000 to $25,000 per cycle.
The order does not outline any specific policies to drive down the costs of fertility treatments. But Progyny CEO Pete Anevski told Crain’s it could be a positive sign for the industry.
“The spirit of that executive order is very positive relative to the industry itself, and certainly relative to us,” Anevski said. “Until there’s more detail about that I really can’t guess, but the direction is positive.”
