Peter Warendorf

Peter Warendorf asked for clarification on how Progyny bridges the gap between mid-to-high single-digit membership growth and low double-digit revenue growth, seeking insights into contributions from utilization, upsells, and new products. Warendorf also inquired if there were any unusual trends in treatment mix given the current macro uncertainty.

Answer

Mark Livingston (CFO) explained that the 11% revenue growth at the midpoint is driven by increases in utilizers, ART cycles, and a rate element. Pete Anevski (CEO) added that the replacement of lower-utilizing lives with higher-utilizing ones also contributes to this bridge. Pete Anevski (CEO) stated there was nothing unusual to report regarding treatment mix.

Peter Warendorf asked for clarification on how Progyny bridges the gap between its mid-to-high single-digit membership growth and its projected low double-digit revenue growth for the year, specifically identifying contributions from utilization, upsells, and new products. He also inquired if there were any unusual trends or call-outs regarding treatment mix due to macro uncertainty.

Answer

Mark Livingston, CFO of Progyny, explained that the 11% midpoint growth (excluding the impact of a former client) is driven by increases in covered lives, utilizers, ART cycles, and an element of rate. Pete Anevski, CEO of Progyny, added that the replacement of lower-utilizing lives with higher-utilizing lives also contributes to this growth. Regarding treatment mix, Pete Anevski stated there was nothing unusual to report.

Peter Warendorf inquired about the 20-30 new center adds expected in 2026, specifically if they come on with lower margins and how this impacts the cadence of margins throughout the year, and asked for an update on the competitive landscape.

Answer

CFO Ryan McGroarty confirmed that new centers initially have a lower margin profile, but this is fully contemplated in the guidance, and they offer a quick return to normal margins. CEO Dave Bourdon noted that the competitive environment for attracting and retaining clinicians remains strong, but there are no new particular national competitive dynamics, as competition is primarily local.

Peter Warendorf inquired about the 20-30 new center additions planned for 2026, specifically if they are expected to come online with lower initial margins and the resulting cadence of margins throughout the year. He also asked for an update on the competitive landscape, noting any changes in competitor aggressiveness.

Answer

CFO Ryan McGroarty confirmed that new centers typically start with a lower margin profile, but this is fully accounted for in the 2026 guidance. He added that these centers are growth accelerators with relatively quick return profiles to normal margins. CEO Dave Bourdon stated there were no significant new developments in the competitive landscape, which remains highly competitive for attracting and retaining clinicians. He characterized the industry as fragmented, with competitive dynamics primarily localized.

Peter Warendorf inquired about Talkspace's comfort with the current size of its provider network given anticipated growth, asking if any specific areas need addressing, and how much of the declining consumer revenue is being captured on the payer side of the business.

Answer

CFO Ian Harris affirmed confidence in the curated provider network, noting active pruning and engagement to ensure adequate availability, with psychiatry being a significant growth area in 2025. He believes most of the consumer attrition is captured on the payer side, as prospective members are encouraged to share insurance information during registration, making consumer revenue increasingly immaterial.

Peter Warendorf inquired about Talkspace's comfort level with its current provider network size given anticipated growth and any specific areas needing attention, as well as how much declining consumer revenue is being captured on the payer side.

Answer

CFO Ian Harris expressed confidence in the provider network, noting active pruning and nimble recruiting to meet demand, specifically highlighting significant growth in the psychiatry network in 2025. He stated that most consumer attrition is captured on the payer side, as the registration flow encourages members to share insurance information, making consumer revenue increasingly immaterial.