Progyny, Inc.

Thank you for holding. We sincerely. Good day, everyone. Welcome to the Progeny Inc. Second Quarter 2025 earnings call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, James Hart. The floor is yours.

Thank you, Kelly, and good afternoon, everyone. Welcome to our Second Quarter conference call. With me today are Pete Inesky, CEO of Progeny, Michael Sturmer, President, and Mark Livingston, CFO. We will begin with some prepared remarks before we open the call for your questions. Before we begin, I'd like to remind you that our comments and responses to your questions today reflect management's views as of today only, and will include statements related to our financial outlook for both the third quarter and full year 2025, and the assumptions and drivers underlying such guidance. Our anticipated number of clients and covered lives for 2025, the demands for our solutions, our expectations for our selling season for 2026 launches, anticipated employment levels of our clients and the industries that we serve, the timing of clients' decisions, our expected utilization rates and mix, the potential benefit of our solutions, our ability to acquire new clients and retain and upsell existing clients, our market opportunity, and our business strategy, plans, goals, and expectations concerning our market position, future operations, and other financial and operating information, which are forward-looking statements under the federal security law. Actual results may differ materially from those contained in or implied by these forward-looking statements, due to risks and uncertainties associated with our business as well as other important factors. For discussion of the material risks, uncertainties, assumptions, and other important factors that could impact our actual results, please refer to our SEC filings in today's press release, both of which can be found on our Investor Relations website. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. During the call, we will also refer to non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA online and incremental revenue. More information about these non-GAAP financial measures include net affiliations with the most comparable GAAP measures are available in the press release, which is available at .progeny.com. I would now like to turn the call over to Keith.

Thanks, Jamie. Thanks, everyone, for joining us this afternoon. We're pleased to report a strong second quarter with good growth in both revenue and adjusted EBITDA over the prior year, resulting in record quarterly results across both measures, as well as gross margin expansion and the continued generation of significant cash flow. As the third quarter begins, we're seeing that member activity remains healthy and is more consistent with historical seasonal patterns. Given that, as well as our strong results over the first half of the year, we're pleased to be in a position to raise our full-year guidance. During the quarter, we also continue to make good progress in the areas that will make the greatest contributions to our future growth. These include expanding our client relationships and deploying the investments to broaden our product portfolio, which, as previously discussed, are expected to further enhance our already industry-leading solutions in women's health and family building. Let's discuss each of these areas, starting with our latest selling season. As you know by now, each year we focus on three areas of growth. First, we want to continue expanding our market share through the addition of new logos. Second, we want to maintain the exceptionally high rate of client retention we've historically achieved while also growing our relationships with those existing clients through expansions and upsells. And lastly, as the thought leader in our industry, we look to continue to attract partners who share our mission and who enhance our market position by extending our distribution reach. As we enter the heart of the season, we're pleased with our overall progress across these various goals. Starting with new client acquisition, employer interest remains high for women's health and family building solutions. As noted last quarter, as the sales year began, we had seen a slower pacing in the build of Q1 pipeline. That was not necessarily surprising as employers were dealing with a variety of uncertainties in the macro environment, particularly in certain industries. Since then, we've seen strong inflow into pipeline, particularly from June and through today, such that pipeline is now comparable to where it was at this time last year. At this point in the season, we still have a lot of work ahead of us to close the sales year. As in every other year, the majority of closes will occur over the coming months into early fall. Early commitments are comparable to this time last year, both in terms of client count and expected revenue. Though lives for those early wins are trailing last year due to differences in the demographics of the newest clients. As we look at the opportunities that remain in pipeline, we would expect those demographics to normalize those active months of the season. Our wins thus far span a broad cross-section of the economy, representing both white and blue collar sectors, and include financial services, healthcare, energy, consulting, manufacturing, software, and retail. Early commitments have also been broadly diverse in terms of size, ranging from 1,000 lives to well in excess of 100,000 lives. We believe this further affirms not only the universal appeal for our services, it also validates the differentiation of our solution. A key reason why interest remains high can be seen in the results of a national study we recently conducted, exploring what working women want in their healthcare benefits versus what they're actually getting. Employers continue to appreciate the key role they play as 81% of HR leaders said they're committed to advancing women's health in the workplace. It's those types of leaders we're seeing engage this sale season. From the employee's perspective, barely half of those surveyed believe their current benefits make their healthcare affordable. That's astonishing to us. And we see that Progeny has the opportunity to bridge this gap through benefits that are designed to deliver outcomes and lower costs. We do this every day already, of course, but we're building out our platform even further to extend our lead in the three areas that matter most to employers. Member experience, outcomes, and cost control. The investments we're making will create a linked platform across our high-touch care management services with personalized digital engagement for our patients and providers. We're excited about the continued progress on the platform and are looking forward to introducing these innovations next year. Let me now turn to the progress we made across our strategic initiatives, starting with our recent acquisitions. The integration of benefit bump into our operations is now complete. Our leave navigation program can continue to be sold on a standalone basis or as an integrated part of our pregnancy and maternity solution. The earliest clients on this expanded program have already gone live, and we've also seen this program play a positive role in some of our sales successes this season. For instance, amongst our early commitments thus far, one of the largest chose facilities with leave navigation, validating our vision and joining together what had once been two separate categories. As it relates to our investment in global, our initiatives are on track for creating a suite of products that expand our existing global program so that we may address the same categories of care that our US offerings do. Our prior acquisition of April played an important role in expanding our capabilities within Progeny Global, helping us secure early commitments from US-based multinational buyers that were looking for a solution that could address their full populations. And lastly, we've also continued to strategically add to our leadership team. We've created more depth through the addition of Melissa Cummings as chief operating officer, and Jeffrey Clapp is our first chief product officer. We view these hires as accelerating our innovation in product and member experience while also continuing to advance overall operational excellence. Shifting over to renewals, early activity thus far has been positive. Clients aren't looking to reduce their benefits for next year, and as we've seen every year so far, many are in fact expanding in some way, reflecting the value they see as we improve the efficiency of their overall healthcare spend. We continue to close key gaps in women's healthcare. As an example, we recently added pelvic floor therapy to our solution. Just as we sourced the highest quality providers for our family building solution, we've likewise expanded our network across this key area of women's health. One in three women experience pelvic floor issues with one in five needing surgery to treat their disorder. While it's most commonly associated with postpartum care, pelvic floor conditions can impact women in early adulthood through to menopause and later in life. Our newest specialty providers for pelvic floor therapy include Hinge Health and Origin. Progeny members will have access to both in-person and virtual care options to treat this life-altering condition. By employing our integrated approach to women's wellness, Progeny members will benefit from earlier interventions for their pelvic conditions, improving their quality of life, while also helping to avoid the delays that can lead to more expensive care pathways, including surgery. This adds to Progeny's whole-person support of the conditions that influence fertility, maternity, and overall women's health outcomes. That's a win-win for both members and plan sponsors. We also continue to look to leverage innovative technology in the marketplace. This quarter, we formed a new partnership with Aura, the world's leading smart ring, that will allow members to better understand the drivers of their health, leverage a comprehensive data set, and take action to improve their well-being. Progeny is uniquely positioned to leverage our high-touch concierge care model to surround this data-intensive experience with personalized recommendations. Finally, we were excited to announce last month that Progeny was chosen by Amazon to be the first women's health solution in their Health Benefits Connector program. This is a service that allows the users of Amazon's site to discover whether they have access to specialized programs like telehealth, mental health, and musculoskeletal support through their employer-sponsored benefits. Progeny has been added to this program as the first specialist in women's health, addressing fertility, pregnancy, and maternity support and menopause. Given the scope of their business, we recognize there are a lot of ways to work with a company of Amazon's size. This latest collaboration will supplement the work we're doing to build awareness of our newest services, and over the long term, has the potential to become a meaningful driver of enrollment. To conclude, we're exceptionally pleased with our strong first half of the year and the progress we've made in laying the groundwork for continued growth and success. Let me now turn the call over to Mark to review the results. Mark.