Progyny, Inc.

Good day, everyone, and welcome to the Progeny, Inc. Earnings Conference Call. At this time, all participants are placed on a listen-only mode. If you have any questions or comments during the presentation, you may press star 1 on your phone to enter the question queue at any time, and we'll open the floor for your questions and comments after the presentation. It is now my pleasure to hand the floor over to your host, James Hart. Sir, the floor is yours.

Thank you, Matt, and good afternoon, everyone. Welcome to our first quarter conference call. With me today are Pete Ineske, CEO of Progeny, 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 we'll include statements related to our financial outlook for both the second quarter and full year 2026, and the assumptions and drivers underlying such guidance, the demand for our solutions, our expectations for our selling season for 2027 launches, anticipated employment levels of our clients and the industries that we serve, the timing of client decisions, our expected utilization rates and mix, the potential benefits of our solution, 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 Securities Law. Actual risks 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 a discussion of the material risks, uncertainties, assumptions, and other important factors that could impact our actual results, please refer to our SEC violence and 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. More information about these non-GAAP financial measures, including reconciliations with the most comparable GAAP measures, are available in the press release, which is available at investors.progeny.com. I would now like to turn the call over to Pete.

Thanks, Jamie. Thank you, everyone, for joining us today. We're pleased to report that we've had a good start to the year. with record first quarter revenue coming in at the higher end of our expectations, and net income, earnings per share, and adjusted EBITDA all above our guidance ranges. These results reflect that we continue to see healthy member engagement during the quarter, with utilization trending to the higher end of our historical range, and our continued discipline in managing the business, which yielded strong margins overall, as well as healthy cash flow. In addition, we also made meaningful progress during the quarter in laying the foundation for future growth through our planned investments to expand the capabilities of the platform, enhance our already industry-leading member experience, and extend our position as the solution of choice in women's health and family building. As the second quarter begins, engagement is pacing consistent with the typical seasonal patterns following the start of the year. Mark will take you through the guidance shortly, but we're pleased to issue ranges for Q2 that reflect sequential increases from Q1 across all the key results. We're also raising our full year expectations for adjusted EBITDA net income and EPS as well. In short, we've begun 2026 on a strong positive note and are excited for the rest of the year ahead. Contributing to our excitement is the level of activity and energy we're seeing in the market. One example is, at the recent Business Group on Health conference, which is one of the most impactful events for the benefits industry, we had the honor of sharing the stage with one of our largest clients. During this joint session, our client discussed the results of a study they commissioned using a third party to analyze their claims data warehouse, which included all claims not just family building, from progeny measuring the impact of our program over an eight-year period versus what they experienced prior to progeny. The findings reaffirm what we've been reporting to this client regarding outcomes and value that we've been delivering since program inception. They showed that we increased the number of fertility-related pregnancies per year, doubled the pregnancy effectiveness of each treatment, decreased the multiples rate, lowered the miscarriage rate, and more than halved the preterm delivery rate. These results, in turn, lowered the average cost across fertility and related pregnancies, cost for babies, and their NICU costs. Clients put it best when they said, this is the kind of story they feel needs to be told as it achieves the trifecta of member experience, improved health outcomes, and cost avoidance. all of which delivers hard ROI. As an aside, this type of analysis has also been performed by a handful of our other Jumbo clients, independently analyzing their respective claims data warehouses, and they've all come to similar conclusions. Thought leadership events like this, where HR leaders and decision makers come together to share their experiences and help determine their priorities for the year ahead, are just one aspect of our selling season calendar. This activity, amongst others, has the 2026 selling and renewal season off to a good start, with the level of activity and overall engagement that we're seeing affirming how family building and women's health solutions remain a priority for every type of employer. Overall pipeline and the early build of new pipeline is substantially favorable versus a year ago, and early commitments are pacing ahead of this time last year. Additionally, on the renewal side, we've meaningfully de-risked the season by securing early, favorable notifications from some of our largest clients whose agreements were up for review this year. Consequently, the remaining renewal exposure measured in dollars on the book of business yet to be secured is at its lowest level at this point relative to prior years. Separately regarding pipeline, we're encouraged by the activity with aggregators and other distribution partners for our progeny select offering. While the timing for its incremental contribution to pipeline will be later in the year due to normal buying patterns for these groups, we're pleased with the progress so far relative to our first year expectations around select. Taking all of our pipeline activity together, We believe this, once again, demonstrates not only how important family building and women's health are to employers, but also highlights the market's recognition that our evidence-based solutions drive measurable value to employers through proven cost containment. Let me spend a few minutes walking you through the drivers to pipeline and overall activity. First, we're seeing good traction across our health plan partners overall, and with Sidman in particular. You'll recall this is our first full season with Cigna as a partner, and as expected, we're seeing a good inflow of opportunities from that channel. Second, we're seeing a good contribution to our traditional demand generation activities, where our opportunities remain distributed across greenfields and brownfields, companies looking to add to benefit for the first time or considering a switch from their existing provider, respectfully. Lastly, we're seeing significant stronger activity from RFPs on business that's currently with standalone competitors. In fact, the activity there has thus far already outpaced what we saw across all of last year. Conversely, we're seeing fewer RFPs than we'd normally expect from our existing client base. And as previously mentioned, two of our largest clients who were up for review this year have already indicated their intention to continue with us. In short, we believe we're well positioned for the season ahead, we are excited about the activity we're seeing, and we look forward to reporting our progress in the coming quarters. We believe one of the reasons for this positive market activity is that employers are increasingly looking for cost-effective solutions that can address the large and growing portion of their workforce being impacted by infertility and who are in need of coverage and support in order to realize their family building and overall health and well-being goals. The CDC recently reported that the number of births in the U.S. and the overall fertility rate have continued to decline, reaching record lows and extending the trend that began nearly two decades ago. Fortunately, if we peel back the layers of this data, we see something more insightful and certainly highly actionable. While the overall birth rate is declining, it's being driven entirely by women age 29 and younger. On the other hand, birth rates amongst women age 30 and over have continued to increase such that women 30 and over now comprise nearly 53% of all births. This is the highest proportion ever for that age group. And I'll remind you that the population we serve in our family building solution is generally 30 to 42 years old with the average age of a woman going through IVF at 36. While all this data tells us is that society has increasingly chosen to defer family building to later in life, and while that may be the preferred path to parenthood for the queer majority of people today, there is a biological reality in that conception without the use of assisted reproductive technologies often becomes more difficult as we age, and for many, unaffordable. We believe this is a macro trend that employers simply can't afford to ignore. This is no less true even given the heightened focus on the state of the labor market, particularly as it relates to the potential for disruption from AI. As just one data point on that topic, the Wall Street Journal recently reported on a survey of 750 CFOs who concluded that the impact of AI is only expected to reduce their company's headcount by just 0.4 percent as compared to what it otherwise would have been for 2026. And that impact is largely expected at entry-level roles or clerical and administrative functions where the tasks are more easily automated. This is all the more reason why having family building benefits in a company's overall benefit offering is critical. We recognize that investors are pricing into our valuation the potential for a negative impact on member engagement, or on employer demand for our services. To be clear, we aren't seeing any signs of either. As we see it, these concerns are more rooted in what we've called headline risk, as opposed to accurately reflecting a shift in market dynamics, which we don't believe will adversely impact our business. Before I turn things over to Mark, let me conclude by saying that we believe our results and outlook reflect that we are as well positioned as we've ever been at this opportunity. This is highlighted by five key areas. Early sales commitments, our overall pipeline, the progress we're making with our channel partners, our de-risking of the renewal season through the favorable notifications we've already received, and the traction we're seeing with Progeny Select. We view all of this as evidence of the continuing macro tailwinds, and we believe we're in the best position ever to take advantage of those. Although some headwinds always exist, the outside emphasis of what is seemingly anticipated in our current valuation runs contrary to what we see. We've seen this play out before throughout our history, when in past years there were concerns at varying times regarding high inflation or tariffs or potential looming recession, general macro uncertainty, and the loss of our largest client two years ago. Yet we continue to grow through all of the above and we expect to continue to do so in the future. We recently completed our 200 million share repurchase program, and Mark will take you through those details shortly. Our board is currently evaluating potential options for a new share repurchase program. We anticipate a decision around the end of May, and we expect to make an announcement at that time. Let me now turn the call over to Mark to walk you through the portal. Mark.