Progyny, Inc.

Ladies and gentlemen, and welcome to the Progeny, Inc. second quarter 2026 earnings conference call. At this time, all participants are on a listen-only mode, and the floor will be open for questions and comments after the presentation. If you wish to join the queue at any time to ask a question, you can press star 1 on your telephone keypad. Should you wish to remove yourself from queue, you can press star 2. It is now my pleasure to turn the call over to your host, James Hart. James, the floor is yours.

Thank you, Tom, and good afternoon, everyone. Welcome to our second quarter conference call. With me today are Peter Anevski, 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 will include statements related to our financial outlook for both the third 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 are 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 results may differ materially from those contained in or implied by these forward-looking statements, Thank you for joining us. 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, and thanks, everyone, for joining us this afternoon. We're pleased to report a strong second quarter highlighted by solid growth over the prior year period. resulting in record quarterly revenue, gross profit, and adjusted EBITDA, as well as further gross margin expansion and the continued generation of significant cash flow. Fueled by the strength and consistency of this performance, not just in the most recent quarter, but really over the past several years, we've created flexibility, both to invest in the business by laying a foundation for future growth through the expansion of our platform, while also returning value to shareholders, Mark will take you through the details of both that and the quarter shortly. But before that, I'd like to give you some color on how our latest sales season is progressing because, as you know, new sales in any year have the largest impact on our growth trajectory. I'm pleased to report our momentum from last quarter has continued and we enter our most critical time of the year for closing new clients in a favorable position. Thank you very much. Thank you for joining us. with increases of 10% or more and projecting further increases next year. In response, they're turning to solutions and benefit managers with a proven record of not only controlling trend, but helping to bend that curve. The buying criteria for employers evaluating options in the market continues to hone in on cost, quality, and member satisfaction with a heightened focus on accountability within each area. They want to see a track record in achieving total cost and quality management with a high-quality member experience consistently. And success is measured on the strength of hard ROI savings back to the employer and members, yielding short and long-term trend control. While the competitive environment remains active, as we look across the landscape, we see the other solutions falling short in one or many of these categories. By contrast, progeny on the strength of our detailed, transparent reporting remains the only solution, in our opinion, Thank you for joining us. has us well positioned across our three areas for growth, adding new logos, maintaining high client retention, and expanding new partners to enhance our position and extend our reach. Looking a bit deeper within each area, on new client acquisition, early commitments are pacing meaningfully ahead of this time last year. While the sales season won't conclude until November, we have seen a meaningful number of early decisions. More than we'd expect at this point in the year. On that strength, we're confident we will meet our annual target of adding one million or more new lots. On client retention, based on current conversations and commitments, we believe we've removed the vast majority of attention risk, which is also earlier than usual at this point in the year. I think it isn't a coincidence that employers have been able to come to their decisions earlier this year, and have chosen progeny at the point when managing their escalating medical cost trend is a top priority. The wins thus far represent the typical diverse cross-section of the economy, including employers in energy, construction, manufacturing, aerospace, healthcare, labor, financial services and education. This includes one of the oldest and most prestigious universities in the country. Their early commitments have also been diverse in terms of size, spanning from 1,000 cover lies to the jumbos we see every year. Turning to retention in any season, roughly one-third of the book is up for renewal. As discussed last quarter when we described the comprehensive review one of our longest-standing clients had recently done to measure and validate the efficacy of our program over many years, existing clients are often in the strongest position to directly see the cost control and sustained savings our solutions deliver. That not only yields positive renewal activity, but also an opportunity for expansions, which is when a client adds more services with us beyond core fertility, and we take that business away from the competitors who've been previously providing some of those services. For those same reasons, our newest clients are selecting the typical level of coverage that we've historically seen, and we aren't seeing existing clients look to reduce their benefit with us for the next year either. Lastly, we're satisfied with our momentum at this point in the year amongst our traditional self-insured employers. We're also pleased with the progress we're making across a number of other strategic areas including health plan partnerships, public sector clients and continuing to advance our new fully insured market offering called Prosity Select. We're seeing good results with our existing partnerships, as well as a strong increase in productivity from our health plan partnerships, many of which are now in their second year with us. Additionally, we're pleased with our pipeline of potential new health plan partnerships. We also continue to advance Property Select with a focus on building relationships across key distribution areas, like leading general agents and brokers who are focused on the fully insured market. These partnerships are an important step and no different from other relationships we built and curated, we expect the first year will focus largely on forging those channel partners versus driving meaningful new volume. As we've said previously, we're not expecting Select to be a meaningful contributor in 2027 and instead view this as an important addition to the portfolio and a significant contributor to our medium and long-term growth. To conclude, we're pleased with our strong performance over the first half of the year and given the momentum we're seeing in the market, we're comfortable that we've positioned ourselves exceptionally well to meet our traditional target of 91 million or more lives. Let me turn the call now over to Mark.