Q2 2025 Progyny Inc Earnings Call

Thank you for holding we sincerely.

Good day, everyone. Welcome to the Progyny, 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 floor is yours.

And good afternoon.

Everyone, Welcome to our second quarter conference call.

With me today or repeat Aki 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 views as of today, only

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 adjusting, the VA and adjusting evidence. For mental Revenue, more information about the non-gaap financial measures, including our affiliations. With the most comparable, gaap measures are available in the press release, which is available at investors.com progyny.com. I would now like to turn the call over to you.

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 EVA 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 a quarter begins.

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, and 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 3 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 interests remains high for Women's Health and Family Building Solutions.

As noted last quarter, as a 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 closest 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.

The lot, the wins for those early clients are trailing last year due to differences in the demographics of the newest clients.

As you look at the opportunities that remain in pipeline, we would expect those demographics to normalize for the full sales year as we go into the final and most active months of the season.

Our winds thus far span a broad cross-section of the economy, representing both white-collar 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 interests 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 their committed to advancing Women's Health in the workplace.

From the employees perspective, barely half of those surveyed believe their current benefits. Make their health care 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 3 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 and our leave navigation program can continue to be sold on a standalone basis or as an integrated part of our pregnancy and maternity solution.

At 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 1 of the largest shows, fertility with lead, navigation, validating our vision and joining together, where I had once been 2 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 we're looking for a solution that could address their full populations.

And lastly, we've also continued to strategically add to our leadership team.

We created more depth through the addition of Melissa Cummings as Chief Operating Officer and Jeffrey Clap as 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 health care spend

We can see the closed 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.

1 in 3 women experience pelvic floor issues, with 1 in 5 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 the menopause, and later in life.

Our newest specialty providers for pelvic floor therapy include hinge, health, and origin.

Progy members will have access to both in-person and virtual care options to treat this life, altering condition.

By employing our integrator approach to Women's Wellness project, the 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 the price of these 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 corner 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 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. The projecting was chosen by Amazon to be the first Women's Health Solution in their health benefits connector program.

Programs like Tella Health provide 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 the company of Amazon size.

This latest collaboration will supplement the work. We're doing to build awareness of our newer services and over the long term as 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 made in laying the groundwork for continued growth and success.

Let me now. Turn the call over to Mark to review the results. Mark, thank you, Pete and good afternoon everyone. I'll begin with the second quarter results and then provide our expectations for the upcoming quarter, and for the full year,

Second quarter Revenue grew 9.5% over the prior year to 332.9 million primarily due to an increase in the number of clients and covered lives as compared to a year ago.

As previously, disclosed Revenue, this quarter included, the final contribution, from a large, former client who had provided an extended transition. Period of care for members meeting certain criteria through June, June 30th.

This contributed 17.2 million to revenue in the quarter, slightly more than the 14.7 million that we had incorporated into the high end of our guidance.

Total revenue. However, exceeded the top end of our guidance, by nearly 8 million driven by the improved member engagement, which occurred across our Collective base.

Excluding the impact of this, former client from both periods, revenue increased by 18%. In both the second quarter and over the first half of the year, demonstrating the solid growth that we continue to see in the core business.

As of June 30th, we had 542 clients with, at least 1,000 lives representing an average of 6.74 million covered lives in the quarter. This compares to 463 clients in an average of 6.41 million covered lives a year ago.

I'll remind you that covered lives in 2025 already, excludes the client, under the transition of care agreement. So your models won't have to adjust the lives going forward. Now that the transition is concluded

A handful of clients launched in the second quarter, representing the last batch of clients in the 2024 selling season, as well as some early launches from the current selling season.

As a reminder, although we typically see some amount of early launches each year, they tend to be smaller companies who have a greater flexibility with their start dates. And our guidance won't reflect these accounts until their, they've already launched their program with us.

Following the close of the second quarter. Another handful of smaller. Clients launched representing additional early launches from the current season as well as the business we won. Following the recent wind down of a relatively small competitor's operations.

While this contributed a small number of lives, we were nonetheless, extremely pleased to be the provider these employers turn to in order to quickly, implement the progeny benefits, and continue offering this critical service with minimal. If any disruption

Taking those July launches into account. We have over 550 clients today and are approaching 6.8 million covered lives.

You may have seen some recent headlines where certain high-profile companies have talked about fine-tuning, the size of their organizations through Workforce reductions.

None of these programs are expected to be particularly impactful to us.

With a base as large as ours, in any given quarter. We'll see. Some number of clients who are Contracting. While others are expanding, Q2 is no different in that respect and the covered lives across our Collective base were essentially flat versus q1.

We believe our client diversity is an underappreciated aspect of our business. The presence we've earned across so many different Industries, including 1, that may run, counter cyclical to others provides us. A level of diversification that is insulated us from any sector specific activity.

Turning now to Our member engagement metrics.

Female utilization was 48% in the quarter. Slightly above the second quarter a year ago.

Utilization this quarter does not include the large client under the transition of care agreement. As only a limited number of members meeting certain criteria were eligible to use the benefit which is not compatible with how we report engagement from every other client.

Included in art Cycles as doing so enables you to continue modeling volumes and revenues as you've always done.

Nearly 17,000 art Cycles were performed this quarter. Our highest quarterly total ever and a 9% increase over the second quarter a year ago.

Art cycles per unique, female utilizar were 0.52 in the quarter at the high end of our expectations and consistent with the rate of sequential increase that we saw in the year ago. Period.

Looking at the components of the Top Line, Fertility benefits Revenue, increased 11% over the second quarter last year to 214 million, while Pharmacy Revenue, increased 8% to 119 million. The slight differential in these growth rates, reflects ordinary variations in treatment timing in mix.

Turning now to our margins and operating expenses, gross profit increased 16% from the second quarter last year to 79 million. This yielded a 23.7% gross margin and improvement from the 22.5% margin and the prior year period.

For the full year, we continue to expect gross margin expansion. Over 2024, although not to the same extent as what we saw over the first half of this year, given the additional hiring and other Investments, we plan to make to enhance the member experience. And to prepare for our 2026, launches, over the back half of this year.

Sales and marketing expense was 5 and a half percent of Revenue. In the second quarter. A slight increase from the year ago period. As our investments in go to Market expansion. Have been largely mitigated by the efficiencies that we continue to realize through client acquisition and retention.

We previously told you about the Investments, we're making this year to both, expand our product platform. And to integrate our recent acquisitions,

We also said those dollars would ramp up in the second quarter and continue over the second half of the year. You see this in our G&A, which was 10.9% of revenue this quarter versus 10.3% in the year-ago period.

Although adjusted ebit, dog. Grew 6% to 58 million. The impact of our investments is also seen in our adjusted ebita margin, which declined modestly as expected from the year ago period to 17.4%.

Net income was 17.1 million or 19 cents per diluted share in the quarter. This compared to net income of 16.5 million or 17 cents per diluted share and the year ago period on the basis of 89.6 million shares.

Adjusted EPS was 48 cents in the quarter as compared to 43 cents in this second quarter last year.

Turning now, to our cash flow and balance sheet. We generated 55.5 million of operating cash flow in the second quarter and 105 million, over the first half of the Year. This performance highlights the high conversion of adjusted EBA to operating cash flow that's inherent in our model as well as our strong focus on tightly managing our back office processes.

Capex was 5 million in the quarter of 4 million. Increase over the prior year, period, reflecting the investments in member experience, and acquisition integration.

We continue to expect that incremental capex. For these projects will be approximately 15 million over our 2024 spend.

As of June 30th, we had total working, capital of 374, million reflecting 305 million in cash, cash equivalents in marketable Securities, and no death.

Following the close of the quarter, we entered into a revolving credit facility, providing us with up to 200 million of additional liquidity until its expiration in July of 2020 2030.

The revolver is undrawn and we have no plan use for the facility at this time.

We'd entered into the facility as we believe, it's prudent for a company of our size and with our growth profile to enhance our operational and financial flexibility in managing the business.

Entering the facility does not alter the capital priorities. We've previously shared with you including stock repurchases project, expansions new distribution channels and select Acquisitions. And you've seen us execute across all 4 of these areas over the past 12 months.

As compared to the year ago period dso's improved by 13 and a half days reflecting our ongoing discipline and revenue cycle management.

Turning now to our expectations for the third quarter in the year.

We're making today reflect the potential for further variability in activity and treatments over the second half of the year.

As you can see in today's press release, we have modestly increased our assumption for full-year utilization to 1.04% at the low end and 1.06% at the high end, which is still lower than what we saw in 2024.

In terms of consumption. The first half of the year was slightly above our original expectations given that as well as the current pacing of member activity. We've modestly increased our assumptions for full year, art cycles per unique to 0.91 at the low end of the range and to 0.92 at the high end.

With these assumptions, we're projecting between 290 to 305 million in the third quarter. In in the third quarter for Revenue reflecting growth of 1 to 6%. As the transition of care agreement with the large client concluded on June 30th. There's no contribution from that client in the third quarter or the second half of the year.

If we exclude, the 32.8 million in revenue from the year ago quarter, our Q3 guidance reflects growth of 14 to 20%

On profitability, we expect between 45 to 49 million in adjusted ebita in the third quarter along with net income of between 9.4 to 12.3 million. This equates, to 10 cents and 14, cents of earnings per share or 37 cents, and 40 cents of adjusted earnings per share on the basis of approximately 90 million fully diluted shares.

With our strong, second quarter, and first half results, were pleased to raise our full year guys. We now project revenue of between 1 billion, 235 million to 1 billion, 270 million reflecting growth of between 5.8 and 8.8%.

If we exclude the revenue from the client under the transition of care agreement from both years, our full year Revenue growth is projected to be between 15.1% and to 18.5%.

We also expect between 205.5 and 214.5 million in adjusted IBA, with net income, between 52.3, to 52 point. Sorry, 58.9 million.

This equates to 58 and 65 cents. Earnings per diluted, share and $1.70 and $178 cents of adjusted EPS on the basis of approximately 90 million fully diluted shares for the year with that. We'd like to now open the call for questions. Operator, can you please provide the instructions?

Certainly.

Floor is now open for questions.

If you have any questions or comments, please press star 1 on your phone. At this time, we ask that while posing your question, you please pick up your handset if listening on a speakerphone to provide Optimum sound quality, please hold for a moment while we pull for questions.

Your first question is coming from Michael Turney with a rank Partners, please post your question, your finest life.

Great. Thank you. This is Dan Clark on for Mike. Um, just just had a question, um, the commentary around the selling season and, you know, early commitments being comparable, um, sort of in terms of client and expected revenue is that on a growth basis. So like excluding the large customer contribution, um, from last year or is that on the net basis in terms of what you want? Thanks.

It's, it's out of its out of gross basis. So, if you think about it, it's you would exclude the, the large client from both years and look at the the growth this year. Um uh and if everything turned out the way it did for the full sales year, you know, something in that neighborhood. Um, so you're on Pace on a gross basis.

Great. Thank you.

Your next question is coming from Jalandhar Singh.

With truist, please post your question. Your line is live.

Thank you, thanks for taking my questions. I want to just stick with the selling season commentary. Are you implying that you are seeing more smaller size employee client wins? But they're signing up for multiple services from you guys. And large employers are taking longer to make it decision, or is it more like that? It has been some change in win rates among the large employer clients and based on the number of lives you have seen so far, how confident you are that. You can still add at least 1 million lives at U next year.

Line from a live perspective, uh, was slower but caught up uh, materially in in June and, and July and through now. Um, and so as a result, if you think about the timing of when people are looking at a benefit and then making a decision, as a function of when they start reviewing the benefit when they come into pipeline. Right? Um, so we are seeing large clients also closed already as as I said in my prepared remarks. Um, but the expectation, our expectation, We Believe by the end of the sales year is that relative to average lives. Um, uh, you know, we we expect the year to catch up.

Yeah, and and I I I would just add we we continue to to, you know, focus on our Target, you know, set earlier in the year. Um, and as usual, or as in Prior years, these next, uh, 3 months are are, you know, highest volume from a closing perspective and as Pete referenced in his comments, you know with with pipeline um in a comparable position the last year, you know, that's where we're focused. And um, as as we are in every year

Great. And then quickly, I want to follow up on the progeny RX. I understand Trends. They are good fluctuate quarter or quarter. But I just want to make sure we are not missing anything there. If you look at first half the growth at progeny artics is like roughly half the growth of fertility benefit business. So should we assume that progeny artex should outpace in the second half? In terms of the growth rate on year-over-year, you just help me uh, understanding their

Yeah, it it, it is, uh, more timing. The first half first quarter, um, uh as you know, sort of, you know, uh more uh, higher percentage of initial consults. So it's going to impact, um, Pharmacy. But overall, you know, whether it, whether it catches up and or surpasses medical or or or on a full year basis by the end of the year is, is is closed and comparable. We'll see because, you know, exact timing even within, uh, uh, a full year could be off a little bit, but it's going to be, you know, it's so we expect it still to be, you know, close to in line with the medical by the end of the year.

Okay, thank you so much.

Your next question is coming from Alan Lutz with Bank of America, please post your question in your line is live.

Hey there. Uh, you have Devin for Alan laps here. Um, I just had a quick question on guidance. I'm just trying to do the math period. It seems like, you know, just based on the art cycle guidance there, the high end of the lower end of the range.

Um, I'm just looking at the average revenue per cycle in the first half and then trying to apply that to the second half.

And you know kind of getting above the range there. So curious on considerations for um, average revenue per our cycle, in the back, half of the year, and then I just got 1 more follow up.

Yeah. 1 thing, you need to be careful of when you're looking at first half versus second half. Um, again, total revenue is going to also include, um, you know, sort of that disproportionately high number of initial consults and non-arts activity in the beginning of the year. So, you'll see a higher number per art cycle because people are just beginning, their, uh, a proportion of people are just beginning their, um, you know, their Journey, uh, in, in q1. Um, so, again, we we've got guided to it. So that, you know, I think if you look at, um, you know where we've guided previously, it's inched up a little bit, but it hasn't changed much. Um, since our, our prior guide for the full year,

Okay, got it, that's fair. And then just 1 on new products, you know, you're going to market with the Hansel and the new services this year. Um, you know, last year, you know, adoption of video products were quite strong. Just curious, you know, how conversations are trending around those new adjacencies, you know, which are resonating more in this market with clients.

And then, you know, in terms of like a growth material growth lever, which of those products should we think of as, you know, most eminent in terms of being beneficial to the P&L there?

To release the witch products, you're going to contribute. The most I think, as we asked there there's none neither of them or none of them are sort of materially different in terms of expected contribution as uptake. Um, uh, you know, both from a, from a client adoption perspective, as well as as just from a overall utilization perspective within each of their adjustable markets. Um uh uh takes hold. Um, the expectations are are relatively um uh equal in M material absolute dollars in terms of our expectation, long term from those products,

Great. Thank you.

Your next question is coming from Scott showing house with KeyBank. Please pose your question your line is 5.

Hey team, thanks for taking my question. Just want to drill in more and follow jindras question on the selling season commentary that you've stated. So was it that my fear to understand that you're just saying that the winds developed later um than last year sort of in June and July? Is that what you meant by the live commentary but you also included the work demographics there, so wondering if you're include, if you're talking about the sort of the cohort of the population set within um, the new client wins versus previous years, just trying to unpack that more with more color, please.

Yeah, let me let me uh clarify it. When we talk about um uh June and July later than last year, we're talking about pipeline additions and and making commentary relative to overall active pipeline as of today. Now being comparable, where earlier in the year pipeline editions were slower and we were a little behind in lives, right? Um, which is separate and apart from, when we talk about early, commitments, IE so far this year, which are comparable European Year from a number of prospects and, um, expected Revenue perspective. And the demographics of those are yielding, a higher expected Revenue, um, just based on the industries that that have committed so far, which is why the even though the lives are slightly behind prior year committed to date. Um, the expected revenue is still comparable to what it was this time last year. Is that helpful? That's all. Yeah, yeah, yeah. That's helpful Pete. Thanks so much. And then I know you,

Made a comment about how you're not, you know, the big Tech layoffs have an impacted 2 key results. But wondering what you've been seeing in July and August

Now that these layoffs have been rolling off more, are you seeing a spike in utilization from these large tech companies uh, as employees feared that they might lose this uh, fertility benefit.

We're not, um, uh, we're not seeing any, you know, sort of change in in utilization patterns relative to some of those industries that that are, you know, have some layoffs. The level of layoffs are are again relative to those companies collectively, not big, um, uh so no, we're not really seeing anything different, they're they're, you know, engaging, um, on a normal pace.

Thank you very much.

Your next question is coming from Brian tankwa with Jeffrey. Please put your question your line is live.

Congrats on the quarter. Um, maybe just the question on the upsell, uh, you know, is you, you mentioned, some, some clients are expanding, just curious, you know what those conversations are and how hard it is to convince, you know, these corporates to add benefits to what they already have. Given the environment that we're in right now.

Yep. Um,

I wanted to do Michael. So um, uh yeah. I mean um, uh,

These are right when when we've talked about this before, relative to, uh, fertility benefits as well. But, you know, these are these are, you know, are are particularly the large clients have, you know, a benefit strategy that is that is a multi-year approach. Um, and you know, as it relates to um, Women's Health, as we reference them in the comments around some of the survey findings. Um, but even as we're out in the market talking,

Um, and that determines whether, you know, we expand into, uh, maternity or parenting, or whether, uh, we're adding in, you know, menopause, or, you know, some of our newer, uh, programs around global and, um, leaving navigation.

Got it. And then, Mark, maybe just a quick question. Um, are you able to share with us the Arts cycle, for female utilizing number? Excluding, the big contract change and then maybe the Rev for art cycle X contract change in the quarter as well.

Um, yeah, we haven't, we haven't broken that out, um, before. Uh, but but know that. And so, we have provided in the press release. A projection of what, the Q3 range would be that supports the guide. Uh, and obviously, without the, without the client there, you can, um, you you can, uh, you know, do your, your own math.

Thank you.

This question is coming from Sarah James with caner. Please post your question. Your line is live.

Are the revenue figures in line with past years, but the line is lower because of the type of industry that the clients are in? Does that mean that these clients are expected to have a higher utilization, and that's why the total revenue per client is higher? Or are these clients in industries that, as new clients come on, are starting to purchase a broader set of your products?

No, it's, it's the former. So, so, uh, simple example that we give in the past is, is, you know, whether it's Tech Hospital Systems, uh, media, uh, higher utilizing, um, uh, Industries, um, as opposed to, you know, labor, um, uh, and some, uh, you know, uh, older economy companies, um, uh, retail um, Etc, or lower utilizing. So, it's, it's more a function of utilization rate by industry. Uh, then it is a broader Suite of products.

Okay. Um, and could you

A little bit about.

Midsize employers, or the smaller size of large employers, are you seeing an increase in demand to adopt...?

Fertility and Family Planning products.

We're we're, we're seeing, uh, as we've seen in the past, um, increasing in demand across companies of all sizes. Um, and that's been, uh, the case in, uh, this year. Um, as it's, it's been the case for us really since our existence. So, as I look at overall, active pipeline number of prospects within it and the total lives and compared to, uh, prior year this time, um, you know, it's it's basically, uh, uh, says that there's interest the board relative to the company size.

Thank you.

Your next question is coming from David. Larsen with btig, please post your question.

Hey uh congratulations on the uh the good quarter. Can you talk a little bit about the mix? Um like I think uh you know, in terms of like maybe transfers versus egg freezes and sort of the the price of the, the mix, any thoughts? That would be helpful. Thank you.

Yeah, there there's nothing um to call out relative to mix this quarter um uh Visa V any periods. Whether it's, you know,

you know, prior, you know, aside from normal seasonality q1 Q2, um, but comparing it to Prior, year, Etc, and nothing really to call out in terms of, in terms of mix. So I'm not sure what exactly you're looking for.

Well, it seems to me like maybe utilization, uh, was at risk of declining a little bit earlier in the year, given the uncertainty in the economy. Now, that it's sort of the market has come back up and people feel better about the economy, they're having babies and perhaps uh, the the mix of services has, you know, uh, switched from eggs which are lower price to transfers, which are higher price which is obviously a benefit or a Tailwind to the business is what I was getting at.

I just clarified. So so as it relates to transfers, only egg freezing is actually higher, not lower, but either way, um, if you think about it, right? If you look at just the overall utilization rate cycles per utilizar and the return to the normal seasonality of cycles per utilizar uh q1 and Q2 for example, um and then sort of what we guided for Q3 versus what we saw last year. I would say that the the the mix is returned to more normal. Um, IE prior to uh 2024 um then 2024 uh, is is sort of the, the easiest sort of high level way to to, to process it.

Amazon. Um, but either way, we we yes, we have uh, at times have had clients return that left, um, uh, you know, um, none, none sort of to speak speak of or talk about by name, um, but but it's happened more than once.

Thanks very much.

There are no further.

I would now like to turn the floor. Back over to James Hart for closing remarks.

Thank you Kelly and thank you everyone for joining us this afternoon. Please feel free to reach out to me uh, as needed for any uh follow-ups and clarifications otherwise we look forward to seeing you uh over the course of the fall. And uh and during our next conference call.

Thank you, everyone. This concludes today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.