How much of Progyny’s revenue comes from haram?

Progyny earns its revenue from the following sources:

  • Fertility Benefit Services:

Includes revenue generated from Progyny’s fertility support solutions provided to employers, intended to help couples who cannot have a child, including for various situations from male or female infertility to surrogacy and LGBTQ family building.

  • Pharmacy Benefit Services:

Includes revenue generated from providing access to medications needed for fertility treatment. This includes assistance with prescription fulfillment and medication administration training.

The contributions from each of Progyny’s revenue segments in their 2020 annual report were as follows:

An area of concern for Practical Islamic Finance is revenue generated from Progyny’s Fertility Benefits Services. 

While Progyny helps some couples have children without using third-party sperm or eggs, a significant portion of this service consists of surrogacy and sperm donation including assisting single men, single women and same sex couples use donor sperm or eggs to conceive, which is forbidden in Islam.

Given over 70% of Progyny’s revenue comes from Fertility Benefit Services, Practical Islamic Finance suspects if Progyny were to stop its surrogacy services completely, the impact on its revenue would be material. 

Practical Islamic Finance concludes:

A material portion of Progyny’s revenue comes from haram.

Does Progyny rely on interest to operate?

Year-to-Date
for period ended
6/30/2021
Fiscal year
ended
12/31/2021
Fiscal year
ended
12/31/2020
Interest Income $234$121
Total Revenue$250,784$344,858$229,683
Interest Expense $58
Total Expenses$227,231$336,510$220,006
Interest Income / Revenue0.09%0.04%
Interest Expense / Total Expense0.03%
*Numbers in thousands, U.S. dollars

Practical Islamic Finance concludes:

Riba is used but not relied upon in Progyny’s operations.

What is Progyny’s Environmental, Social, and Governance (ESG) impact?

Environment

No notable environmental highlights. 

Social

Progyny has a Glassdoor rating of 3.8 out of 5.0 from over 65 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.

Governance

No notable governance highlights.

Practical Islamic Finance concludes: 

Progyny has a net positive ESG impact.

Comfort Rating

From Progyny’s business, financial, and ESG reviews, Practical Islamic Finance rates Progyny stock as: 

Uncomfortable to invest in from a Halal perspective.

Justification for our rating

While Progyny’s services have improved the lives of many couples by allowing them to bring life into the world, PIF estimates the revenue contributions from Progyny’s surrogacy and sperm donation services to be material to Progyny’s overall revenue.

As a result, Practical Islamic Finance is Uncomfortable investing in Progyny from a Halal perspective.

Sources

Progyny Q2 2021 10-Q

Progyny 2020 10-K

Progyny Website

Progyny Reviews