Trupanion Inc (TRUP) 2025 Q4 法說會逐字稿

Good day, and welcome to the Trupanion fourth quarter 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded.

大家好，歡迎參加 Trupanion 2025 年第四季財報電話會議。（操作說明）請注意，本次活動正在錄影。

I would now like to turn the conference over to Gil Melchior, Director of Investor Relations. Please go ahead.

現在我將把會議交給投資者關係總監吉爾·梅爾基奧爾。請繼續。

Good afternoon, and welcome to Trupanion's fourth quarter and full year 2025 financial results conference call. Participating on today's call are Margi Tooth, Chief Executive Officer and President; and Fawwad Qureshi, Chief Financial Officer. For ease of reference, we've included a slide presentation to accompany today's discussion, which will be made available on our Investor Relations website under our quarterly earnings tab.

下午好，歡迎參加 Trupanion 2025 年第四季及全年財務業績電話會議。參加今天電話會議的有執行長兼總裁瑪吉‧圖斯 (Margi Tooth) 和財務長法瓦德‧庫雷希 (Fawwad Qureshi)。為了方便查閱，我們附上了一份幻燈片演示文稿，以配合今天的討論，該演示文稿將在我們投資者關係網站的季度收益標籤下提供。

Before we begin, please be advised that remarks today will contain forward-looking statements. All statements other than statements of historical facts are forward-looking statements. These include, but are not limited to, statements regarding our future operations, key operating metrics, opportunities and financial performance, pricing and veterinary industry inflation.

在開始之前，請注意，今天的發言將包含前瞻性陳述。除歷史事實陳述外，所有其他陳述均為前瞻性陳述。這些內容包括但不限於有關我們未來營運、關鍵營運指標、機會和財務表現、定價和獸醫行業通貨膨脹的聲明。

These statements involve a high degree of known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed. A detailed discussion of these and other risks and uncertainties are included in today's earnings release as well as the company's most recent reports, including Forms 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission.

這些聲明涉及高度已知和未知的風險和不確定性，可能導致實際結果與討論的結果有重大差異。今天的收益報告以及公司最新的報告（包括向美國證券交易委員會提交的 10-K 表格、10-Q 表格和 8-K 表格）中詳細討論了這些以及其他風險和不確定性。

Today's presentation contains references to non-GAAP financial measures that management uses to evaluate the company's performance, including, without limitation, cost of paying veterinary invoices, variable expenses, fixed expenses, adjusted operating income, acquisition costs, internal rate of return, adjusted EBITDA and free cash flow.

現今的簡報包含管理層用於評估公司績效的非GAAP財務指標，包括但不限於支付獸醫發票的成本、可變費用、固定費用、調整後的營業收入、收購成本、內部收益率、調整後的EBITDA和自由現金流。

When we use the term adjusted operating income or margin, it is intended to refer to our non-GAAP operating income or margin before new pet acquisition and development expenses. Unless otherwise noted, all margins and expenses will be presented on a non-GAAP basis and excluding stock-based compensation expense and depreciation expense. These non-GAAP measures are in addition to and not a substitute for measures of financial performance prepared in accordance with the US GAAP.

當我們使用「調整後的營業收入或利潤率」這個術語時，指的是扣除新寵物收購和開發費用之前的非GAAP營業收入或利潤率。除非另有說明，所有利潤率和費用均以非GAAP準則列示，且不包括股權激勵費用和折舊費用。這些非GAAP指標是依照美國GAAP編製的財務績效指標的補充，而非替代。

Investors are encouraged to review the reconciliations of these non-GAAP financial measures to the most directly comparable GAAP results, which can be found in today's press release. Lastly, I would like to remind everyone that today's conference call is also available via webcast on Trupanion's Investor Relations website. A replay will also be available on the site.

我們鼓勵投資者查看這些非GAAP財務指標與最直接可比較的GAAP結果的調節表，這些調節表可以在今天的新聞稿中找到。最後，我想提醒大家，今天的電話會議也可以透過 Trupanion 投資人關係網站上的網路直播觀看。網站上也會提供回放。

I will now hand over the call to Margi.

現在我將把電話交給瑪姬。

Thanks, Gil, and thank you, everyone, for joining us this afternoon. 2025 was a record year for the company, and I was especially pleased with the fourth quarter, which marked a strong close to the year and a solid launch pad for our next strategic plan. Over the past 60 months, we added over $900 million in revenue and generated $518 million in adjusted operating income.

謝謝吉爾，也謝謝各位今天下午的到來。 2025年是公司創紀錄的一年，我對第四季的表現尤其滿意，它不僅為這一年畫上了圓滿的句號，也為我們下一個策略計畫奠定了堅實的基礎。過去 60 個月，我們增加了 9 億美元的收入，並產生了 5.18 億美元的調整後營業收入。

We ended the year with nearly 1 million pets protected under the Trupanion brand and have now paid over $3.5 billion in veterinary invoices on behalf of our members over our history, a testament to our mission and the need we serve in today's market. I'd like to take a moment to thank our entire team for their efforts. The strength of our mission and our commitment to each other reinforce our confidence as we move on to our next strategic plan.

到年底，我們旗下 Trupanion 品牌已為近 100 萬隻寵物提供保障，並且自成立以來，我們已代表會員支付了超過 35 億美元的獸醫賬單，這證明了我們的使命以及我們在當今市場中服務的需求。我想藉此機會感謝我們整個團隊的努力。我們使命的力量和彼此間的承諾增強了我們的信心，讓我們更有信心推進下一個策略計畫。

Turning to our 2025 highlights. We ended the year with nearly $1 billion in subscription revenue and delivered approximately 15% annual subscription adjusted operating margin, reflecting the strength and consistency of our model. Our performance translated into $152 million of adjusted operating income, which funded $83 million of pet acquisition and investments in development spend during the course of the year to support long-term growth.

接下來，讓我們展望一下2025年的亮點。我們以近 10 億美元的訂閱收入結束了這一年，並實現了約 15% 的年度訂閱調整後營業利潤率，這反映了我們模式的實力和穩定性。我們的業績轉化為 1.52 億美元的調整後營業收入，其中 8,300 萬美元用於寵物收購和研發投資，以支持公司在年內的長期發展。

The increase of 33% year on year in adjusted operating income reflects meaningful progress in aligning pricing with the value we deliver. These actions directly translated into a substantial improvement in per pet margins and lifetime value while continuing to honor our commitment to our member value proposition, which we believe remains sustainably the highest in the industry for the life of the pet.

經調整後的營業收入年增 33%，這反映出我們在使定價與我們提供的價值相符方面取得了實質進展。這些舉措直接轉化為每隻寵物利潤和終身價值的大幅提升，同時繼續履行我們對會員價值主張的承諾，我們相信，在寵物的一生中，我們的會員價值主張始終是業內最高的。

Our ongoing commitment to our pricing promise and to a strong member experience has been reflected in steadily improving retention. Retention is a key driver of long-term growth in adjusted operating income, and that commitment paid off in 2025 with trailing 12-month retention improving in every single quarter. We saw a similar strengthening in new pet acquisition with gross pet adds also accelerating throughout 2025 and ending Q4 up 8% year on year. Strong retention and stepped-up acquisition together drove subscription net pet growth of 50% in Q4 and 10% for the full year.

我們始終堅持價格承諾，並致力於提供優質的會員體驗，這體現在我們不斷提高的會員留存率上。留存率是調整後營業收入長期成長的關鍵驅動因素，而這項承諾在 2025 年得到了回報，過去 12 個月的留存率每季都在提高。我們看到新寵物取得量也出現了類似的成長，寵物新增總量在 2025 年全年加速成長，第四季末年增 8%。強勁的客戶留存率和不斷增長的客戶獲取量共同推動了第四季度訂閱用戶淨增長 50%，全年增長 10%。

As operating margins improved, we intentionally leaned further into new pet acquisition, reflecting our confidence that today's higher per pet margin and lifetime value profile support a more aggressive posture. This resulted in a blended Q4 2025 IRR of 23%, while our full year blended IRR was 30%.

隨著營運利潤率的提高，我們有意加大力度收購新寵物，這反映出我們相信，如今更高的單隻寵物利潤率和終身價值水平支持採取更積極的策略。這使得 2025 年第四季的綜合內部報酬率 (IRR) 為 23%，而我們全年的綜合內部報酬率為 30%。

From our strong financial footing, we expect another year of consistent revenue growth with margins on our annual operating target. Combined, this translates into meaningful growth in AOI that we can reinvest with consistency and intention while continuing to generate substantial free cash flow. We expect to continue investing in our market reach by educating pet parents, redefining our message and rolling out targeted product enhancements, all aimed at strengthening Trupanion's position in the animal health ecosystem.

憑藉我們穩健的財務基礎，我們預計未來一年收入將持續成長，利潤率也將達到年度營運目標。綜合來看，這將帶來 AOI 的顯著成長，我們可以持續、有目的地進行再投資，同時繼續產生可觀的自由現金流。我們將繼續投資擴大市場覆蓋面，透過教育寵物主人、重新定義我們的資訊以及推出有針對性的產品改進，所有這些都是為了加強 Trupanion 在動物健康生態系統中的地位。

Our veterinary channel, which remains our heartland for distribution, continues to play a critical role in educating pet parents about the value of medical insurance. This is most notably supported by our long-standing territory partner model with nearly 200 TPs in the field every day whose close partnerships with veterinary teams help bring the Trupanion value proposition to life.

我們的獸醫管道仍然是我們分銷的核心管道，在教育寵物主人了解醫療保險的價值方面繼續發揮至關重要的作用。最值得一提的是，我們長期以來與區域合作夥伴攜手合作，每天有近 200 名合作夥伴在現場，他們與獸醫團隊的緊密合作幫助 Trupanion 實現了其價值主張。

More broadly, awareness of pet medical insurance continues to rise as pet parents increasingly seek coverage earlier, reflecting a clear understanding of the true cost of care and a stronger desire to be financially prepared. This growing demand reinforces our focus on reaching pet parents earlier in the decision-making journey and often even before they first visit the veterinarian.

更廣泛地說，隨著寵物主人越來越早地尋求保險，人們對寵物醫療保險的認識也在不斷提高，這反映出他們對醫療的真實成本有了清晰的了解，並且更希望在經濟上做好準備。這種日益增長的需求更加凸顯了我們致力於在寵物主人做出決定的早期階段，甚至在他們第一次去看獸醫之前就與他們接觸的重點。

Doing so will require sustained investment in brand awareness and education with returns that build over time. Though still early, we're encouraged by the role brand spend can play in helping facilitate the movement of pet parents through the sales funnel, and we will continue to test and refine our approach to drive maturing leads, conversion and retention over time. Against this backdrop, Trupanion's model directly addresses a growing need for reliable, sustainable coverage for unexpected veterinary care.

這樣做需要持續投資於品牌知名度和教育，而回報會隨著時間的推移而增加。雖然還處於早期階段，但我們對品牌支出在幫助寵物主人順利完成銷售流程方面所能發揮的作用感到鼓舞，我們將繼續測試和改進我們的方法，以隨著時間的推移推動潛在客戶的成熟、轉化和留存。在此背景下，Trupanion 的模式直接滿足了人們對可靠、可持續的意外獸醫護理保障日益增長的需求。

Our commitment to our mission remains unchanged, helping ensure pets receive the care they need and the veterinarians can practice the medicine they're trained to deliver.

我們對使命的承諾始終不變，即幫助確保寵物獲得所需的護理，並讓獸醫能夠行醫，發揮他們受過專業訓練的能力。

With that, I'll turn it over to Fawwad.

接下來，我將把麥克風交給法瓦德。

Thanks, Margi, and good afternoon, everyone. Today, I will share additional details around our fourth quarter performance as well as provide our outlook for the first quarter and full year 2026. Total revenue for the quarter was $376.9 million, up 12% year over year. Within our subscription business, revenue was $261.4 million, up 15% year over year. Total subscription pets increased 5% year over year to over 1,096,000 pets as of December 31.

謝謝瑪吉，大家下午好。今天，我將分享更多關於我們第四季業績的細節，並展望2026年第一季和全年業績。本季總營收為 3.769 億美元，年增 12%。訂閱業務收入為 2.614 億美元，年增 15%。截至 12 月 31 日，訂閱寵物總數年增 5%，超過 1,096,000 隻。

This includes approximately 63,000 pets in Europe. Average monthly retention for the trailing 12 months was 98.34%, up versus the fourth quarter last year, which was 98.25%. The subscription business cost of paying veterinary invoices was $180.8 million, resulting in a value proposition of 69.1%. This compared to 70% in the prior year period. This improvement more than offset adverse development from prior periods of $0.9 million or approximately 30 basis points of revenue. As a percentage of subscription revenue, variable expenses were 8.7%, down from 9.2% a year ago.

這其中包括歐洲約 63,000 隻寵物。過去 12 個月的平均月度留存率為 98.34%，高於去年第四季的 98.25%。訂閱業務支付獸醫帳單的成本為 1.808 億美元，價值主張為 69.1%。相比之下，上年同期這一比例為70%。這項改善足以抵銷前期不利發展帶來的 90 萬美元或約 30 個基點的收入損失。佔訂閱收入的百分比，可變支出為 8.7%，低於一年前的 9.2%。

Fixed expenses as a percentage of revenue were 5.6%, up from 5.5% in the prior year period. Combined, we saw fixed and variable spending at 14.4% of revenue in Q4, an improvement from 14.6% in the prior year period. We have continued to drive efficiencies in fixed and variable spending consistent with our expectations.

固定支出佔收入的百分比為 5.6%，高於去年同期的 5.5%。第四季固定支出和可變支出合計佔收入的 14.4%，較上年同期的 14.6% 有所改善。我們持續提高固定支出和可變支出的效率，這與我們的預期相符。

Our subscription business delivered adjusted operating income of $43.1 million, an increase of 23% from last year and contributed 96% of our total AOI for the quarter. Subscription adjusted operating margin was 16.5%, up from 15.3% in the prior year and represents approximately 120 basis points of margin expansion. Similar to last quarter, this marks a new company record for both subscription AOI and subscription AOM.

我們的訂閱業務實現了 4,310 萬美元的調整後營業收入，比去年增長了 23%，佔本季總營業收入的 96%。訂閱調整後的營業利益率為 16.5%，高於上年的 15.3%，利潤率提高了約 120 個基點。與上個季度類似，這標誌著該公司訂閱AOI和訂閱AOM均創下新紀錄。

Now I'll turn to our other business segment, which is comprised of revenue from other products and services that have a lower margin profile than our subscription business. Our other business revenue was $115.4 million for the quarter, an increase of 5% year over year. We expect growth for this segment to continue to decelerate as we are no longer enrolling new pets in the majority of US states for our largest partner in this segment. Adjusted operating income for this segment was $1.9 million or 1.6% of revenue.

現在我將轉向我們的另一個業務部門，該部門的收入來自其他產品和服務，這些產品和服務的利潤率低於我們的訂閱業務。本季我們的其他業務收入為 1.154 億美元，年增 5%。我們預計該領域的成長將繼續放緩，因為我們不再為我們在該領域最大的合作夥伴在美國大多數州招收新的寵物。該業務部門的調整後營業收入為 190 萬美元，佔營收的 1.6%。

In total, adjusted operating income was $45 million in Q4, ahead of our expectations and up 26% from Q4 last year. We deployed $21.6 million of this AOI to acquire approximately 65,200 new subscription pets. Excluding the pets that are underwritten through an MGA structure, this translated into an average pet acquisition cost of $320 per pet in the quarter, up from $261 in the prior year period. We invested $1.8 million in the quarter in development costs.

第四季調整後營業收入總計為 4,500 萬美元，超出預期，比去年第四季成長 26%。我們投入了 2,160 萬美元的 AOI 資金，用於獲取約 65,200 隻新的訂閱寵物。如果排除透過 MGA 結構承保的寵物，則該季度每隻寵物的平均購買成本為 320 美元，高於去年同期的 261 美元。本季我們在研發成本方面投入了180萬美元。

Noncash expenses in the quarter included $9.4 million in stock-based compensation as well as a $1.1 million goodwill impairment charge related to our European businesses. As a result, net income for the quarter improved to $5.6 million or $0.13 per basic and diluted share as compared to a net income of $1.7 million or $0.04 per basic and diluted share in the prior year period.

本季非現金支出包括 940 萬美元的股票選擇權費用，以及與我們歐洲業務相關的 110 萬美元商譽減損費用。因此，本季淨利增至 560 萬美元，即每股基本及攤薄收益 0.13 美元，而上年同期淨利為 170 萬美元，即每股基本及攤薄收益 0.04 美元。

In terms of cash flow, operating cash flow was $29.3 million in the quarter compared to $23.7 million in the prior year period. Capital expenditures totaled $3.9 million, up from $1.9 million in Q4 of last year. As a result, free cash flow was $25.3 million, up from $21.8 million last year.

就現金流而言，本季經營現金流為 2,930 萬美元，而去年同期為 2,370 萬美元。資本支出總額為 390 萬美元，高於去年第四季的 190 萬美元。因此，自由現金流為 2,530 萬美元，高於去年的 2,180 萬美元。

For the full year of 2025, we continue to strengthen our balance sheet as free cash flow increased to $75.4 million, 5.2% of total revenue and an increase of 95% year over year. We ended the year with $370.7 million in cash and short-term investments and a total debt balance of $111.8 million, a reduction of $17.1 million versus last year.

2025 年全年，我們的資產負債表持續增強，自由現金流增至 7,540 萬美元，佔總營收的 5.2%，較去年同期成長 95%。截至年底，我們持有現金和短期投資 3.707 億美元，總債務餘額為 1.118 億美元，比前一年減少了 1,710 萬美元。

Our financial position continues to strengthen. Last quarter, we announced a new debt facility with PNC Bank. We are happy to share that in February and subsequent to year-end, our largest insurance entity, APIC, paid an extraordinary dividend of $15 million to our operating company. This follows the $26 million extraordinary dividend we announced in May last year and is a continued illustration of the strong capitalization of APIC and our ability to fund our growth.

我們的財務狀況持續增強。上個季度，我們宣布與 PNC 銀行達成新的債務融資協議。我們很高興地宣布，在 2 月及之後，我們最大的保險實體 APIC 向我們的營運公司支付了 1500 萬美元的特別股息。繼去年 5 月宣布派發 2,600 萬美元特別股息之後，這再次證明了 APIC 的雄厚資本實力以及我們為公司成長提供資金的能力。

Now I'll turn to our outlook. For the full year of 2026, we expect total revenue in the range of $1.55 billion to $1.582 billion. We expect subscription revenue to be between $1.117 billion and $1.137 billion, representing approximately 14% year over year growth at the midpoint. We expect total adjusted operating income to be in the range of $173 million to $187 million or 19% year over year growth at the midpoint. This assumes veterinary inflation in line with current trends.

現在我來談談我們的前景。我們預計 2026 年全年總營收將在 15.5 億至 15.82 億美元之間。我們預計訂閱收入將在 11.17 億美元至 11.37 億美元之間，以中間值計算，年增約 14%。我們預計調整後的總營業收入將在 1.73 億美元至 1.87 億美元之間，以中間值計算，年增 19%。這是假設獸醫價格上漲與當前趨勢一致。

For the first quarter of 2026, total revenue is expected to be in the range of $376 million to $382 million. Subscription revenue is expected to be between $265 million to $268 million, representing approximately 14% year over year growth at the midpoint. Total adjusted operating income is expected to be in the range of $38 million to $41 million. This represents approximately 27% growth year over year at the midpoint.

預計 2026 年第一季總營收將在 3.76 億美元至 3.82 億美元之間。訂閱收入預計在 2.65 億美元至 2.68 億美元之間，以中間值計算，年增約 14%。預計調整後的總營業收入將在 3,800 萬美元至 4,100 萬美元之間。這相當於年中成長約 27%。

As a reminder, our revenue projections are subject to conversion rate movements predominantly between the US and Canadian currencies. For our first quarter and full year guidance, we used a 73% conversion rate in our projections. Before handing it over to Margi, I want to take a moment to talk about AOI and underscore its importance to our business model. Historically, the majority of AOI was reinvested in PAC, and we anticipate this will continue.

提醒各位，我們的收入預測主要受美元和加幣之間匯率波動的影響。在第一季和全年業績預測中，我們採用了 73% 的轉換率。在將發言權交給瑪姬之前，我想花一點時間談談AOI，並強調它對我們商業模式的重要性。從歷史上看，大部分 AOI 都再投資於 PAC，我們預計這種情況還會持續下去。

When we think about where to place the next marginal investment dollar in addition to PAC, we have a range of choices, including new strategic initiatives such as Landspath, our food initiative, opportunities to accelerate growth such as international, investments in technology to strengthen our competitive advantage in areas like claims automation and improve member experience and financial investments such as paying down debt. We look at AOI as a measure of profitability. It provides a versatile base of reinvestable dollars that we can align to drive the greatest overall return for the company.

當我們考慮除了 PAC 之外，下一個邊際投資美元應該投向哪裡時，我們有很多選擇，包括新的戰略舉措，例如我們的食品計劃 Landspath；加速增長的機會，例如國際市場；投資技術以加強我們在理賠自動化等領域的競爭優勢，改善會員體驗；以及金融投資，例如償還債務。我們將AOI視為獲利能力的衡量指標。它提供了一個用途廣泛的可再投資資金基礎，我們可以對其進行調整，從而為公司帶來最大的整體回報。

Let me now pass it back to Margi.

現在我把麥克風交還給瑪姬。

Thanks, Fawwad. Before we open the call up for questions, I want to briefly reflect on the foundation we're carrying into our next strategic plan. Since 2021, the business generated over $500 million in adjusted operating income and grew at a compound annual growth rate of 22%. As we enter our next 36-month plan, we're doing so with strong momentum. We intend to invest aggressively against our opportunity to strengthen pet acquisition and retention strategies to place the Trupanion brand in more households than ever before.

謝謝你，Fawwad。在正式開始提問環節之前，我想先簡單回顧一下我們將要製定的下一個策略計畫的基礎。自 2021 年以來，該業務的調整後營業收入超過 5 億美元，複合年增長率達到 22%。在我們進入下一個36個月計劃之際，我們正以強勁的勢頭前進。我們計劃大力投資，抓住機遇，加強寵物獲取和留存策略，讓 Trupanion 品牌進入比以往任何時候都多的家庭。

We expect to deploy capital with discipline, balancing growth, cash flow and the strength of our balance sheet as we work to build on our adjusted operating income over time. You can expect to learn more about our plan in my forthcoming shareholder letter.

我們預期以嚴謹的態度運用資本，在成長、現金流量和資產負債表的穩健性之間取得平衡，以逐步提高調整後的營業收入。您可以在我即將發布的股東信中了解更多關於我們計劃的資訊。

From an outcomes perspective, the objective of our plan is very clear: to deliver sustainable growth in adjusted operating income and intrinsic value creation that continues to compound over time. We enter this next phase with confidence in a business model that has proven resilient time and again. To realize our full potential, we will continue to raise the bar and thoughtfully scale both our business and our team to match the opportunity ahead.

從結果的角度來看，我們計劃的目標非常明確：實現調整後營業收入的可持續增長和內在價值的創造，並隨著時間的推移不斷複利增長。我們滿懷信心地進入下一階段，因為我們的商業模式已經一次又一次地證明了其強大的韌性。為了充分發揮我們的潛力，我們將繼續提高標準，並審慎地擴大業務規模和團隊規模，以迎接未來的機會。

Stepping back, in an underpenetrated market where just 4% of pet parents have insurance, Trupanion has grown to support over 1 million pets and generate over $1 billion in revenue. The strength of our financial foundation is what allows us to invest more confidently, funding our growth in pets to drive high internal rates of return, creating a profitable, well-capitalized and increasingly cash-generative business. In an underpenetrated global market, we are well positioned for the opportunities ahead.

回顧過去，在寵物保險滲透率極低的市場中（只有 4% 的寵物主人擁有保險），Trupanion 已經發展成為一家為超過 100 萬隻寵物提供支持並創造超過 10 億美元收入的公司。我們雄厚的財務基礎使我們能夠更有信心地進行投資，為寵物業務的成長提供資金，從而實現高內部收益率，打造一個盈利能力強、資本充足且現金流不斷增長的企業。在全球市場滲透率較低的情況下，我們已做好充分準備迎接未來的機會。

And with that, we're happy to answer your questions.

那麼，我們很樂意回答您的問題。

(Operator Instructions)

（操作說明）

John Barnidge, Piper Sandler.

約翰·巴尼奇，派珀·桑德勒。

My first question would be focused -- you talked about brand spend. Can you talk about some successes that you've had in reaching pet parents in different ways and how maybe that will be accelerated going forward?

我的第一個問題會比較集中——您談到了品牌支出。您能否談談您在透過不同方式接觸寵物主人方面取得的一些成功，以及未來如何加快這一進程？

Yeah. Thanks, John. So for us, brand spend is really about how do we put the Trupanion brand in front of all pet parents as we're kind of really in a position now to step up given our current run rate. So it's really in areas where we are seeing existing pet parents in the veterinary profession and also outside of that.

是的。謝謝你，約翰。所以對我們來說，品牌投入的真正意義在於，鑑於我們目前的營運速度，我們現在確實有能力提升 Trupanion 品牌，讓所有寵物主人都能了解 Trupanion 品牌。所以，我們看到這種情況不僅發生在獸醫行業，也發生在其他行業的寵物主人身上。

So when we've concentrated our brand spend in the vet space, what we're seeing is people moving through the funnel to conversion quicker over time, and we're seeing some encouraging results from that process. We're also expanding in areas where pet parents go prior to getting to the vet when they're looking for pets, when they're starting to research what pets are right for them. So doing sort of more general direct-to-consumer information, education gathering, which is then also helping to bring them into our funnel from a general awareness perspective.

因此，當我們把品牌投入集中到獸醫領域時，我們看到人們隨著時間的推移更快地完成了轉化流程，並且我們從這個過程中看到了一些令人鼓舞的結果。我們也在向寵物主人去獸醫診所之前，在尋找寵物時會去的地方拓展業務，也就是當他們開始研究哪些寵物適合自己時。因此，我們正在進行更普遍的直接面向消費者的資訊、教育收集工作，這也有助於從普遍認知的角度將他們引入我們的銷售管道。

As the category continues to expand because more pet parents are facing a challenge of the cost of veterinary care today, we want to be in a position to go to them where they are, and we're starting to see that move through the funnel. And in some areas that awareness of Trupanion and some it's just bringing them further and further down, which is reflected in the numbers that you see in terms of pet count in the quarter with our gross pet adds up 8% and net pet for the quarter up 50%.

隨著寵物主人面臨獸醫護理費用方面的挑戰，寵物用品市場不斷擴大，我們希望能夠主動接觸到他們，並且我們已經開始看到這種趨勢正在逐步實現。在某些地區，人們對 Trupanion 的認知度有所提高，而在其他地區，這種認知度卻在不斷下降，這反映在季度寵物數量的數據上，我們的寵物總數增長了 8%，淨寵物數量增長了 50%。

Appreciate that. And then, Fawwad, was there any favorable reserve development in that really impressive loss ratio or vet service cost ratio you reported?

謝謝。那麼，Fawwad，在你報告的那個非常驚人的損失率或獸醫服務成本率中，是否有任何有利的儲備金變化？

Yeah. We had a little bit of adverse development when you look at just Q4 stand-alone, so about 30 basis points. And if you dollarize it, it's about $900,000. So yes, very happy about loss ratio. Obviously, it's been a journey to get to the full year number of 70.5% and then within the quarter, lower because we have the first half, second half seasonality. So not for that, it would have been even a little bit lower.

是的。如果只看第四季獨立業績，我們出現了一些不利發展，大約下降了 30 個基點。如果換算成美元，大約是 90 萬美元。是的，我對損失率非常滿意。顯然，要達到全年 70.5% 的目標並非易事，而且由於上半年和下半年的季節性因素，季度內的目標值還會下降。所以如果不是因為這個原因，價格還會更低一些。

Brandon Vazquez, William Blair.

布蘭登·瓦茲奎茲，威廉·布萊爾。

This is Russell on for Brandon. Maybe I'll start by asking you to kind of level set us on your '26 guidance. What is the high end, the low end kind of bake in, in terms of things like gross adds, commercial strategy? And what exactly are the puts and takes? And maybe any color you can kind of give on price versus volume that you're contemplating into the guide?

這是拉塞爾替補布蘭登場。或許我可以先請您為我們介紹一下您對 2026 年的指導。高階和低階產品在毛利、商業策略等方面有哪些固有特性？那麼，具體的買入和賣出操作是什麼呢？或許你可以在指南中簡單說明一下你正在考慮的價格與銷售量之間的關係？

Yeah, there's a couple of things underpinning the guidance. So as you mentioned, pricing. So as we exited the year, pricing was still the more dominant contributor to overall revenue growth. We expect that will continue as we go into 2026. But with the gross adds increasing, and we saw them come up nicely in the quarter at 8.4%, followed by 3.6% the quarter before, we're starting to see that shift. When you look at full year '26, we still expect pricing to play the larger role. But if you compare pricing '26 versus '25, we expect it to be lower. Similarly, if you compare pet count contribution to revenue '26 to '25, we expect it to be higher.

是的，這項指導方針有幾項基本原則。正如您所提到的，價格問題。因此，到年底，價格仍然是整體收入成長的主要貢獻因素。我們預計這種情況將持續到2026年。但隨著新增用戶數量的增加，我們看到本季新增用戶數量增加了 8.4%，而上一季為 3.6%，我們開始看到這種轉變。展望 2026 年全年，我們仍預期價格將發揮更大的作用。但如果比較 2026 年和 2025 年的價格，我們預期價格會更低。同樣地，如果將 2026 年寵物數量對收入的貢獻與 2025 年進行比較，我們預計會更高。

From a loss ratio perspective, obviously, that's the biggest driver from a financial performance standpoint. We're carrying forward the assumptions from what we exited the year, so largely in line. We haven't seen a significant abatement of inflation. Obviously, it's something we look at pretty carefully. And then from a spend perspective, very happy to see the leverage.

從賠付率的角度來看，這顯然是影響財務表現的最大因素。我們沿用了年底時的假設，所以整體上與預期一致。我們尚未看到通貨膨脹出現顯著緩解。顯然，這是我們非常仔細研究的事情。從支出角度來看，很高興看到這種槓桿效應。

We had committed to fixed expense coming down in the second half, and we saw that happen coming from 6.2% down to 5.6% year-end, both Q3 and Q4. So just diligent expense management, overall variable, again, happy in the quarter. It came down from 14.6% to 14.4%. So we're seeing those efficiencies and the productivity investments we've made. So we expect those to continue. And then that will lead to margin expansion. Those are primarily the largest drivers of guidance.

我們承諾下半年將降低固定支出，我們看到這一目標實現了，第三季和第四季的固定支出均從 6.2% 降至年底的 5.6%。所以，只要認真做好費用管理，整體而言，變動因素，我對本季的表現還是滿意的。從 14.6% 降至 14.4%。所以我們看到了這些效率提升和我們在生產力方面的投資所帶來的成效。因此我們預計這種情況還會持續下去。這將帶來利潤率的提升。這些是主要的指導因素。

That's very helpful. And then maybe on leads, previously, you've mentioned a focus on the conversion towards breeder specifically and maybe some other exploratory methods. Can you talk a little bit about what you're seeing in terms of conversion and where you're seeing the most success? And have you seen any change in demographic or economic quality of inbound -- lead inbounds given macro pressures?

那很有幫助。然後，關於線索，您之前提到過，重點是向育種者轉化，以及一些其他的探索方法。您能否談談您在轉換率方面觀察到的情況，以及您在哪些方面取得了最大的成功？鑑於宏觀經濟壓力，您是否觀察到入境客戶的人口統計或經濟品質發生了任何變化？

Yeah. So in terms of the channels we operate in, we -- primarily the vet channel continues to be our heartland. So that's always a channel that we kind of lead off of when we think about our acquisition strategy. Breeder, shelter, members referring their friends, they all combine to support the overall funnel when you have more exposure to the brand that helps pull somebody through a little bit more.

是的。所以就我們經營的管道而言，我們——主要是獸醫渠道仍然是我們的核心地帶。所以，在考慮客戶獲取策略時，這始終是我們首先考慮的管道。育種者、收容所、會員推薦朋友，所有這些因素共同作用，為整個銷售管道提供支持，讓您更多地接觸品牌，從而幫助人們更進一步。

I would say that across the board, we're seeing encouraging results. Some move quicker than others and the team leans into that, the more that we're able to invest or we can learn, which is great because we're in a position now where we can be really bullish. I think in terms of the demographic, we're absolutely starting to speak to different pet parents.

總的來說，我們看到了令人鼓舞的結果。有些公司發展速度比其他公司快，團隊會根據這些公司的發展速度進行調整，這樣我們就能投入更多資源或學習更多知識，這很棒，因為我們現在處於一個可以非常樂觀的階段。我認為從人口統計數據來看，我們確實開始與不同的寵物主人進行對話了。

We think in the market right now, given where the macro conditions, given where vet costs are, we have an opportunity not only with the existing Trupanion product that we have today, we're also looking at optimizing that broadly for the new pet parents coming through that we're starting to talk to. And that also will show up in the new product that we plan to launch over the course of the next 36 months, which will echo the Trupanion brand, but give us that extra reach within the market that we're seeing with our lead volume today.

我們認為，鑑於目前的市場宏觀環境和獸醫費用水平，我們不僅在現有的 Trupanion 產品上擁有機會，而且還在考慮如何全面優化該產品，以滿足我們正在接觸的新寵物主人的需求。這也將體現在我們計劃在未來 36 個月內推出的新產品中，該產品將延續 Trupanion 品牌，但會讓我們獲得目前透過潛在客戶數量所看到的額外市場影響力。

Josh Shanker, Bank of America.

喬許‧尚克爾，美國銀行。

I was just curious, look, retention is improving. Maybe on the margin, I might hope it would be improving a little quicker. Usually, at year-end, you're going to give disclosure in the annual letter by cohort. Can you talk about -- you might say that all three are improving, where the improvement really is coming and where it's lagging, I guess?

我只是好奇，你看，客戶留存率正在提高。或許在某些方面，我希望它能改善得更快一些。通常情況下，在年末，你會在年度信函中按群體進行披露。您能否談談──您可能會說這三者都在進步──進步究竟體現在哪些方面，又有哪些方面落後了？

Yeah. Thank you for the question, Josh. The retention across the board is looking really healthy. We were pleased to see every single quarter in the year that, that improved and increased across the cohorts. To specifically hit on that question, the middle bucket, which I refer to as the middle bucket is those receiving rate increases of under 20%.

是的。謝謝你的提問，喬希。整體而言，用戶留存率看起來非常健康。我們很高興地看到，在這一年的每個季度，各個群體的成績都有所提高和增長。具體來說，我所說的中間群體是指那些利率成長低於 20% 的群體。

A lot more of our members have moved into that cohort over the course of the last year. We know that that's a stronger cohort that has been improving. The over 20% bucket, which still has a good portion of our members in has been improving consistently for the last couple of years because there has been so much activity in that space.

在過去一年中，我們有更多的成員進入了這個群體。我們知道這是一群實力更強、一直在進步的群體。超過 20% 的群體（其中仍然包含我們相當一部分成員）在過去幾年中一直在持續改善，因為該領域非常活躍。

So the team has done a very good job of understanding the pain points, the confusion or challenges that members have, and they are able to articulate the value proposition, which is a cost-plus model and the reasons for those increases. So that's been great. The area that we still have opportunity is the area we've always had opportunity, which is in our first year. And as we grow quicker and you can see those pet adds coming through, we will have plenty of opportunity once again to lean into the different tactics that the teams have got lined up to be able to drive that number higher as well.

因此，團隊在了解會員的痛點、困惑或挑戰方面做得非常好，並且能夠清楚地闡述價值主張（即成本加成模式）以及這些成長的原因。那真是太好了。我們仍然有機會的領域，也是我們一直以來都有機會的領域，也就是我們成立的第一年。隨著我們發展速度加快，你可以看到那些寵物相關的新增內容，我們將再次有很多機會利用各隊制定的不同策略來進一步提高這個數字。

And you said that you have lots of uses for cash flow other than PAC. And you mentioned Landspath. We don't really have a great granularity in that. Can you talk about Landspath a little bit and why we should be confident that that's a good use of your funds?

你說過除了PAC之外，你還有很多其他用途需要現金流。你提到了Landspath。我們在這方面並沒有非常精細的劃分。您能否簡單介紹一下 Landspath 項目，以及為什麼我們應該相信這是對您資金的合理利用？

Yeah, I can take that question. I think it's exactly the point. AOI is a pool of capital, and now we have -- I think company has always had different places to put it. Now we have more channels. I think Landspath is still in the early stages.

是的，我可以回答這個問題。我覺得這正是關鍵。AOI 是一筆資金池，而現在我們有了——我認為公司一直以來都有不同的方式來存放這筆資金。現在我們有了更多管道。我認為 Landspath 目前仍處於早期階段。

A lot of it is building the infrastructure to be able to test and then ultimately deliver the product. So the returns there, we haven't disclosed specifics on our expectations for that. But longer term, we think that will be a very meaningful contributor to margin. The unit economics of that business are quite favorable. So that's a potential use of cash.

很多工作都是建立基礎設施，以便能夠測試並最終交付產品。所以，關於這方面的回報，我們還沒有透露具體的預期。但從長遠來看，我們認為這將是對利潤率的一個非常重要的貢獻因素。該業務的單位經濟效益相當可觀。所以，這是一種潛在的現金用途。

I think the others that I talked about, technology has been hugely important to us. So when we think about claims automation going north of 60%, we expect that to rise over the course of the 3 years that drives efficiency straight to the bottom line. It's a big part of why we're seeing the margin expansion we are. So continued investments in technology have pretty good ROIs for us. And then there's financial investments as well.

我認為我之前提到的其他方面，科技對我們來說都非常重要。因此，當我們認為理賠自動化率超過 60% 時，我們預計在未來 3 年內，這一比例還會繼續上升，從而直接提高效率，最終提升利潤。這正是我們實現利潤率擴張的重要原因之一。因此，持續投資科技能為我們帶來相當不錯的投資報酬率。此外，還有金融投資。

So we have the opportunity to pay off some of our debt using the proceeds from the first extraordinary dividend that we got in the middle of last year. So that can be an effective use of cash. It lowers our cost of capital, the overall debt structure, lowered our cost of capital.

因此，我們有機會利用去年年中收到的第一筆特別股息的收益來償還部分債務。所以，這是一種有效的現金使用方式。它降低了我們的資本成本，整體債務結構也降低了我們的資本成本。

So -- and we look at AOI as a pool of money that we generate organically from the business. And then we look across that portfolio and try to find the best mix of channels and where we want to make those investments. And -- yes, I mean, we'll continue to do that. I think it's a good position for us to be in, especially coming off a record year for margin, but also a record year for total dollars.

所以——我們將 AOI 視為我們從業務中自然產生的資金池。然後我們會審視整個投資組合，努力找到最佳的管道組合，以及我們希望進行投資的領域。是的，我的意思是，我們會繼續這樣做。我認為我們目前所處的位置很好，尤其是在利潤率和總收入都創下歷史新高之後。

And if I can just add as well from a Landspath perspective, specifically thinking about how does it blend in with what we're doing. The whole premise of Landspath is that this is a portion control food that we believe will help improve the health and well-being of a pet. So when we dovetail that with the insurance component of what we offer, we believe that we can help pet parents not only have a bundle of pet care with their food on a monthly subscription basis and their insurance, but also if we see benefits coming through from having fed that food to your pet, then we will be able to pass that saving back to a pet parent, which in turn increases our lifetime value of that member but also retention, referral friend and that flywheel.

如果我能從 Landspath 的角度補充一點，特別是考慮它如何與我們正在做的事情融合。Landspath 的整個理念是，這是一種份量控制的食品，我們相信它有助於改善寵物的健康和福祉。因此，當我們把這些與我們提供的保險部分結合起來時，我們相信我們不僅可以幫助寵物主人按月訂閱寵物食品和保險，獲得一攬子寵物護理服務，而且如果我們看到您的寵物食用這些食品後受益，那麼我們就能將節省下來的費用返還給寵物主人，這反過來又會提高會員的終身價值，以及會員留存率、推薦朋友和形成良性循環。

The other component about Landspath is it is sold through the veterinarian, and that's very different from other foods out there, which allows the veterinarian to benefit from that additional income that we know that they've lost through revenue. And we know that there is a lot of discussion in the industry right now about revenue. This is a time where we think we can add even more support to an industry that needs it.

Landspath 的另一個特點是它透過獸醫銷售，這與其他食品非常不同，這使得獸醫能夠從我們知道他們因收入損失而獲得的額外收入中受益。我們知道，目前業內對收入有很多討論。我們認為，在這個特殊時期，我們可以為這個亟需支持的產業提供更多幫助。

Jon Block, Stifel.

Jon Block，Stifel。

Jordan Bernstein here on for Jon. Some of our checks would indicate the need for a lower-priced insurance plan out there for pet owners, even hearing this morning from some industry peers, a tighter pet owner budget out there to that end, are there any updates you can provide on the go-to-market strategy for a lower-priced plan? I think the latest thought would be one Trupanion branded lower-priced offering. Or is the company thinking of a two-pronged approach with the PHI Direct and offerings kind of remodeled?

這裡是喬丹·伯恩斯坦，替喬恩發言。我們的一些調查顯示，寵物主人需要價格較低的保險方案。今天早上我們也從一些業內同行那裡了解到，寵物主人的預算更加緊張。因此，您能否提供一些關於低價計劃的市場推廣策略的最新資訊？我認為最新的想法是推出一款 Trupanion 品牌的低價產品。或者該公司是否正在考慮採取雙管齊下的策略，對 PHI Direct 和現有產品進行某種程度的改造？

Yeah. Thanks for the question, Jordan. There's a couple of things here. I think as we look at where we are today as a product as a brand, first and foremost, we're really pleased with the results coming out of the quarter that shows that the efforts we've been making from a brand perspective holistically are really starting to move the needle, both in terms of overall gross adds, which were up 8% in the quarter and the net pet growth, which is up 50%. So that brand spend is starting to really resonate both at lead, convert and keep level, which we've seen in those numbers.

是的。謝謝你的提問，喬丹。這裡有兩件事。我認為，當我們審視我們目前作為產品和品牌所處的位置時，首先，我們對本季度的業績感到非常滿意，這表明我們從品牌整體角度所做的努力確實開始取得成效，無論是總新增用戶數（本季度增長 8%）還是淨寵物增長率（增長 50%）。因此，品牌投入開始真正產生影響，無論是在潛在客戶開發、轉換率提升或客戶留存方面，這一點我們已經從這些數據中看到了。

And we're seeing that, as I mentioned, we're pulling through a new consumer as well. And what we're looking to do is both broaden the existing Trupanion offering, which will change the price point for some people, still honoring our value proposition over the life of the pet, but just helping to broaden it as well as looking at this newer product offering. It won't be released over the next few quarters, but it's absolutely part of our 36-month plan.

正如我剛才提到的，我們也看到了這一點，我們正在吸引新的消費者。我們希望擴大 Trupanion 現有的產品範圍，這將改變部分消費者的價格，同時仍堅持我們在寵物整個生命週期內的價值主張，並幫助擴大產品範圍，同時也在考慮推出新的產品。雖然不會在接下來的幾個季度內發布，但這絕對是我們36個月計劃的一部分。

And our expectation is that we will be able to leverage the brand, as you mentioned, through direct payment, through the value proposition, through the trust that we've created in the veterinary industry to offer a product that we believe there's a really big gap in the market for. And we'll share more details when we're ready about that. We're excited about it. We're making good progress in our thinking around that. And yes, there's an opportunity to be had, and we will absolutely be aggressive when that time comes.

正如您所提到的，我們希望能夠利用品牌，透過直接支付、價值主張以及我們在獸醫行業建立的信任，來提供我們認為市場上存在巨大空白的產品。等我們準備好了，會分享更多細節。我們對此感到興奮。我們在這方面的思考正在取得良好進展。是的，機會確實存在，時機到來時，我們一定會積極主動地抓住它。

Great. Just one quick question and I hear you on all the great acceleration on gross adds on the year over year growth, especially the exit in 4Q. But just on the internal rate of return, the guardrail there was set at 30%. It's been breached to the downside for the second straight quarter, 28% 3Q and now 23% 4Q. I believe the metric has been down for seven straight quarters sequentially. When should investors expect to return to the greater than 30% and some of that spend beginning to pay off on that line item?

偉大的。我還有一個問題，我理解您所說的毛新增用戶數量同比增長的加速增長，特別是第四季度的退出。但就內部報酬率而言，其限值設定為 30%。該指標連續第二季向下突破，第三季為 28%，第四季為 23%。我認為該指標已經連續七個季度下降了。投資者何時才能預期投資比例恢復到 30% 以上，部分投資開始在該支出上產生回報？

Yeah. So a couple of things. I guess, we're pleased. We believe that, that investment is absolutely starting to pay off. And kind of a couple of things. We're assuming a margin for the IRR is at 12.5%. We've just entered the -- exited the year at 15%. So there's already a difference in the margin there. And it's a blended metric, too. So the core Trupanion product is higher from an IRR point of view.

是的。有兩件事。我想，我們應該感到滿足。我們相信，這項投資已經開始獲得回報了。還有一些其他的事情。我們假設內部報酬率 (IRR) 的利潤率為 12.5%。我們剛剛進入——年底時收益率為 15%。所以，這方面已經存在了差距。而且它還是一個綜合指標。因此，從內部報酬率 (IRR) 的角度來看，Trupanion 的核心產品更高。

But if we take a step back, the reason we're investing so much more is we feel really good about the position we're in. We've increased our lifetime value of a pet 35% year over year. So we're able to lean into pet acquisition far more aggressively than historically because not only do we have the adjusted operating income there, we're seeing that retention start to improve, which drives that tenure, which increases that lifetime value. So the newer cohort of pets have a higher margin per pet. So it gives us that confidence.

但如果我們退一步來看，我們之所以投入這麼多的資金，是因為我們對目前的處境感到非常滿意。我們使寵物的終身價值逐年增加了 35%。因此，我們能夠比以往更加積極地投入寵物收購，因為我們不僅獲得了調整後的營業收入，而且我們看到寵物留存率開始提高，這提高了寵物的生命週期價值。因此，新一代寵物的每隻利潤更高。這給了我們信心。

We will continue to be confident because we have this really strong financial background behind us now, which we can push forward with in a market that absolutely is crying out for solutions of how to help pet parents budget the unexpected. Over time, we're still committed to very high lifetime returns, and we're really pleased with where we ended the quarter, and we're happy with that momentum.

我們將繼續保持信心，因為我們現在擁有非常強大的財務基礎，我們可以憑藉這一基礎在市場上大展拳腳，而市場迫切需要解決方案來幫助寵物主人應對意外情況。從長遠來看，我們仍然致力於實現非常高的終身回報，我們對本季的業績非常滿意，也對目前的勢頭感到高興。

(Operator Instructions)

（操作說明）

Wilma Burdis, Raymond James.

威爾瑪·伯迪斯，雷蒙德·詹姆斯。

Looking at the '26 guide, it looks like the subscription revenue was in line with my model, but the other revenue seems like you're -- the runoff might be accelerating a little bit there. I just want to see if that's the case. And then also the adjusted operating income looks pretty strong. So maybe you can kind of walk us through all of those different impacts going into '26.

從 2026 年的指南來看，訂閱收入似乎與我的模型一致，但其他收入看起來——流失速度可能略有加快。我只是想看看是不是這樣。此外，調整後的營業收入也相當強勁。所以，您能否為我們詳細介紹一下這些因素對 2026 年所產生的所有不同影響？

Yeah, thanks for the question. Yes, on the other business, it's been trending pretty consistently down. So I think as we've mentioned in the past from a pet count perspective, that decline started quite a while ago, really at the back half of 2023, and it's been pretty steady. And obviously, we expect revenue ultimately to turn negative from a year over year standpoint. It's still up because of pricing. So not a significant change. The margin profile for that business is loss sensitive. So it doesn't affect us significantly. We don't expect that there will be a significant change in the trend line. But obviously, we expect that business to ultimately go away.u

謝謝你的提問。是的，另一方面，業務方面一直呈現持續下降趨勢。所以我覺得，正如我們過去從寵物數量的角度來看所提到的那樣，這種下降趨勢其實早在2023年下半年就開始了，而且一直相當穩定。顯然，我們預期最終營收將年比轉負。由於價格原因，它仍然在售。所以變化不大。該業務的利潤率對虧損非常敏感。所以對我們影響不大。我們預期趨勢線不會有重大變化。但很顯然，我們預期這種業務最終會消失。

And then in terms of the AOI, yes, it really comes down to a couple of things. I think pricing will still lead the way as we look at 2026, gross adds starting to accelerate. We saw that in the second half of the year. We think there's upside from expense management and just overall productivity and efficiency. That's really a combination of those things. What could go against us, obviously, would be inflation. So it's something that we pay close attention to. But right now, we feel good about AOI growing faster than revenue.

至於 AOI（感興趣區域），是的，這實際上取決於幾個因素。我認為展望 2026 年，價格仍將引領市場，毛成長將開始加速。我們在下半年就看到了這一點。我們認為，透過控製成本，可以提高整體生產力和效率。這其實是這些因素的綜合作用。顯然，對我們不利的因素是通貨膨脹。所以這是我們非常關注的事情。但就目前而言，我們對AOI的成長速度超過營收成長速度感到滿意。

And then I think that leads into my next question, actually. I know you normally see veterinarians raising their prices early in the year in January. Just curious if you're seeing anything there that changes your mind on the 15% type inflation you've been expecting every year.

然後，我認為這實際上引出了我的下一個問題。我知道通常情況下，獸醫會在年初，也就是一月提高價格。我只是好奇，你在那裡看到的任何事情是否改變了你對每年15%左右的通貨膨脹率的看法。

Yeah, from our perspective, there's nothing that we've seen year-to-date that would anticipate us changing our current assumptions, and we do watch it, obviously, like Hawk. And I think we've seen slight softening, and I would say it's softening off a high level. We do know the industry is under a lot of pressure right now. So we're going to continue to monitor it, and we will adjust when we see a need to.

是的，從我們的角度來看，今年到目前為止，我們還沒有任何跡象表明我們會改變目前的假設，當然，我們和霍克一樣，都在密切關注著事態發展。我認為我們已經看到略微的緩和，而且我認為緩和的幅度比之前要大得多。我們知道，目前這個行業面臨很大的壓力。所以我們會繼續關注，並在必要時進行調整。

This concludes our question-and-answer session. I would like to turn the conference back over for any closing remarks.

我們的問答環節到此結束。現在我把會議交還給各位，請大家作總結發言。

Yeah. Thank you. I'd just like to say that before we sign off, I want to recognize the team for the really strong execution and results we delivered this year. Pricing is aligned. We've achieved our target margin with strong free cash flow generation. Retention is improving and gross pet adds are accelerating. We are in great financial position with so much opportunity ahead, and we really look forward to updating everyone in the coming months on our progress. Thank you for your time today.

是的。謝謝。在結束之前，我想對團隊今年出色的執行力和所取得的成果表示感謝。定價合理。我們憑藉強勁的自由現金流實現了目標利潤率。用戶留存率正在提高，寵物新增數量正在加速成長。我們目前財務狀況良好，未來發展機會眾多，我們非常期待在接下來的幾個月向大家報告我們的進展。感謝您今天抽出時間。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議已經結束。感謝各位參加今天的報告會。您現在可以斷開連線了。