Trupanion, Inc.

Good day and welcome to the TruePanion second quarter 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Gil Melchior, Director of Investor Relations. Please go ahead.

Good afternoon, and welcome to Tupani's second quarter 2025 financial results conference call. Participating on today's call are Margie Tooth, Chief Executive Officer and President, and Fawad 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. 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. 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. 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. When we use the term adjusted operating income or margin, it is intended to refer to a 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 another substitute for measures of financial performance prepared in accordance with the U.S. GAAP. 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 Japan's Investor Relations website. A replay will also be available on the site. I will now hand over the call to Margie.

Thank you, Gil, and good afternoon, everyone. I'll briefly touch on our financial highlights and we'll provide more context after Fawad completes his detailed review of our Q2 results. I'm delighted to share that Q2 was one of the strongest financial quarters in the history of Trupanion, underscored by consistent top line growth, robust margin expansion, and strengthening retention. Within our subscription segment, revenue rose 16% year over year, and adjusted operating income increased 45% over $33 million for the quarter. This translates to a 13.8% subscription adjusted operating margin, up 280 basis points versus the prior year period, performance well ahead of plan. We were able to deploy 16% more into pet acquisition in the quarter as we continue on the pathway to return to prior investment levels, setting up pet growth for the years to come. These results reflect the team's operational rigor and continued discipline related to execution, honoring our value proposition, member experience, and commitment to the veterinary industry. It's highly encouraging to see the results of that work reflected in our performance. Let me now turn it over to Fawad to walk us through the numbers in more detail.