Trupanion, Inc.

Good day and welcome to the Trupanion First Quarter 2026 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 will press star, then one on a touchtone phone. To withdraw a question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Gil Melchor, Director of Investor Relations. Please go ahead.

Good afternoon and welcome to Dupenian's first quarter 2026 Financial Results Conference Call. Participating on today's call are Magi Tu, Chief Executive Officer and President, and Fouad Qureshi, Chief Financial Officer. 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 2Panion's investor relations website. A replay will also be available on the site. I will now hand over the call to Margie.

Good afternoon, everyone, and thank you for joining us today. In the first quarter, we generated over $40 million of adjusted operating income, up 29% year-over-year, and remain on track to deliver $180 million for the full year. In my shareholder letter published earlier this week, I highlighted the importance of adjusted operating income, which provides the flexibility to invest in growth and serves as a proxy for our core earnings power. As we enter a highly compelling period in the pet insurance industry, that flexibility presented by strong performance against this metric is increasingly important. The human-animal bond continues to strengthen, which means pet care once considered discretionary is now viewed by many as a necessity. Alongside this trend, the cost of veterinary support has increased significantly, limiting access to care for a growing number of uninsured pets. These dynamics create a meaningful and expanding opportunity for Trupanion. To fully capture what's ahead, we intend to embolden our messaging, broaden our existing product, introduce a brand new product, and continue to invest to grow the business. To do this, we'll leverage our adjusted operating income, which, as I noted in my shareholder letter, has compounded annually at 35% in the last two years and 45% over the last 10 years. The same growth of this nature requires discipline across pricing, retention, and new member acquisition. Simply put, for it to expand meaningfully, we must be priced accurately, maintain or improve retention, and add new members at our target value proposition, ultimately expanding our pet count and the number of pets we protect. Our track record demonstrates the ability to do this for more than two decades. Today, we provide coverage for nearly 1 million pets under the Trupanion brand. And last year, more than a quarter of a million pet parents chose us because they wanted high-quality coverage for their pet. Yet, there are many more that didn't. And we need to be sharper in how we communicate what makes us different and why it matters. Beyond that, we also recognize the opportunity of expanding the options available for our existing product to offer greater choice, as well as innovating pet insurance once again with a modern, digital-first lens with plans to bring a new solution to market later this year. The new product will carry the mark of Trupanion to enable us to better leverage our brand reputation, direct payment, pet acquisition investment, and to create room for upsell or cross-sell where appropriate to reach a broader customer segment. As these initiatives come to life, we must also plan to operate with improving efficiency and cohesion. With that in mind, we're reorganizing our approach to growth to unify under a single leader and to create a consistent, bold, and clear pet parent experience in support of this mandate, from lead generation through to conversion and retention. That said, our overall expectations for the year remain unchanged, with adjusted operating income continuing to propel growth and investment in the business, as we benefit from the scale achieved across the operations retention, and the accuracy of our pricing. With that, I'll briefly turn to some notable developments and results from the quarter. At the beginning of this call, I mentioned our increase in total AOI to over $40 million. Our subscription business generated the majority of this, contributing $38 million, which directly translates to a record lifetime value per pet, up 29% year over year, giving us ongoing confidence to compound the business by investing at continuously higher levels. The pet acquisition investment in the quarter, which was 53% of our total AOI, fuels a growth plan expected to deliver returns across multiple time horizons, with benefits accruing beyond the current quarter, all while continuing to generate strong free cash flow. We added approximately 64,700 pets into our ecosystem in Q1. We recognize there's still work to do in order to fully capitalize on the opportunity in front of us, yet we're encouraged by the mix the pets onboarded continue to demonstrate strong and durable per-pet economics. At the end of the quarter, we began the early rollout of the first of our strategic initiatives under our new strategic plan, adding flexibility to our core Trupanion product for pet parents wanting Trupanion at a lower entry point. Initially available in Canada, we've expanded to a handful of U.S. states, and intend to expand broadly throughout the year. Early results are encouraging, with improved web conversion rates relative to prior periods, an indication that offering greater choice is resonating with pet parents. Worth noting, when presented with a broader set of options, pet parents are consistently selecting coverage levels that are somewhat in line with our core offering, suggesting increased flexibility is expanding access without materially shifting selection toward lower coverage. As we move through the year, we remain focused on executing against these priorities with discipline while continuing to build on a strong foundation. With that, I'll turn it over to Fawad to walk through our Q1 financial results in more detail.