Overview
- Q4 2025 revenue rose 12% to $376.9 million with subscription revenue up 15% to $261.4 million, delivering $45.0 million in total adjusted operating income and a 16.5% subscription AOI margin.
- Net income reached $5.6 million, or $0.13 per share, as subscription pets topped 1,096,000 and trailing twelve-month average monthly retention held at 98.34%.
- For 2026, the company guides to $1.55–$1.582 billion in total revenue, $1.117–$1.137 billion in subscription revenue, and $173–$187 million in total adjusted operating income.
- Reinvestment priorities include pet acquisition, the Landspath veterinarian-sold portion-control food initiative, claims automation, debt reduction, and a planned expansion that contemplates a lower-priced insurance option as part of a new 36‑month strategy.
- Q4 deployment totaled $21.6 million to acquire about 65,200 pets at an average $320 per pet with a blended quarter IRR of 23% (30% for the year), while year-end liquidity stood at $370.7 million in cash and short-term investments, debt declined to $111.8 million, APIC paid a $15 million extraordinary dividend, and a $1.1 million goodwill impairment was recorded in Europe.