Financial Data and Key Metrics Changes - Total reported revenue for Q4 2025 was $1.151 billion, with a net loss attributable to common shareholders of $9 million, or $0.02 per share [20] - Adjusted EBITDA for the quarter totaled $221 million, and adjusted free cash flow for the year was $416 million, marking the strongest cash-generating quarter of the year [20][4] - The company increased its quarterly dividend by 25% to $0.10 per share, reflecting confidence in free cash flow exceeding dividend commitments [6][27] Business Line Data and Key Metrics Changes - In the drilling services segment, Q4 revenue was $361 million with an adjusted gross profit of $132 million, maintaining a steady average operating rig count of 93 rigs [22] - The completion services segment generated $702 million in revenue with an adjusted gross profit of $111 million, with activity and pricing remaining steady compared to Q3 [23] - The drilling products segment reported Q4 revenue of $84 million and an adjusted gross profit of $34 million, with revenue per industry rig in the U.S. near record levels [24] Market Data and Key Metrics Changes - The company noted a decrease in revenue from international operations, particularly in the Middle East, but experienced growth in Latin America and Asia Pacific [24][18] - The U.S. oil market remains resilient, with crude prices around $60 per barrel, while natural gas markets are expected to see increased demand in the second half of 2026 [5][29] Company Strategy and Development Direction - The company is focused on maintaining operational excellence and investing in differentiated technologies to maximize returns and free cash flow [5][4] - A reduction in gross CapEx budget by approximately 15% to around $500 million for 2026, with a focus on high-return projects [8] - The company is expanding its presence in Argentina by leasing high-spec rigs for the Vaca Muerta field, which is expected to reduce U.S. rig supply [11][77] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term prospects for natural gas and anticipated a multi-year increase in drilling activity to meet future demand [7] - The company acknowledged ongoing macroeconomic uncertainties and the need for the industry to balance production volumes with drilling activity [6][5] - Management highlighted the importance of technology in maintaining competitive advantages and sustaining margins in a fluctuating market [10][48] Other Important Information - The company successfully launched the EOS Completions digital platform, enhancing real-time decision-making for customers [16] - The company plans to continue returning at least 50% of adjusted free cash flow to shareholders through dividends and buybacks [27][19] Q&A Session Summary Question: What is the current supply-demand balance in the U.S. frac market? - Management noted that while fleet counts appear to be decreasing, the size and horsepower of fleets are increasing, leading to a tighter supply in the frac market [36][38] Question: Can you provide insights on the Current Power business and energy storage systems? - Management mentioned that Current Power is exploring opportunities in energy storage for data centers, but it is still in early stages [39] Question: How does the company view pricing power and differentiation in the market? - Management indicated that differentiation among top players is increasing, which should support pricing power in the market [45][48] Question: What is the expected impact of winter weather on first-quarter guidance? - The estimated impact from winter weather is included in guidance and is expected to be in the range of $5 million to $10 million [53][54] Question: What are the company's thoughts on international expansion, particularly in Argentina and the UAE? - Management expressed confidence in the growth of the Argentine market and the potential for further international opportunities [75][77]

Financial Data and Key Metrics Changes - Earnings per share for the quarter were $1.31, down from $3.02 in the prior year quarter, which included a $2.32 per share gain from the sale of Eviosys. Adjusted earnings per share were $1.74, up 9% from $1.59 in the prior year quarter [3][4] - Net sales increased by 8% compared to the prior year quarter, driven by a 3% increase in global beverage can volumes, $189 million from higher raw material cost pass-through, and $58 million from favorable foreign exchange [4] - Record adjusted EBITDA of almost $2.1 billion was achieved for the year, compared to $1.9 billion in 2024, with record free cash flow of $1,146 million compared to $814 million in 2024 [4][5] Business Line Data and Key Metrics Changes - Segment income for the quarter was $420 million, slightly down from $428 million in the prior year, with strong performance in European beverage offset by lower volumes in transit packaging [4] - North American beverage volumes were up slightly more than 1% in the quarter, with North American gains of 2.5% offset by a 3% decline in Brazil. For the full year, North American volumes were flat, while Brazil was down 3% [8][9] - European beverage volumes increased by 10% in the fourth quarter, generating record segment income, more than double what it was a few years ago [9] Market Data and Key Metrics Changes - Sales unit volumes across Asian operations were down 3% in the fourth quarter due to the border conflict between Cambodia and Thailand, with expectations for commercial adjustments to drive volume growth in 2026 [10] - The North American tin plate business benefited from 5% food can volume growth, offsetting softness in steel aerosols during the fourth quarter [11] Company Strategy and Development Direction - The company aims to maintain a net leverage target of 2.5 times, achieved at the end of September 2025, down from 2.7 times at the end of 2024. The focus remains on compounding earnings, investing in the business, and returning excess cash to shareholders [5][6] - The company is committed to responsibly investing to support partners' growth needs while maintaining a growing dividend and disciplined share repurchases [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving North American volume gains of 2%-3% in 2026, despite inflation and startup costs impacting income [19][21] - The company remains positive about Brazil's long-term prospects, despite current economic challenges, and expects to see a return to growth in the coming years [38] Other Important Information - The company plans to invest approximately $550 million in capital spending to support growth objectives, including capacity expansions and facility upgrades in Brazil, Greece, and Spain [7] - The adjusted earnings guidance for the full year includes net interest expense of approximately $350 million-$360 million and a full-year tax rate of approximately 25% [7] Q&A Session Summary Question: Outlook for America's EBIT and European volume growth - Management expects America's EBIT to be down slightly due to ongoing inflationary impacts and startup costs in Brazil, while European volume growth is projected at 4%-5% [19][21] Question: Drivers of volume growth in North America and Europe - Key drivers include beer growth in Europe and strong performance in flavored alcohols and sparkling water in North America, with the World Cup expected to boost demand [25][26] Question: Free cash flow growth expectations - Management believes a sustainable free cash flow number of around $1 billion is reasonable, with potential for growth aligned with volume increases [28] Question: Demand outlook in January and February - January was impacted by weather, but February is expected to recover lost volume [70][72] Question: Impact of startup costs in Brazil, Greece, and Spain - Most startup costs are expected to be second-half weighted, with hiring and training beginning in Q2 [106] Question: Growth potential in Asia - Management sees significant growth potential in Asia, with a low-cost structure allowing for commercial adjustments to drive business growth [64] Question: Capacity utilization in North America - Capacity in North America is tight, and management does not foresee the need for new capacity in the next couple of years [46][82]

Financial Data and Key Metrics Changes - Total as-reported revenue grew by 9% in Q3 2026, with constant currency organic revenue growth of 8% driven by volume and a 200 basis points price increase [4] - Gross margin declined by 70 basis points to 43.9%, primarily due to increased tariffs and inflation, despite positive pricing and productivity [4] - EBIT margin decreased by 40 basis points to 22.9% of revenue, mainly due to the decline in gross margin [4] - Adjusted net income from continuing operations was $249.4 million, with earnings per diluted share increasing by 9% to $2.53 [5] - Free cash flow for the first nine months of fiscal 2026 was $736.6 million, showing year-over-year improvement [6] Business Line Data and Key Metrics Changes - Healthcare segment saw constant currency organic revenue growth of 8%, with service growth at 11% and consumables at 8% [7] - Healthcare capital equipment revenue increased by 7%, with backlog remaining over $400 million [7] - AST segment reported constant currency organic revenue growth of 8%, with services growing by 9% and capital equipment revenue increasing by 103% [8] - Life sciences segment experienced a 5% increase in constant currency organic revenue, driven by 11% growth in consumables [8] Market Data and Key Metrics Changes - Orders in the healthcare segment were down 1% year-to-date, facing tough comparisons to the previous year [7] - The backlog in life sciences is showing strong growth, attributed to a recovery in the market compared to a year ago [16] Company Strategy and Development Direction - The company is maintaining its fiscal 2026 outlook, expecting 8%-9% as-reported revenue growth and constant currency organic revenue growth of 7%-8% [9] - The company is focused on mitigating tariff impacts through various strategies, including supplier negotiations and cost reductions [24] - There is a commitment to a more integrated commercial approach in the EMEA region, with structural changes being made to enhance market presence [34] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding Q4 growth due to a slowdown in the second half and tough comparisons to last year's strong performance [12][14] - The macro environment appears positive, with no significant downside anticipated for fiscal 2027 [50] Other Important Information - The adjusted effective tax rate for the quarter was 24.2%, a slight decline from the previous year [5] - Capital expenditures for the first nine months totaled $278.8 million, with depreciation and amortization at $363.1 million [6] Q&A Session Summary Question: Insights on Q4 constant currency growth - Management noted a slowdown in the second half and maintained a cautious outlook for Q4, particularly due to tough comparisons from the previous year [12][13] Question: Capital equipment backlog activity - Management indicated stability in healthcare backlog and strong growth in life sciences backlog, attributed to improved market conditions [16] Question: Update on tariff mitigation efforts - Management discussed various mitigation strategies, including shifting product movement and seeking cost reductions [24] Question: Impact of regulatory proposals on supply chain - Management stated that the ASC shift is generally positive, creating new capacity demands, but noted no significant impact from recent regulatory proposals yet [31] Question: Future acquisition plans - Management confirmed ongoing interest in smaller acquisitions but emphasized a disciplined approach to larger transformative deals [44] Question: Cash flow guidance and fluctuations - Management expressed confidence in cash flow guidance but noted potential timing issues in Q4 that could affect collections [48] Question: AST Services growth and market conditions - Management acknowledged a weak start to the quarter but noted improvement by December, attributing some fluctuations to customer inventory adjustments [57][58]

Financial Data and Key Metrics Changes - Earnings per share for the quarter were $1.31, down from $3.02 in the prior year quarter, which included a $2.32 per share gain from the sale of Eviosys. Adjusted earnings per share were $1.74, up 9% from $1.59 in the prior year quarter [2][3] - Net sales increased by 8% compared to the prior year quarter, driven by a 3% increase in global beverage can volumes, $189 million from higher raw material costs, and $58 million from favorable foreign exchange [3] - Record adjusted EBITDA of almost $2.1 billion was achieved for the year, compared to $1.9 billion in 2024, with record free cash flow of $1,146 million compared to $814 million in 2024 [3][4] Business Line Data and Key Metrics Changes - Segment income for the quarter was $420 million, slightly down from $428 million in the prior year, with strong performance in European beverage offset by lower volumes in transit packaging [3] - North American beverage volumes were up slightly by 1% in the quarter, while full-year volumes were flat, and Brazil experienced a 3% decline [6][7] - European beverage volumes increased by 10% in the fourth quarter, contributing to record segment income, more than double what it was a few years ago [8] Market Data and Key Metrics Changes - Sales unit volumes across Asian operations were down 3% in the fourth quarter due to the border conflict between Cambodia and Thailand, with expectations for commercial adjustments to drive volume growth in 2026 [9] - North American tin plate businesses benefited from 5% food can volume growth, with income in other categories up 80% against an easy prior year comparison [10] Company Strategy and Development Direction - The company aims to maintain a net leverage target of 2.5 times, achieved at the end of September 2025, down from 2.7 times at the end of 2024 [4] - The company is committed to returning excess cash to shareholders, with $191 million of shares repurchased in the fourth quarter and a total of $625 million returned to shareholders for the year [4] - Future investments will focus on capacity expansions and facility upgrades in Brazil, Greece, and Spain, with a projected full-year free cash flow of approximately $900 million after $550 million of capital spending [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance, highlighting a strong balance sheet and substantial free cash generation, positioning the company to consistently deliver value to shareholders [11] - The outlook for North American beverage volumes is expected to grow by 2%-3% in 2026, but this may be offset by inflation and startup costs [19] - European beverage growth is anticipated to be strong, with management suggesting a potential volume growth of 4%-5% for the year [21] Other Important Information - The company has maintained a focus on responsible investment to support partners' growth while ensuring dividends grow over time [10] - Management noted that the demand for beverage cans is expected to continue growing globally, with a focus on balancing customer growth objectives with fair value returns [119] Q&A Session Summary Question: Outlook for America's EBIT and European volume growth - Management expects America's EBIT to be down slightly due to ongoing inflationary impacts and startup costs in Brazil, while European beverage growth could be penciled in at 4%-5% [19][21] Question: Drivers of volume growth in North America and Europe - Key drivers include beer growth in Europe and strong performance in energy and flavored alcohols in North America, with the World Cup expected to boost demand [25] Question: Free cash flow sustainability - Management indicated that a free cash flow of around $1 billion seems reasonable and sustainable, with expectations for growth in line with volume [27] Question: Demand and capacity utilization in North America - Management noted that capacity in North America is tight, with no immediate need for new capacity, and they are focused on generating cash flow [45][81] Question: Impact of startup costs in Brazil, Greece, and Spain - Most startup costs are expected to be second-half weighted, with hiring and training occurring in Q2 [108] Question: Growth potential in Asia - Management expressed confidence in the growth potential in Asia, emphasizing a low-cost structure and the ability to make commercial adjustments to drive growth [63] Question: Demand for food cans and market share - The company expects to grow above market in food cans, particularly in the pet food segment, which is growing faster than human food [75]

Financial Data and Key Metrics Changes - Novartis achieved high single-digit growth with an 8% increase in sales and a 14% rise in core operating income for the full year 2025, reaching a core margin of 40.1% [4][35] - For Q4, sales declined by 1%, while core operating income increased by 1%, with core EPS rising 2% to $2.03 [5][38] - Free cash flow reached an all-time high of CHF 17.6 billion, growing 8% year-over-year [35][39] Business Line Data and Key Metrics Changes - Kisqali sales grew 57% year-over-year to CHF 4.8 billion, with Q4 growth at 44% [6][7] - Kesimpta saw a 36% increase to $4.4 billion, with a 27% growth in Q4 [10] - Pluvicto achieved $2 billion in global sales, with a 75% increase in the U.S. [12] - Leqvio reached blockbuster status with 57% growth for the year [14] - Scemblix also reached blockbuster status with 87% growth in Q4 [15] Market Data and Key Metrics Changes - Kisqali's U.S. sales growth was 62%, with over 80% NBRX share in Germany for early breast cancer [7][9] - Kesimpta is leading in NBRX share in 9 out of 10 major markets outside the U.S. [10] - Pluvicto secured approvals in Japan and China, contributing to strong growth outside the U.S. [12] - Scemblix has a 41% NBRX share in the U.S. and 72% in the third-line setting across major markets [17] Company Strategy and Development Direction - Novartis aims to grow through the largest patent expiry in its history, focusing on key growth brands and pipeline replacement [6] - The company plans to continue investing in R&D while managing productivity improvements [43][44] - Novartis is committed to maintaining a 5%-6% sales CAGR from 2025 to 2030 [44][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit sales growth in 2026 despite anticipated challenges from generic entries [43][44] - The company expects to return to a core margin of over 40% by 2029 [44] - Management highlighted the importance of pipeline advancements and upcoming pivotal readouts in 2026 [32][50] Other Important Information - Novartis has completed its CHF 15 billion share buyback program and initiated a new CHF 10 billion program [41] - The proposed dividend for 2025 is CHF 3.70 per share, marking a 6% increase [41][42] Q&A Session Questions and Answers Question: Insights on remibrutinib and FDA conversations - Management noted that remibrutinib has an approved label without liver safety discussions, and they plan to advocate for limited liver monitoring based on FDA feedback [53][54] Question: Commercial opportunities for remibrutinib in MS - Management indicated that the commercial opportunity will depend on data-driven results, with a significant market for oral options in MS [60][61] Question: Thoughts on Pelacarsen's event-based study risks - Management expressed confidence in the study's design and powering assumptions, despite lower than expected event rates [62][63] Question: Launch plans for Rhapsido and Ianalumab in an MFN world - Management acknowledged the importance of adjusting launch strategies for significant assets like Rhapsido and Ianalumab in the ex-U.S. market [73]

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $704 million, representing a high single-digit increase year-over-year, with earnings per share (EPS) of $0.71, exceeding prior guidance [5][11] - For the fiscal year 2025, total revenue was $2.66 billion, flat compared to the previous year, with non-GAAP EPS increasing by 5% to $2.40 [7][12] - Gross margin for Q4 was 10.6%, up 50 basis points sequentially and 20 basis points year-over-year, while full-year gross margin was 10.2% [11][12] Business Line Data and Key Metrics Changes - Semi-cap revenue decreased by 8% quarter-over-quarter and 14% year-over-year, but full-year revenue grew by 2% [12][13] - Aerospace and Defense (A&D) revenue increased by 7% sequentially and 17% year-over-year, with full-year growth at 19% [13] - Medical sector revenue grew by 14% quarter-over-quarter and 23% year-over-year, leading to a 7% increase for the full year [13] - AC&C revenue rebounded in Q4, up 22% sequentially and 27% year-over-year, with expectations for continued growth [14] Market Data and Key Metrics Changes - The semi-cap market experienced a cyclical downturn, but new bookings and capacity expansion are expected to position the company well for recovery [21] - Industrial revenue was flat for the full year but showed improvement in the second half, driven by demand in transportation and HVAC [22] - The medical sector is expected to see double-digit growth in 2026, supported by strong bookings momentum [24] Company Strategy and Development Direction - The company targets five core high-value markets, focusing on complex, high-mix opportunities while avoiding commoditized markets [8] - Continued investment in global precision technology and production equipment aligns with new business wins, particularly in space, MedTech, and enterprise AI [9][10] - The company aims to maintain a disciplined approach to operating expenses while driving improvements in working capital efficiency [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum of bookings and improving end-market conditions, particularly in medical and semi-cap sectors [25][26] - The company anticipates mid-single-digit growth for 2026, with potential for further strengthening as visibility from customers improves [26] - Management highlighted the importance of operational execution and customer satisfaction in driving revenue growth [20][21] Other Important Information - The company generated $85 million in free cash flow for fiscal year 2025 and maintained a net cash positive position of $111 million [15][16] - An $11.1 million non-cash impairment was recorded on certain assets due to program end-of-life, with no impact on previously reported financials [18] - The cash conversion cycle improved to 67 days, with significant improvements in inventory management [17][70] Q&A Session Summary Question: Areas of increased confidence beyond Semi-Cap - Management indicated that medical and AC&C sectors have shown improved momentum, with expectations for continued growth [31][32] Question: Thoughts on gross margins and operating leverage - Management noted that while gross margins are stable, operating margins are expected to leverage as revenue accelerates [33][34] Question: Expansion of Total Addressable Market (TAM) in industrial - Management highlighted opportunities in various subsectors such as HVAC, transportation, and agriculture, indicating a broad TAM [41][43] Question: Insights on space bookings and future growth - Management expressed optimism about bookings momentum in space applications, contributing positively to A&D sector growth [44][45] Question: Timeline for Semi-Cap recovery - Management indicated that customer orders could be responded to within one to three months, with expectations for a significant recovery in 2026 [59][60]

作者 C Jessen ，内容为转载编译，仅为呈现不同市场观点与研究视角，并不意味着本公众号 对文中观点结论认可。 德州仪器（TXN）1月27日盘后公布了2025年四季度业绩：营收达44.2亿美元，同比增长 10.2%，较市场预期低2000万美元 ；每股收益（EPS）为1.27美元，较预期低0.04美元。 尽管业绩略不及预期，但其在盘后交易中逆势上涨5%，次日开盘后的涨幅更是超出预期，从 盘后的5%升至6.5%。 虽然从市场预期来看，四季度表现略显疲软，但推动其上涨的核心因素是公司发布的业绩指 引。 管理层预计2026年一季度营收为43.2-46.8亿美元，每股收益为1.22-1.48美元，中点预期 显示营收将环比加速增长。 此外，与去年同期发布的指引相比，本次一季度指引大幅改善——去年同期营收指引上限为 40.6亿美元，每股收益指引上限为1.16美元。 这种同比显著改善，在分析师看来，标志着公司业务情绪和发展势头已出现转变。 自2022财年以来，德州仪器的营收和利润均大幅下滑，管理层曾多次强调，在行业下行周期 叠加公司推进激进资本开支计划的背景下，需要股东保持耐心。如今，公司似乎已走出困境， 或至少已非常接 ...

Market Overview - In January, the global market experienced a general upward trend, with emerging markets outperforming developed markets [1][2] - The US dollar index showed slight downward movement throughout the month, while emerging market currencies strengthened [1] - Most major commodities saw significant price increases, although gold and silver experienced a notable correction at the end of the month [1][2] Performance of Major Indices - The KOSPI index in South Korea rose by 21.15%, while the MSCI Emerging Markets index increased by 10.71% [2] - The Hang Seng Index gained 9.12%, and the WIND All A index rose by 5.83% [2] - The S&P 500 and Nasdaq indices in the US continued to show high volatility, with the S&P 500 increasing by 1.8% [2] Commodity Market Insights - Gold and silver recorded year-to-date increases of approximately 12.3% and 20.7%, respectively, despite recent volatility [1] - The Bloomberg Commodity Index rose by 13.59%, indicating a strong performance in the commodity sector [2] Domestic Market Dynamics - The domestic market showed significant differentiation, with equity markets experiencing high volatility while risk-free rates trended downward [2][3] - The commodity market, represented by the South China Industrial Products Index, saw substantial gains [2] Future Asset Allocation Outlook - Short-term adjustments in gold prices may reflect a correction from previous extremes, with increased volatility expected [5][6] - In the medium to long term, gold is anticipated to benefit from factors such as US debt pressure, geopolitical tensions, and rising inflation expectations [6] - The A-share market is expected to enter a critical trading window before the Spring Festival, with a potential shift towards a "high-level oscillation and structural differentiation" pattern [7] Investment Strategies - A balanced allocation strategy focusing on "technology + cycles + dividends" is recommended to capture structural opportunities [9] - In the technology sector, attention should be given to AI-related investments, while the cyclical sector, particularly non-ferrous metals, may present buying opportunities after recent corrections [9] - For conservative investors, strategies focusing on "dividend low volatility" and "free cash flow" indices are suggested [10]

Group 1 - The A-share market indices opened higher on February 3, with the Guozheng Free Cash Flow Index rising over 1% during the session, led by stocks such as China International Marine Containers, China Power, and Zhejiang Longsheng [1] - The largest free cash flow ETF (159201) has attracted over 2.03 billion yuan in the last 10 trading days, indicating strong investor interest [1] - The average daily trading volume of the free cash flow ETF over the past week was 725 million yuan, outperforming similar products [1] Group 2 - Dongwu Securities' strategy team forecasts that market performance in February is likely to strengthen compared to late January, with a generally favorable outlook [1] - CITIC Construction Investment Securities' report suggests that the adjustment space for the entire A-share index is limited, with expectations of stabilization before the Spring Festival [1] - The free cash flow ETF (159201) and its linked funds (A: 023917; C: 023918) closely track the Guozheng Free Cash Flow Index, selecting stocks with positive and high free cash flow after liquidity, industry, and ROE stability screening, making it suitable for long-term investment [1]

Core Viewpoint - Capital Management Corp sold 147,767 shares of Sirius XM Holdings, reflecting a reassessment of the company's durability and growth potential amid a challenging year for the stock [2][10]. Company Overview - Sirius XM Holdings is a leading provider of satellite radio and streaming audio services in the U.S., with a strong subscription base and diversified content portfolio [6]. - The company operates a subscription-based business model, generating revenue primarily through subscription fees and advertising [9]. Financial Performance - For the trailing twelve months (TTM), Sirius XM reported revenue of $8.55 billion and a net income of $993 million [4]. - The company experienced a 1% year-over-year revenue decline in the third quarter, totaling $2.16 billion, while adjusted EBITDA decreased to $676 million from $693 million a year earlier [11]. - Free cash flow surged to $257 million in the quarter, up from $93 million one year earlier, leading management to raise full-year guidance to $1.23 billion [11]. Stock Performance - As of February 2, Sirius XM shares were priced at $20.20, down 14% over the past year, underperforming the S&P 500's approximately 15% gain during the same period [3]. - After the sale, Sirius XM's position represented 1.68% of Capital Management Corp's reportable U.S. equity assets, indicating continued belief in the stock despite the reduction [3][12]. Market Position and Challenges - Sirius XM's exposure to auto sales cycles, rising acquisition costs, and slower subscriber growth presents challenges, making it a tougher fit in a portfolio focused on high-margin and cash-generative assets [10][12]. - The company remains profitable, but growth has become more difficult to achieve, with mixed subscriber trends and pressure on self-pay net adds [11].