Financial Data and Key Metrics Changes - The company pre-announced preliminary fourth quarter results with a slight downtick in revenue guidance, attributed to weaker performance in November, but December rebounded strongly, leading to a positive outlook for 2026 [3][4] - Guest spend reached the highest level ever, with metrics indicating strong performance during the holiday season [12] Business Line Data and Key Metrics Changes - The company is focusing on expanding its acupuncture and med spa services, which currently account for about 8% of total revenue and are growing at 10% annually [9] - The reorganization included exiting the Asia land-based operation, which will not impact EBITDA but will affect revenue numbers [6][7] Market Data and Key Metrics Changes - The company noted a strong consumer appetite for wellness services, particularly in the maritime segment, indicating a trend towards higher guest spending [9][11] - Pre-booking rates are currently around 22%, with a goal to increase this to 30%, as pre-booked guests tend to spend 35% more than those who book on board [16][21] Company Strategy and Development Direction - The company is implementing machine learning and AI initiatives to enhance revenue and efficiency, with plans to roll out these technologies across more vessels [22][23] - The focus is on maintaining collaborative relationships with cruise line partners to grow the overall business rather than competing for smaller slices of revenue [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining pricing power across different macro environments, citing strong demand for services [13][14] - The company is optimistic about the future, particularly in the wellness and longevity sectors, and is exploring new service offerings [10][32] Other Important Information - The company returned $92.9 million to shareholders in 2025 through share repurchases and dividends while also investing in debt pay down [36] - Staff retention has improved significantly, with a current retention rate of 76%, which enhances productivity and reduces training costs [30] Q&A Session Summary Question: Can you provide insights on the pre-announcement and fourth quarter results? - Management noted a slight revenue guide downtick due to November's performance but highlighted a strong December, leading to a positive outlook for 2026 [3][4] Question: What are the implications of closing the Asia land-based facility? - The exit will not impact EBITDA but will affect revenue, as the operation was not profitable [6][7] Question: How is the company addressing the growth in guest spending? - The company has reworked service offerings to encourage longer and higher-priced treatments, which has successfully driven guest spending [11][12] Question: What is the strategy for improving pre-booking rates? - Management aims to enhance pre-booking capabilities and increase visibility on mobile platforms to boost rates from 22% to 30% [16][21] Question: How does the company view its relationships with cruise line partners? - The focus has shifted to collaborative growth with cruise lines, emphasizing the importance of enhancing the overall guest experience [40][41]