Trupanion Reports First Quarter 2025 Results
Trupanion (TRUP), a leading pet medical insurance provider, reported its Q1 2025 financial results. Total revenue reached $342.0 million, up 12% year-over-year, while subscription business revenue grew 16% to $233.1 million. The company narrowed its net loss to $(1.5) million, or $(0.03) per share, compared to $(6.9) million in Q1 2024.
Total enrolled pets decreased 2% to 1,667,637, though subscription enrolled pets increased 5% to 1,052,845. Adjusted EBITDA improved to $12.2 million from $4.8 million year-over-year. Operating cash flow strengthened to $16.0 million, with free cash flow of $14.0 million. The company maintained a strong financial position with $321.8 million in cash and short-term investments.
Trupanion (TRUP), un importante fornitore di assicurazioni mediche per animali domestici, ha comunicato i risultati finanziari del primo trimestre 2025. Il fatturato totale ha raggiunto 342,0 milioni di dollari, con un aumento del 12% rispetto all'anno precedente, mentre i ricavi derivanti dagli abbonamenti sono cresciuti del 16%, arrivando a 233,1 milioni di dollari. L'azienda ha ridotto la perdita netta a (1,5) milioni di dollari, ovvero (0,03) dollari per azione, rispetto ai (6,9) milioni del primo trimestre 2024.
Il numero totale di animali iscritti è diminuito del 2%, attestandosi a 1.667.637, anche se gli animali iscritti tramite abbonamento sono aumentati del 5%, raggiungendo 1.052.845. L'EBITDA rettificato è migliorato a 12,2 milioni di dollari dai 4,8 milioni dell'anno precedente. Il flusso di cassa operativo è salito a 16,0 milioni di dollari, con un flusso di cassa libero di 14,0 milioni. L'azienda ha mantenuto una solida posizione finanziaria con 321,8 milioni di dollari in liquidità e investimenti a breve termine.
Trupanion (TRUP), un proveedor líder de seguros médicos para mascotas, reportó sus resultados financieros del primer trimestre de 2025. Los ingresos totales alcanzaron 342,0 millones de dólares, un aumento del 12% interanual, mientras que los ingresos por suscripciones crecieron un 16%, llegando a 233,1 millones de dólares. La compañía redujo su pérdida neta a (1,5) millones de dólares, o (0,03) dólares por acción, en comparación con (6,9) millones en el primer trimestre de 2024.
El total de mascotas inscritas disminuyó un 2% a 1.667.637, aunque las mascotas inscritas por suscripción aumentaron un 5% a 1.052.845. El EBITDA ajustado mejoró a 12,2 millones de dólares desde 4,8 millones año tras año. El flujo de caja operativo se fortaleció a 16,0 millones, con un flujo de caja libre de 14,0 millones. La compañía mantuvo una sólida posición financiera con 321,8 millones de dólares en efectivo e inversiones a corto plazo.
트루패니언 (TRUP), 반려동물 의료 보험 분야의 선도 업체가 2025년 1분기 재무 실적을 발표했습니다. 총 매출은 전년 동기 대비 12% 증가한 3억 4,200만 달러를 기록했으며, 구독 사업 매출은 16% 증가한 2억 3,310만 달러에 달했습니다. 순손실은 150만 달러로 감소했으며, 주당 손실은 0.03달러로 2024년 1분기의 690만 달러 손실에서 크게 개선되었습니다.
총 등록 반려동물 수는 2% 감소한 1,667,637마리였으나, 구독 등록 반려동물 수는 5% 증가한 1,052,845마리였습니다. 조정 EBITDA는 전년 동기 대비 480만 달러에서 1,220만 달러로 개선되었습니다. 영업 현금 흐름은 1,600만 달러로 강화되었으며, 자유 현금 흐름은 1,400만 달러였습니다. 회사는 3억 2,180만 달러의 현금 및 단기 투자 자산을 보유하며 견고한 재무 상태를 유지했습니다.
Trupanion (TRUP), un fournisseur majeur d'assurance médicale pour animaux de compagnie, a publié ses résultats financiers du premier trimestre 2025. Le chiffre d'affaires total a atteint 342,0 millions de dollars, en hausse de 12 % sur un an, tandis que les revenus issus des abonnements ont progressé de 16 % pour atteindre 233,1 millions de dollars. La société a réduit sa perte nette à (1,5) million de dollars, soit (0,03) dollar par action, contre (6,9) millions au premier trimestre 2024.
Le nombre total d'animaux inscrits a diminué de 2 % pour atteindre 1 667 637, bien que les animaux inscrits par abonnement aient augmenté de 5 % pour s'établir à 1 052 845. L'EBITDA ajusté s'est amélioré à 12,2 millions de dollars contre 4,8 millions un an plus tôt. Les flux de trésorerie opérationnels se sont renforcés à 16,0 millions, avec un flux de trésorerie disponible de 14,0 millions. La société a maintenu une solide position financière avec 321,8 millions de dollars en liquidités et investissements à court terme.
Trupanion (TRUP), ein führender Anbieter von Tierkrankenversicherungen, veröffentlichte seine Finanzergebnisse für das erste Quartal 2025. Der Gesamtumsatz stieg im Jahresvergleich um 12 % auf 342,0 Millionen US-Dollar, während der Umsatz aus dem Abonnementgeschäft um 16 % auf 233,1 Millionen US-Dollar zulegte. Das Unternehmen verringerte seinen Nettoverlust auf (1,5) Millionen US-Dollar bzw. (0,03) US-Dollar je Aktie, verglichen mit (6,9) Millionen US-Dollar im ersten Quartal 2024.
Die Gesamtzahl der angemeldeten Haustiere sank um 2 % auf 1.667.637, wobei die Anzahl der Abonnement-Haustiere um 5 % auf 1.052.845 anstieg. Das bereinigte EBITDA verbesserte sich von 4,8 Millionen US-Dollar auf 12,2 Millionen US-Dollar. Der operative Cashflow stieg auf 16,0 Millionen US-Dollar, der freie Cashflow betrug 14,0 Millionen US-Dollar. Das Unternehmen hielt eine starke Finanzlage mit 321,8 Millionen US-Dollar an liquiden Mitteln und kurzfristigen Investitionen aufrecht.
- Net loss narrowed significantly to $(1.5) million from $(6.9) million YoY
- Subscription business revenue grew 16% YoY to $233.1 million
- Adjusted EBITDA more than doubled to $12.2 million from $4.8 million
- Strong cash position with $321.8 million in cash and short-term investments
- Operating cash flow improved to $16.0 million from $2.4 million YoY
- Total enrolled pets decreased 2% YoY to 1,667,637
- Company still operating at a net loss of $(1.5) million
Insights
Trupanion shows substantial financial improvement with narrowing losses, strong cash flow generation, and strategic subscription growth despite mixed enrollment trends.
Trupanion's Q1 results demonstrate a significant financial improvement trajectory. Revenue grew
The company's pet metrics reveal an interesting strategic shift. While total enrolled pets decreased by
Profitability metrics show remarkable improvement. Net loss narrowed substantially from
Perhaps most impressive is the cash flow transformation. Operating cash flow surged from
The CEO's reference to "expanded margins in our subscription business" alongside improved retention signals that Trupanion has found a more efficient growth model. While still posting a small loss, the dramatic improvements across key financial metrics indicate Trupanion is executing well on its strategic priorities.
SEATTLE, May 01, 2025 (GLOBE NEWSWIRE) -- Trupanion, Inc. (Nasdaq: TRUP), a leading provider of medical insurance for cats and dogs, today announced financial results for the first quarter ended March 31, 2025.
“Q1 was a strong start to the year, with performance ahead of plan across key metrics,” said Margi Tooth, Chief Executive Officer and President of Trupanion. “We saw early momentum in both retention and pet acquisition, and with expanded margins in our subscription business, we're well-positioned to continue to invest in growth.”
First Quarter 2025 Financial and Business Highlights
- Total revenue was
$342.0 million , an increase of12% compared to the first quarter of 2024. - Total enrolled pets (including pets from our other business segment) was 1,667,637 at March 31, 2025, a decrease of
2% over March 31, 2024. - Subscription business revenue was
$233.1 million , an increase of16% compared to the first quarter of 2024. - Subscription enrolled pets was 1,052,845 at March 31, 2025, an increase of
5% over March 31, 2024. - Net loss was
$(1.5) million , or$(0.03) per basic and diluted share, compared to a net loss of$(6.9) million , or$(0.16) per basic and diluted share, in the first quarter of 2024. - Adjusted EBITDA was
$12.2 million , compared to adjusted EBITDA of$4.8 million in the first quarter of 2024. - Operating cash flow was
$16.0 million and free cash flow was$14.0 million in the first quarter of 2025. This compared to operating cash flow of$2.4 million and free cash flow of$(0.6) million in the first quarter of 2024. - At March 31, 2025, the Company held
$321.8 million in cash and short-term investments, including$48.8 million held outside the insurance entities, with an additional$15.0 million available under its credit facility.
Conference Call
Trupanion’s management will host a conference call today to review its first quarter 2025 results. The call is scheduled to begin shortly after 1:30 p.m. PT/ 4:30 p.m. ET. A live webcast will be accessible through the Investor Relations section of Trupanion’s website at https://investors.trupanion.com/ and will be archived online for 3 months upon completion of the conference call. Participants can access the conference call by dialing 1-866-250-8117 (United States) or 1-412-317-6011 (International). A telephonic replay of the call will also be available after the completion of the call, by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (International) and entering the replay pin number: 10197710.
About Trupanion
Trupanion is a leader in medical insurance for cats and dogs throughout the United States, Canada, and certain countries in Continental Europe with over 1,000,000 pets currently enrolled. For over two decades, Trupanion has given pet owners peace of mind so they can focus on their pet's recovery, not financial stress. Trupanion is committed to providing pet parents with the highest value in pet medical insurance with unlimited payouts for the life of their pets. With its patented process, Trupanion is the only North American provider with the technology to pay veterinarians directly in seconds at the time of checkout. Trupanion is listed on NASDAQ under the symbol "TRUP". The company was founded in 2000 and is headquartered in Seattle, WA. Trupanion policies are issued, in the United States, by its wholly-owned insurance entity American Pet Insurance Company and, in Canada, by Accelerant Insurance Company of Canada. Trupanion Australia is a partnership between Trupanion and Hollard Insurance Company. Policies are sold and administered in Canada by Canada Pet Health Insurance Services, Inc. dba Trupanion 309-1277 Lynn Valley Road, North Vancouver, BC V7J 0A2 and in the United States by Trupanion Managers USA, Inc. (CA license No. 0G22803, NPN 9588590). Canada Pet Health Insurance Services, Inc. is a registered damage insurance agency and claims adjuster in Quebec #603927. Trupanion Australia is a partnership between Trupanion and Hollard Insurance Company. For more information, please visit trupanion.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to, among other things, expectations, plans, prospects and financial results for Trupanion, including, but not limited to, its expectations regarding its ability to continue to grow its enrollments and revenue, and otherwise execute its business plan. These forward-looking statements are based upon the current expectations and beliefs of Trupanion’s management as of the date of this press release, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements made in this press release are based on information available to Trupanion as of the date hereof, and Trupanion has no obligation to update these forward-looking statements.
In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the ability to achieve or maintain profitability and/or appropriate levels of cash flow in future periods; the ability to keep growing our membership base and revenue; the accuracy of assumptions used in determining appropriate member acquisition expenditures; the severity and frequency of claims; the ability to maintain high retention rates; the accuracy of assumptions used in pricing medical plan subscriptions and the ability to accurately estimate the impact of new products or offerings on claims frequency; actual claims expense exceeding estimates; regulatory and other constraints on the ability to institute, or the decision to otherwise delay, pricing modifications in response to changes in actual or estimated claims expense; the effectiveness and statutory or regulatory compliance of our Territory Partner model and of our Territory Partners, veterinarians and other third parties in recommending medical plan subscriptions to potential members; the ability to retain existing Territory Partners and increase the number of Territory Partners and active hospitals; compliance by us and those referring us members with laws and regulations that apply to our business, including the sale of a pet medical plan; the ability to maintain the security of our data; fluctuations in the Canadian currency exchange rate; the ability to protect our proprietary and member information; the ability to maintain our culture and team; the ability to maintain the requisite amount of risk-based capital; our ability to implement and maintain effective controls, including to remediate material weaknesses in internal controls over financial reporting; the ability to protect and enforce Trupanion’s intellectual property rights; the ability to successfully implement our alliance with Aflac; the ability to continue key contractual relationships with third parties; third-party claims including litigation and regulatory actions; the ability to recognize benefits from investments in new solutions and enhancements to Trupanion’s technology platform and website; our ability to retain key personnel; and deliberations and determinations by the Trupanion board based on the future performance of the company or otherwise.
For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the Securities and Exchange Commission (SEC), including but not limited to, Trupanion’s Annual Report on Form 10-K for the year ended December 31, 2024 and any subsequently filed reports on Forms 10-Q, 10-K and 8-K. All documents are available through the SEC’s Electronic Data Gathering Analysis and Retrieval system at https://www.sec.gov or the Investor Relations section of Trupanion’s website at https://investors.trupanion.com.
Non-GAAP Financial Measures
Trupanion’s stated results may include certain non-GAAP financial measures. These non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry as other companies in its industry may calculate or use non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Trupanion’s reported financial results. The presentation and utilization of non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Trupanion urges its investors to review the reconciliation of its non-GAAP financial measures to the most directly comparable GAAP financial measures in its consolidated financial statements, and not to rely on any single financial or operating measure to evaluate its business. These reconciliations are included below and on Trupanion's Investor Relations website.
Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, Trupanion believes that providing various non-GAAP financial measures that exclude stock-based compensation expense and depreciation and amortization expense allows for more meaningful comparisons between its operating results from period to period. Trupanion offsets new pet acquisition expense with sign-up fee revenue in the calculation of net acquisition cost because it collects sign-up fee revenue from new members at the time of enrollment and considers it to be an offset to a portion of Trupanion’s new pet acquisition expense. Trupanion believes this allows it to calculate and present financial measures in a consistent manner across periods. Trupanion’s management believes that the non-GAAP financial measures and the related financial measures derived from them are important tools for financial and operational decision-making and for evaluating operating results over different periods of time.
| Trupanion, Inc. Condensed Consolidated Statements of Operations (in thousands, except share data) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| (unaudited) | ||||||||
| Revenue: | ||||||||
| Subscription business | $ | 233,064 | $ | 201,134 | ||||
| Other business | 108,911 | 104,987 | ||||||
| Total revenue | 341,975 | 306,121 | ||||||
| Cost of revenue: | ||||||||
| Subscription business | 189,845 | 172,132 | ||||||
| Other business | 101,027 | 97,762 | ||||||
| Total cost of revenue(1),(2) | 290,872 | 269,894 | ||||||
| Operating expenses: | ||||||||
| Technology and development(1) | 8,072 | 6,960 | ||||||
| General and administrative(1) | 19,892 | 14,673 | ||||||
| New pet acquisition expense(1) | 20,516 | 16,843 | ||||||
| Depreciation and amortization | 3,791 | 3,785 | ||||||
| Total operating expenses | 52,271 | 42,261 | ||||||
| Loss from investment in joint venture | (305 | ) | (103 | ) | ||||
| Operating loss | (1,473 | ) | (6,137 | ) | ||||
| Interest expense | 3,211 | 3,596 | ||||||
| Other (income), net | (3,240 | ) | (2,843 | ) | ||||
| Loss before income taxes | (1,444 | ) | (6,890 | ) | ||||
| Income tax (benefit) expense | 39 | (38 | ) | |||||
| Net loss | $ | (1,483 | ) | $ | (6,852 | ) | ||
| Net loss per share: | ||||||||
| Basic and diluted | $ | (0.03 | ) | $ | (0.16 | ) | ||
| Weighted average shares of common stock outstanding: | ||||||||
| Basic and diluted | 42,775,955 | 41,917,094 | ||||||
| (1)Includes stock-based compensation expense as follows: | ||||||||
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Cost of revenue | $ | 1,259 | $ | 1,390 | ||||
| Technology and development | 1,151 | 1,254 | ||||||
| General and administrative | 4,528 | 3,449 | ||||||
| New pet acquisition expense | 2,892 | 2,059 | ||||||
| Total stock-based compensation expense | $ | 9,830 | $ | 8,152 | ||||
| (2)The breakout of cost of revenue between veterinary invoice expense and other cost of revenue is as follows: | ||||||||
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Veterinary invoice expense | $ | 247,450 | $ | 233,569 | ||||
| Other cost of revenue | 43,422 | 36,325 | ||||||
| Total cost of revenue | $ | 290,872 | $ | 269,894 | ||||
| Trupanion, Inc. Condensed Consolidated Balance Sheets (in thousands, except share data) | |||||||
| March 31, 2025 | December 31, 2024 | ||||||
| (unaudited) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 166,308 | $ | 160,295 | |||
| Short-term investments | 155,508 | 147,089 | |||||
| Accounts and other receivables, net of allowance for credit losses of | 290,104 | 274,031 | |||||
| Prepaid expenses and other assets | 16,417 | 15,912 | |||||
| Total current assets | 628,337 | 597,327 | |||||
| Restricted cash | 39,702 | 39,235 | |||||
| Long-term investments | 376 | 373 | |||||
| Property, equipment and internal-use software, net | 101,938 | 102,191 | |||||
| Intangible assets, net | 12,130 | 13,177 | |||||
| Other long-term assets | 16,356 | 17,579 | |||||
| Goodwill | 38,323 | 36,971 | |||||
| Total assets | $ | 837,162 | $ | 806,853 | |||
| Liabilities and stockholders’ equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 9,681 | $ | 11,532 | |||
| Accrued liabilities and other current liabilities | 36,907 | 33,469 | |||||
| Reserve for veterinary invoices | 54,042 | 51,635 | |||||
| Deferred revenue | 267,357 | 251,640 | |||||
| Long-term debt - current portion | 1,350 | 1,350 | |||||
| Total current liabilities | 369,337 | 349,626 | |||||
| Long-term debt | 127,526 | 127,537 | |||||
| Deferred tax liabilities | 1,884 | 1,946 | |||||
| Other liabilities | 4,742 | 4,476 | |||||
| Total liabilities | 503,489 | 483,585 | |||||
| Stockholders’ equity: | |||||||
| Common stock: | — | — | |||||
| Preferred stock: | — | — | |||||
| Additional paid-in capital | 578,293 | 568,302 | |||||
| Accumulated other comprehensive loss | (715 | ) | (2,612 | ) | |||
| Accumulated deficit | (227,371 | ) | (225,888 | ) | |||
| Treasury stock, at cost: 1,028,186 shares at March 31, 2025 and December 31, 2024 | (16,534 | ) | (16,534 | ) | |||
| Total stockholders’ equity | 333,673 | 323,268 | |||||
| Total liabilities and stockholders’ equity | $ | 837,162 | $ | 806,853 | |||
| Trupanion, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| (unaudited) | |||||||
| Operating activities | |||||||
| Net loss | $ | (1,483 | ) | $ | (6,852 | ) | |
| Adjustments to reconcile net loss to cash provided by operating activities: | |||||||
| Depreciation and amortization | 3,791 | 3,785 | |||||
| Stock-based compensation expense | 9,830 | 8,152 | |||||
| Other, net | 349 | (202 | ) | ||||
| Changes in operating assets and liabilities: | |||||||
| Accounts and other receivables | (15,965 | ) | (10,718 | ) | |||
| Prepaid expenses and other assets | (204 | ) | 287 | ||||
| Accounts payable, accrued liabilities, and other liabilities | 1,527 | (5,131 | ) | ||||
| Reserve for veterinary invoices | 2,407 | (885 | ) | ||||
| Deferred revenue | 15,712 | 13,998 | |||||
| Net cash provided by operating activities | 15,964 | 2,434 | |||||
| Investing activities | |||||||
| Purchases of investment securities | (40,875 | ) | (19,193 | ) | |||
| Maturities and sales of investment securities | 33,242 | 19,005 | |||||
| Purchases of property, equipment, and internal-use software | (1,928 | ) | (3,065 | ) | |||
| Other | 588 | 516 | |||||
| Net cash used in investing activities | (8,973 | ) | (2,737 | ) | |||
| Financing activities | |||||||
| Repayment of debt financing | (338 | ) | (338 | ) | |||
| Proceeds from exercise of stock options | 1,024 | 372 | |||||
| Shares withheld to satisfy tax withholding | (915 | ) | (245 | ) | |||
| Other | (230 | ) | (75 | ) | |||
| Net cash used in financing activities | (459 | ) | (286 | ) | |||
| Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net | (52 | ) | (313 | ) | |||
| Net change in cash, cash equivalents, and restricted cash | 6,480 | (902 | ) | ||||
| Cash, cash equivalents, and restricted cash at beginning of period | 199,530 | 170,464 | |||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 206,010 | $ | 169,562 | |||
| The following tables set forth our key operating metrics. | |||||||||||||||||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||
| Total Business: | |||||||||||||||||||||||||||||||
| Total pets enrolled (at period end) | 1,667,637 | 1,708,017 | |||||||||||||||||||||||||||||
| Subscription Business: | |||||||||||||||||||||||||||||||
| Total subscription pets enrolled (at period end) | 1,052,845 | 1,006,168 | |||||||||||||||||||||||||||||
| Monthly average revenue per pet | $ | 77.53 | $ | 69.79 | |||||||||||||||||||||||||||
| Average pet acquisition cost (PAC) | $ | 267 | $ | 207 | |||||||||||||||||||||||||||
| Average monthly retention | 98.28 | % | 98.41 | % | |||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||
| Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | ||||||||||||||||||||||||
| Total Business: | |||||||||||||||||||||||||||||||
| Total pets enrolled (at period end) | 1,667,637 | 1,677,570 | 1,688,903 | 1,699,643 | 1,708,017 | 1,714,473 | 1,712,177 | 1,679,659 | |||||||||||||||||||||||
| Subscription Business: | |||||||||||||||||||||||||||||||
| Total subscription pets enrolled (at period end) | 1,052,845 | 1,041,212 | 1,032,042 | 1,020,934 | 1,006,168 | 991,426 | 969,322 | 943,958 | |||||||||||||||||||||||
| Monthly average revenue per pet | $ | 77.53 | $ | 76.02 | $ | 74.27 | $ | 71.72 | $ | 69.79 | $ | 67.07 | $ | 65.82 | $ | 64.41 | |||||||||||||||
| Average pet acquisition cost (PAC) | $ | 267 | $ | 261 | $ | 243 | $ | 231 | $ | 207 | $ | 217 | $ | 212 | $ | 236 | |||||||||||||||
| Average monthly retention | 98.28 | % | 98.25 | % | 98.29 | % | 98.34 | % | 98.41 | % | 98.49 | % | 98.55 | % | 98.61 | % | |||||||||||||||
| The following table reflects the reconciliation of cash provided by operating activities to free cash flow (in thousands): | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Net cash provided by operating activities | $ | 15,964 | $ | 2,434 | |||
| Purchases of property, equipment, and internal-use software | (1,928 | ) | (3,065 | ) | |||
| Free cash flow | $ | 14,036 | $ | (631 | ) | ||
| The following tables reflect the reconciliation between GAAP and non-GAAP measures (in thousands except percentages): | |||||||
| Three Months Ended March 31, | |||||||
| 2024 | 2023 | ||||||
| Veterinary invoice expense | $ | 247,450 | $ | 233,569 | |||
| Less: | |||||||
| Stock-based compensation expense(1) | (763 | ) | (862 | ) | |||
| Other business cost of paying veterinary invoices(3) | (79,269 | ) | (81,213 | ) | |||
| Subscription cost of paying veterinary invoices (non-GAAP) | $ | 167,418 | $ | 151,494 | |||
| % of subscription revenue | 71.8 | % | 75.3 | % | |||
| Other cost of revenue | $ | 43,422 | $ | 36,325 | |||
| Less: | |||||||
| Stock-based compensation expense(1) | (482 | ) | (420 | ) | |||
| Other business variable expenses(3) | (21,736 | ) | (16,498 | ) | |||
| Subscription variable expenses (non-GAAP) | $ | 21,204 | $ | 19,407 | |||
| % of subscription revenue | 9.1 | % | 9.6 | % | |||
| Technology and development expense | $ | 8,072 | $ | 6,960 | |||
| General and administrative expense | 19,892 | 14,673 | |||||
| Less: | |||||||
| Stock-based compensation expense(1) | (5,396 | ) | (4,258 | ) | |||
| Development expenses(2) | (1,406 | ) | (1,178 | ) | |||
| Fixed expenses (non-GAAP) | $ | 21,162 | $ | 16,197 | |||
| % of total revenue | 6.2 | % | 5.3 | % | |||
| New pet acquisition expense | $ | 20,516 | $ | 16,843 | |||
| Less: | |||||||
| Stock-based compensation expense(1) | (2,873 | ) | (1,857 | ) | |||
| Other business pet acquisition expense(3) | (3 | ) | (13 | ) | |||
| Subscription acquisition cost (non-GAAP) | $ | 17,640 | $ | 14,973 | |||
| % of subscription revenue | 7.6 | % | 7.4 | % | |||
| (1) Trupanion employees may elect to take restricted stock units in lieu of cash payment for their bonuses. We account for such expense as stock-based compensation according to GAAP, but we do not include it in any non-GAAP adjustments. Stock-based compensation associated with bonuses was approximately | |||||||
| (2) Consists of costs related to product exploration and development that are pre-revenue and historically have been insignificant. | |||||||
| (3) Excluding the portion of stock-based compensation expense attributable to the other business segment. | |||||||
| The following tables reflect the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages): | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Operating Loss | $ | (1,473 | ) | $ | (6,138 | ) | |
| Non-GAAP expense adjustments | |||||||
| Acquisition cost | 17,643 | 14,985 | |||||
| Stock-based compensation expense(1) | 9,514 | 7,397 | |||||
| Development expenses(2) | 1,406 | 1,179 | |||||
| Depreciation and amortization | 3,791 | 3,785 | |||||
| Gain (loss) from investment in joint venture | (305 | ) | (103 | ) | |||
| Total adjusted operating income (non-GAAP) | $ | 31,186 | $ | 21,312 | |||
| Subscription Business: | |||||||
| Subscription operating income (loss) | $ | 1,065 | $ | (4,525 | ) | ||
| Non-GAAP expense adjustments | |||||||
| Acquisition cost | 17,640 | 14,973 | |||||
| Stock-based compensation expense(1) | 7,772 | 5,882 | |||||
| Development expenses(2) | 958 | 774 | |||||
| Depreciation and amortization | 2,584 | 2,487 | |||||
| Subscription adjusted operating income (non-GAAP) | $ | 30,019 | $ | 19,591 | |||
| Other Business: | |||||||
| Other business operating loss | $ | (2,233 | ) | $ | (1,510 | ) | |
| Non-GAAP expense adjustments | |||||||
| Acquisition cost | 3 | 12 | |||||
| Stock-based compensation expense(1) | 1,742 | 1,516 | |||||
| Development expenses(2) | 448 | 404 | |||||
| Depreciation and amortization | 1,207 | 1,298 | |||||
| Other business adjusted operating income (non-GAAP) | $ | 1,167 | $ | 1,720 | |||
| (1) Trupanion employees may elect to take restricted stock units in lieu of cash payment for their bonuses. We account for such expense as stock-based compensation in accordance with GAAP, but we do not include it in any non-GAAP adjustments. Stock-based compensation associated with bonuses was approximately | |||||||
| (2) Consists of costs related to product exploration and development that are pre-revenue and historically have been insignificant. | |||||||
| The following tables reflect the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages): | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Subscription revenue | $ | 233,064 | $ | 201,134 | |||
| Subscription cost of paying veterinary invoices | 167,418 | 151,493 | |||||
| Subscription variable expenses | 21,204 | 19,407 | |||||
| Subscription fixed expenses* | 14,423 | 10,642 | |||||
| Subscription adjusted operating income (non-GAAP) | $ | 30,019 | $ | 19,591 | |||
| Other business revenue | 108,911 | 104,987 | |||||
| Other business cost of paying veterinary invoices | 79,269 | 81,213 | |||||
| Other business variable expenses | 21,736 | 16,498 | |||||
| Other business fixed expenses* | 6,739 | 5,555 | |||||
| Other business adjusted operating income (non-GAAP) | $ | 1,167 | $ | 1,721 | |||
| Revenue | 341,975 | 306,121 | |||||
| Cost of paying veterinary invoices | 246,687 | 232,707 | |||||
| Variable expenses | 42,940 | 35,905 | |||||
| Fixed expenses* | 21,162 | 16,197 | |||||
| Total business adjusted operating income (non-GAAP) | $ | 31,186 | $ | 21,312 | |||
| As a percentage of revenue: | Three Months Ended March 31, | ||||||
| 2024 | 2023 | ||||||
| Subscription revenue | 100.0 | % | 100.0 | % | |||
| Subscription cost of paying veterinary invoices | 71.8 | % | 75.3 | % | |||
| Subscription variable expenses | 9.1 | % | 9.6 | % | |||
| Subscription fixed expenses* | 6.2 | % | 5.3 | % | |||
| Subscription adjusted operating income (non-GAAP) | 12.9 | % | 9.7 | % | |||
| Other business revenue | 100.0 | % | 100.0 | % | |||
| Other business cost of paying veterinary invoices | 72.8 | % | 77.4 | % | |||
| Other business variable expenses | 20.0 | % | 15.7 | % | |||
| Other business fixed expenses* | 6.2 | % | 5.3 | % | |||
| Other business adjusted operating income (non-GAAP) | 1.1 | % | 1.6 | % | |||
| Revenue | 100.0 | % | 100.0 | % | |||
| Cost of paying veterinary invoices | 72.1 | % | 76.0 | % | |||
| Variable expenses | 12.6 | % | 11.7 | % | |||
| Fixed expenses* | 6.2 | % | 5.3 | % | |||
| Total business adjusted operating income (non-GAAP) | 9.1 | % | 7.0 | % | |||
| *Fixed expenses represent shared services that support both our subscription and other business segments and, as such, are generally allocated to each segment pro-rata based on revenues. | |||||||
Adjusted operating income is a non-GAAP financial measure that adjusts operating income (loss) to remove the effect of acquisition cost, development expenses, non-recurring transaction or restructuring expenses, and gain (loss) from investment in joint venture. Non-cash items, such as stock-based compensation expense and depreciation and amortization, are also excluded. Acquisition cost, development expenses, gain (loss) from investment in joint venture, stock-based compensation expense, and depreciation and amortization are expected to remain recurring expenses for the foreseeable future, but are excluded from this metric to measure scale in other areas of the business. Management believes acquisition costs primarily represent the cost to acquire new subscribers and are driven by the amount of growth we choose to pursue based primarily on the amount of our adjusted operating income period over period. Accordingly, this measure is not indicative of our core operating income performance. We also exclude development expenses, gain (loss) from investment in joint venture, stock-based compensation expense, and depreciation and amortization because some investors may not view those items as reflective of our core operating income performance.
Management uses adjusted operating income and the margin on adjusted operating income to understand the effects of scale in its non-acquisition cost and development expenses and to plan future advertising expenditures, which are designed to acquire new pets. Management uses this measure as a principal way of understanding the operating performance of its business exclusive of acquisition cost and new product exploration and development initiatives. Management believes disclosure of this metric provides investors with the same data that the Company employs in assessing its overall operations and that disclosure of this measure may provide useful information regarding the efficiency of our utilization of revenues, return on advertising dollars in the form of new subscribers and future use of available cash to support the continued growth of our business.
| The following tables reflect the reconciliation of adjusted EBITDA to net loss (in thousands): | |||||||||||||||||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||
| Net loss | $ | (1,483 | ) | $ | (6,852 | ) | |||||||||||||||||||||||||
| Excluding: | |||||||||||||||||||||||||||||||
| Stock-based compensation expense | 9,514 | 7,398 | |||||||||||||||||||||||||||||
| Depreciation and amortization expense | 3,791 | 3,785 | |||||||||||||||||||||||||||||
| Interest income | (2,835 | ) | (3,045 | ) | |||||||||||||||||||||||||||
| Interest expense | 3,211 | 3,596 | |||||||||||||||||||||||||||||
| Income tax expense (benefit) | 39 | (38 | ) | ||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 12,237 | $ | 4,844 | |||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||
| Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | ||||||||||||||||||||||||
| Net (loss) income | $ | (1,483 | ) | $ | 1,656 | $ | 1,425 | $ | (5,862 | ) | $ | (6,852 | ) | $ | (2,163 | ) | $ | (4,036 | ) | $ | (13,714 | ) | |||||||||
| Excluding: | |||||||||||||||||||||||||||||||
| Stock-based compensation expense | 9,514 | 8,036 | 8,127 | 8,381 | 7,398 | 6,636 | 6,585 | 6,503 | |||||||||||||||||||||||
| Depreciation and amortization expense | 3,791 | 3,924 | 4,381 | 4,376 | 3,785 | 3,029 | 2,990 | 3,253 | |||||||||||||||||||||||
| Interest income | (2,835 | ) | (2,999 | ) | (3,232 | ) | (3,135 | ) | (3,045 | ) | (2,842 | ) | (2,389 | ) | (2,051 | ) | |||||||||||||||
| Interest expense | 3,211 | 3,427 | 3,820 | 3,655 | 3,596 | 3,697 | 3,053 | 2,940 | |||||||||||||||||||||||
| Income tax expense (benefit) | 39 | 38 | 39 | (44 | ) | (38 | ) | 130 | (43 | ) | (238 | ) | |||||||||||||||||||
| Goodwill impairment charges | — | 5,299 | — | — | — | — | — | — | |||||||||||||||||||||||
| Non-recurring transaction or restructuring expenses | — | — | — | — | — | — | 8 | 65 | |||||||||||||||||||||||
| (Gain) loss from equity method investment | — | — | (33 | ) | — | — | — | (110 | ) | — | |||||||||||||||||||||
| Adjusted EBITDA | $ | 12,237 | $ | 19,381 | $ | 14,527 | $ | 7,371 | $ | 4,844 | $ | 8,487 | $ | 6,058 | $ | (3,242 | ) | ||||||||||||||
Contacts:
Investors:
Laura Bainbridge, Senior Vice President, Corporate Communications
Gil Melchior, Director, Investor Relations
Investor.Relations@trupanion.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/af9a2ab5-2802-4ca8-8a90-199e1c54b91a
FAQ
What was Trupanion's (TRUP) revenue growth in Q1 2025?
How many pets were enrolled in Trupanion's insurance plans in Q1 2025?
What was TRUP's net loss in the first quarter of 2025?
How much cash and investments does Trupanion have in Q1 2025?
What was Trupanion's Adjusted EBITDA for Q1 2025?
