Trupanion Reports Fourth Quarter & Full Year 2025 Results

Rhea-AI Summary

Trupanion (Nasdaq: TRUP) reported fourth-quarter and full-year 2025 results with revenue growth, margin targets met, and strong cash flow. Q4 revenue was $376.9M (+12% YoY) and FY revenue was $1,439.3M (+12% YoY). The company achieved 15% annual margin and net income $19.4M for 2025.

Subscription revenue rose to $989.3M for 2025 (+16% YoY). Adjusted EBITDA improved to $70.1M and year-end cash and short-term investments totaled $370.7M.

Positive

• Total revenue +12% YoY to $1,439.3M in 2025
• Subscription revenue +16% YoY to $989.3M in 2025
• Adjusted EBITDA rose to $70.1M from $46.1M in 2024
• Operating cash flow doubled to $89.5M in 2025
• Year-end liquidity $370.7M in cash and short-term investments

Negative

• Total enrolled pets decreased 2% to 1,647,565 at Dec 31, 2025
• Net income modest at $19.4M despite revenue growth (0.13 EPS in Q4)

Key Figures

Q4 2025 total revenue: $376.9M Q4 2025 subscription revenue: $261.4M Q4 2025 net income: $5.6M ($0.13/share) +5 more

8 metrics

Q4 2025 total revenue $376.9M Q4 2025, up 12% vs Q4 2024

Q4 2025 subscription revenue $261.4M Q4 2025, up 15% vs Q4 2024

Q4 2025 net income $5.6M ($0.13/share) Q4 2025 vs $1.7M ($0.04/share) Q4 2024

2025 total revenue $1,439.3M Full year 2025, up 12% vs 2024

2025 subscription revenue $989.3M Full year 2025, up 16% vs 2024

2025 net income $19.4M ($0.45/share) 2025 vs $(9.6)M ($(0.23)/share) in 2024

2025 adjusted EBITDA $70.1M Full year 2025 vs $46.1M in 2024

Cash & short-term investments $370.7M Balance at December 31, 2025; includes $50.0M outside insurance entities

Market Reality Check

Price: $32.14 Vol: Volume 764,569 vs 443,835...

high vol

$32.14 Last Close

Volume Volume 764,569 vs 443,835 20-day average (relative volume 1.72x) into this earnings release. high

Technical Shares at $32.33, trading below the $43.02 200-day moving average and closer to the 52-week low of $30.54 than the high of $57.89.

Peers on Argus

TRUP was down 2.3% pre-earnings with elevated volume, while peers were mixed: HM...

TRUP was down 2.3% pre-earnings with elevated volume, while peers were mixed: HMN -1.14%, ROOT -1.31%, PRA -0.45%, BOW -2.06%, and SKWD +3.05%. No coordinated sector move is indicated.

Previous Earnings Reports

5 past events · Latest: Nov 06 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 06	Q3 2025 earnings	Positive	-0.9%	Q3 2025 showed revenue, profit gains and new $120M credit facility.
Aug 07	Q2 2025 earnings	Positive	+0.1%	Q2 2025 revenue up 12% with return to net profitability.
May 01	Q1 2025 earnings	Positive	+23.5%	Q1 2025 showed revenue growth and sharply improved EBITDA and cash flow.
Feb 19	FY/Q4 2024 earnings	Positive	-25.5%	Strong FY 2024 revenue growth and record free cash flow reported.
Oct 30	Q3 2024 earnings	Positive	-0.6%	Q3 2024 delivered double‑digit growth and swing to net income.

Pattern Detected

Earnings releases have generally been positive fundamentally, but price reactions have skewed slightly negative, with several instances of selloffs on strong reports.

Recent Company History

Over the last five earnings cycles from Q3 2024 through Q3 2025, Trupanion has delivered consistent double‑digit revenue growth and improving profitability. Quarterly revenues rose from $327.5M in Q3 2024 to $366.9M in Q3 2025, while net income turned positive and adjusted EBITDA and free cash flow expanded. Subscription revenue and enrolled subscription pets have grown even as total pets plateaued or dipped slightly. Despite this improving financial profile, price reactions have often been muted or negative around earnings.

Historical Comparison

earnings

-0.7 %

Average Historical Move

Historical Analysis

In the past five earnings releases, TRUP’s average next‑day move was -0.69%, with three negative and two positive reactions despite generally improving fundamentals.

Typical Pattern

Earnings history shows steady revenue growth, improving adjusted EBITDA, and a multi‑quarter transition from losses to net income, while subscription pets grow and total pets are flat to slightly down.

Market Pulse Summary

This announcement highlights Trupanion’s continued transition to profitable growth, with 2025 revenu...

Analysis

This announcement highlights Trupanion’s continued transition to profitable growth, with 2025 revenue reaching $1,439.3M and net income of $19.4M alongside stronger adjusted EBITDA and free cash flow. Subscription revenue and enrolled subscription pets grew even as total pets dipped slightly. Recent earnings history shows consistent double‑digit revenue gains and improving margins. Investors may watch future reports for trends in pet enrollment mix, cash generation, and any changes signaled by ongoing insider and regulatory filings.

Key Terms

adjusted ebitda, free cash flow, credit facility, rule 10b5-1 trading plan, +3 more

7 terms

adjusted ebitda financial

"Adjusted EBITDA was $21.8 million, compared to adjusted EBITDA of $19.4 million..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

free cash flow financial

"Operating cash flow was $29.3 million and free cash flow was $25.3 million..."

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

credit facility financial

"with an additional $5.0 million available under its credit facility."

A credit facility is a flexible loan arrangement that allows a borrower to access funds up to a set limit whenever needed, similar to a company having an overdraft option on a bank account. It matters to investors because it indicates how easily a business can secure cash when required, affecting its ability to manage expenses, invest, or respond to financial challenges.

rule 10b5-1 trading plan regulatory

"transaction was carried out under a pre-arranged Rule 10b5-1 trading plan..."

A Rule 10b5-1 trading plan is a pre-arranged schedule that allows company insiders to buy or sell stock at specific times, even if they have inside information. It helps prevent accusations of unfair trading by making these transactions look planned and transparent, rather than sneaky or illegal.

restricted stock units (rsus) financial

"multiple restricted stock unit (RSU) awards converted into common stock..."

Restricted stock units (RSUs) are a type of company promise to give employees shares of stock in the future, usually after certain conditions like working for a set time. They are like a gift promised today that you receive later, which can become valuable if the company's stock price goes up. RSUs matter because they are a way companies reward employees and can be a significant part of compensation.

form 4 regulatory

"title": "[Form 4] TRUPANION, INC. Insider Trading Activity""

Form 4 is a official document that company insiders, such as executives or major shareholders, file with regulators whenever they buy or sell company shares. It provides transparency about how those with inside knowledge are trading, helping investors see if insiders are confident in the company's prospects or may be selling for personal reasons. This information can influence investor decisions by revealing insiders' perspectives on the company's value.

form 144 regulatory

"title": "[144] TRUPANION, INC. SEC Filing""

Form 144 is a document that investors must file with the government when they plan to sell a large number of shares of a company's stock. It helps ensure transparency so everyone knows how many shares are being sold and when, which can impact the stock's price.

AI-generated analysis. Not financial advice.

SEATTLE, Feb. 12, 2026 (GLOBE NEWSWIRE) -- Trupanion, Inc. (Nasdaq: TRUP), a leading provider of medical insurance for cats and dogs, today announced financial results for the fourth quarter and full year ended December 31, 2025.

“Since 2021, we’ve delivered more than $500 million in discretionary profit, growing at a 22% CAGR, including over $150 million last year alone,” said Margi Tooth, Chief Executive Officer and President of Trupanion. “In 2025, we achieved our 15% annual margin target, while increasing subscription revenue and reinvesting record profits to drive four straight quarters of higher retention and accelerating gross pet adds. We’re poised to advance confidently into our next strategic plan.”

Fourth Quarter 2025 Financial and Business Highlights

• Total revenue was $376.9 million, an increase of 12% compared to the fourth quarter of 2024.
• Total enrolled pets (including pets from our other business segment) was 1,647,565 at December 31, 2025, a decrease of 2% over December 31, 2024.
• Subscription business revenue was $261.4 million, an increase of 15% compared to the fourth quarter of 2024.
• Subscription enrolled pets was 1,096,173 at December 31, 2025, an increase of 5% over December 31, 2024.
• Net income was $5.6 million, or $0.13 per basic and diluted share, compared to a net income of $1.7 million, or $0.04 per basic and diluted share, in the fourth quarter of 2024.
• Adjusted EBITDA was $21.8 million, compared to adjusted EBITDA of $19.4 million in the fourth quarter of 2024.
• Operating cash flow was $29.3 million and free cash flow was $25.3 million in the fourth quarter of 2025. This compared to operating cash flow of $23.7 million and free cash flow of $21.8 million in the fourth quarter of 2024.
  

Full Year 2025 Financial and Business Highlights

• Total revenue was $1,439.3 million, an increase of 12% compared to 2024.
• Subscription business revenue was $989.3 million, an increase of 16% compared to 2024.
• Net income was $19.4 million, or $0.45 per basic and diluted share, compared to a net loss of $(9.6) million, or $(0.23) per basic and diluted share, in 2024. Net income included a realized gain of $7.8 million from the exchange of a preferred stock investment for intellectual property in 2025.
• Adjusted EBITDA was $70.1 million, compared to adjusted EBITDA of $46.1 million in 2024.
• Operating cash flow was $89.5 million and free cash flow was $75.4 million in 2025. This compared to operating cash flow of $48.3 million and free cash flow of $38.6 million in 2024.
• At December 31, 2025, the Company held $370.7 million in cash and short-term investments, including $50.0 million held outside the insurance entities, with an additional $5.0 million available under its credit facility.

Conference Call
Trupanion’s management will host a conference call today to review its fourth quarter and full year 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 1-844-676-1342 (United States) or 1-412-634-6683 (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: 10204830.

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 on eligible expenses 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 or ZPIC Insurance Company and, in Canada, by its wholly-owned insurance entity GPIC Insurance Company or by Accelerant Insurance Company of Canada. Policies are sold and administered in Canada by Canada Pet Health Insurance Services, Inc. dba Trupanion 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. 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 currency exchange rates; 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; 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, 2025 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 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 December 31,								Year Ended December 31,
		2025				2024				2025				2024
	(unaudited)
Revenue:
Subscription business	$	261,422			$	227,783			$	989,338			$	856,521
Other business		115,431				109,524				449,967				429,163
Total revenue		376,853				337,307				1,439,305				1,285,684
Cost of revenue:
Subscription business(1)		204,782				181,614				790,880				706,851
Other business		107,044				102,770				417,414				400,035
Total cost of revenue(1), (2)		311,826				284,384				1,208,294				1,106,886
Operating expenses:
Technology and development(1)		11,303				8,172				37,848				31,255
General and administrative(1)		18,323				16,828				76,648				63,731
Sales and marketing(1)		23,103				18,354				85,408				71,379
Goodwill impairment charges		1,129				5,299				1,129				5,299
Depreciation and amortization		4,032				3,924				15,836				16,466
Total operating expenses		57,890				52,577				216,869				188,130
Gain (loss) from investment in joint venture		—				2				(305	)			(182	)
Operating income (loss)		7,137				348				13,837				(9,514	)
Interest expense		4,076				3,427				13,759				14,498
Other (income), net		(3,232	)			(4,773	)			(21,916	)			(14,374	)
Income (loss) before income taxes		6,293				1,694				21,994				(9,638	)
Income tax expense (benefit)		663				38				2,561				(5	)
Net income (loss)	$	5,630			$	1,656			$	19,433			$	(9,633	)
Net income (loss) per share:
Basic	$	0.13			$	0.04			$	0.45			$	(0.23	)
Diluted	$	0.13			$	0.04			$	0.45			$	(0.23	)
Weighted average shares of common stock outstanding:
Basic		42,281,757				42,402,323				42,958,654				42,158,773
Diluted		43,572,375				42,903,536				43,555,884				42,158,773

(1)Includes stock-based compensation expense as follows:	Three Months Ended December 31,						Year Ended December 31,
	2025			2024			2025			2024
Veterinary invoice expense	$	620		$	677		$	2,841		$	3,460
Other cost of revenue		605			585			2,284			2,063
Technology and development		1,710			1,705			6,036			7,279
General and administrative		5,025			4,971			19,571			4,934
New pet acquisition expense		1,567			1,561			7,580			15,696
Total stock-based compensation expense	$	9,527		$	9,499		$	38,312		$	33,432
(2)The breakout of cost of revenue between veterinary invoice expense and other cost of revenue is as follows:
	Three Months Ended December 31,						Year Ended December 31,
	2025			2024			2025			2024
Veterinary invoice expense	$	262,818		$	245,663		$	1,028,975		$	949,148
Other cost of revenue		49,008			38,721			179,319			157,738
Total cost of revenue	$	311,826		$	284,384		$	1,208,294		$	1,106,886

Trupanion, Inc. Condensed Consolidated Balance Sheets (in thousands, except share data)
	December 31, 2025				December 31, 2024
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	138,024			$	160,295
Short-term investments		232,706				147,089
Accounts and other receivables, net of allowance for doubtful accounts of $1,311 at December 31, 2025 and $1,117 at December 31, 2024		301,945				274,031
Prepaid expenses and other assets		18,387				15,912
Total current assets		691,062				597,327
Restricted cash		33,434				39,235
Long-term investments		983				373
Property, equipment, and internal-use software, net		104,844				102,191
Other long-term assets		21,237				17,579
Intangible assets, net		24,102				13,177
Goodwill		39,382				36,971
Total assets	$	915,044			$	806,853
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	16,445			$	11,532
Accrued liabilities and other current liabilities		56,509				33,469
Reserve for veterinary invoices		55,921				51,635
Deferred revenue		270,935				251,640
Long-term debt - current portion		10,000				1,350
Total current liabilities		409,810				349,626
Long-term debt		101,784				127,537
Deferred tax liabilities		1,510				1,946
Other liabilities		18,004				4,476
Total liabilities		531,108				483,585
Stockholders’ equity:
Common stock: $0.00001 par value per share, 100,000,000 shares authorized; 44,430,267 and 43,402,081 shares issued and outstanding at December 31, 2025; 43,516,631 and 42,488,455 shares issued and outstanding at December 31, 2024		—				—
Preferred stock: $0.00001 par value per share, 10,000,000 shares authorized; no shares issued and outstanding		—				—
Additional paid-in capital		604,828				568,302
Accumulated other comprehensive income (loss)		2,097				(2,612	)
Accumulated deficit		(206,455	)			(225,888	)
Treasury stock, at cost: 1,028,186 shares at December 31, 2025 and 2024		(16,534	)			(16,534	)
Total stockholders’ equity		383,936				323,268
Total liabilities and stockholders’ equity	$	915,044			$	806,853

Trupanion, Inc. Condensed Consolidated Statements of Cash Flows (in thousands)
	Three Months Ended December 31,								Year Ended December 31,
		2025				2024				2025				2024
	(unaudited)
Operating activities
Net income (loss)	$	5,631			$	1,656			$	19,433			$	(9,633	)
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation and amortization		4,032				3,924				15,836				16,466
Stock-based compensation expense		9,527				8,294				38,312				33,432
Realized gain on nonmonetary exchange of preferred stock investment		—				—				(7,783	)			—
Goodwill impairment charges		1,129				5,299				1,129				5,299
Other, net		934				(1,294	)			2,097				(1,748	)
Changes in operating assets and liabilities:
Accounts and other receivables		715				15,303				(27,211	)			(6,717	)
Prepaid expenses and other assets		(626	)			817				(1,166	)			3,215
Accounts payable, accrued liabilities, and other liabilities		15,012				2,433				26,029				2,084
Reserve for veterinary invoices		1,898				(4,841	)			4,133				(11,310	)
Deferred revenue		(8,989	)			(7,890	)			18,679				17,199
Net cash provided by operating activities		29,263				23,701				89,488				48,287
Investing activities
Purchases of investment securities		(73,011	)			(26,118	)			(256,031	)			(133,493	)
Maturities and sales of investment securities		34,782				45,886				172,609				127,653
Purchases of property, equipment, and internal-use software		(3,923	)			(1,858	)			(14,129	)			(9,716	)
Other		26				548				1,664				2,099
Net cash provided by (used in) investing activities		(42,126	)			18,458				(95,887	)			(13,457	)
Financing activities
Proceeds from debt financing, net of financing fees		114,208				—				114,208				—
Repayment of debt financing		(118,725	)			(338	)			(134,438	)			(1,350	)
Proceeds from exercise of stock options		287				36				1,694				752
Shares withheld to satisfy tax withholding		(845	)			(1,142	)			(3,712	)			(2,519	)
Other		—				(230	)			(614	)			(840	)
Net cash used in financing activities		(5,075	)			(1,674	)			(22,862	)			(3,957	)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net		487				(1,826	)			1,189				(1,877	)
Net change in cash, cash equivalents, and restricted cash		(17,451	)			38,659				(28,072	)			28,996
Cash, cash equivalents, and restricted cash at beginning of period		188,909				160,871				199,530				170,464
Cash, cash equivalents, and restricted cash at end of period	$	171,458			$	199,530			$	171,458			$	199,530

The following tables set forth our key operating metrics.
	Year Ended December 31,
		2025				2024
Total Business:
Total pets enrolled (at period end)		1,647,565				1,677,570
Subscription Business:
Total subscription pets enrolled (at period end)		1,096,173				1,041,212
Monthly average revenue per pet	$	80.79			$	72.98
Average pet acquisition cost (PAC)	$	288			$	235
Average monthly retention		98.34	%			98.25	%
	Three Months Ended
	Dec. 31, 2025				Sept. 30, 2025				Jun. 30, 2025				Mar. 31, 2025				Dec. 31, 2024				Sept. 30, 2024				Jun. 30, 2024				Mar. 31, 2024
Total Business:
Total pets enrolled (at period end)		1,647,565				1,654,414				1,660,455				1,667,637				1,677,570				1,688,903				1,699,643				1,708,017
Subscription Business:
Total subscription pets enrolled (at period end)		1,096,173				1,082,412				1,066,354				1,052,845				1,041,212				1,032,042				1,020,934				1,006,168
Monthly average revenue per pet	$	83.56			$	82.01			$	79.93			$	77.53			$	76.02			$	74.27			$	71.72			$	69.79
Average pet acquisition cost (PAC)	$	320			$	290			$	276			$	267			$	261			$	243			$	231			$	207
Average monthly retention		98.34	%			98.33	%			98.29	%			98.28	%			98.25	%			98.29	%			98.34	%			98.41	%

The following table reflects the reconciliation of cash provided by operating activities to free cash flow (in thousands):
	Three Months Ended December 31,								Year Ended December 31,
		2025				2024				2025				2024
Net cash provided by operating activities	$	29,263			$	23,701			$	89,488			$	48,287
Purchases of property and equipment		(3,923	)			(1,858	)			(14,129	)			(9,716	)
Free cash flow	$	25,340			$	21,843			$	75,359			$	38,571

The following table reflects the reconciliation between GAAP and non-GAAP measures (in thousands except percentages):
		Three Months Ended December 31,								Year Ended December 31,
			2025				2024				2025				2024
Veterinary invoice expense		$	262,818			$	245,663			$	1,028,975			$	949,148
Less:
Stock-based compensation expense(1)			(614	)			(800	)			(2,802	)			(3,335	)
Other business cost of paying veterinary invoices(2)			(81,452	)			(85,378	)			(328,821	)			(324,720	)
Subscription cost of paying veterinary invoices (non-GAAP)		$	180,752			$	159,485			$	697,352			$	621,093
% of subscription revenue			69.1	%			70.0	%			70.5	%			72.5	%
Other cost of revenue		$	49,008			$	38,721			$	179,319			$	157,738
Less:
Stock-based compensation expense(1)			(600	)			(476	)			(2,260	)			(1,955	)
Other business variable expenses(2)			(25,589	)			(17,336	)			(88,558	)			(75,050	)
Subscription variable expenses (non-GAAP)		$	22,819			$	20,909			$	88,501			$	80,733
% of subscription revenue			8.7	%			9.2	%			8.9	%			9.4	%
Technology and development expense		$	11,303			$	8,172			$	37,848			$	31,255
General and administrative expense			18,323				16,828				76,648				63,731
Less:
Stock-based compensation expense(1)			(6,617	)			(5,277	)			(24,958	)			(19,742	)
Goodwill impairment charges
Development expenses(3)			(1,798	)			(1,322	)			(5,349	)			(5,624	)
Fixed expenses (non-GAAP)		$	21,211			$	18,401			$	84,189			$	69,620
% of total revenue			5.6	%			5.5	%			5.8	%			5.4	%
New pet acquisition expense		$	23,103			$	18,354			$	85,408			$	71,379
Less:
Stock-based compensation expense(1)			(1,530	)			(1,482	)			(7,446	)			(6,908	)
Other business pet acquisition expense(2)			(8	)			(8	)			(90	)			(39	)
Subscription acquisition cost (non-GAAP)		$	21,565			$	16,864			$	77,872			$	64,432
% of subscription revenue			8.2	%			7.4	%			7.9	%			7.5	%
(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 $0.2 million and $0.8 million for the three and twelve months ended December 31, 2025 and $0.3 million and $1.5 million for the three and twelve months ended December 31, 2024.
(2)Excludes the portion of stock-based compensation expense attributable to the other business segment.
(3)Consists of Costs related to product exploration and development that are pre-revenue and historically have been insignificant

The following table reflects the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages):
	Three Months Ended December 31,								Year Ended December 31,
		2025				2024				2025				2024
Operating income (loss)	$	7,137			$	348			$	13,837			$	(9,514	)
Non-GAAP expense adjustments
Acquisition cost		21,573				16,872				77,962				64,471
Stock-based compensation expense(1)		9,361				8,035				37,466				31,940
Development expenses(2)		1,798				1,322				5,349				5,624
Depreciation and amortization		4,032				3,924				15,836				16,466
Goodwill impairment charges		1,129				5,299				1,129				5,299
Gain (loss) from investment in joint venture		—				2				(305	)			(182	)
Total adjusted operating income (non-GAAP)	$	45,030			$	35,798			$	151,884			$	114,468
Subscription Business:
Subscription operating income (loss)	$	9,068			$	2,955			$	22,473			$	(1,118	)
Non-GAAP expense adjustments
Acquisition cost		21,656				16,864				77,872				64,432
Stock-based compensation expense(1)		7,330				6,263				29,580				24,985
Development expenses(2)		1,248				893				3,677				3,745
Depreciation and amortization		2,797				2,650				10,885				10,970
Goodwill impairment charges		1,129				5,299				1,129				5,299
Subscription adjusted operating income (non-GAAP)	$	43,137			$	34,964			$	145,616			$	108,313
Other Business:
Other business operating loss	$	(1,931	)		$	(2,649	)		$	(8,331	)		$	(8,214	)
Non-GAAP expense adjustments
Acquisition cost	$	8			$	8			$	90			$	39
Stock-based compensation expense(1)		2,031				1,772				7,886				6,955
Development expenses(2)		550				429				1,672				1,879
Depreciation and amortization		1,235				1,274				4,951				5,496
Other business adjusted operating income (non-GAAP)	$	1,893			$	834			$	6,268			$	6,155
(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 $0.2 million and $0.8 million for the three and twelve months ended December 31, 2025 and $0.3 million and $1.5 million for the three and twelve months ended December 31, 2024.
(2)Consists of costs related to product exploration and development that are pre-revenue and historically have been insignificant.

The following table reflects the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages):
	Three Months Ended December 31,								Year Ended December 31,
		2025				2024				2025				2024
Subscription revenue	$	261,422			$	227,783			$	989,338			$	856,521
Subscription cost of paying veterinary invoices		180,752				159,485				697,352				621,093
Subscription variable expenses		22,819				20,909				88,501				80,733
Subscription fixed expenses*		14,714				12,425				57,869				46,382
Subscription adjusted operating income (non-GAAP)	$	43,137			$	34,964			$	145,616			$	108,313
Other business revenue		115,431				109,524				449,967				429,163
Other business cost of paying veterinary invoices		81,452				85,378				328,821				324,720
Other business variable expenses		25,589				17,336				88,558				75,050
Other business fixed expenses*		6,497				5,976				26,320				23,238
Other business adjusted operating income (non-GAAP)	$	1,893			$	834			$	6,268			$	6,155
Revenue		376,853				337,307				1,439,305				1,285,684
Cost of paying veterinary invoices		262,204				244,863				1,026,173				945,813
Variable expenses		48,408				38,245				177,059				155,783
Fixed expenses*		21,211				18,401				84,189				69,620
Total business adjusted operating income (non-GAAP)	$	45,030			$	35,798			$	151,884			$	114,468
As a percentage of revenue:	Three Months Ended December 31,								Year Ended December 31,
		2025				2024				2025				2024
Subscription revenue		100.0	%			100.0	%			100.0	%			100.0	%
Subscription cost of paying veterinary invoices		69.1	%			70.0	%			70.5	%			72.5	%
Subscription variable expenses		8.7	%			9.2	%			8.9	%			9.4	%
Subscription fixed expenses*		5.6	%			5.5	%			5.8	%			5.4	%
Subscription adjusted operating income (non-GAAP)		16.5	%			15.3	%			14.7	%			12.6	%
Other business revenue		100.0	%			100.0	%			100.0	%			100.0	%
Other business cost of paying veterinary invoices		70.6	%			78.0	%			73.1	%			75.7	%
Other business variable expenses		22.2	%			15.8	%			19.7	%			17.5	%
Other business fixed expenses*		5.6	%			5.5	%			5.8	%			5.4	%
Other business adjusted operating income (non-GAAP)		1.6	%			0.8	%			1.4	%			1.4	%
Revenue		100.0	%			100.0	%			100.0	%			100.0	%
Cost of paying veterinary invoices		69.6	%			72.6	%			71.3	%			73.6	%
Variable expenses		12.8	%			11.3	%			12.3	%			12.1	%
Fixed expenses*		5.6	%			5.5	%			5.8	%			5.4	%
Total business adjusted operating income (non-GAAP)		11.9	%			10.6	%			10.6	%			8.9	%
*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 goodwill impairment charges, 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 income (loss) (in thousands):
	Year Ended December 31,
		2025				2024
Net Income (loss)	$	19,433			$	(9,633	)
Excluding:
Stock-based compensation expense		37,466				31,942
Depreciation and amortization expense		15,836				16,466
Interest income		(12,256	)			(12,410	)
Interest expense		13,759				14,497
Income tax (benefit) expense		2,561				(5	)
Goodwill impairment charges		1,129				5,299
Loss from equity method investment		—				(33	)
Realized gain on nonmonetary exchange of preferred stock investment		(7,783	)			—
Adjusted EBITDA	$	70,145			$	46,123
	Three Months Ended
	Dec. 31, 2025				Sep. 30, 2025				Jun. 30, 2025				Mar. 31, 2025				Dec. 31, 2024				Sep. 30, 2024				Jun. 30, 2024				Mar. 31, 2024
Net Income (loss)	$	5,630			$	5,873			$	9,413			$	(1,483	)		$	1,656			$	1,425			$	(5,862	)		$	(6,852	)
Excluding:
Stock-based compensation expense		9,361				9,323				9,268				9,514				8,036				8,127				8,381				7,398
Depreciation and amortization expense		4,032				4,051				3,962				3,791				3,924				4,381				4,376				3,785
Interest income		(3,115	)			(3,201	)			(3,105	)			(2,835	)			(2,999	)			(3,232	)			(3,135	)			(3,045	)
Interest expense		4,076				2,790				3,682				3,211				3,427				3,820				3,655				3,596
Income tax (benefit) expense		663				726				1,133				39				38				39				(44	)			(38	)
Goodwill impairment charges		1,129				—				—				—				5,299				—				—				—
Loss from equity method investment		—				—				—				—				—				(33	)			—				—
Realized gain on nonmonetary exchange of preferred stock investment		—				—				(7,783	)			—				—				—				—				—
Adjusted EBITDA	$	21,776			$	19,562			$	16,570			$	12,237			$	19,381			$	14,527			$	7,371			$	4,844

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/a6270400-98f1-4da0-bcee-83acff4f8020

FAQ

What were Trupanion (TRUP) fourth-quarter 2025 revenues and growth?

Trupanion reported Q4 2025 revenue of $376.9 million, up 12% year-over-year. According to the company, subscription business revenue grew 15% in Q4, supporting overall top-line expansion and improved adjusted EBITDA versus prior-year quarter.

How did Trupanion (TRUP) perform for full-year 2025 on profit and cash flow?

Trupanion posted net income of $19.4 million and operating cash flow of $89.5 million for 2025. According to the company, free cash flow reached $75.4 million and adjusted EBITDA improved to $70.1 million year-over-year.

What happened to Trupanion's enrolled pets and subscription growth in 2025 (TRUP)?

Total enrolled pets declined 2% to 1,647,565, while subscription enrolled pets rose 5% to 1,096,173 at year-end. According to the company, subscription revenue increased 16% in 2025, indicating stronger revenue per subscriber dynamics.

Did Trupanion (TRUP) meet its margin target in 2025 and what does that imply?

Trupanion achieved its 15% annual margin target in 2025, signaling improved profitability discipline. According to the company, this came alongside reinvestment of record discretionary profit and four quarters of higher retention.

What liquidity and balance-sheet resources did Trupanion (TRUP) report at Dec 31, 2025?

Trupanion held $370.7 million in cash and short-term investments at year-end, with $50.0 million outside insurance entities. According to the company, an additional $5.0 million was available under its credit facility for liquidity flexibility.