Trupanion Q3 2026 revenue rises 11% to $406M
At September 30, 2026, cash and short-term investments were $396.8 million; after a $15.0 million October repayment, facility capacity was $18.5 million.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Trupanion, Inc. reported third-quarter 2026 revenue of $405.6 million, up 11% from $366.9 million a year earlier. Subscription revenue was $287.9 million, up 14%. Net income was $9.3 million, versus $5.9 million, and adjusted EBITDA was $20.8 million, versus $19.6 million. Operating cash flow was $30.7 million and free cash flow was $28.5 million, compared with $29.2 million and $23.9 million, respectively.
For the first nine months of 2026, revenue was $1,182.6 million, up 11%; net income was $21.0 million versus $13.8 million, and adjusted EBITDA was $57.9 million versus $48.4 million. Subscription pets enrolled totaled 1,145,160 at September 30, 2026, up 6% year over year, while total enrolled pets were 1,626,901, down 2%.
Trupanion repurchased approximately 0.8 million shares for approximately $25.0 million during the quarter; approximately $75.0 million remained available under its $100.0 million repurchase authorization as of September 30, 2026. It held $396.8 million in cash and short-term investments at quarter-end. After a $15.0 million October repayment on its PNC revolving credit facility, available facility capacity was $18.5 million.
3 points · 0 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter revenue increased 11% to $405.6 million.
- Moderate pointNet income was $9.3 million, compared with $5.9 million.
- Moderate pointAdjusted EBITDA was $20.8 million, versus $19.6 million.
Negative
- None.
Filing Explained
As of
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Total revenue: $405.6 million
Net income: $9.3 million
Adjusted EBITDA: $20.8 million
+3 more
6 metrics
Total revenue
$405.6 million
Third quarter 2026; up 11% from the third quarter of 2025
Net income
$9.3 million
Third quarter 2026; $5.9 million in the third quarter of 2025
Adjusted EBITDA
$20.8 million
Third quarter 2026; $19.6 million in the third quarter of 2025
Operating cash flow
$30.7 million
Third quarter 2026; $29.2 million in the third quarter of 2025
Free cash flow
$28.5 million
Third quarter 2026; $23.9 million in the third quarter of 2025
Common stock repurchases
Approximately $25.0 million
Third quarter 2026; approximately 0.8 million shares repurchased
Key Terms
Adjusted EBITDA, Free cash flow, Average pet acquisition cost (PAC), Average monthly retention, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA was $20.8 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
"free cash flow was $28.5 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.
Average pet acquisition cost (PAC) financial
"Average pet acquisition cost (PAC)"
Average monthly retention financial
"Average monthly retention"
non-GAAP financial measures financial
"include certain non-GAAP financial measures"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Total revenue: $405.6 million
Third quarter ended September 30, 2026
Total revenue
$405.6 million
Up 11% compared with the third quarter of 2025
Subscription business revenue
$287.9 million
Up 14% compared with the third quarter of 2025
Net income
$9.3 million
Compared with $5.9 million in the third quarter of 2025
Adjusted EBITDA
$20.8 million
Compared with $19.6 million in the third quarter of 2025
Operating cash flow
$30.7 million
Compared with $29.2 million in the third quarter of 2025
Free cash flow
$28.5 million
Compared with $23.9 million in the third quarter of 2025
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did TRUP report in Q3 2026?
TRUP reported $405.6 million of total revenue in the third quarter of 2026, up 11% from $366.9 million in the third quarter of 2025. Subscription business revenue was $287.9 million, up 14% from the prior-year quarter.
What were TRUP's Q3 2026 net income and adjusted EBITDA?
Net income was $9.3 million, compared with $5.9 million in the third quarter of 2025. Adjusted EBITDA was $20.8 million, compared with $19.6 million in the prior-year quarter.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 5, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including zip code)
(855 ) 727 - 9079
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 5, 2026, the Company issued a press release regarding the Company's financial results for the quarter ended September 30, 2026. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
| (d) | Exhibits | |||||||
| Exhibit No. | Description | |||||||
99.1 | Press release regarding financial results issued by Trupanion, Inc. dated November 5, 2026 | |||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
TRUPANION, INC. | |||||
By: | /s/ Fawwad Qureshi | ||||
Name: Fawwad Qureshi | |||||
Title: Chief Financial Officer | |||||
Date: November 5, 2026
Exhibit 99.1
Trupanion Reports Third Quarter 2026 Results
SEATTLE, WA. November 5, 2026 -- Trupanion, Inc. (Nasdaq: TRUP), a leading provider of medical insurance for cats and dogs, today announced financial results for the third quarter ended September 30, 2026.
“Our third-quarter results were strong, with record cash flow and increased profitability, the seventh consecutive quarter of improvement in retention, and continued progress on our key strategic initiatives,” said Margi Tooth, Chief Executive Officer and President of Trupanion. “As our business continues to compound, we are investing with discipline in organic growth, and this quarter we also repurchased approximately $25 million of our stock. Both reflect our confidence in the long-term value we are building for pet parents and shareholders.”
Third Quarter 2026 Financial and Business Highlights
•Total revenue was $405.6 million, an increase of 11% compared to the third quarter of 2025.
•Subscription business revenue was $287.9 million, an increase of 14% compared to the third quarter of 2025.
•Subscription enrolled pets was 1,145,160 at September 30, 2026, an increase of 6% over September 30, 2025.
•Total enrolled pets (including pets from our other business segment) was 1,626,901 at September 30, 2026, a decrease of 2% over September 30, 2025.
•Net income was $9.3 million, or $0.21 per basic and diluted share, compared to net income of $5.9 million, or $0.14 per basic and $0.13 per diluted share, in the third quarter of 2025.
•Adjusted EBITDA was $20.8 million, compared to adjusted EBITDA of $19.6 million in the third quarter of 2025.
•Operating cash flow was $30.7 million and free cash flow was $28.5 million in the third quarter of 2026. This compared to operating cash flow of $29.2 million and free cash flow of $23.9 million in the third quarter of 2025.
First Nine Months 2026 Financial and Business Highlights
•Total revenue was $1,182.6 million, an increase of 11% compared to the first nine months of 2025.
•Subscription business revenue was $834.0 million, an increase of 15% compared to the first nine months of 2025.
•Net income was $21.0 million, or $0.48 per basic and diluted share, compared to net income of $13.8 million, or $0.32 per basic and diluted share, in the first nine months of 2025.
•Adjusted EBITDA was $57.9 million, compared to adjusted EBITDA of $48.4 million in the first nine months of 2025.
•Operating cash flow was $66.3 million and free cash flow was $61.4 million in the first nine months of 2026. This compared to operating cash flow of $60.2 million and free cash flow of $50.0 million in the first nine months of 2025.
•At September 30, 2026, the Company held $396.8 million in cash and short-term investments with an additional $3.5 million available under its credit facility. Following the $15.0 million repayment on the PNC revolving credit facility in October 2026, available capacity under its facility is $18.5 million.
Share Repurchase Program
In June, the Board authorized a share repurchase program, pursuant to which the Company may repurchase up to an aggregate of $100.0 million of its outstanding shares of common stock, with no expiration date. The Company is not obligated to repurchase any specific number or dollar amount of shares, and the timing and actual number of shares repurchased will depend on a variety of factors, including the Company’s compliance with the PNC credit facility, available cash, cash flow from operations, stock price, general economic, business and market conditions, and alternative investment opportunities.
During the third quarter of 2026, the Company repurchased approximately 0.8 million shares of TRUP common stock at an aggregate cost of approximately $25.0 million. As of September 30, 2026, approximately $75.0 million remained available for repurchases under the Company's share repurchase program.
1
Conference Call
Trupanion’s management will host a conference call today to review its third quarter 2026 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: 10211762.
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 1,100,000 pets currently enrolled. For 26 years, 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. 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, repurchase shares of its common stock, 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; developments relating to our writing of policies for unaffiliated third parties, including Pets Best; the extent to which we consummate our share repurchase plan and related impacts; 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.
2
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.
3
| Trupanion, Inc. Condensed Consolidated Statements of Operations (in thousands, except share data) | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Subscription business | $ | 287,900 | $ | 252,697 | $ | 834,043 | $ | 727,917 | |||||||||||||||
| Other business | 117,693 | 114,223 | 348,533 | 334,535 | |||||||||||||||||||
| Total revenue | 405,593 | 366,920 | 1,182,576 | 1,062,452 | |||||||||||||||||||
| Cost of revenue: | |||||||||||||||||||||||
| Subscription business | 226,872 | 200,766 | 663,578 | 586,098 | |||||||||||||||||||
| Other business | 109,221 | 106,100 | 322,876 | 310,370 | |||||||||||||||||||
Total cost of revenue(1), (2) | 336,093 | 306,866 | 986,454 | 896,468 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
Technology and development(1) | 12,511 | 9,887 | 36,559 | 26,545 | |||||||||||||||||||
General and administrative(1) | 19,440 | 18,311 | 58,067 | 58,325 | |||||||||||||||||||
New pet acquisition expense(1) | 24,179 | 21,946 | 69,595 | 62,305 | |||||||||||||||||||
| Depreciation and amortization | 3,827 | 4,051 | 11,206 | 11,804 | |||||||||||||||||||
| Total operating expenses | 59,957 | 54,195 | 175,427 | 158,979 | |||||||||||||||||||
| Loss from investment in joint venture | — | — | — | (305) | |||||||||||||||||||
| Operating income | 9,543 | 5,859 | 20,695 | 6,700 | |||||||||||||||||||
| Interest expense | 1,816 | 2,790 | 5,523 | 9,683 | |||||||||||||||||||
| Other (income), net | (2,519) | (3,530) | (8,403) | (18,684) | |||||||||||||||||||
| Income before income taxes | 10,246 | 6,599 | 23,575 | 15,701 | |||||||||||||||||||
| Income tax expense | 964 | 726 | 2,582 | 1,898 | |||||||||||||||||||
| Net income | $ | 9,282 | $ | 5,873 | $ | 20,993 | $ | 13,803 | |||||||||||||||
| Net income per share: | |||||||||||||||||||||||
| Basic | $ | 0.21 | $ | 0.14 | $ | 0.48 | $ | 0.32 | |||||||||||||||
| Diluted | $ | 0.21 | $ | 0.13 | $ | 0.48 | $ | 0.32 | |||||||||||||||
| Weighted average shares of common stock outstanding: | |||||||||||||||||||||||
| Basic | 43,598,972 | 43,076,695 | 43,612,058 | 42,849,769 | |||||||||||||||||||
| Diluted | 43,764,651 | 43,562,132 | 43,756,121 | 43,550,326 | |||||||||||||||||||
(1)Includes stock-based compensation expense as follows: | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Veterinary invoice expense | $ | 497 | $ | 677 | $ | 1,562 | $ | 2,221 | |||||||||||||||
| Other cost of revenue | 601 | 585 | 1,790 | 1,679 | |||||||||||||||||||
| Technology and development | 1,216 | 1,705 | 5,588 | 4,326 | |||||||||||||||||||
| General and administrative | 4,849 | 4,971 | 14,480 | 14,546 | |||||||||||||||||||
| New pet acquisition expense | 889 | 1,561 | 3,601 | 6,013 | |||||||||||||||||||
| Total stock-based compensation expense | $ | 8,052 | $ | 9,499 | $ | 27,021 | $ | 28,785 | |||||||||||||||
(2)The breakout of cost of revenue between veterinary invoice expense and other cost of revenue is as follows: | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Veterinary invoice expense | $ | 287,458 | $ | 263,127 | $ | 848,362 | $ | 766,157 | |||||||||||||||
| Other cost of revenue | 48,635 | 43,739 | 138,092 | 130,311 | |||||||||||||||||||
| Total cost of revenue | $ | 336,093 | $ | 306,866 | $ | 986,454 | $ | 896,468 | |||||||||||||||
4
| Trupanion, Inc. Condensed Consolidated Balance Sheets (in thousands, except share data) | |||||||||||
| September 30, 2026 | December 31, 2025 | ||||||||||
| (unaudited) | |||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 170,355 | $ | 138,024 | |||||||
| Short-term investments | 226,482 | 232,706 | |||||||||
Accounts and other receivables, net of allowance for credit losses of $2,667 at September 30, 2026 and $1,311 at December 31, 2025 | 296,587 | 301,945 | |||||||||
| Prepaid expenses and other assets | 20,227 | 18,387 | |||||||||
| Total current assets | 713,651 | 691,062 | |||||||||
| Restricted cash | 29,153 | 33,434 | |||||||||
| Long-term investments | 174 | 983 | |||||||||
| Property, equipment, and internal-use software, net | 100,633 | 104,844 | |||||||||
| Intangible assets, net | 22,793 | 24,102 | |||||||||
| Other long-term assets | 16,648 | 21,237 | |||||||||
| Goodwill | 38,567 | 39,382 | |||||||||
| Total assets | $ | 921,619 | $ | 915,044 | |||||||
| Liabilities and stockholders’ equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 15,730 | $ | 16,445 | |||||||
| Accrued liabilities and other current liabilities | 46,924 | 56,509 | |||||||||
| Reserve for veterinary invoices | 47,228 | 55,921 | |||||||||
| Deferred revenue | 290,155 | 270,935 | |||||||||
| Long-term debt - current portion | 10,000 | 10,000 | |||||||||
| Total current liabilities | 410,037 | 409,810 | |||||||||
| Long-term debt | 94,472 | 101,784 | |||||||||
| Deferred tax liabilities | 156 | 1,510 | |||||||||
| Other liabilities | 17,751 | 18,004 | |||||||||
| Total liabilities | 522,416 | 531,108 | |||||||||
| Stockholders’ equity: | |||||||||||
Common stock: $0.00001 par value per share, 100,000,000 shares authorized; 45,123,043 and 43,264,468 shares issued and outstanding at September 30, 2026; 44,430,267 and 43,402,081 shares issued and outstanding at December 31, 2025 | — | — | |||||||||
| Preferred stock: $0.00001 par value per share, 10,000,000 shares authorized; no shares issued and outstanding | — | — | |||||||||
| Additional paid-in capital | 631,113 | 604,828 | |||||||||
| Accumulated other comprehensive income (loss) | (4,845) | 2,097 | |||||||||
| Accumulated deficit | (185,462) | (206,455) | |||||||||
Treasury stock, at cost: 1,858,575 shares at September 30, 2026 and 1,028,186 shares at December 31, 2025 | (41,603) | (16,534) | |||||||||
| Total stockholders’ equity | 399,203 | 383,936 | |||||||||
| Total liabilities and stockholders’ equity | $ | 921,619 | $ | 915,044 | |||||||
5
| Trupanion, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| Operating activities | |||||||||||||||||||||||
| Net income | $ | 9,282 | $ | 5,873 | $ | 20,993 | $ | 13,803 | |||||||||||||||
| Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||||||||||||||
| Depreciation and amortization | 3,827 | 4,051 | 11,206 | 11,804 | |||||||||||||||||||
| Stock-based compensation expense | 8,052 | 9,499 | 27,021 | 28,785 | |||||||||||||||||||
| Realized gain on nonmonetary exchange of preferred stock investment | — | — | — | (7,783) | |||||||||||||||||||
| Other, net | 240 | 215 | (138) | 1,164 | |||||||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||||||||
| Accounts and other receivables | 5,524 | (9,912) | 4,897 | (27,927) | |||||||||||||||||||
| Prepaid expenses and other assets | (1,275) | 44 | 1,321 | (540) | |||||||||||||||||||
| Accounts payable, accrued liabilities, and other liabilities | 6,512 | 10,026 | (10,283) | 11,017 | |||||||||||||||||||
| Reserve for veterinary invoices | (4,485) | 1,538 | (8,533) | 2,235 | |||||||||||||||||||
| Deferred revenue | 3,034 | 7,904 | 19,806 | 27,668 | |||||||||||||||||||
| Net cash provided by operating activities | 30,711 | 29,238 | 66,290 | 60,226 | |||||||||||||||||||
| Investing activities | |||||||||||||||||||||||
| Purchases of investment securities | (35,472) | (41,020) | (155,449) | (183,021) | |||||||||||||||||||
| Maturities and sales of investment securities | 56,421 | 43,563 | 156,657 | 137,827 | |||||||||||||||||||
| Purchases of property, equipment, and internal-use software | (2,247) | (5,302) | (4,919) | (10,206) | |||||||||||||||||||
| Other | (64) | 437 | (81) | 1,639 | |||||||||||||||||||
| Net cash provided by (used in) investing activities | 18,638 | (2,322) | (3,792) | (53,761) | |||||||||||||||||||
| Financing activities | |||||||||||||||||||||||
| Repayment of debt financing | (2,500) | (188) | (7,500) | (15,713) | |||||||||||||||||||
| Repurchases of common stock | (25,000) | — | (25,000) | — | |||||||||||||||||||
| Proceeds from exercise of stock options | 120 | 80 | 788 | 1,407 | |||||||||||||||||||
| Shares withheld to satisfy tax withholding | (677) | (1,179) | (1,653) | (2,867) | |||||||||||||||||||
| Other | — | (154) | — | (614) | |||||||||||||||||||
| Net cash used in financing activities | (28,057) | (1,441) | (33,365) | (17,787) | |||||||||||||||||||
| Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net | (83) | (1,037) | (1,083) | 701 | |||||||||||||||||||
| Net change in cash, cash equivalents, and restricted cash | 21,209 | 24,438 | 28,050 | (10,621) | |||||||||||||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 178,299 | 164,471 | 171,458 | 199,530 | |||||||||||||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 199,508 | $ | 188,909 | $ | 199,508 | $ | 188,909 | |||||||||||||||
6
| The following tables set forth our key operating metrics. | |||||||||||||||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total Business: | |||||||||||||||||||||||||||||||||||||||||||||||
| Total pets enrolled (at period end) | 1,626,901 | 1,654,414 | |||||||||||||||||||||||||||||||||||||||||||||
| Subscription Business: | |||||||||||||||||||||||||||||||||||||||||||||||
| Total subscription pets enrolled (at period end) | 1,145,160 | 1,082,412 | |||||||||||||||||||||||||||||||||||||||||||||
| Monthly average revenue per pet | $ | 87.41 | $ | 79.84 | |||||||||||||||||||||||||||||||||||||||||||
| Average pet acquisition cost (PAC) | $ | 297 | $ | 278 | |||||||||||||||||||||||||||||||||||||||||||
| Average monthly retention | 98.38 | % | 98.33 | % | |||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
| Sep. 30, 2026 | Jun. 30, 2026 | Mar. 31, 2026 | Dec. 31, 2025 | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||
| Total Business: | |||||||||||||||||||||||||||||||||||||||||||||||
| Total pets enrolled (at period end) | 1,626,901 | 1,633,131 | 1,637,665 | 1,647,565 | 1,654,414 | 1,660,455 | 1,667,637 | 1,677,570 | |||||||||||||||||||||||||||||||||||||||
| Subscription Business: | |||||||||||||||||||||||||||||||||||||||||||||||
| Total subscription pets enrolled (at period end) | 1,145,160 | 1,124,548 | 1,105,783 | 1,096,173 | 1,082,412 | 1,066,354 | 1,052,845 | 1,041,212 | |||||||||||||||||||||||||||||||||||||||
| Monthly average revenue per pet | $ | 88.95 | $ | 87.44 | $ | 85.79 | $ | 83.56 | $ | 82.01 | $ | 79.93 | $ | 77.53 | $ | 76.02 | |||||||||||||||||||||||||||||||
| Average pet acquisition cost (PAC) | $ | 279 | $ | 299 | $ | 315 | $ | 320 | $ | 290 | $ | 276 | $ | 267 | $ | 261 | |||||||||||||||||||||||||||||||
| Average monthly retention | 98.38 | % | 98.37 | % | 98.35 | % | 98.34 | % | 98.33 | % | 98.29 | % | 98.28 | % | 98.25 | % | |||||||||||||||||||||||||||||||
| The following table reflects the reconciliation of cash provided by operating activities to free cash flow (in thousands): | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net cash provided by operating activities | $ | 30,711 | $ | 29,238 | $ | 66,290 | $ | 60,226 | |||||||||||||||
| Purchases of property, equipment, and internal-use software | (2,247) | (5,302) | (4,919) | (10,206) | |||||||||||||||||||
| Free cash flow | $ | 28,464 | $ | 23,936 | $ | 61,371 | $ | 50,020 | |||||||||||||||
7
| The following table reflects the reconciliation between GAAP and non-GAAP measures (in thousands, except percentages): | ||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Veterinary invoice expense | $ | 287,458 | $ | 263,127 | $ | 848,362 | $ | 766,157 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
Stock-based compensation expense(1) | (483) | (666) | (1,531) | (2,188) | ||||||||||||||||||||||
Other business cost of paying veterinary invoices(2) | (86,369) | (85,394) | (261,056) | (247,369) | ||||||||||||||||||||||
| Subscription cost of paying veterinary invoices (non-GAAP) | $ | 200,606 | $ | 177,067 | $ | 585,775 | $ | 516,600 | ||||||||||||||||||
| % of subscription revenue | 69.7 | % | 70.1 | % | 70.2 | % | 71.0 | % | ||||||||||||||||||
| Other cost of revenue | $ | 48,635 | $ | 43,739 | $ | 138,092 | $ | 130,311 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
Stock-based compensation expense(1) | (596) | (579) | (1,774) | (1,661) | ||||||||||||||||||||||
Other business variable expenses(2) | (22,850) | (20,702) | (61,814) | (62,969) | ||||||||||||||||||||||
| Subscription variable expenses (non-GAAP) | $ | 25,189 | $ | 22,458 | $ | 74,504 | $ | 65,681 | ||||||||||||||||||
| % of subscription revenue | 8.7 | % | 8.9 | % | 9.0 | % | 9.0 | % | ||||||||||||||||||
| Technology and development expense | $ | 12,511 | $ | 9,887 | $ | 36,559 | $ | 26,545 | ||||||||||||||||||
| General and administrative expense | 19,440 | 18,311 | 58,067 | 58,325 | ||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
Stock-based compensation expense(1) | (5,955) | (6,551) | (19,775) | (18,340) | ||||||||||||||||||||||
Development expenses(3) | (2,427) | (1,199) | (5,928) | (3,551) | ||||||||||||||||||||||
| Fixed expenses (non-GAAP) | $ | 23,569 | $ | 20,448 | $ | 68,923 | $ | 62,979 | ||||||||||||||||||
| % of total revenue | 5.8 | % | 5.6 | % | 5.9 | % | 5.9 | % | ||||||||||||||||||
| New pet acquisition expense | $ | 24,179 | $ | 21,946 | $ | 69,595 | $ | 62,305 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
Stock-based compensation expense(1) | (850) | (1,527) | (3,502) | (5,916) | ||||||||||||||||||||||
Other business pet acquisition expense(2) | (3) | (5) | (44) | (82) | ||||||||||||||||||||||
| Subscription acquisition cost (non-GAAP) | $ | 23,326 | $ | 20,414 | $ | 66,049 | $ | 56,307 | ||||||||||||||||||
| % of subscription revenue | 8.1 | % | 8.1 | % | 7.9 | % | 7.7 | % | ||||||||||||||||||
(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 $0.2 million and $0.4 million for the three and nine months ended September 30, 2026, respectively. (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. | ||||||||||||||||||||||||||
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| The following table reflects the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages): | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Operating income | $ | 9,543 | $ | 5,859 | $ | 20,695 | $ | 6,700 | |||||||||||||||
| Non-GAAP expense adjustments | |||||||||||||||||||||||
| Acquisition cost | 23,329 | 20,419 | 66,093 | 56,389 | |||||||||||||||||||
Stock-based compensation expense(1) | 7,884 | 9,323 | 26,582 | 28,105 | |||||||||||||||||||
Development expenses(2) | 2,427 | 1,199 | 5,928 | 3,551 | |||||||||||||||||||
| Depreciation and amortization | 3,827 | 4,051 | 11,206 | 11,804 | |||||||||||||||||||
| Loss from investment in joint venture | — | — | — | (305) | |||||||||||||||||||
| Total adjusted operating income (non-GAAP) | $ | 47,010 | $ | 40,851 | $ | 130,504 | $ | 106,854 | |||||||||||||||
| Subscription Business: | |||||||||||||||||||||||
| Subscription operating income | $ | 11,456 | $ | 7,826 | $ | 26,276 | $ | 13,410 | |||||||||||||||
| Non-GAAP expense adjustments | |||||||||||||||||||||||
| Acquisition cost | 23,326 | 20,414 | 66,049 | 56,307 | |||||||||||||||||||
Stock-based compensation expense(1) | 6,154 | 7,234 | 20,746 | 22,250 | |||||||||||||||||||
Development expenses(2) | 1,723 | 826 | 4,181 | 2,433 | |||||||||||||||||||
| Depreciation and amortization | 2,716 | 2,790 | 7,903 | 8,087 | |||||||||||||||||||
| Subscription adjusted operating income (non-GAAP) | $ | 45,375 | $ | 39,090 | $ | 125,155 | $ | 102,487 | |||||||||||||||
| Other Business: | |||||||||||||||||||||||
| Other business operating loss | $ | (1,913) | $ | (1,967) | $ | (5,581) | $ | (6,405) | |||||||||||||||
| Non-GAAP expense adjustments | |||||||||||||||||||||||
| Acquisition cost | 3 | 5 | 44 | 82 | |||||||||||||||||||
Stock-based compensation expense(1) | 1,730 | 2,089 | 5,836 | 5,855 | |||||||||||||||||||
Development expenses(2) | 704 | 373 | 1,747 | 1,118 | |||||||||||||||||||
| Depreciation and amortization | 1,111 | 1,261 | 3,303 | 3,717 | |||||||||||||||||||
| Other business adjusted operating income (non-GAAP) | $ | 1,635 | $ | 1,761 | $ | 5,349 | $ | 4,367 | |||||||||||||||
(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 $0.4 million for the three and nine months ended September 30, 2026, respectively. | |||||||||||||||||||||||
(2) Consists of costs related to product exploration and development that are pre-revenue and historically have been insignificant. | |||||||||||||||||||||||
9
| The following table reflects the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages): | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Subscription revenue | $ | 287,900 | $ | 252,697 | $ | 834,043 | $ | 727,917 | |||||||||||||||
| Subscription cost of paying veterinary invoices | 200,606 | 177,067 | 585,775 | 516,600 | |||||||||||||||||||
| Subscription variable expenses | 25,189 | 22,458 | 74,504 | 65,681 | |||||||||||||||||||
| Subscription fixed expenses* | 16,730 | 14,082 | 48,609 | 43,149 | |||||||||||||||||||
| Subscription adjusted operating income (non-GAAP) | $ | 45,375 | $ | 39,090 | $ | 125,155 | $ | 102,487 | |||||||||||||||
| Other business revenue | $ | 117,693 | $ | 114,223 | $ | 348,533 | $ | 334,535 | |||||||||||||||
| Other business cost of paying veterinary invoices | 86,369 | 85,394 | 261,056 | 247,369 | |||||||||||||||||||
| Other business variable expenses | 22,850 | 20,702 | 61,814 | 62,969 | |||||||||||||||||||
| Other business fixed expenses* | 6,839 | 6,366 | 20,314 | 19,830 | |||||||||||||||||||
| Other business adjusted operating income (non-GAAP) | $ | 1,635 | $ | 1,761 | $ | 5,349 | $ | 4,367 | |||||||||||||||
| Revenue | $ | 405,593 | $ | 366,920 | $ | 1,182,576 | $ | 1,062,452 | |||||||||||||||
| Cost of paying veterinary invoices | 286,975 | 262,461 | 846,831 | 763,969 | |||||||||||||||||||
| Variable expenses | 48,039 | 43,160 | 136,318 | 128,650 | |||||||||||||||||||
| Fixed expenses* | 23,569 | 20,448 | 68,923 | 62,979 | |||||||||||||||||||
| Total business adjusted operating income (non-GAAP) | $ | 47,010 | $ | 40,851 | $ | 130,504 | $ | 106,854 | |||||||||||||||
| As a percentage of revenue: | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Subscription revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
| Subscription cost of paying veterinary invoices | 69.7 | % | 70.1 | % | 70.2 | % | 71.0 | % | |||||||||||||||
| Subscription variable expenses | 8.7 | % | 8.9 | % | 9.0 | % | 9.0 | % | |||||||||||||||
| Subscription fixed expenses* | 5.8 | % | 5.6 | % | 5.8 | % | 5.9 | % | |||||||||||||||
| Subscription adjusted operating income (non-GAAP) | 15.8 | % | 15.5 | % | 15.0 | % | 14.1 | % | |||||||||||||||
| Other business revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
| Other business cost of paying veterinary invoices | 73.4 | % | 74.8 | % | 75.0 | % | 73.9 | % | |||||||||||||||
| Other business variable expenses | 19.4 | % | 18.1 | % | 17.7 | % | 18.8 | % | |||||||||||||||
| Other business fixed expenses* | 5.8 | % | 5.6 | % | 5.8 | % | 5.9 | % | |||||||||||||||
| Other business adjusted operating income (non-GAAP) | 1.4 | % | 1.5 | % | 1.5 | % | 1.3 | % | |||||||||||||||
| Revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
| Cost of paying veterinary invoices | 70.8 | % | 71.5 | % | 71.6 | % | 71.9 | % | |||||||||||||||
| Variable expenses | 11.8 | % | 11.8 | % | 11.5 | % | 12.1 | % | |||||||||||||||
| Fixed expenses* | 5.8 | % | 5.6 | % | 5.9 | % | 5.9 | % | |||||||||||||||
| Total business adjusted operating income (non-GAAP) | 11.6 | % | 11.1 | % | 11.0 | % | 10.1 | % | |||||||||||||||
*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. | |||||||||||||||||||||||
10
Adjusted operating income is a non-GAAP financial measure that adjusts operating income (loss) to remove the effect of acquisition cost, development expenses and non-recurring transaction or restructuring expenses. Non-cash items, such as goodwill impairment charges, stock-based compensation expense and depreciation and amortization, are also excluded. Acquisition cost, development expenses, 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, 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.
11
| The following tables reflect the reconciliation of adjusted EBITDA to net income (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 20,993 | $ | 13,803 | |||||||||||||||||||||||||||||||||||||||||||
| Excluding: | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense(1) | 26,582 | 28,105 | |||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 11,206 | 11,804 | |||||||||||||||||||||||||||||||||||||||||||||
| Interest income | (8,999) | (9,141) | |||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 5,523 | 9,683 | |||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense | 2,582 | 1,898 | |||||||||||||||||||||||||||||||||||||||||||||
| Realized gain on nonmonetary exchange of preferred stock investment | — | (7,783) | |||||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 57,887 | $ | 48,369 | |||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
| Sep. 30, 2026 | Jun. 30, 2026 | Mar. 31, 2026 | Dec. 31, 2025 | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 9,282 | $ | 6,831 | $ | 4,880 | $ | 5,630 | $ | 5,873 | $ | 9,413 | $ | (1,483) | $ | 1,656 | |||||||||||||||||||||||||||||||
| Excluding: | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense(1) | 7,884 | 9,883 | 8,815 | 9,361 | 9,323 | 9,268 | 9,514 | 8,036 | |||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 3,827 | 3,673 | 3,706 | 4,032 | 4,051 | 3,962 | 3,791 | 3,924 | |||||||||||||||||||||||||||||||||||||||
| Interest income | (3,018) | (2,983) | (2,998) | (3,115) | (3,201) | (3,105) | (2,835) | (2,999) | |||||||||||||||||||||||||||||||||||||||
| Interest expense | 1,816 | 1,832 | 1,875 | 4,076 | 2,790 | 3,682 | 3,211 | 3,427 | |||||||||||||||||||||||||||||||||||||||
| Income tax expense | 964 | 542 | 1,076 | 663 | 726 | 1,133 | 39 | 38 | |||||||||||||||||||||||||||||||||||||||
| Goodwill impairment charges | — | — | — | 1,129 | — | — | — | 5,299 | |||||||||||||||||||||||||||||||||||||||
| Realized gain on nonmonetary exchange of preferred stock investment | — | — | — | — | — | (7,783) | — | — | |||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 20,755 | $ | 19,778 | $ | 17,354 | $ | 21,776 | $ | 19,562 | $ | 16,570 | $ | 12,237 | $ | 19,381 | |||||||||||||||||||||||||||||||
(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 $0.2 million and $0.4 million for the three and nine months ended September 30, 2026, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||
12
Contacts:
Investors:
James Duies, Senior Vice President, Investor Relations
Investor.Relations@trupanion.com
13