Trupanion (Nasdaq: TRUP) swings to Q1 profit as revenue climbs 12%
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Trupanion reported improved results for the first quarter of 2026. Total revenue was $384.0 million, up 12% from the first quarter of 2025, driven by subscription business revenue of $269.5 million, which grew 16%. Net income was $4.9 million, or $0.11 per basic and diluted share, compared to a net loss of $1.5 million, or $(0.03) per share, a year earlier.
Adjusted EBITDA rose to $17.4 million from $12.2 million. Subscription enrolled pets reached 1,105,783 at March 31, 2026, a 5% increase over March 31, 2025, while total enrolled pets across all segments declined 2% to 1,637,665. Operating cash flow was $14.6 million and free cash flow was $13.7 million. The company held $383.7 million in cash and short-term investments at March 31, 2026.
Positive
- Return to profitability and stronger margins: Net income improved from a loss of $(1.5) million in Q1 2025 to a profit of $4.9 million, while adjusted EBITDA increased to $17.4 million from $12.2 million, indicating materially better earnings performance.
- Healthy subscription growth and higher revenue per pet: Subscription revenue rose 16% to $269.5 million, subscription pets grew 5% to 1,105,783, and monthly average revenue per pet increased to $85.79 from $77.53, supporting higher-quality recurring revenue.
Negative
- None.
Insights
Trupanion delivered a clean swing to profitability with solid revenue growth.
Trupanion’s Q1 2026 revenue grew 12% to $384.0 million, with subscription revenue up 16% to $269.5 million. The business moved from a net loss of $(1.5) million in Q1 2025 to net income of $4.9 million, indicating better margin performance.
Adjusted EBITDA increased to $17.4 million from $12.2 million, and total business adjusted operating income (non-GAAP) rose to $40.2 million. Average monthly retention in the subscription business remained high at 98.35%. These figures suggest the company is scaling while keeping churn low.
Total pets enrolled declined 2% year over year to 1,637,665, even as subscription pets grew 5% to 1,105,783. Average monthly revenue per pet increased to $85.79 from $77.53, while average pet acquisition cost rose to $315. Future filings for periods after March 31, 2026 will show whether this balance between growth, pricing, and acquisition cost is sustained.
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, and exhibit attachments filed with this report.
Key Figures
Total revenue: $384.0 million
Net income: $4.9 million
Adjusted EBITDA: $17.4 million
+5 more
8 metrics
Total revenue
$384.0 million
Q1 2026, up 12% vs Q1 2025
Net income
$4.9 million
Q1 2026 vs $(1.5) million in Q1 2025
Adjusted EBITDA
$17.4 million
Q1 2026 vs $12.2 million in Q1 2025
Subscription revenue
$269.5 million
Q1 2026, 16% growth year over year
Operating cash flow
$14.6 million
Q1 2026; free cash flow $13.7 million
Cash and short-term investments
$383.7 million
Balance as of March 31, 2026
Total enrolled pets
1,637,665 pets
At March 31, 2026, 2% decrease vs prior year
Subscription enrolled pets
1,105,783 pets
At March 31, 2026, 5% increase vs prior year
Key Terms
Adjusted EBITDA, free cash flow, subscription business, Average pet acquisition cost (PAC), +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA was $17.4 million, compared to adjusted EBITDA of $12.2 million in the first quarter of 2025."
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 $14.6 million and free cash flow was $13.7 million in the first quarter of 2026."
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.
subscription business financial
"Subscription business revenue was $269.5 million, an increase of 16% compared to the first quarter of 2025."
Average pet acquisition cost (PAC) financial
"Average pet acquisition cost (PAC) | $ | 315 | | | $ | 267"
reserve for veterinary invoices financial
"Reserve for veterinary invoices | 56,701 | | | 55,921"
non-GAAP financial measures financial
"Trupanion’s stated results 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
Revenue: $384.0 million
Q1 2026
Revenue
$384.0 million
+12% YoY
Net income
$4.9 million
from $(1.5) million YoY
Diluted EPS
$0.11
from $(0.03) YoY
Adjusted EBITDA
$17.4 million
from $12.2 million YoY
Subscription revenue
$269.5 million
+16% YoY
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): April 30, 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 April 30, 2026, the Company issued a press release regarding the Company's financial results for the quarter ended March 31, 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 April 30, 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: April 30, 2026
Exhibit 99.1
Trupanion Reports First Quarter 2026 Results
SEATTLE, WA. April 30, 2026 -- 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, 2026.
“The gap between the cost of veterinary care and what pet parents can reasonably plan for continues to widen,” said Margi Tooth, Chief Executive Officer and President of Trupanion. “Trupanion is uniquely positioned to meet this moment. Fueled by strong, compounding growth in discretionary profit, we are investing with discipline to broaden our offering, strengthen our competitive positioning, expand choice, and create enduring value for pet parents, veterinarians, and shareholders.”
First Quarter 2026 Financial and Business Highlights
•Total revenue was $384.0 million, an increase of 12% compared to the first quarter of 2025.
•Total enrolled pets (including pets from our other business segment) was 1,637,665 at March 31, 2026, a decrease of 2% over March 31, 2025.
•Subscription business revenue was $269.5 million, an increase of 16% compared to the first quarter of 2025.
•Subscription enrolled pets was 1,105,783 at March 31, 2026, an increase of 5% over March 31, 2025.
•Net income was $4.9 million, or $0.11 per basic and diluted share, compared to net income of $(1.5) million, or $(0.03) per basic and diluted share, in the first quarter of 2025.
•Adjusted EBITDA was $17.4 million, compared to adjusted EBITDA of $12.2 million in the first quarter of 2025.
•Operating cash flow was $14.6 million and free cash flow was $13.7 million in the first quarter of 2026. This compared to operating cash flow of $16.0 million and free cash flow of $14.0 million in the first quarter of 2025.
•At March 31, 2026, the Company held $383.7 million in cash and short-term investments 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 first 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: 10207244.
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 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. 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,
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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
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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.
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| Trupanion, Inc. Condensed Consolidated Statements of Operations (in thousands, except share data) | |||||||||||
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| (unaudited) | |||||||||||
| Revenue: | |||||||||||
| Subscription business | $ | 269,454 | $ | 233,064 | |||||||
| Other business | 114,595 | 108,911 | |||||||||
| Total revenue | 384,049 | 341,975 | |||||||||
| Cost of revenue: | |||||||||||
| Subscription business | 216,452 | 189,845 | |||||||||
| Other business | 106,108 | 101,027 | |||||||||
Total cost of revenue(1), (2) | 322,560 | 290,872 | |||||||||
| Operating expenses: | |||||||||||
Technology and development(1) | 11,294 | 8,072 | |||||||||
General and administrative(1) | 19,102 | 19,892 | |||||||||
New pet acquisition expense(1) | 22,611 | 20,516 | |||||||||
| Depreciation and amortization | 3,706 | 3,791 | |||||||||
| Total operating expenses | 56,713 | 52,271 | |||||||||
| Loss from investment in joint venture | — | (305) | |||||||||
| Operating income (loss) | 4,776 | (1,473) | |||||||||
| Interest expense | 1,875 | 3,211 | |||||||||
| Other (income), net | (3,055) | (3,240) | |||||||||
| Income (loss) before income taxes | 5,956 | (1,444) | |||||||||
| Income tax expense | 1,076 | 39 | |||||||||
| Net income (loss) | $ | 4,880 | $ | (1,483) | |||||||
| Net income (loss) per share: | |||||||||||
| Basic | $ | 0.11 | $ | (0.03) | |||||||
| Diluted | $ | 0.11 | $ | (0.03) | |||||||
| Weighted average shares of common stock outstanding: | |||||||||||
| Basic | 43,505,604 | 42,775,955 | |||||||||
| Diluted | 43,681,740 | 42,775,955 | |||||||||
(1)Includes stock-based compensation expense as follows: | Three Months Ended March 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Veterinary invoice expense | $ | 560 | $ | 770 | |||||||
| Other cost of revenue | 569 | 489 | |||||||||
| Technology and development | 1,507 | 1,151 | |||||||||
| General and administrative | 4,893 | 4,528 | |||||||||
| New pet acquisition expense | 1,471 | 2,892 | |||||||||
| Total stock-based compensation expense | $ | 9,000 | $ | 9,830 | |||||||
(2)The breakout of cost of revenue between veterinary invoice expense and other cost of revenue is as follows: | |||||||||||
Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Veterinary invoice expense | $ | 281,436 | $ | 247,450 | |||||||
| Other cost of revenue | 41,124 | 43,422 | |||||||||
| Total cost of revenue | $ | 322,560 | $ | 290,872 | |||||||
4
| Trupanion, Inc. Condensed Consolidated Balance Sheets (in thousands, except share data) | |||||||||||
| March 31, 2026 | December 31, 2025 | ||||||||||
| (unaudited) | |||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 153,456 | $ | 138,024 | |||||||
| Short-term investments | 230,205 | 232,706 | |||||||||
Accounts and other receivables, net of allowance for credit losses of $2,419 at March 31, 2026 and $1,311 at December 31, 2025 | 304,796 | 301,945 | |||||||||
| Prepaid expenses and other assets | 16,709 | 18,387 | |||||||||
| Total current assets | 705,166 | 691,062 | |||||||||
| Restricted cash | 29,416 | 33,434 | |||||||||
| Long-term investments | 986 | 983 | |||||||||
| Property, equipment, and internal-use software, net | 102,612 | 104,844 | |||||||||
| Intangible assets, net | 23,684 | 24,102 | |||||||||
| Other long-term assets | 21,095 | 21,237 | |||||||||
| Goodwill | 38,621 | 39,382 | |||||||||
| Total assets | $ | 921,580 | $ | 915,044 | |||||||
| Liabilities and stockholders’ equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 12,828 | $ | 16,445 | |||||||
| Accrued liabilities and other current liabilities | 42,329 | 56,509 | |||||||||
| Reserve for veterinary invoices | 56,701 | 55,921 | |||||||||
| Deferred revenue | 286,508 | 270,935 | |||||||||
| Long-term debt - current portion | 10,000 | 10,000 | |||||||||
| Total current liabilities | 408,366 | 409,810 | |||||||||
| Long-term debt | 99,346 | 101,784 | |||||||||
| Deferred tax liabilities | 955 | 1,510 | |||||||||
| Other liabilities | 18,091 | 18,004 | |||||||||
| Total liabilities | 526,758 | 531,108 | |||||||||
| Stockholders’ equity: | |||||||||||
Common stock: $0.00001 par value per share, 100,000,000 shares authorized; 44,648,800 and 43,620,614 issued and outstanding at March 31, 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 | 613,624 | 604,828 | |||||||||
| Accumulated other comprehensive income (loss) | (693) | 2,097 | |||||||||
| Accumulated deficit | (201,575) | (206,455) | |||||||||
Treasury stock, at cost: 1,028,186 shares at March 31, 2026 and December 31, 2025 | (16,534) | (16,534) | |||||||||
| Total stockholders’ equity | 394,822 | 383,936 | |||||||||
| Total liabilities and stockholders’ equity | $ | 921,580 | $ | 915,044 | |||||||
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| Trupanion, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) | |||||||||||
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| (unaudited) | |||||||||||
| Operating activities | |||||||||||
| Net income (loss) | $ | 4,880 | $ | (1,483) | |||||||
| Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 3,706 | 3,791 | |||||||||
| Stock-based compensation expense | 9,000 | 9,830 | |||||||||
| Other, net | (213) | 349 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts and other receivables | (3,035) | (15,965) | |||||||||
| Prepaid expenses and other assets | 1,954 | (204) | |||||||||
| Accounts payable, accrued liabilities, and other liabilities | (18,326) | 1,527 | |||||||||
| Reserve for veterinary invoices | 842 | 2,407 | |||||||||
| Deferred revenue | 15,786 | 15,712 | |||||||||
| Net cash provided by operating activities | 14,594 | 15,964 | |||||||||
| Investing activities | |||||||||||
| Purchases of investment securities | (47,883) | (40,875) | |||||||||
| Maturities and sales of investment securities | 48,878 | 33,242 | |||||||||
| Purchases of property, equipment, and internal-use software | (847) | (1,928) | |||||||||
| Other | (35) | 588 | |||||||||
| Net cash provided by (used in) investing activities | 113 | (8,973) | |||||||||
| Financing activities | |||||||||||
| Repayment of debt financing | (2,500) | (338) | |||||||||
| Proceeds from exercise of stock options | 260 | 1,024 | |||||||||
| Shares withheld to satisfy tax withholding | (496) | (915) | |||||||||
| Other | — | (230) | |||||||||
| Net cash used in financing activities | (2,736) | (459) | |||||||||
| Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net | (557) | (52) | |||||||||
| Net change in cash, cash equivalents, and restricted cash | 11,414 | 6,480 | |||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 171,458 | 199,530 | |||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 182,872 | $ | 206,010 | |||||||
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| The following tables set forth our key operating metrics. | |||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total Business: | |||||||||||||||||||||||||||||||||||||||||||||||
| Total pets enrolled (at period end) | 1,637,665 | 1,667,637 | |||||||||||||||||||||||||||||||||||||||||||||
| Subscription Business: | |||||||||||||||||||||||||||||||||||||||||||||||
| Total subscription pets enrolled (at period end) | 1,105,783 | 1,052,845 | |||||||||||||||||||||||||||||||||||||||||||||
| Monthly average revenue per pet | $ | 85.79 | $ | 77.53 | |||||||||||||||||||||||||||||||||||||||||||
| Average pet acquisition cost (PAC) | $ | 315 | $ | 267 | |||||||||||||||||||||||||||||||||||||||||||
| Average monthly retention | 98.35 | % | 98.28 | % | |||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
| Mar. 31, 2026 | Dec. 31, 2025 | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||
| Total Business: | |||||||||||||||||||||||||||||||||||||||||||||||
| Total pets enrolled (at period end) | 1,637,665 | 1,647,565 | 1,654,414 | 1,660,455 | 1,667,637 | 1,677,570 | 1,688,903 | 1,699,643 | |||||||||||||||||||||||||||||||||||||||
| Subscription Business: | |||||||||||||||||||||||||||||||||||||||||||||||
| Total subscription pets enrolled (at period end) | 1,105,783 | 1,096,173 | 1,082,412 | 1,066,354 | 1,052,845 | 1,041,212 | 1,032,042 | 1,020,934 | |||||||||||||||||||||||||||||||||||||||
| Monthly average revenue per pet | $ | 85.79 | $ | 83.56 | $ | 82.01 | $ | 79.93 | $ | 77.53 | $ | 76.02 | $ | 74.27 | $ | 71.72 | |||||||||||||||||||||||||||||||
| Average pet acquisition cost (PAC) | $ | 315 | $ | 320 | $ | 290 | $ | 276 | $ | 267 | $ | 261 | $ | 243 | $ | 231 | |||||||||||||||||||||||||||||||
| Average monthly retention | 98.35 | % | 98.34 | % | 98.33 | % | 98.29 | % | 98.28 | % | 98.25 | % | 98.29 | % | 98.34 | % | |||||||||||||||||||||||||||||||
| The following table reflects the reconciliation of cash provided by operating activities to free cash flow (in thousands): | |||||||||||
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net cash provided by operating activities | $ | 14,594 | $ | 15,964 | |||||||
| Purchases of property, equipment, and internal-use software | (847) | (1,928) | |||||||||
| Free cash flow | $ | 13,747 | $ | 14,036 | |||||||
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| The following table reflects the reconciliation between GAAP and non-GAAP measures (in thousands except percentages): | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Veterinary invoice expense | $ | 281,436 | $ | 247,450 | ||||||||||
| Less: | ||||||||||||||
Stock-based compensation expense(1) | (552) | (763) | ||||||||||||
Other business cost of paying veterinary invoices(2) | (90,022) | (79,269) | ||||||||||||
| Subscription cost of paying veterinary invoices (non-GAAP) | $ | 190,862 | $ | 167,418 | ||||||||||
| % of subscription revenue | 70.8 | % | 71.8 | % | ||||||||||
| Other cost of revenue | $ | 41,124 | $ | 43,422 | ||||||||||
| Less: | ||||||||||||||
Stock-based compensation expense(1) | (564) | (482) | ||||||||||||
Other business variable expenses(2) | (16,083) | (21,736) | ||||||||||||
| Subscription variable expenses (non-GAAP) | $ | 24,477 | $ | 21,204 | ||||||||||
| % of subscription revenue | 9.1 | % | 9.1 | % | ||||||||||
| Technology and development expense | $ | 11,294 | $ | 8,072 | ||||||||||
| General and administrative expense | 19,102 | 19,892 | ||||||||||||
| Less: | ||||||||||||||
Stock-based compensation expense(1) | (6,274) | (5,396) | ||||||||||||
Development expenses(3) | (1,701) | (1,406) | ||||||||||||
| Fixed expenses (non-GAAP) | $ | 22,421 | $ | 21,162 | ||||||||||
| % of total revenue | 5.8 | % | 6.2 | % | ||||||||||
| New pet acquisition expense | $ | 22,611 | $ | 20,516 | ||||||||||
| Less: | ||||||||||||||
Stock-based compensation expense(1) | (1,425) | (2,873) | ||||||||||||
Other business pet acquisition expense(2) | (26) | (3) | ||||||||||||
| Subscription acquisition cost (non-GAAP) | $ | 21,160 | $ | 17,640 | ||||||||||
| % of subscription revenue | 7.9 | % | 7.6 | % | ||||||||||
(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 for the three months ended March 31, 2026.. (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 March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating income (loss) | $ | 4,776 | $ | (1,473) | |||||||
| Non-GAAP expense adjustments | |||||||||||
| Acquisition cost | 21,186 | 17,643 | |||||||||
Stock-based compensation expense(1) | 8,815 | 9,514 | |||||||||
Development expenses(2) | 1,701 | 1,406 | |||||||||
| Depreciation and amortization | 3,706 | 3,791 | |||||||||
| Loss from investment in joint venture | — | (305) | |||||||||
| Total adjusted operating income (non-GAAP) | $ | 40,184 | $ | 31,186 | |||||||
| Subscription Business: | |||||||||||
| Subscription operating income | $ | 6,493 | $ | 1,065 | |||||||
| Non-GAAP expense adjustments | |||||||||||
| Acquisition cost | 21,160 | 17,640 | |||||||||
Stock-based compensation expense(1) | 6,939 | 7,772 | |||||||||
Development expenses(2) | 1,193 | 958 | |||||||||
| Depreciation and amortization | 2,600 | 2,584 | |||||||||
| Subscription adjusted operating income (non-GAAP) | $ | 38,385 | $ | 30,019 | |||||||
| Other Business: | |||||||||||
| Other business operating loss | $ | (1,717) | $ | (2,233) | |||||||
| Non-GAAP expense adjustments | |||||||||||
| Acquisition cost | 26 | 3 | |||||||||
Stock-based compensation expense(1) | 1,876 | 1,742 | |||||||||
Development expenses(2) | 508 | 448 | |||||||||
| Depreciation and amortization | 1,106 | 1,207 | |||||||||
| Other business adjusted operating income (non-GAAP) | $ | 1,799 | $ | 1,167 | |||||||
(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 for the three months ended March 31, 2026. | |||||||||||
(2) Consists of costs related to product exploration and development that are pre-revenue and historically have been insignificant. | |||||||||||
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| The following tables reflect the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages): | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| Subscription revenue | $ | 269,454 | $ | 233,064 | |||||||||||||
| Subscription cost of paying veterinary invoices | 190,862 | 167,418 | |||||||||||||||
| Subscription variable expenses | 24,477 | 21,204 | |||||||||||||||
| Subscription fixed expenses* | 15,730 | 14,423 | |||||||||||||||
| Subscription adjusted operating income (non-GAAP) | $ | 38,385 | $ | 30,019 | |||||||||||||
| Other business revenue | $ | 114,595 | $ | 108,911 | |||||||||||||
| Other business cost of paying veterinary invoices | 90,022 | 79,269 | |||||||||||||||
| Other business variable expenses | 16,083 | 21,736 | |||||||||||||||
| Other business fixed expenses* | 6,691 | 6,739 | |||||||||||||||
| Other business adjusted operating income (non-GAAP) | $ | 1,799 | $ | 1,167 | |||||||||||||
| Revenue | $ | 384,049 | $ | 341,975 | |||||||||||||
| Cost of paying veterinary invoices | 280,884 | 246,687 | |||||||||||||||
| Variable expenses | 40,560 | 42,940 | |||||||||||||||
| Fixed expenses* | 22,421 | 21,162 | |||||||||||||||
| Total business adjusted operating income (non-GAAP) | $ | 40,184 | $ | 31,186 | |||||||||||||
| As a percentage of revenue: | Three Months Ended March 31, | ||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| Subscription revenue | 100.0 | % | 100.0 | % | |||||||||||||
| Subscription cost of paying veterinary invoices | 70.8 | % | 71.8 | % | |||||||||||||
| Subscription variable expenses | 9.1 | % | 9.1 | % | |||||||||||||
| Subscription fixed expenses* | 5.8 | % | 6.2 | % | |||||||||||||
| Subscription adjusted operating income (non-GAAP) | 14.2 | % | 12.9 | % | |||||||||||||
| Other business revenue | 100.0 | % | 100.0 | % | |||||||||||||
| Other business cost of paying veterinary invoices | 78.6 | % | 72.8 | % | |||||||||||||
| Other business variable expenses | 14.0 | % | 20.0 | % | |||||||||||||
| Other business fixed expenses* | 5.8 | % | 6.2 | % | |||||||||||||
| Other business adjusted operating income (non-GAAP) | 1.6 | % | 1.1 | % | |||||||||||||
| Revenue | 100.0 | % | 100.0 | % | |||||||||||||
| Cost of paying veterinary invoices | 73.1 | % | 72.1 | % | |||||||||||||
| Variable expenses | 10.6 | % | 12.6 | % | |||||||||||||
| Fixed expenses* | 5.8 | % | 6.2 | % | |||||||||||||
| Total business adjusted operating income (non-GAAP) | 10.5 | % | 9.1 | % | |||||||||||||
*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. | |||||||||||||||||
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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.
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| The following tables reflect the reconciliation of adjusted EBITDA to net income (loss) (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 4,880 | $ | (1,483) | |||||||||||||||||||||||||||||||||||||||||||
| Excluding: | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense(1) | 8,815 | 9,514 | |||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 3,706 | 3,791 | |||||||||||||||||||||||||||||||||||||||||||||
| Interest income | (2,998) | (2,835) | |||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 1,875 | 3,211 | |||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense | 1,076 | 39 | |||||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 17,354 | $ | 12,237 | |||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
| Mar. 31, 2026 | Dec. 31, 2025 | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 4,880 | $ | 5,630 | $ | 5,873 | $ | 9,413 | $ | (1,483) | $ | 1,656 | $ | 1,425 | $ | (5,862) | |||||||||||||||||||||||||||||||
| Excluding: | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense(1) | 8,815 | 9,361 | 9,323 | 9,268 | 9,514 | 8,036 | 8,127 | 8,381 | |||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 3,706 | 4,032 | 4,051 | 3,962 | 3,791 | 3,924 | 4,381 | 4,376 | |||||||||||||||||||||||||||||||||||||||
| Interest income | (2,998) | (3,115) | (3,201) | (3,105) | (2,835) | (2,999) | (3,232) | (3,135) | |||||||||||||||||||||||||||||||||||||||
| Interest expense | 1,875 | 4,076 | 2,790 | 3,682 | 3,211 | 3,427 | 3,820 | 3,655 | |||||||||||||||||||||||||||||||||||||||
| Income tax (benefit) expense | 1,076 | 663 | 726 | 1,133 | 39 | 38 | 39 | (44) | |||||||||||||||||||||||||||||||||||||||
| 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 | $ | 17,354 | $ | 21,776 | $ | 19,562 | $ | 16,570 | $ | 12,237 | $ | 19,381 | $ | 14,527 | $ | 7,371 | |||||||||||||||||||||||||||||||
(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 for the three months ended March 31, 2026. | |||||||||||||||||||||||||||||||||||||||||||||||
12
Contacts:
Investors:
Laura Bainbridge, Senior Vice President, Corporate Communications
Gil Melchior, Director, Investor Relations
Investor.Relations@trupanion.com
13
FAQ
How did Trupanion (TRUP) perform financially in Q1 2026?
Trupanion reported Q1 2026 revenue of $384.0 million, up 12% year over year. The company generated net income of $4.9 million, or $0.11 per basic and diluted share, compared with a net loss of $(1.5) million in Q1 2025.
What were Trupanion (TRUP)’s subscription business results in Q1 2026?
Trupanion’s subscription revenue reached $269.5 million in Q1 2026, a 16% increase from Q1 2025. Subscription enrolled pets rose to 1,105,783, up 5% year over year, and monthly average revenue per pet increased to $85.79 from $77.53.
Did Trupanion (TRUP) generate positive cash flow in Q1 2026?
Yes. Trupanion produced operating cash flow of $14.6 million and free cash flow of $13.7 million in Q1 2026. The company ended March 31, 2026 with $383.7 million in cash and short-term investments and additional capacity on its credit facility.
How did Trupanion’s pet enrollments change in Q1 2026?
Total enrolled pets were 1,637,665 at March 31, 2026, a 2% decrease from a year earlier. However, subscription enrolled pets increased 5% to 1,105,783. Average monthly retention in the subscription business remained high at 98.35%.
What was Trupanion (TRUP)’s adjusted EBITDA in Q1 2026?
Adjusted EBITDA for Q1 2026 was $17.4 million, up from $12.2 million in Q1 2025. This non-GAAP measure adds back items such as stock-based compensation, depreciation and amortization, interest, and income taxes to Trupanion’s reported net income or loss.
How did Trupanion’s non-GAAP adjusted operating income trend in Q1 2026?
Total business adjusted operating income (non-GAAP) was $40.2 million in Q1 2026, compared with $31.2 million a year earlier. Subscription adjusted operating income rose to $38.4 million, while other business adjusted operating income increased to $1.8 million.