Trupanion (Nasdaq: TRUP) lifts Q2 revenue 11% and adds $100M repurchase plan
Rhea-AI Filing Summary
Trupanion reported second-quarter 2026 results with total revenue of $392.9 million, up 11% from a year earlier. Subscription business revenue grew to $276.7 million, up 14%. Total enrolled pets were 1,633,131, down 2%, while subscription pets rose 5% to 1,124,548.
GAAP net income for the quarter was $6.8 million, or $0.16 per basic and diluted share, compared with $9.4 million and $0.22 a year ago. Adjusted EBITDA increased to $19.8 million from $16.6 million. Operating cash flow was $21.0 million and free cash flow was $19.2 million, both higher than the prior year.
For the first six months of 2026, revenue was $777.0 million, up 12%, and net income was $11.7 million versus $7.9 million. Adjusted EBITDA was $37.1 million. At June 30, 2026, Trupanion held $398.5 million in cash and short-term investments and had $3.5 million available under its credit facility. In July 2026, an extraordinary $44 million dividend from its insurance subsidiary was approved, and the board authorized a share repurchase program of up to $100.0 million in common stock with no expiration, subject to factors including liquidity, credit facility compliance and market conditions.
Positive
- Total revenue grew 11% year over year in Q2 2026 to $392.9 million, with subscription revenue up 14%, indicating continued top-line expansion.
- Board approval of a $100.0 million share repurchase program and receipt of approval for a $44 million extraordinary dividend strengthen capital deployment flexibility.
Negative
- Quarterly net income declined to $6.8 million from $9.4 million a year earlier, with EPS falling from $0.22 to $0.16 despite revenue growth.
- Total pets enrolled decreased 2% year over year to 1,633,131, signaling pressure in overall enrollment even as subscription pets grew.
Filing Explained
The August 5 Form 8-K reports authorization for up to
8-K Event Classification
3 items: 2.02, 8.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 Total Revenue: $392.9 million
Q2 2026 Net Income: $6.8 million
Q2 2026 Adjusted EBITDA: $19.8 million
+5 more
8 metrics
Q2 2026 Total Revenue
$392.9 million
Three months ended June 30, 2026; up 11% year over year
Q2 2026 Net Income
$6.8 million
Three months ended June 30, 2026; EPS $0.16 basic and diluted
Q2 2026 Adjusted EBITDA
$19.8 million
Three months ended June 30, 2026; compared to $16.6 million in Q2 2025
First-Half 2026 Revenue
$777.0 million
Six months ended June 30, 2026; up 12% versus first half 2025
Cash & Short-Term Investments
$398.5 million
Balance as of June 30, 2026, plus $3.5 million credit facility availability
Extraordinary Dividend
$44 million
Dividend approved in July 2026 from American Pet Insurance Company to Trupanion
Share Repurchase Authorization
$100.0 million
Maximum aggregate amount of common stock Trupanion is authorized to repurchase
Total Pets Enrolled
1,633,131
Total enrolled pets at June 30, 2026, across all business segments
Key Terms
extraordinary dividend, share repurchase program, adjusted EBITDA, average pet acquisition cost (PAC), +2 more
6 terms
extraordinary dividend financial
"approved an extraordinary dividend of $44 million to be paid to Trupanion"
adjusted EBITDA financial
"Adjusted EBITDA was $19.8 million, compared to adjusted EBITDA of $16.6 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.
average pet acquisition cost (PAC) financial
"Average pet acquisition cost (PAC) | $ | 307 | | | $ | 272"
reserve for veterinary invoices financial
"Reserve for veterinary invoices | 51,722 | | | 55,921"
risk-based capital financial
"the ability to maintain the requisite amount of risk-based capital"
Risk-based capital is the amount of money a regulated financial or insurance company is required to hold so it can absorb losses from the specific risks it faces, such as investments, loans, or insurance claims. Think of it as a safety cushion sized to the company's risk profile; a larger cushion reduces the chance of insolvency and regulatory intervention. Investors watch this figure because it signals financial strength, the ability to meet obligations, and how much freedom the firm has to pay dividends or grow.
Earnings Snapshot
Total revenue Q2 2026: $392.9 million
Quarter and six months ended June 30, 2026
Total revenue Q2 2026
$392.9 million
up 11% year over year
Net income Q2 2026
$6.8 million
down from $9.4 million in Q2 2025
Adjusted EBITDA Q2 2026
$19.8 million
up from $16.6 million in Q2 2025
First-half 2026 revenue
$777.0 million
up 12% versus first half 2025
First-half 2026 net income
$11.7 million
up from $7.9 million in first half 2025
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Trupanion (TRUP) perform financially in Q2 2026?
Trupanion generated $392.9 million in Q2 2026 revenue, up 11% year over year. Net income was $6.8 million, or $0.16 per share, while adjusted EBITDA rose to $19.8 million from $16.6 million.
What were Trupanion (TRUP)’s first-half 2026 results?
For the first six months of 2026, Trupanion reported $777.0 million in revenue, up 12%. Net income was $11.7 million versus $7.9 million a year earlier, and adjusted EBITDA increased to $37.1 million from $28.8 million.
What is the $44 million extraordinary dividend mentioned by Trupanion (TRUP)?
In July 2026, regulators approved an extraordinary $44 million dividend from Trupanion’s wholly owned subsidiary, American Pet Insurance Company, payable to Trupanion. This upstreams capital from the insurance entity to the parent company.
How are Trupanion (TRUP)’s pet enrollments trending?
At June 30, 2026, total pets enrolled were 1,633,131, down 2% year over year. However, subscription pets increased 5% to 1,124,548, and subscription monthly average revenue per pet rose to $87.44 from $79.93.
What is Trupanion (TRUP)’s liquidity and cash flow position as of mid-2026?
As of June 30, 2026, Trupanion held $398.5 million in cash and short-term investments, plus $3.5 million of credit facility availability. First-half 2026 operating cash flow was $35.6 million and free cash flow was $32.9 million, both above prior-year levels.
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): August 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 August 5, 2026, the Company issued a press release regarding the Company's financial results for the quarter ended June 30, 2026. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 8.01 Other Events.
In June 2026, the Company's Board of Directors (the "Board") approved a share repurchase program (the "Program") pursuant to which the Company is authorized to 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 under the Program, 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.
Item 9.01 Financial Statements and Exhibits.
| (d) | Exhibits | |||||||
| Exhibit No. | Description | |||||||
99.1 | Press release regarding financial results issued by Trupanion, Inc. dated August 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: August 5, 2026
Exhibit 99.1
Trupanion Reports Second Quarter 2026 Results
Authorizes Share Repurchase Program
SEATTLE, WA. August 5, 2026 -- Trupanion, Inc. (Nasdaq: TRUP), a leading provider of medical insurance for cats and dogs, today announced financial results for the second quarter ended June 30, 2026.
“We continue to execute on the priorities that matter most by growing margin, improving the economics of new enrollments, and investing our capital with discipline,” said Margi Tooth, Chief Executive Officer and President of Trupanion. “As our business continues to compound, we have more opportunities to allocate capital where we believe it will create lasting shareholder value.”
Second Quarter 2026 Financial and Business Highlights
•Total revenue was $392.9 million, an increase of 11% compared to the second quarter of 2025.
•Total enrolled pets (including pets from our other business segment) was 1,633,131 at June 30, 2026, a decrease of 2% over June 30, 2025.
•Subscription business revenue was $276.7 million, an increase of 14% compared to the second quarter of 2025.
•Subscription enrolled pets was 1,124,548 at June 30, 2026, an increase of 5% over June 30, 2025.
•Net income was $6.8 million, or $0.16 per basic and diluted share, compared to net income of $9.4 million, or $0.22 per basic and diluted share, in the second quarter of 2025.
•Adjusted EBITDA was $19.8 million, compared to adjusted EBITDA of $16.6 million in the second quarter of 2025.
•Operating cash flow was $21.0 million and free cash flow was $19.2 million in the second quarter of 2026. This compared to operating cash flow of $15.0 million and free cash flow of $12.0 million in the second quarter of 2025.
First Six Months 2026 Financial and Business Highlights
•Total revenue was $777.0 million, an increase of 12% compared to the first six months of 2025.
•Subscription business revenue was $546.1 million, an increase of 15% compared to the first six months of 2025.
•Net income was $11.7 million, or $0.27 per basic and diluted share, compared to net income of $7.9 million, or $0.19 per basic and $0.18 per diluted share, in the first six months of 2025.
•Adjusted EBITDA was $37.1 million, compared to adjusted EBITDA of $28.8 million in the first six months of 2025.
•Operating cash flow was $35.6 million and free cash flow was $32.9 million in the first six months of 2026. This compared to operating cash flow of $31.0 million and free cash flow of $26.1 million in the first six months of 2025.
•At June 30, 2026, the Company held $398.5 million in cash and short-term investments with an additional $3.5 million available under its credit facility.
Extraordinary Dividend and Share Repurchase Authorization
In July 2026, the New York Department of Financial Services approved an extraordinary dividend of $44 million to be paid to Trupanion by its wholly-owned subsidiary, American Pet Insurance Company.
The Board has 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.
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Conference Call
Trupanion’s management will host a conference call today to review its second 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: 10210053.
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.
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| Trupanion, Inc. Condensed Consolidated Statements of Operations (in thousands, except share data) | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Subscription business | $ | 276,690 | $ | 242,156 | $ | 546,144 | $ | 475,220 | |||||||||||||||
| Other business | 116,244 | 111,401 | 230,839 | 220,312 | |||||||||||||||||||
| Total revenue | 392,934 | 353,557 | 776,983 | 695,532 | |||||||||||||||||||
| Cost of revenue: | |||||||||||||||||||||||
| Subscription business | 220,254 | 195,488 | 436,706 | 385,333 | |||||||||||||||||||
| Other business | 107,547 | 103,242 | 213,655 | 204,269 | |||||||||||||||||||
Total cost of revenue(1), (2) | 327,801 | 298,730 | 650,361 | 589,602 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
Technology and development(1) | 12,754 | 8,586 | 24,048 | 16,658 | |||||||||||||||||||
General and administrative(1) | 19,525 | 20,122 | 38,627 | 40,014 | |||||||||||||||||||
New pet acquisition expense(1) | 22,805 | 19,843 | 45,416 | 40,359 | |||||||||||||||||||
| Depreciation and amortization | 3,673 | 3,962 | 7,379 | 7,753 | |||||||||||||||||||
| Total operating expenses | 58,757 | 52,513 | 115,470 | 104,784 | |||||||||||||||||||
| Loss from investment in joint venture | — | — | — | (305) | |||||||||||||||||||
| Operating income | 6,376 | 2,314 | 11,152 | 841 | |||||||||||||||||||
| Interest expense | 1,832 | 3,682 | 3,707 | 6,893 | |||||||||||||||||||
| Other (income), net | (2,829) | (11,914) | (5,884) | (15,154) | |||||||||||||||||||
| Income before income taxes | 7,373 | 10,546 | 13,329 | 9,102 | |||||||||||||||||||
| Income tax expense | 542 | 1,133 | 1,618 | 1,172 | |||||||||||||||||||
| Net income | $ | 6,831 | $ | 9,413 | $ | 11,711 | $ | 7,930 | |||||||||||||||
| Net income per share: | |||||||||||||||||||||||
| Basic | $ | 0.16 | $ | 0.22 | $ | 0.27 | $ | 0.19 | |||||||||||||||
| Diluted | $ | 0.16 | $ | 0.22 | $ | 0.27 | $ | 0.18 | |||||||||||||||
| Weighted average shares of common stock outstanding: | |||||||||||||||||||||||
| Basic | 43,730,573 | 42,872,153 | 43,618,710 | 42,734,426 | |||||||||||||||||||
| Diluted | 43,821,061 | 43,325,704 | 43,751,785 | 43,544,325 | |||||||||||||||||||
(1)Includes stock-based compensation expense as follows: | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Veterinary invoice expense | $ | 505 | $ | 774 | $ | 1,065 | $ | 1,544 | |||||||||||||||
| Other cost of revenue | 620 | 605 | 1,189 | 1,094 | |||||||||||||||||||
| Technology and development | 2,865 | 1,470 | 4,372 | 2,621 | |||||||||||||||||||
| General and administrative | 4,738 | 5,047 | 9,631 | 9,575 | |||||||||||||||||||
| New pet acquisition expense | 1,241 | 1,560 | 2,712 | 4,452 | |||||||||||||||||||
| Total stock-based compensation expense | $ | 9,969 | $ | 9,456 | $ | 18,969 | $ | 19,286 | |||||||||||||||
(2)The breakout of cost of revenue between veterinary invoice expense and other cost of revenue is as follows: | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Veterinary invoice expense | $ | 279,468 | $ | 255,580 | $ | 560,904 | $ | 503,030 | |||||||||||||||
| Other cost of revenue | 48,333 | 43,150 | 89,457 | 86,572 | |||||||||||||||||||
| Total cost of revenue | $ | 327,801 | $ | 298,730 | $ | 650,361 | $ | 589,602 | |||||||||||||||
4
| Trupanion, Inc. Condensed Consolidated Balance Sheets (in thousands, except share data) | |||||||||||
| June 30, 2026 | December 31, 2025 | ||||||||||
| (unaudited) | |||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 149,360 | $ | 138,024 | |||||||
| Short-term investments | 249,131 | 232,706 | |||||||||
Accounts and other receivables, net of allowance for credit losses of $2,886 at June 30, 2026 and $1,311 at December 31, 2025 | 302,191 | 301,945 | |||||||||
| Prepaid expenses and other assets | 18,760 | 18,387 | |||||||||
| Total current assets | 719,442 | 691,062 | |||||||||
| Restricted cash | 28,939 | 33,434 | |||||||||
| Long-term investments | 989 | 983 | |||||||||
| Property, equipment, and internal-use software, net | 101,425 | 104,844 | |||||||||
| Intangible assets, net | 23,344 | 24,102 | |||||||||
| Other long-term assets | 18,047 | 21,237 | |||||||||
| Goodwill | 38,625 | 39,382 | |||||||||
| Total assets | $ | 930,811 | $ | 915,044 | |||||||
| Liabilities and stockholders’ equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 11,965 | $ | 16,445 | |||||||
| Accrued liabilities and other current liabilities | 44,638 | 56,509 | |||||||||
| Reserve for veterinary invoices | 51,722 | 55,921 | |||||||||
| Deferred revenue | 287,156 | 270,935 | |||||||||
| Long-term debt - current portion | 10,000 | 10,000 | |||||||||
| Total current liabilities | 405,481 | 409,810 | |||||||||
| Long-term debt | 96,909 | 101,784 | |||||||||
| Deferred tax liabilities | 639 | 1,510 | |||||||||
| Other liabilities | 18,112 | 18,004 | |||||||||
| Total liabilities | 521,141 | 531,108 | |||||||||
| Stockholders’ equity: | |||||||||||
Common stock: $0.00001 par value per share, 100,000,000 shares authorized; 44,899,727 and 43,871,541 issued and outstanding at June 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 | 623,566 | 604,828 | |||||||||
| Accumulated other comprehensive income (loss) | (2,618) | 2,097 | |||||||||
| Accumulated deficit | (194,744) | (206,455) | |||||||||
Treasury stock, at cost: 1,028,186 shares at June 30, 2026 and December 31, 2025 | (16,534) | (16,534) | |||||||||
| Total stockholders’ equity | 409,670 | 383,936 | |||||||||
| Total liabilities and stockholders’ equity | $ | 930,811 | $ | 915,044 | |||||||
5
| Trupanion, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) | |||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| Operating activities | |||||||||||||||||||||||
| Net income | $ | 6,831 | $ | 9,413 | $ | 11,711 | $ | 7,930 | |||||||||||||||
| Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||||||||||||||
| Depreciation and amortization | 3,673 | 3,962 | 7,379 | 7,753 | |||||||||||||||||||
| Stock-based compensation expense | 9,969 | 9,456 | 18,969 | 19,286 | |||||||||||||||||||
| Realized gain on nonmonetary exchange of preferred stock investment | — | (7,783) | — | (7,783) | |||||||||||||||||||
| Other, net | (164) | 601 | (378) | 951 | |||||||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||||||||
| Accounts and other receivables | 2,408 | (2,050) | (627) | (18,015) | |||||||||||||||||||
| Prepaid expenses and other assets | 643 | (380) | 2,597 | (584) | |||||||||||||||||||
| Accounts payable, accrued liabilities, and other liabilities | 1,529 | (536) | (16,797) | 990 | |||||||||||||||||||
| Reserve for veterinary invoices | (4,891) | (1,710) | (4,048) | 697 | |||||||||||||||||||
| Deferred revenue | 986 | 4,051 | 16,772 | 19,764 | |||||||||||||||||||
| Net cash provided by operating activities | 20,984 | 15,024 | 35,578 | 30,989 | |||||||||||||||||||
| Investing activities | |||||||||||||||||||||||
| Purchases of investment securities | (72,095) | (101,125) | (119,977) | (142,000) | |||||||||||||||||||
| Maturities and sales of investment securities | 51,358 | 61,022 | 100,236 | 94,264 | |||||||||||||||||||
| Purchases of property, equipment, and internal-use software | (1,825) | (2,977) | (2,672) | (4,904) | |||||||||||||||||||
| Other | 19 | 613 | (17) | 1,200 | |||||||||||||||||||
| Net cash used in investing activities | (22,543) | (42,467) | (22,430) | (51,440) | |||||||||||||||||||
| Financing activities | |||||||||||||||||||||||
| Repayment of debt financing | (2,500) | (15,187) | (5,000) | (15,525) | |||||||||||||||||||
| Proceeds from exercise of stock options | 408 | 303 | 668 | 1,327 | |||||||||||||||||||
| Shares withheld to satisfy tax withholding | (480) | (774) | (976) | (1,688) | |||||||||||||||||||
| Other | — | (230) | — | (460) | |||||||||||||||||||
| Net cash used in financing activities | (2,572) | (15,888) | (5,308) | (16,346) | |||||||||||||||||||
| Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net | (442) | 1,792 | (999) | 1,738 | |||||||||||||||||||
| Net change in cash, cash equivalents, and restricted cash | (4,573) | (41,539) | 6,841 | (35,059) | |||||||||||||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 182,872 | 206,010 | 171,458 | 199,530 | |||||||||||||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 178,299 | $ | 164,471 | $ | 178,299 | $ | 164,471 | |||||||||||||||
6
| The following tables set forth our key operating metrics. | |||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total Business: | |||||||||||||||||||||||||||||||||||||||||||||||
| Total pets enrolled (at period end) | 1,633,131 | 1,660,455 | |||||||||||||||||||||||||||||||||||||||||||||
| Subscription Business: | |||||||||||||||||||||||||||||||||||||||||||||||
| Total subscription pets enrolled (at period end) | 1,124,548 | 1,066,354 | |||||||||||||||||||||||||||||||||||||||||||||
| Monthly average revenue per pet | $ | 86.62 | $ | 78.73 | |||||||||||||||||||||||||||||||||||||||||||
| Average pet acquisition cost (PAC) | $ | 307 | $ | 272 | |||||||||||||||||||||||||||||||||||||||||||
| Average monthly retention | 98.37 | % | 98.29 | % | |||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
| Jun. 30, 2026 | Mar. 31, 2026 | Dec. 31, 2025 | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||
| Total Business: | |||||||||||||||||||||||||||||||||||||||||||||||
| Total pets enrolled (at period end) | 1,633,131 | 1,637,665 | 1,647,565 | 1,654,414 | 1,660,455 | 1,667,637 | 1,677,570 | 1,688,903 | |||||||||||||||||||||||||||||||||||||||
| Subscription Business: | |||||||||||||||||||||||||||||||||||||||||||||||
| Total subscription pets enrolled (at period end) | 1,124,548 | 1,105,783 | 1,096,173 | 1,082,412 | 1,066,354 | 1,052,845 | 1,041,212 | 1,032,042 | |||||||||||||||||||||||||||||||||||||||
| Monthly average revenue per pet | $ | 87.44 | $ | 85.79 | $ | 83.56 | $ | 82.01 | $ | 79.93 | $ | 77.53 | $ | 76.02 | $ | 74.27 | |||||||||||||||||||||||||||||||
| Average pet acquisition cost (PAC) | $ | 299 | $ | 315 | $ | 320 | $ | 290 | $ | 276 | $ | 267 | $ | 261 | $ | 243 | |||||||||||||||||||||||||||||||
| Average monthly retention | 98.37 | % | 98.35 | % | 98.34 | % | 98.33 | % | 98.29 | % | 98.28 | % | 98.25 | % | 98.29 | % | |||||||||||||||||||||||||||||||
| The following table reflects the reconciliation of cash provided by operating activities to free cash flow (in thousands): | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net cash provided by operating activities | $ | 20,984 | $ | 15,024 | $ | 35,578 | $ | 30,989 | |||||||||||||||
| Purchases of property, equipment, and internal-use software | (1,825) | (2,977) | (2,672) | (4,904) | |||||||||||||||||||
| Free cash flow | $ | 19,159 | $ | 12,047 | $ | 32,906 | $ | 26,085 | |||||||||||||||
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| The following table reflects the reconciliation between GAAP and non-GAAP measures (in thousands except percentages): | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Veterinary invoice expense | $ | 279,468 | $ | 255,580 | $ | 560,904 | $ | 503,030 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
Stock-based compensation expense(1) | (496) | (758) | (1,048) | (1,522) | ||||||||||||||||||||||
Other business cost of paying veterinary invoices(2) | (84,665) | (82,706) | (174,687) | (161,975) | ||||||||||||||||||||||
| Subscription cost of paying veterinary invoices (non-GAAP) | $ | 194,307 | $ | 172,116 | $ | 385,169 | $ | 339,533 | ||||||||||||||||||
| % of subscription revenue | 70.2 | % | 71.1 | % | 70.5 | % | 71.4 | % | ||||||||||||||||||
| Other cost of revenue | $ | 48,333 | $ | 43,150 | $ | 89,457 | $ | 86,572 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
Stock-based compensation expense(1) | (615) | (601) | (1,178) | (1,082) | ||||||||||||||||||||||
Other business variable expenses(2) | (22,881) | (20,531) | (38,964) | (42,267) | ||||||||||||||||||||||
| Subscription variable expenses (non-GAAP) | $ | 24,837 | $ | 22,018 | $ | 49,315 | $ | 43,223 | ||||||||||||||||||
| % of subscription revenue | 9.0 | % | 9.1 | % | 9.0 | % | 9.1 | % | ||||||||||||||||||
| Technology and development expense | $ | 12,754 | $ | 8,586 | $ | 24,048 | $ | 16,658 | ||||||||||||||||||
| General and administrative expense | 19,525 | 20,122 | 38,627 | 40,014 | ||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
Stock-based compensation expense(1) | (7,545) | (6,393) | (13,820) | (11,788) | ||||||||||||||||||||||
Development expenses(3) | (1,801) | (946) | (3,501) | (2,353) | ||||||||||||||||||||||
| Fixed expenses (non-GAAP) | $ | 22,933 | $ | 21,369 | $ | 45,354 | $ | 42,531 | ||||||||||||||||||
| % of total revenue | 5.8 | % | 6.0 | % | 5.8 | % | 6.1 | % | ||||||||||||||||||
| New pet acquisition expense | $ | 22,805 | $ | 19,843 | $ | 45,416 | $ | 40,359 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
Stock-based compensation expense(1) | (1,227) | (1,516) | (2,652) | (4,390) | ||||||||||||||||||||||
Other business pet acquisition expense(2) | (15) | (74) | (41) | (77) | ||||||||||||||||||||||
| Subscription acquisition cost (non-GAAP) | $ | 21,563 | $ | 18,253 | $ | 42,723 | $ | 35,892 | ||||||||||||||||||
| % of subscription revenue | 7.8 | % | 7.5 | % | 7.8 | % | 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 $0.1 million and $0.3 million for the three and six months ended June 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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Operating income | $ | 6,376 | $ | 2,314 | $ | 11,152 | $ | 841 | |||||||||||||||
| Non-GAAP expense adjustments | |||||||||||||||||||||||
| Acquisition cost | 21,578 | 18,327 | 42,764 | 35,969 | |||||||||||||||||||
Stock-based compensation expense(1) | 9,883 | 9,268 | 18,698 | 18,782 | |||||||||||||||||||
Development expenses(2) | 1,801 | 946 | 3,501 | 2,353 | |||||||||||||||||||
| Depreciation and amortization | 3,673 | 3,962 | 7,379 | 7,753 | |||||||||||||||||||
| Loss from investment in joint venture | — | — | — | (305) | |||||||||||||||||||
| Total adjusted operating income (non-GAAP) | $ | 43,311 | $ | 34,817 | $ | 83,494 | $ | 66,003 | |||||||||||||||
| Subscription Business: | |||||||||||||||||||||||
| Subscription operating income | $ | 8,331 | $ | 4,523 | $ | 14,824 | $ | 5,590 | |||||||||||||||
| Non-GAAP expense adjustments | |||||||||||||||||||||||
| Acquisition cost | 21,563 | 18,253 | 42,723 | 35,892 | |||||||||||||||||||
Stock-based compensation expense(1) | 7,649 | 7,248 | 14,586 | 15,017 | |||||||||||||||||||
Development expenses(2) | 1,268 | 648 | 2,461 | 1,610 | |||||||||||||||||||
| Depreciation and amortization | 2,586 | 2,714 | 5,187 | 5,297 | |||||||||||||||||||
| Subscription adjusted operating income (non-GAAP) | $ | 41,397 | $ | 33,386 | $ | 79,781 | $ | 63,406 | |||||||||||||||
| Other Business: | |||||||||||||||||||||||
| Other business operating loss | $ | (1,955) | $ | (2,209) | $ | (3,672) | $ | (4,444) | |||||||||||||||
| Non-GAAP expense adjustments | |||||||||||||||||||||||
| Acquisition cost | 15 | 74 | 41 | 77 | |||||||||||||||||||
Stock-based compensation expense(1) | 2,234 | 2,020 | 4,112 | 3,765 | |||||||||||||||||||
Development expenses(2) | 533 | 298 | 1,040 | 743 | |||||||||||||||||||
| Depreciation and amortization | 1,087 | 1,248 | 2,192 | 2,456 | |||||||||||||||||||
| Other business adjusted operating income (non-GAAP) | $ | 1,914 | $ | 1,431 | $ | 3,713 | $ | 2,597 | |||||||||||||||
(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 $0.1 million and $0.3 million for the three and six months ended June 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 tables reflect the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages): | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Subscription revenue | $ | 276,690 | $ | 242,156 | $ | 546,144 | $ | 475,220 | |||||||||||||||
| Subscription cost of paying veterinary invoices | 194,307 | 172,116 | 385,169 | 339,533 | |||||||||||||||||||
| Subscription variable expenses | 24,837 | 22,018 | 49,315 | 43,223 | |||||||||||||||||||
| Subscription fixed expenses* | 16,149 | 14,636 | 31,879 | 29,058 | |||||||||||||||||||
| Subscription adjusted operating income (non-GAAP) | $ | 41,397 | $ | 33,386 | $ | 79,781 | $ | 63,406 | |||||||||||||||
| Other business revenue | $ | 116,244 | $ | 111,401 | $ | 230,839 | $ | 220,312 | |||||||||||||||
| Other business cost of paying veterinary invoices | 84,665 | 82,706 | 174,687 | 161,975 | |||||||||||||||||||
| Other business variable expenses | 22,881 | 20,531 | 38,964 | 42,267 | |||||||||||||||||||
| Other business fixed expenses* | 6,784 | 6,733 | 13,475 | 13,473 | |||||||||||||||||||
| Other business adjusted operating income (non-GAAP) | $ | 1,914 | $ | 1,431 | $ | 3,713 | $ | 2,597 | |||||||||||||||
| Revenue | $ | 392,934 | $ | 353,557 | $ | 776,983 | $ | 695,532 | |||||||||||||||
| Cost of paying veterinary invoices | 278,972 | 254,822 | 559,856 | 501,508 | |||||||||||||||||||
| Variable expenses | 47,718 | 42,549 | 88,279 | 85,490 | |||||||||||||||||||
| Fixed expenses* | 22,933 | 21,369 | 45,354 | 42,531 | |||||||||||||||||||
| Total business adjusted operating income (non-GAAP) | $ | 43,311 | $ | 34,817 | $ | 83,494 | $ | 66,003 | |||||||||||||||
| As a percentage of revenue: | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Subscription revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
| Subscription cost of paying veterinary invoices | 70.2 | % | 71.1 | % | 70.5 | % | 71.4 | % | |||||||||||||||
| Subscription variable expenses | 9.0 | % | 9.1 | % | 9.0 | % | 9.1 | % | |||||||||||||||
| Subscription fixed expenses* | 5.8 | % | 6.0 | % | 5.8 | % | 6.1 | % | |||||||||||||||
| Subscription adjusted operating income (non-GAAP) | 15.0 | % | 13.8 | % | 14.6 | % | 13.3 | % | |||||||||||||||
| Other business revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
| Other business cost of paying veterinary invoices | 72.8 | % | 74.2 | % | 75.7 | % | 73.5 | % | |||||||||||||||
| Other business variable expenses | 19.7 | % | 18.4 | % | 16.9 | % | 19.2 | % | |||||||||||||||
| Other business fixed expenses* | 5.8 | % | 6.0 | % | 5.8 | % | 6.1 | % | |||||||||||||||
| Other business adjusted operating income (non-GAAP) | 1.6 | % | 1.3 | % | 1.6 | % | 1.2 | % | |||||||||||||||
| Revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
| Cost of paying veterinary invoices | 71.0 | % | 72.1 | % | 72.1 | % | 72.1 | % | |||||||||||||||
| Variable expenses | 12.1 | % | 12.0 | % | 11.4 | % | 12.3 | % | |||||||||||||||
| Fixed expenses* | 5.8 | % | 6.0 | % | 5.8 | % | 6.1 | % | |||||||||||||||
| Total business adjusted operating income (non-GAAP) | 11.0 | % | 9.8 | % | 10.7 | % | 9.5 | % | |||||||||||||||
*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.
11
| The following tables reflect the reconciliation of adjusted EBITDA to net income (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 11,711 | $ | 7,930 | |||||||||||||||||||||||||||||||||||||||||||
| Excluding: | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense(1) | 18,698 | 18,782 | |||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 7,379 | 7,753 | |||||||||||||||||||||||||||||||||||||||||||||
| Interest income | (5,981) | (5,940) | |||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 3,707 | 6,893 | |||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense | 1,618 | 1,172 | |||||||||||||||||||||||||||||||||||||||||||||
| Realized gain on nonmonetary exchange of preferred stock investment | — | (7,783) | |||||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 37,132 | $ | 28,807 | |||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
| Jun. 30, 2026 | Mar. 31, 2026 | Dec. 31, 2025 | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 6,831 | $ | 4,880 | $ | 5,630 | $ | 5,873 | $ | 9,413 | $ | (1,483) | $ | 1,656 | $ | 1,425 | |||||||||||||||||||||||||||||||
| Excluding: | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense(1) | 9,883 | 8,815 | 9,361 | 9,323 | 9,268 | 9,514 | 8,036 | 8,127 | |||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 3,673 | 3,706 | 4,032 | 4,051 | 3,962 | 3,791 | 3,924 | 4,381 | |||||||||||||||||||||||||||||||||||||||
| Interest income | (2,983) | (2,998) | (3,115) | (3,201) | (3,105) | (2,835) | (2,999) | (3,232) | |||||||||||||||||||||||||||||||||||||||
| Interest expense | 1,832 | 1,875 | 4,076 | 2,790 | 3,682 | 3,211 | 3,427 | 3,820 | |||||||||||||||||||||||||||||||||||||||
| Income tax expense | 542 | 1,076 | 663 | 726 | 1,133 | 39 | 38 | 39 | |||||||||||||||||||||||||||||||||||||||
| 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 | $ | 19,778 | $ | 17,354 | $ | 21,776 | $ | 19,562 | $ | 16,570 | $ | 12,237 | $ | 19,381 | $ | 14,527 | |||||||||||||||||||||||||||||||
(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 $0.1 million and $0.3 million for the three and six months ended June 30, 2026, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||
12
Contacts:
Investors:
Laura Bainbridge, Senior Vice President, Corporate Communications
Gil Melchior, Director, Investor Relations
Investor.Relations@trupanion.com
13