Trupanion Reports Second Quarter 2025 Results
SEATTLE, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Trupanion, Inc. (NASDAQ:TRUP), the leading provider of medical insurance for cats and dogs, today announced financial results for the second quarter ended June 30, 2025.
"The second quarter was one of the strongest financial quarters in our history, marked by consistent top-line growth, robust margin expansion and strengthening retention," said Margi Tooth, Chief Executive Officer and President of Trupanion. "These results create a strong foundation to invest in this globally underpenetrated market and bring the benefits of Trupanion to more pets and pet parents."
Second Quarter 2025 Financial and Business Highlights
Total revenue was $353.6 million, an increase of 12% compared to the second quarter of 2024.
Total enrolled pets (including pets from our other business segment) was 1,660,455 at June 30, 2025, a decrease of 2% over June 30, 2024.
Subscription business revenue was $242.2 million, an increase of 16% compared to the second quarter of 2024.
Subscription enrolled pets was 1,066,354 at June 30, 2025, an increase of 4% over June 30, 2024.
Net income was $9.4 million, or $0.22 per basic and diluted share, compared to net loss of $(5.9) million, or $(0.14) per basic and diluted share, in the second quarter of 2024. Net income included a realized gain of $7.8 million from the exchange of a preferred stock investment for intellectual property in the second quarter of 2025.
Adjusted EBITDA was $16.6 million, compared to adjusted EBITDA of $7.4 million in the second quarter of 2024.
Operating cash flow was $15.0 million and free cash flow was $12.0 million in the second quarter of 2025. This compared to operating cash flow of $6.9 million and free cash flow of $4.0 million in the second quarter of 2024.
First Half 2025 Financial and Business Highlights
Total revenue was $695.5 million, an increase of 12% compared to the first half of 2024.
Subscription business revenue was $475.2 million, an increase of 16% compared to the first half of 2024.
Net income was $7.9 million, or $0.19 per basic and $0.18 per diluted share, compared to net loss of $(12.7) million, or $(0.30) per basic and diluted share, in the first half of 2024. Net income included a realized gain of $7.8 million from the exchange of a preferred stock investment for intellectual property in the first half of 2025.
Adjusted EBITDA was $28.8 million, compared to adjusted EBITDA of $12.2 million in the first half of 2024.
Operating cash flow was $31.0 million and free cash flow was $26.1 million in the first half of 2025. This compared to operating cash flow of $9.3 million and free cash flow of $3.3 million in the first half of 2024.
At June 30, 2025, the Company held $319.6 million in cash and short-term investments, including $53.3 million held outside the insurance entities, with an additional $15 million available under its credit facility.
Conference CallTrupanion's management will host a conference call today to review its second quarter 2025 results. The call is scheduled to begin shortly after 1:30 p.m. PT/ 4:30 p.m. ET. A live webcast will be accessible through the Investor Relations section of Trupanion's website at https://investors.trupanion.com/ and will be archived online for 3 months upon completion of the conference call. Participants can access the conference call by dialing 1-844-676-1342 (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: 10200168.
About TrupanionTrupanion is a leader in medical insurance for cats and dogs throughout the United States, Canada, and certain countries in Continental Europe with over 1,000,000 pets currently enrolled. For over two decades, Trupanion has given pet owners peace of mind so they can focus on their pet's recovery, not financial stress. Trupanion is committed to providing pet parents with the highest value in pet medical insurance with unlimited payouts for the life of their pets. With its patented process, Trupanion is the only North American provider with the technology to pay veterinarians directly in seconds at the time of checkout. Trupanion is listed on NASDAQ under the symbol "TRUP". The company was founded in 2000 and is headquartered in Seattle, WA. Trupanion policies are issued, in the United States, by its wholly owned insurance entity American Pet Insurance Company and, in Canada, by Accelerant Insurance Company of Canada or GPIC Insurance Company. Policies are sold and administered in Canada by Canada Pet Health Insurance Services, Inc. dba Trupanion 309-1277 Lynn Valley Road, North Vancouver, BC V7J 0A2 and in the United States by Trupanion Managers USA, Inc. (CA license No. 0G22803, NPN 9588590). Canada Pet Health Insurance Services, Inc. is a registered damage insurance agency and claims adjuster in Quebec #603927. For more information, please visit trupanion.com.
Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to, among other things, expectations, plans, prospects and financial results for Trupanion, including, but not limited to, its expectations regarding its ability to continue to grow its enrollments and revenue, and otherwise execute its business plan. These forward-looking statements are based upon the current expectations and beliefs of Trupanion's management as of the date of this press release, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements made in this press release are based on information available to Trupanion as of the date hereof, and Trupanion has no obligation to update these forward-looking statements.
In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the ability to achieve or maintain profitability and/or appropriate levels of cash flow in future periods; the ability to keep growing our membership base and revenue; the accuracy of assumptions used in determining appropriate member acquisition expenditures; the severity and frequency of claims; the ability to maintain high retention rates; the accuracy of assumptions used in pricing medical plan subscriptions and the ability to accurately estimate the impact of new products or offerings on claims frequency; actual claims expense exceeding estimates; regulatory and other constraints on the ability to institute, or the decision to otherwise delay, pricing modifications in response to changes in actual or estimated claims expense; the effectiveness and statutory or regulatory compliance of our Territory Partner model and of our Territory Partners, veterinarians and other third parties in recommending medical plan subscriptions to potential members; the ability to retain existing Territory Partners and increase the number of Territory Partners and active hospitals; compliance by us and those referring us members with laws and regulations that apply to our business, including the sale of a pet medical plan; the ability to maintain the security of our data; fluctuations in the Canadian currency exchange rate; the ability to protect our proprietary and member information; the ability to maintain our culture and team; the ability to maintain the requisite amount of risk-based capital; our ability to implement and maintain effective controls, including to remediate material weaknesses in internal controls over financial reporting; the ability to protect and enforce Trupanion's intellectual property rights; the ability to successfully implement our alliance with Aflac; the ability to continue key contractual relationships with third parties; third-party claims including litigation and regulatory actions; the ability to recognize benefits from investments in new solutions and enhancements to Trupanion's technology platform and website; our ability to retain key personnel; and deliberations and determinations by the Trupanion board based on the future performance of the company or otherwise.
For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the Securities and Exchange Commission (SEC), including but not limited to, Trupanion's Annual Report on Form 10-K for the year ended December 31, 2024 and any subsequently filed reports on Forms 10-Q, 10-K and 8-K. All documents are available through the SEC's Electronic Data Gathering Analysis and Retrieval system at https://www.sec.gov or the Investor Relations section of Trupanion's website at https://investors.trupanion.com.
Non-GAAP Financial MeasuresTrupanion's stated results may include certain non-GAAP financial measures. These non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry as other companies in its industry may calculate or use non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Trupanion's reported financial results. The presentation and utilization of non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Trupanion urges its investors to review the reconciliation of its non-GAAP financial measures to the most directly comparable GAAP financial measures in its consolidated financial statements, and not to rely on any single financial or operating measure to evaluate its business. These reconciliations are included below and on Trupanion's Investor Relations website.
Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company's non-cash expenses, Trupanion believes that providing various non-GAAP financial measures that exclude stock-based compensation expense and depreciation and amortization expense allows for more meaningful comparisons between its operating results from period to period. Trupanion offsets new pet acquisition expense with sign-up fee revenue in the calculation of net acquisition cost because it collects sign-up fee revenue from new members at the time of enrollment and considers it to be an offset to a portion of Trupanion's new pet acquisition expense. Trupanion believes this allows it to calculate and present financial measures in a consistent manner across periods. Trupanion's management believes that the non-GAAP financial measures and the related financial measures derived from them are important tools for financial and operational decision-making and for evaluating operating results over different periods of time.
Trupanion, Inc.Condensed Consolidated Statements of Operations(in thousands, except share data)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
(unaudited)
Revenue:
Subscription business
$
242,156
$
208,618
$
475,220
$
409,752
Other business
111,401
106,182
220,312
211,169
Total revenue
353,557
314,800
695,532
620,921
Cost of revenue:
Subscription business
195,488
175,740
385,333
347,871
Other business
103,242
98,791
204,269
196,554
Total cost of revenue(1), (2)
298,730
274,531
589,602
544,425
Operating expenses:
Technology and development(1)
8,586
8,190
16,658
15,150
General and administrative(1)
20,122
15,253
40,014
29,926
New pet acquisition expense(1)
19,843
17,874
40,359
34,717
Depreciation and amortization
3,962
4,376
7,753
8,161
Total operating expenses
52,513
45,693
104,784
87,954
Loss from investment in joint venture
—
(47
)
(305
)
(150
)
Operating income (loss)
2,314
(5,471
)
841
(11,608
)
Interest expense
3,682
3,655
6,893
7,251
Other (income), net
(11,914
)
(3,220
)
(15,154
)
(6,063
)
Income (loss) before income taxes
10,546
(5,906
)
9,102
(12,796
)
Income tax (benefit) expense
1,133
(44
)
1,172
(82
)
Net income (loss)
$
9,413
$
(5,862
)
$
7,930
$
(12,714
)
Net income (loss) per share:
Basic
$
0.22
$
(0.14
)
$
0.19
$
(0.30
)
Diluted
$
0.22
$
(0.14
)
$
0.18
$
(0.30
)
Weighted average shares of common stock outstanding:
Basic
42,872,153
42,078,271
42,734,426
41,997,683
Diluted
43,325,704
42,078,271
43,544,325
41,997,683
(1)Includes stock-based compensation expense as follows:
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Veterinary invoice expense
$
774
$
854
$
1,544
$
1,778
Other cost of revenue
605
541
1,094
1,007
Technology and development
1,470
1,261
2,621
2,515
General and administrative
5,047
3,861
9,575
7,310
New pet acquisition expense
1,560
2,129
4,452
4,188
Total stock-based compensation expense
$
9,456
$
8,646
$
19,286
$
16,798
(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,
2025
2024
2025
2024
Veterinary invoice expense
$
255,580
$
231,102
$
503,030
$
464,671
Other cost of revenue
43,150
43,429
86,572
79,754
Total cost of revenue
$
298,730
$
274,531
$
589,602
$
544,425
Trupanion, Inc.Condensed Consolidated Balance Sheets(in thousands, except share data)
June 30, 2025
December 31, 2024
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
122,742
$
160,295
Short-term investments
196,854
147,089
Accounts and other receivables, net of allowance for doubtful accounts of $1,357 at June 30, 2025 and $1,117 at December 31, 2024
292,820
274,031
Prepaid expenses and other assets
16,665
15,912
Total current assets
629,081
597,327
Restricted cash
41,729
39,235
Long-term investments
167
373
Property, equipment, and internal-use software, net
101,785
102,191
Intangible assets, net
26,134
13,177
Other long-term assets
7,904
17,579
Goodwill
40,989
36,971
Total assets
$
847,789
$
806,853
Liabilities and stockholders' equity
Current liabilities:
Accounts payable
$
8,670
$
11,532
Accrued liabilities and other current liabilities
37,629
33,469
Reserve for veterinary invoices
52,523
51,635
Deferred revenue
272,120
251,640
Long-term debt - current portion
1,350
1,350
Total current liabilities
372,292
349,626
Long-term debt
113,116
127,537
Deferred tax liabilities
2,007
1,946
Other liabilities
4,920
4,476
Total liabilities
492,335
483,585
Stockholders' equity:
Common stock: $0.00001 par value per share, 100,000,000 shares authorized; 44,015,958 and 42,987,772 issued and outstanding at June 30, 2025; 43,516,631 and 42,488,445 shares issued and outstanding at December 31, 2024
—
—
Preferred stock: $0.00001 par value per share, 10,000,000 shares authorized; no shares issued and outstanding
—
—
Additional paid-in capital
587,289
568,302
Accumulated other comprehensive income (loss)
2,657
(2,612
)
Accumulated deficit
(217,958
)
(225,888
)
Treasury stock, at cost: 1,028,186 shares at June 30, 2025 and December 31, 2024
(16,534
)
(16,534
)
Total stockholders' equity
355,454
323,268
Total liabilities and stockholders' equity
$
847,789
$
806,853
Trupanion, Inc.Condensed Consolidated Statements of Cash Flows(in thousands)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
