Trupanion Inc

Latest Results (16.01.2026):

Trupanion Inc — Third Quarter 2025: Trupanion reported strong Q3 2025 results with record quarterly profitability. Total revenue was $366.9M (up 12% YoY), driven by a 15% increase in subscription revenue to $252.7M. Net income was $5.9M ($0.14 basic / $0.13 diluted) versus $1.4M a year earlier, and adjusted EBITDA improved to $19.6M. Subscription enrolled pets grew 5% YoY to 1,082,412 (total enrolled pets were 1,654,414, down 2% YoY). Operating cash flow was $29.2M and free cash flow $23.9M. The company also completed a new three‑year $120M credit facility with PNC Bank to replace its prior facility and lower borrowing costs.

Revenue and top-line growth

Total Q3 2025 revenue was $366.9M, a 12% increase versus Q3 2024. Subscription revenue (the core business) was $252.7M, up 15% YoY. Year‑to‑date (first nine months) revenue was $1,062.5M, also up 12% versus the prior year.

Profitability and earnings

Q3 2025 net income was $5.9M ($0.14 basic / $0.13 diluted), versus $1.4M in Q3 2024. Nine‑month net income was $13.8M ($0.32 per share) compared with a net loss in the first nine months of 2024.

Adjusted EBITDA and non‑GAAP operating results

Adjusted EBITDA for Q3 2025 was $19.6M (versus $14.5M in Q3 2024). Total business adjusted operating income (non‑GAAP) was $40.85M for the quarter; subscription adjusted operating income (non‑GAAP) was $39.09M.

Cash flow and liquidity

Operating cash flow in Q3 was $29.2M and free cash flow was $23.9M (vs. $15.3M and $13.4M in Q3 2024). At September 30, 2025 Trupanion held $348.5M in cash and short‑term investments (including $58.5M outside the insurance entities) and had an additional $15.0M available under its prior credit facility before completing the new facility.

New credit facility

Trupanion entered a new three‑year $120M credit agreement with PNC Bank and used it to repay the prior facility. Management says the new facility carries a lower interest rate and enhances capital flexibility to support strategic investments.

Enrollment and unit economics

Subscription enrolled pets were 1,082,412 at quarter end, up 5% YoY; total pets enrolled were 1,654,414, down 2% YoY. Q3 monthly average revenue per pet was $82.01. Average pet acquisition cost (PAC) for the quarter was $290 and average monthly retention remained strong at 98.33%.

Cost structure and margins

Subscription cost of paying veterinary invoices was 70.1% of subscription revenue in Q3 (improving vs. 71.0% in Q3 2024). Subscription variable expenses were 8.9% and subscription fixed expenses were 5.6% of revenue, leaving subscription adjusted operating income at 15.5% of subscription revenue for the quarter (non‑GAAP).

Balance sheet and debt

Total assets were $880.2M and total liabilities $511.6M at September 30, 2025. Long‑term debt was $113.8M (current portion $0.75M). Management highlighted a strengthened capital structure and lower borrowing costs following the PNC facility.

Nine‑month performance

For the first nine months of 2025, Trupanion reported revenue of $1,062.5M (up 12%), subscription revenue of $727.9M (up 16%), adjusted EBITDA of $48.4M (vs. $26.7M prior year) and free cash flow of $50.0M (vs. $16.7M prior year).