"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 CallTrupanion'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 TrupanionTrupanion is a leader in medical insurance for cats and dogs throughout the United States, Canada, and certain countries in Continental Europe with over 1,100,000 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 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 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 MeasuresTrupanion'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.
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
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
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
