TRUP

Trupanion’s second quarter results were met with a positive market response, reflecting better-than-expected revenue growth and robust core business execution. Management identified an acceleration in pet enrollments, driven by enhancements to the customer enrollment experience and expanded deductible and coinsurance options. CEO Margi Tooth pointed to "improved web conversion" and "solid performance" from the company’s updated products as key contributors to net subscription pet growth, which rose 39% year over year. Early results from these initiatives also led to a 25% increase in the lifetime value of enrolled pets, supporting Trupanion’s ability to invest in further growth opportunities. Is now the time to buy TRUP? Find out in our full research report (it’s free). Revenue: $392.9 million vs analyst estimates of $389.8 million (11.1% year-on-year growth, 0.8% beat) EPS (GAAP): $0.16 vs analyst estimates of $0.11 (37.5% beat) Adjusted EBITDA: $19.78 million vs analyst estimates of $21.1 million (5% margin, 6.3% miss) Operating Margin: 1.6%, in line with the same quarter last year Market Capitalization: $1.34 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Wilma Jackson Burdis (Raymond James): asked about ongoing veterinary inflation and its impact on pricing. CEO Margi Tooth said inflation remains elevated but is expected to normalize, and this is reflected in current pricing strategies. Wilma Jackson Burdis (Raymond James): inquired about the company’s use of its credit facility. CFO Fawwad Qureshi explained most of the revolver was drawn and highlighted ongoing debt reduction and strong interest income relative to expense. Joshua Shanker (Bank of America): questioned the rationale and timeline for the share repurchase program. Qureshi emphasized the company’s strong balance sheet and cash flows allow for both buybacks and internal investments, with prioritization based on expected returns. Joshua Shanker (Bank of America): sought detail on the relative returns of share repurchases versus pet acquisition investments. Qureshi replied decisions are made based on comparative returns, with flexibility to allocate capital dynamically. Brandon Vazquez (William Blair): asked about the timeline and impact of product changes on pet enrollments. Tooth stated the rollout is about halfway complete and early signs are encouraging, with full deployment expected by year-end. In upcoming quarters, our analyst team will focus on (1) tracking the full North American rollout and adoption rates of expanded deductible and coinsurance options, (2) monitoring progress toward the planned digital insurance product launch and its initial uptake, and (3) evaluating the impact of further technology investments on operational efficiency and member experience. Additional attention will be given to trends in veterinary inflation and net pet additions as leading indicators of sustained growth. Trupanion currently trades at $30.49, up from $24.39 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 4:30 p.m. ET Chief Executive Officer and President - Margaret Tooth Chief Financial Officer - Fawwad Qureshi Operator: Hello and welcome to the Trupanion Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I will now turn the conference over to Gil Melchior. Please go ahead. Gil Melchior: Good afternoon and welcome to Trupanion's Second Quarter 2026 Financial Results Conference Call. Participating on today's call are Margi Tooth, Chief Executive Officer and President, and Fawwad Qureshi, Chief Financial Officer. Before we begin, please be advised that remarks today will contain forward-looking statements. All statements other than statements of historical facts are forward-looking statements. These include, but are not limited to, statements regarding our future operations, key operating metrics, opportunities and financial performance, pricing and veterinary industry inflation. These statements involve a high degree of known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed. A detailed discussion of these and other risks and uncertainties are included in today's earnings release as well as the company's most recent reports, including Forms 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission. Today's presentation contains references to non-GAAP financial measures that management uses to evaluate the company's performance, including, without limitation, cost of paying veterinary invoices, variable expenses, fixed expenses, adjusted operating income, acquisition costs, internal rate of return, adjusted EBITDA and free cash flow. When we use the term adjusted operating income or margin, it is intended to refer to our non-GAAP operating income or margin before new pet acquisition and development expenses. Unless otherwise noted, all margins and expenses will be presented on a non-GAAP basis and excluding stock-based compensation expense and depreciation expense. These non-GAAP measures are in addition to, and not a substitute for, measures of financial performance prepared in accordance with U.S. GAAP. Investors are encouraged to review the reconciliations of these non-GAAP financial measures to the most directly comparable GAAP results, which can be found in today's press release. Lastly, I would like to remind everyone that today's conference call is also available via webcast on Trupanion's Investor Relations website. A replay will also be available on the site. I will now hand over the call to Margi. Margaret Tooth: Good afternoon, everyone, and thank you for joining us. We delivered another strong quarter. Subscription adjusted operating income grew 24% year-over-year, and we remain on track to generate $180 million of total adjusted operating income this year. One of the advantages of our compounding AOI is that it creates additional capacity to invest in our business. This provides the flexibility to thoughtfully deploy capital across the opportunities we believe will create the greatest long-term value, whether that's adding new pets, enhancing our products and member experience, investing in new capabilities and technology, or strengthening the underlying systems that support our business. In the quarter, returns on our pet acquisition investment contributed to an acceleration in gross pet adds, up 9% year-over-year. Together with stable retention, we added approximately 18,800 net subscription pets in the quarter, growth of 39% over the prior year period. This progress reflects a number of initiatives being rolled out across the business to improve the Trupanion experience, from the moment someone first learns about the company through to enrollment and retention. As pet parents progress through the enrollment experience, we continue to refine and optimize that journey, making it easier to understand our value proposition to enroll with confidence. Those investments contributed to improved web conversion in the quarter, while phone conversion remained consistently strong, operating near record levels. In addition, we're pleased with the early results from the enhancements we've made to our core Trupanion product. Expanded deductible and coinsurance options are improving accessibility by providing more affordable monthly choices, and we're well on track to expand this rollout across North America as planned. More importantly, through disciplined execution, we're improving the long-term economics of new enrollments with pricing that's better aligned to the value of our coverage. The results of this discipline show up in a 25% increase in the lifetime value of an enrolled pet during the quarter, meaning every dollar we invest in pet acquisition today has the potential to create significantly more long-term value than it did just a year ago. These stronger unit economics reinforce our confidence to invest across core acquisition channels. In our large and underpenetrated market, a substantial opportunity exists to reach more pet parents, in spite of a downturn in new visits to veterinarians reported across the industry. Even with the recent pullback, there are still millions of uninsured puppies and kittens entering hospitals each year and the addressable market remains vast. We believe our differentiated model built on decades of veterinary relationships, proprietary data, and deep insurance expertise position us very well to continue strengthening our core offering while thoughtfully expanding our portfolio to serve more pet parents. Consistent with that strategy, we remain on track to launch our new digital offering in the first half of our current strategic plan. We believe this will further extend access to medical insurance for cats and dogs, reach new customer segments and help grow the overall market. As we scale, technology will remain a key enabler of growth, helping us to better serve our member base, making every interaction simpler, faster and more personal. Our investments in AI and automation are designed to increase operating leverage through the removal of friction, improve operational efficiencies and free up our teams to focus on the moments that matter, the human touch. Today, the benefits of this approach are evidenced with our increasing operational scale and solid retention. Over time, we expect these capabilities to support long-term growth while preserving the experience our members and partners have come to expect from Trupanion. Overall, we're encouraged by the progress we made during the quarter and remain confident in the opportunity ahead. We will continue investing with a disciplined focus on growing adjusted operating income and creating durable shareholder value. Our confidence in our long-term outlook remains high, which is reflected in today's announcement of a share repurchase program. I will hand the call over to Fawwad to provide additional details related to this and to add more color to our quarterly results. Fawwad Qureshi: Thanks, Margi, and good afternoon, everyone. Today I will share additional details around our second quarter performance as well as provide our outlook for the third quarter and full year 2026. Total revenue for the quarter was $392.9 million, up 11% year-over-year. Within our subscription business, revenue was $276.7 million, up 14% year-over-year. Total monthly average revenue per pet for the quarter was $87.44, up 9% over the prior year period. Total subscription pets increased 5% year-over-year to 1,125,000 pets as of June 30th. This includes approximately 66,000 pets in Europe. Average monthly retention for the trailing 12 months was 98.37%, up versus the second quarter last year, which was 98.29%. The subscription business cost of paying veterinary invoices was $194.3 million, resulting in a value proposition of 70.2% versus 71.1% in the prior year period. The quarter included favorable prior period development of $1.2 million, or approximately 40 basis points of subscription revenue. As a percentage of subscription revenue, variable expenses were 9%, down from 9.1% in the second quarter of last year. Fixed expenses as a percentage of revenue were 5.8%, down from 6% in the prior year period. Combined, we saw fixed and variable spending at 14.8% of subscription revenue in Q2, an improvement from 15.1% in the prior year period. Our subscription business delivered adjusted operating income of $41.4 million, an increase of 24% from last year, and contributed 96% of our total AOI for the quarter. Subscription adjusted operating margin was 15%, up from 13.8% in the prior year. Now I'll turn to our other business segment. Other business revenue was $116.2 million for the quarter, an increase of 4% year-over-year. Adjusted operating income for this segment was $1.9 million, or 1.6% of revenue. We also wanted to share that we have agreed with Pets Best to conclude our relationship following the third quarter of 2028. In total, adjusted operating income was $43.3 million in Q2, up 24% from Q2 last year and ahead of our expectations. We deployed $21.6 million of this AOI to acquire approximately 68,100 new subscription pets. Excluding the pets that are underwritten through an MGA structure, this translated into an average pet acquisition cost of $299 per pet in the quarter, up from $276 in the prior year period. We invested $1.8 million in the quarter in development costs. Stock-based compensation expense was $9.9 million. As a result, net income for the quarter 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 prior year period. As a reminder, last year's net income included a one-time gain of $7.8 million on the exchange of preferred stock related to our pet food initiative. The results of this quarter mark our fifth consecutive quarter of positive net income. In terms of cash flow, operating cash flow was $21 million in the quarter compared to $15 million in the prior year period. Capital expenditures totaled $1.8 million, down from $3 million in Q2 of last year. As a result, free cash flow was $19.2 million, up from $12 million last year. Over the last four quarters, free cash flow reached $82.2 million. Turning to the balance sheet, we ended the quarter with $398.5 million in cash and short-term investments and a total debt balance of $106.9 million, a reduction of $7.6 million versus Q2 last year. Subsequent to quarter end, we received approval from the New York Department of Financial Services to dividend $44 million of capital from our largest insurance entity, APIC, to our operating company. This approval brings the total amount of excess capital we have unlocked from our insurance entities to approximately $130 million over the past 3 years, reflecting the strength of our financial position and our ability to invest in growth opportunities. In conjunction with the dividend, we are pleased to announce the authorization of a $100 million share repurchase program, with repurchases expected to occur opportunistically. We view the new share repurchase program as an additional lever to create long-term shareholder value, complementing our continued investment in organic growth and the disciplined capital allocation approach that has guided our strategy. Now I'll turn to our outlook. For the full year of 2026, we now expect total revenue in the range of $1.584 billion to $1.601 billion. We are narrowing the range for subscription revenue, which is now expected to be between $1.124 billion and $1.133 billion. The midpoint of the range is increasing slightly and continues to represent approximately 14% year-over-year growth. We're also narrowing the range on total adjusted operating income to be between $176 million and $184 million, or 19% year-over-year growth at the midpoint. For the third quarter of 2026, total revenue is expected to be in the range of $399 million to $405 million. Subscription revenue is expected to be between $284 million and $287 million, representing approximately 13% year-over-year growth at the midpoint. Total adjusted operating income is expected to be in the range of $44 million to $47 million. This represents approximately 11% growth year-over-year at the midpoint. As a reminder, our revenue projections are subject to conversion rate movements predominantly between the U.S. and Canadian currencies. For our third quarter and full year guidance, we used a 71% conversion rate in our projections. Let me now pass it back to Margi. Margaret Tooth: Thank you, Fawwad. As we reach the midpoint of the year, we're encouraged by our execution and the strength of the business we continue to build. In the first half of 2026: we generated more than $83 million of adjusted operating income, up 27% year-over-year, demonstrating the earnings power of our business; we delivered adjusted operating margins at our long-term target while continuing to invest with discipline; we generated strong free cash flow, providing additional flexibility to invest where we see the most attractive returns; and we accelerated net pet growth, strengthened the economics of new enrollments, enhanced the experience for members and veterinarians and expanded our product portfolio. These results position us well for the second half of the year. We remain focused on disciplined execution, investing in our highest-return opportunities, and building on the momentum we've established to create lasting shareholder value. With that, let's open the line for questions. Operator: [Operator Instructions] And today's first question comes from Wilma Burdis with Raymond James. Wilma Jackson Burdis: Could you talk a little bit about what you're seeing in terms of continued pet inflation, how you're thinking about that as you continue to seek rate increases? Margaret Tooth: Yes, thanks for the question, Wilma. We're seeing veterinary inflation is still higher than we historically would have expected going back 3, 4 years ago. So, still sort of at the double-digit level. It has come down and we expect that, that will normalize over time. But those assumptions are flowing through our pricing, which is why we're still seeing higher-than-average pricing coming through the book of business and they can reflect the impact we see from veterinarians where wellness visits are down and revenue is going up as they push their prices to maintain revenue strength. Wilma Jackson Burdis: And then can you talk a little bit about what you used your credit facility for this quarter? Fawwad Qureshi: Yes, I would say -- thanks for the question, Wilma. Yes, overall the credit facility we have in the debt refinance area with PNC is 2 parts, just the $100 million, which is the term loan and then there's a $20 million revolver. So we'll disclose in the 10-Q more specifics about it, but we've drawn most of the revolver. And yes, we can provide details in the 10-Q. I would say from a debt perspective, overall our debt continues to come down as part of our agreement. We make regular principal payments. And so you can see the year-over-year decrease in debt and even from the beginning of the year. The other thing that's worth noting is just from an interest perspective, we're again generating more interest income than paying interest expense. So we feel good about the overall financing, where we are from a debt-to-equity ratio standpoint continues to be strong and very happy with the relationship with PNC. Operator: The next question comes from Josh Shanker with Bank of America. Joshua Shanker: The share repurchase authorization, obviously, it has no expiration on it. But when making the announcement, investors would like to know that it's planned to be used. Can you give a little detail on the thoughts behind it and whether investors should be confident that it'll be exercised? Fawwad Qureshi: Yes, Josh, I'll say a couple of things about it. I think it goes back to what we previously emphasized, that there's really 2 components when we think about our financial strength. Certainly, the strength of the balance sheet being one of them and the ability to monetize our surplus. First and foremost, we're very pleased to get the extraordinary dividend that we announced, the $44 million. That's our third extraordinary dividend. So when you look at the $26 million we received in May of last year, approximately $15 million in Q1 and then the most recent one, that's about $85 million that we've taken out. In total, through ordinary extraordinary dividends and efficiency, we've taken $130 million out. So it's a meaningful amount that we've successfully and responsibly taken out of the insurance entity. When you take the $44 million, which is not included in our financials and add that to our available cash, it gets you to just under $100 million of available operating cash. So again, we feel very good about our ability to not just fund share buyback, but really take the record margins that we have, growing AOI and be able to deploy that along with the surplus from the balance sheet, whether it's in pet counts in PAC, which we spend more in the first half of this year than any first half in our history, continue to be the majority of our focus, but also in Landspath International. And then I spoke last quarter about some of the technology and AI investments we've made. So we look to accelerate those. And then finally, financial investments. First came the debt principal repayments on debt that we did last year. And then now we're adding share buyback. So I would say given the record AOI, given our free cash flow, given the strength of the balance sheet, we feel very good about our ability to invest meaningfully across that. Now we're still going to look at it from an IRR perspective to make sure that we're maximizing the return, but we feel good about our ability to make investments that are accretive to the business. Joshua Shanker: And then touching on the IRR question. Can you say with confidence or do you know whether a dollar put to use in the share repurchase is higher or lower than the dollar used in PAC at this point in time? Fawwad Qureshi: Yes, I can't give you a point of view because obviously it's dependent on the share price. We have run that analysis, as you'd expect. And we're confident in our ability to deploy capital in the right places. First is to have the means to do it and have the capacity, and we feel confident based on the work over the last couple of years that we now have those choices. And of course, we are going to look at the difference in return between investing in PAC, investing in other internal investments, Landspath, for instance as well as making financial investments. Joshua Shanker: And is there any detail you can give investors about in terms of the gross adds in the quarter, how much was flagship Trupanion subscription pets and how much were through your partners who are selling a different product, similar but not necessarily the flagship product? Margaret Tooth: Yes, the strength of the gross adds came through the core products that was up 10% -- around 10% year-over-year. So we saw some nice movement across the board, but that was particularly exciting to see from a core point of view. It is where the majority of our focus is, both from an acquisition and retention perspective, and the efforts of the team over the last, I would say, 3 to 4 quarters, the number of tests that we were putting together have culminated and come together. You know, sometimes tests work, sometimes they don't. I would say we've had a really, really good execution quarter in Q2. We've seen some solid performance not only with the changes made through the website, which I mentioned in my earlier opening remarks have improved web conversion nicely, the good step-up there. We've also seen really lovely improvement with the new expanded coinsurance and deductible, which is the first iteration on that product really for 20 years. So seeing that come to the market, I think it's filling a gap that we weren't previously able to fill, and it's giving people flexibility with the affordability point at the entry point of our product. So we're pleased to see that momentum. The second half of the year is off to a solid start and importantly for us, we have the financial flexibility to continue to invest and test and learn, and we expect the sort of opportunity in front of us that we'll be looking to execute into. Operator: And the next question comes from Brandon Vazquez with William Blair. Brandon Vazquez: Margi, you started to hit on this, but can you spend a little bit more time talking about the changes to the enrollment services that you guys are making? That seems like it's having a pretty tangible impact in terms of the net new adds. Trying to understand maybe what the timeline is to roll that out to the broader population, I guess, in all of North America, since it's already seemingly having some benefits, like I want to understand the cadence of how we should expect total net new pets and how impactful those can be over the coming quarters. Margaret Tooth: Yes, sure. So, as I mentioned, there have been a number of tactics that we started doing some things over the course of Q4, Q1, where we were really building towards not only the launch of the expanded coinsurance and deductible, but also some tests. Some of them are brand, some of them are upper funnel, and I think they're coming together to tell a better story to pet parents who are coming to the market for the first time. And that's showing up through more engagement, greater engagement within the website, and just helping to pull people through the funnel to convert. The timeline for the rollout of coinsurance and deductible is throughout the rest of this year. So the teams -- and thank you to the teams, anyone that's listening to this, they've done an absolutely fantastic job working together across the board to roll this out in a very short space of time. We had an accelerated timeline through this year, and we're really pleased that we're well on track for that. I'd say the product changes are being embraced by the market as we'd expect because it's giving people the ability to moderate and play with their premium, play with their monthly costs so they can find something that suits them, which was not as much flexibility embedded beforehand. And we're pleased with what they're doing. I think we've still got -- we're around 50% of the way through that journey right now and expect by the end of this year, we'll have that across North America. Early signs are that it's looking really good and we're continuing to not only deploy that but also other tactics that we believe will be accretive to conversion rate as well online. So lots still to do, a good nice quarter behind us and momentum in front of us. Brandon Vazquez: Great. Maybe a follow-up to that and a slightly different question I'll throw on both of you guys at once. On -- we're talking about changing deductibles a little bit. That might help with the premium price that the user pays. Maybe -- Fawwad, maybe can you talk to us a little bit about how should we think about the P&L impact of these either from margins or from an ARPU level? And then a slightly different question, Margi. In the past, we've talked a little bit about new products coming, maybe new -- totally new insurance products or maybe things like food. Any meaningful updates to give us on that front at this point? Fawwad Qureshi: Yes, I'd say a couple of things. I think, one, we're very pleased with the coinsurance and deductible offerings and also our ability to bring them to market as quickly as we have. So those are in market and beginning to contribute. I think it's still early, given that some of the states have not yet launched, but we're making progress and adding every month. I think it'll be more clear over time. The initial reaction we're getting is positive. I'm sure Margi will give some context on feedback that we've had. So I would say it's early days, but we're pleased with overall performance so far. Margaret Tooth: Yes. Just to add to that, I would say that the volume increase we've seen kind of deductible changes, ARPU changes. It's all -- it's accretive. So we feel really good about the fact that we've been able to unlock, I think, a bit of a consumer segment that we weren't able to reach beforehand. So we're definitely encouraged, and I think there's a lot more to do there, and a lot of testing and learning because as we mentioned, we're only 50% of the way through, and that's a recent stat. So encouraging signs. Just in terms of new products, we have shared before that we expect this to launch around the midpoint of our -- or by the midpoint of our strategic plan, our current strategic plan, which is the midway through next year. So we're nicely on track for that. Teams are working together again to put together a very different approach to pet insurance, something that Trupanion -- a gap that Trupanion doesn't currently sort of really target. And I think it's an exciting way for us to open the category. It's something that I think in spirit of being veterinary partners to the entire animal health industry, we need to find ways to unlock the financial support that pet parents are looking for. And I think this is another avenue that Trupanion has competitive strength in. So excited to bring that to market. In terms of food, making really good progress. I would say we're nearing completion in some of our manufacturing development that we're doing there. Just in terms of building out the factory, we shared that last quarter that will continue through the rest of this quarter, and then we'll start doing some more robust testing. We don't anticipate any meaningful revenue contribution in this strategic plan, but this is definitely a long-term play for us to not only kind of gradually increase our investment in the space but to do so in a manner that I think will set us up very well for the long term with the future of animal health being such a huge market and a huge category that we can be part of. Operator: Very good. And we've reached the end of our Q&A session. I would like to turn the call back over to Margi Tooth for any closing remarks. Margaret Tooth: Yes, thank you. Today we're demonstrating the earnings power of our model. Our business generated more adjusted operating income and cash. We're funding our own growth and we're thoughtfully investing in opportunities that we believe will create real long-term value. As veterinary medicine continues to advance, we believe Trupanion is uniquely positioned to help more pet families access the care they need while creating enduring value for our shareholders. Thank you very much for joining us today. Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines. Before you buy stock in Trupanion, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Trupanion wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Trupanion. The Motley Fool has a disclosure policy. Trupanion (TRUP) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Trupanion (TRUP) is back in focus after reporting second quarter 2026 earnings, issuing updated full year guidance, and unveiling a new integration agreement with veterinary software provider Digitail. See our latest analysis for Trupanion. Trupanion's second quarter 2026 results, updated guidance and the Digitail integration have arrived after a choppy year for the stock. The share price has fallen 27.45% year to date and the 1 year total shareholder return is down 44.7%, while the 3 month share price return of 9.67% suggests some recent momentum. If you are weighing Trupanion's latest moves and want to broaden your research, this is a good moment to scan for other companies with resilient balance sheets and fundamentals using our solid balance sheet and fundamentals stocks screener (49 results). Bulls point to Trupanion's revenue growth guidance, profits and Digitail integration as signs the reset is working. Bears focus on the long share price slide. Which side stands up once valuation enters the frame? Trupanion's most followed narrative pegs fair value at $37.25, well above the recent $26.99 close, and builds a case around steady growth and margin improvement. Read the complete narrative. Want to see what is baked into that $37.25 fair value for Trupanion? The narrative leans heavily on measured revenue growth, modest margin gains and a richer future earnings multiple. Result: Fair Value of $37.25 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Trupanion still faces pressure if subscriber growth remains sluggish and if competition or renewed vet cost inflation squeezes margins more than current analyst models assume. Find out about the key risks to this Trupanion narrative. The analyst narrative sees Trupanion as 27.5% undervalued at $37.25, yet the current P/E of 51x tells a different story. It sits well above the fair ratio of 15.2x, the US Insurance industry at 11.5x, and peers at 7.6x. That gap points to meaningful valuation risk if sentiment cools. Before leaning too heavily on any single number, it can help to see how the detailed valuation breakdown frames that P/E gap and what would need to change in Trupanion's earnings profile for the ratio to move closer to the fair ratio. See what the numbers say about this price — find out in our valuation breakdown. With mixed sentiment around Trupanion in this article, it helps to move quickly, review the underlying data yourself and weigh the potential rewards. To see what the market is currently optimistic about, take a closer look at the 2 key rewards. If you stop with Trupanion, you could miss other opportunities that better fit your goals. Take a few minutes to compare different angles and strengthen your watchlist. Spot potential value early and widen your opportunity set with screener containing 19 high quality undiscovered gems. Target steadier return profiles by checking companies in the 79 resilient stocks with low risk scores. Focus on quality at a sensible price by reviewing the 51 high quality undervalued stocks. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TRUP. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Earlier this week, Trupanion reported second-quarter 2026 results showing lower net income year over year but stronger first-half profitability, updated its 2026 guidance with expected total revenue of about US$1.58–US$1.60 billion and subscription revenue of roughly US$1.12–US$1.13 billion, and highlighted continued double‑digit subscription growth. The company also unveiled an integration with veterinary software provider Digitail to embed its Veterinary Portal and VetDirect Pay tools directly into clinic workflows, alongside announcing an extraordinary US$44 million dividend from a subsidiary and a US$100 million share buyback authorization that may influence how investors view its capital allocation and growth strategy. With this mix of earnings, guidance, and the Digitail integration, we’ll now examine how these developments shape Trupanion’s broader investment narrative. Find 51 companies with promising cash flow potential yet trading below their fair value. To own Trupanion, you have to buy into a fairly simple idea: that a niche insurer with modest net margins can still create value by steadily expanding its subscription base and deepening ties with vets. The latest results and 2026 guidance reinforce that story with continued subscription growth, even as quarterly net income steps back and highlights how fragile profitability remains. The Digitail integration looks like a meaningful near term catalyst because it pushes Trupanion’s tools directly into the workflow of thousands of clinics, potentially supporting future policy uptake rather than changing the earnings picture overnight. By contrast, the US$44 million subsidiary dividend and fresh US$100 million buyback authorization may slightly improve sentiment on capital allocation, but they do not fundamentally change the biggest current risks: high valuation multiples, thin returns on equity, and execution risk around scaling profitably. However, investors should not ignore how that rich valuation interacts with Trupanion’s still modest profitability. Insights from our recent valuation report point to the potential overvaluation of Trupanion shares in the market. Three Simply Wall St Community fair value estimates cluster between US$37.25 and US$52.24, underlining how far views can stretch. You are weighing these against a business where thin margins, high multiples and execution on integrations like Digitail may have an outsized influence on how performance evolves. Explore 3 other fair value estimates on Trupanion - why the stock might be worth just $37.25! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Trupanion research is our analysis highlighting 2 key rewards that could impact your investment decision. Our free Trupanion research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Trupanion's overall financial health at a glance. Early movers are already taking notice. See the stocks they're targeting before they've flown the coop: Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. Outshine the giants: these 16 early-stage AI stocks could fund your retirement. AI is about to change healthcare. These 43 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TRUP. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Trupanion Inc. TRUP posted decent second-quarter 2026 results, with the top and the bottom lines beating the Zacks Consensus Estimate. However, while the top line improved year over year, the bottom line declined. This pet insurer provides insurance for cats and dogs in the United States, Canada, Continental Europe and Australia. It operates in a large but underpenetrated market. Trupanion is well-poised to grow, courtesy of increased focus on pets’ health and well-being, product launches, extended operating boundaries and a solid capital position. Shares of TRUP have gained 14.4% in the past three months, outperforming its industry, sector and the Zacks S&P 500 composite, in the same time frame. Image Source: Zacks Investment Research Shares of Lemonade Inc. LMND, another seller of pet insurance, have lost 5.7% in the past three months while those of Root Inc. ROOT, a technology-oriented insurance company seeking growth through specialized underwriting and digital customer acquisition, have lost 10.4% in the same time frame. TRUP generated $393 million of revenues, up 11% year over year and beat the consensus estimate by 0.8%.Total enrolled pets (including pets from our other business segment) were 1.6 million as of June 30, 2026, a decrease of 2% year over year. Subscription enrolled pets were 1.1 million as of June 30, 2026, an increase of 5% year over year. Subscription business revenues were $276.7 million, up 14% year over year.Total expenses were $58.7 million, up 12% year over year.Adjusted EBITDA was $19.8 million, up from $16.6 million in the second quarter of 2025. The bottom line came in at 16 cents, beating the estimate by 45% but declining 27% year over year.Operating cash flow was $21 million and free cash flow was $19.2 million in the second quarter.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 also approved a $100 million share buyback program. For 2026, TRUP expects total revenues in the range of $1.584 billion to $1.601 billion. Subscription revenues are now expected to be between $1.124 billion and $1.133 billion. The midpoint of the range has increased slightly and continues to represent approximately 14% year-over-year growth. The insurer also narrowed the total adjusted operating income range to be between $176 million and $184 million, or19% year-over-year growth at the midpoint.For the third quarter of 2026, total revenues are expected to be in the range of $399 million to $405 million. Subscription revenues are expected to be between $284 million and $287 million, representing approximately 13% year-over-year growth at the midpoint. Total adjusted operating income is expected to be in the range of $44 million to $47 million. This represents approximately 11% growth year over year at the midpoint. The stock is overvalued compared with its industry. It is currently trading at a price-to-book multiple of 3.11, higher than the industry average of 1.86 but lower than the median of 4.28 over the past three years. It has a Value Score of C. Image Source: Zacks Investment Research TRUP shares are more expensive than ROOT but cheaper than LMND. Trupanion has built a differentiated business model centered on high customer retention, recurring subscription revenues and a proprietary technology platform. A key competitive advantage is its direct-pay software, which allows participating veterinary hospitals to receive claim payments at checkout, enhancing the customer experience and strengthening veterinary relationships.The company continues to benefit from strong monthly retention, a growing base of enrolled pets, and higher average revenue per pet (ARPU), driving consistent mid-teens revenue growth. With veterinary care costs rising faster than consumer discretionary income, effective pricing remains critical to sustaining growth while ensuring pet owners can continue to access quality care.International expansion is another important growth driver. As part of its five-year strategy, Trupanion has expanded its presence in Europe, where pet insurance penetration remains relatively low, creating a significant long-term growth opportunity. A larger subscriber base should also improve operating leverage, supporting margin expansion and stronger free cash flow over time.To broaden its addressable market, the company is expanding its product portfolio with offerings such as Chewy and Aflac, which target lower- and mid-ARPU segments, alongside Firkin, Phi Direct, and products tailored for continental Europe. Trupanion has also introduced a branded offering built on its technology platform and partnered with automation providers in Germany and Switzerland to enhance operational efficiency.Supported by a strong capital position and solid operating performance, Trupanion is well positioned to invest in product innovation and international expansion, reinforcing its competitive moat and long-term growth prospects. The Zacks Consensus Estimate for 2026 revenues and earnings indicates year-over-year improvement of 9.9% and 22.2%, respectively. The consensus estimate for 2027 revenues and earnings indicates year-over-year improvement of 8.1% and 25.2%, respectively. TRUP has a Growth Score of B. Image Source: Zacks Investment Research The consensus estimate for 2026 earnings has moved up 1 cent while that for 2027 has moved down 3 cents in the last 30 days.The consensus estimates for LMND’s 2026 and 2027 earnings have witnessed southbound movement in the last 30 days. The consensus estimates for ROOT’s 2026 and 2027 earnings have witnessed no movement in the last 30 days. TRUP is poised to grow in the fast-growing pet insurance market as pet ownership continues to increase and veterinary care costs rise.  Its VGM Score of B instills confidence.Given its premium valuation, muted analyst sentiment and narrowed guidance by management, it is better to adopt a wait-and-see approach for this Zacks Rank #3 (Hold) stock now.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Trupanion, Inc. (TRUP) : Free Stock Analysis Report Lemonade, Inc. (LMND) : Free Stock Analysis Report Root, Inc. (ROOT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Trupanion Inc (NASDAQ:TRUP) delivered strong financial results with subscription adjusted operating income growing 24% year-over-year and total adjusted operating income reaching $43.3 million, ahead of expectations. The company accelerated net pet growth, adding approximately 18,800 net subscription pets in Q2, a 39% increase year-over-year, driven by improved web conversion and strong phone conversion. Trupanion Inc (NASDAQ:TRUP) improved the lifetime value of an enrolled pet by 25% during the quarter, indicating stronger unit economics and better long-term returns on pet acquisition investments. The company announced a $100 million share repurchase program, supported by a $44 million dividend from its insurance entity, reflecting strong financial flexibility and a commitment to returning capital to shareholders. Trupanion Inc (NASDAQ:TRUP) reported its fifth consecutive quarter of positive net income and strong free cash flow of $19.2 million for the quarter, up from $12 million in the prior year period. The rollout of expanded deductible and coinsurance options is on track, with early results showing improved accessibility and affordability, contributing to increased volume and accretive economics. Veterinary inflation remains elevated at double-digit levels, which is higher than historical expectations and continues to pressure pricing and cost of paying veterinary invoices. The company's value proposition (cost of paying veterinary invoices as a percentage of subscription revenue) deteriorated slightly to 70.2% from 71.1% in the prior year period, indicating higher claims costs. Trupanion Inc (NASDAQ:TRUP) has agreed to conclude its relationship with PetsBest following the third quarter of 2028, which may impact future revenue streams from that partnership. Average pet acquisition cost increased to $299 per pet in Q2, up from $276 in the prior year period, reflecting higher investment costs to acquire new pets. The company's net income declined to $6.8 million in Q2 from $9.4 million in the prior year period, partly due to a one-time gain in the prior year but also reflecting increased expenses. The company noted a downturn in new visits to veterinarians across the industry, which could pose a headwind to the overall addressable market for new pet acquisitions. Warning! GuruFocus has detected 3 Warning Sign with TRUP. Is TRUP fairly valued? Test your thesis with our free DCF calculator. Q: Can you talk about what you're seeing in terms of continued pet inflation and how you're thinking about that as you continue to see great increases?A: Margie Tooth (CEO and President): We're seeing veterinary inflation still higher than historically expected, at a bit of a double-digit level. It has come down, and we expect it to normalize over time. These assumptions are flowing through our pricing, which is why we're still seeing higher-than-average pricing coming through the book of business. We can also see the impact from vet trends where wellness is down and revenue is going up as they push prices to maintain revenue strength. Q: Share repurchase authorization obviously has no expiration on it. But when making the announcement, investors would like to know that it's planned to be used. Can you give a little detail on the thoughts behind it and whether investors should be confident that it will be exercised?A: Farhad Quraishi (CFO): We're very pleased to get the extraordinary dividend of $44 million, our third extraordinary dividend. Combined with the $26 million received in May of last year and approximately $15 million in Q1, that's about $85 million taken out. In total, through ordinary and extraordinary dividends and efficiency, we've taken $130 million out of the insurance entity. When you take the $44 million and add it to our available cash, it gets us to just under $100 million of available operating cash. We feel very good about our ability to fund share buybacks, but also to deploy capital into pet acquisition, technology, and AI investments. We'll look at the difference in return between investing in PAC, other internal investments, and financial investments to maximize returns. Q: Can you say with confidence or do you know whether a dollar used in share repurchase is higher or lower than a dollar used in PAC at this point in time?A: Farhad Quraishi (CFO): I can't give you a point of view because it's dependent on the share price. We have run that analysis, and we're confident in our ability to deploy capital in the right places. We have the means and capacity, and we feel confident based on the work over the last couple of years that we now have those choices. We're going to look at the difference in return between investing in PAC, other internal investments like Lapsepath, as well as making financial investments. Q: Is there any detail you can give investors about in terms of the gross adds in the quarter? How much was flagship Trupanion subscription pets and how much were through your partners who are selling a different product?A: Margie Tooth (CEO and President): The strength of the growth for adds came through the core products, which was up around 10% year over year. We saw nice movement across the board, but that was particularly exciting from a core point of view. It's where the majority of our focus is. The efforts of the team over the last three to four quarters, including tests on the website and the new expanded coinsurance and deductible options, have culminated and come together. We've had a really good execution quarter in Q2 with improved web conversion and a lovely improvement with the new product options, which is the first iteration on that product for 20 years. Q: Can you spend a little bit more time talking about the changes to the enrollment services that you guys are making? That seems like it's having a pretty tangible impact in terms of the net new adds. What is the timeline to roll that out to the broader population in all of North America?A: Margie Tooth (CEO and President): There have been a number of tactics started in Q4 and Q1, building towards the launch of expanded coinsurance and deductible and some tests. They're coming together to tell a better story to pet parents, showing up through more engagement within the website and helping to pull people through the funnel to convert. The timeline for the rollout of coinsurance and deductible is throughout the rest of this year. We're around 50% of the way through that journey right now and expect by the end of this year to have it across North America. We're continuing to deploy that and other tactics that we believe will be accretive to conversion rate online. Q: Can you talk to us a little bit about how should we think about the P&L impact of these changes either from margins or from an ARPU level? And in the past we've talked about new products coming, maybe new insurance products or things like food. Any meaningful updates on that front?A: Farhad Quraishi (CFO) and Margie Tooth (CEO and President): The co-insurance and deductible offerings are in market and beginning to contribute. It's early given that some states have not yet launched, but the initial reaction is positive. The volume increase we've seen from deductible changes and OPP changes is all accretive, and we've been able to unlock a consumer segment we weren't able to reach beforehand. Regarding new products, we expect to launch around the midpoint of our current strategic plan, which is midway through next year. It's a very different approach to pet insurance that targets a gap Trupanion doesn't currently target. For food, we're nearing completion of manufacturing development and building out the factory, which will continue through the rest of this quarter. We don't anticipate meaningful revenue contribution in the strategic plan, but it's a long-term play. Q: Can you talk about what you used your credit facility for this quarter?A: Farhad Quraishi (CFO): The credit facility and debt refinancing with PNC is two parts: a $100 million term loan and a $20 million revolver. We've drawn most of the revolver and will disclose specifics in the 10-Q. From a debt perspective, our debt continues to come down as we make regular principal payments. We're generating more interest income than paying interest expense, and we feel good about the overall financing and our debt-to-equity ratio. Q: Can you provide more color on the second quarter performance and the outlook for the third quarter and full year 2026?A: Farhad Quraishi (CFO): Total revenue for Q2 was $392.9 million, up 11% year-over-year. Subscription revenue was $276.7 million, up 14%. Total monthly average revenue per pet was $87.44, up 9%. Total subscription pets increased 5% year-over-year to 1,125,000 pets. Average monthly retention was 98.37%, up from 98.29% last year. Subscription adjusted operating income was $41.4 million, up For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Trupanion, Inc.? Here are five stocks we like better. Second-quarter results improved: Revenue rose 11% year over year to $392.9 million, while adjusted operating income increased 24% to $43.3 million. Operating cash flow grew to $21 million and free cash flow reached $19.2 million. Enrollment and retention strengthened: Subscription pets increased 5% to 1.125 million, net additions rose 39% to approximately 18,800, and trailing 12-month retention improved to 98.37%. Expanded deductible and co-insurance options are expected to broaden customer access through the end of 2026. Capital allocation and outlook: Trupanion authorized a $100 million share repurchase program after securing approval to dividend $44 million from its largest insurance entity. The company narrowed its 2026 adjusted operating income outlook to $176 million–$184 million while maintaining revenue guidance of $1.584 billion–$1.601 billion. MarketBeat Week in Review – 06/15 - 06/19 Trupanion (NASDAQ:TRUP) reported higher second-quarter revenue and adjusted operating income as the pet insurer benefited from increased subscription revenue, improved enrollment conversion and stable retention. The company also announced a $100 million share repurchase authorization and narrowed its full-year adjusted operating income outlook. Total revenue rose 11% year over year to $392.9 million in the second quarter of 2026. Subscription revenue increased 14% to $276.7 million, while revenue from the company’s other business segment rose 4% to $116.2 million. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Can Trupanion Turn Pet Insurance Loyalty Into Real Earnings? Chief Financial Officer Fawwad Qureshi said total monthly average revenue per pet was $87.44, up 9% from the prior-year period. Total subscription pets increased 5% to 1.125 million as of June 30, including about 66,000 pets in Europe. Trailing 12-month average monthly retention improved to 98.37%, compared with 98.29% a year earlier. Subscription adjusted operating income rose 24% year over year to $41.4 million, representing 96% of Trupanion’s total adjusted operating income for the quarter. The subscription adjusted operating margin expanded to 15% from 13.8% in the prior-year quarter. → 3 Drone Stocks That Should Soar After the Summer Slump 3 Stocks With High Short Interest Still Near Their 52-Week Highs The subscription business reported a value proposition, or the cost of paying veterinary invoices as a percentage of subscription revenue, of 70.2%, compared with 71.1% a year earlier. The quarter included $1.2 million of favorable prior-period development, equivalent to about 40 basis points of subscription revenue. Variable expenses declined to 9% of subscription revenue from 9.1%, while fixed expenses fell to 5.8% from 6%. Combined fixed and variable expenses totaled 14.8% of subscription revenue, improving from 15.1% in the prior-year period. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Total adjusted operating income was $43.3 million, up 24% and ahead of the company’s expectations, Qureshi said. Trupanion deployed $21.6 million of that amount toward acquiring approximately 68,100 new subscription pets. Excluding pets underwritten through a managing general agency structure, average pet acquisition cost was $299, compared with $276 a year ago. Net income was $6.8 million, or $0.16 per basic and diluted share, compared with $9.4 million, or $0.22 per share, in the prior-year quarter. Qureshi noted that the prior-year result included a one-time $7.8 million gain from the exchange of preferred stock related to the company’s pet food initiative. The second quarter marked Trupanion’s fifth consecutive quarter of positive net income. Operating cash flow rose to $21 million from $15 million a year earlier. With capital expenditures of $1.8 million, down from $3 million, free cash flow increased to $19.2 million from $12 million. Free cash flow over the past four quarters totaled $82.2 million. Chief Executive Officer and President Margi Tooth said gross pet additions increased 9% year over year, while net subscription pet additions reached approximately 18,800, a 39% increase from the prior-year period. Tooth attributed the growth to investments in the customer enrollment journey, including improvements to the company’s website that helped raise web conversion. Phone conversion remained near record levels, she said. Trupanion has also been rolling out expanded deductible and co-insurance options for its core product. Tooth said the offerings provide more affordable monthly choices and are helping the company reach customer segments it previously could not serve as effectively. The rollout was about halfway complete and is expected to extend across North America by the end of 2026. The company said lifetime value for an enrolled pet increased 25% during the quarter, which management said reflected pricing that is better aligned with the value of its coverage. Tooth said core products accounted for the strength in gross additions, with core gross adds rising about 10% year over year. On veterinary inflation, Tooth said costs remained at double-digit levels, though they have declined from prior levels and are expected to normalize over time. The company said its pricing assumptions reflect those trends. Tooth added that wellness visits have declined across the veterinary industry while veterinary providers have raised prices to maintain revenue. Trupanion ended the quarter with $398.5 million in cash and short-term investments and $106.9 million in total debt, down $7.6 million from a year earlier. Subsequent to quarter-end, the company received approval from the New York State Department of Financial Services to dividend $44 million of capital from its largest insurance entity, APIC, to the operating company. Qureshi said Trupanion has unlocked approximately $130 million of excess capital from its insurance entities over the past three years through dividends and efficiencies. Alongside the $44 million dividend, the company authorized a $100 million share repurchase program, with repurchases expected to occur opportunistically. Management said it intends to continue prioritizing investments in pet acquisition, technology, artificial intelligence and automation, while evaluating share repurchases and other financial investments based on expected returns. The company also said it has agreed with Pets Best to conclude their relationship following the third quarter of 2028. Trupanion remains on track to introduce a new digital offering by the midpoint of its current strategic plan, which Tooth identified as mid-2027. The company said the offering is intended to expand access to medical insurance for cats and dogs and reach new customer segments. Its pet food initiative is progressing through manufacturing development and testing, though management does not expect a meaningful revenue contribution during the current strategic plan. For the full year, Trupanion now expects total revenue of $1.584 billion to $1.601 billion. Subscription revenue is projected at $1.124 billion to $1.133 billion, with the midpoint representing roughly 14% year-over-year growth. The company narrowed its total adjusted operating income outlook to $176 million to $184 million, representing 19% growth at the midpoint. For the third quarter, Trupanion expects total revenue of $399 million to $405 million, subscription revenue of $284 million to $287 million, and total adjusted operating income of $44 million to $47 million. Trupanion, Inc is a pet medical insurance company that provides comprehensive insurance coverage for cats and dogs. The company's core offering is a single, customizable medical policy designed to cover veterinary diagnostic tests, surgeries, hospital stays and congenital or hereditary conditions. Trupanion seeks to streamline the claims process by offering direct payment options to participating veterinarians, reducing the need for upfront payments by pet owners. Founded in 1999 by Darryl Rawlings and headquartered in Seattle, Washington, Trupanion began operations in the early 2000s and has grown its presence through both digital channels and partnerships with veterinary hospitals. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Trupanion Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Authorizes Share Repurchase Program SEATTLE, Aug. 05, 2026 (GLOBE NEWSWIRE) -- 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. Conference CallTrupanion’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 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 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 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, 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. 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. 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. Contacts: Investors:Laura Bainbridge, Senior Vice President, Corporate CommunicationsGil Melchior, Director, Investor [email protected]

Trupanion (TRUP) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +45.46%. A quarter ago, it was expected that this provider of medical insurance covering cats and dogs would post earnings of $0.07 per share when it actually produced earnings of $0.11, delivering a surprise of +57.14%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Trupanion, which belongs to the Zacks Insurance - Accident and Health industry, posted revenues of $392.93 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.84%. This compares to year-ago revenues of $353.56 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Trupanion shares have lost about 34% since the beginning of the year versus the S&P 500's gain of 13%. While Trupanion has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Trupanion was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.17 on $396.01 million in revenues for the coming quarter and $0.55 on $1.57 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Accident and Health is currently in the bottom 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Aflac (AFL), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This insurer is expected to post quarterly earnings of $1.77 per share in its upcoming report, which represents a year-over-year change of -0.6%. The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level. Aflac's revenues are expected to be $4.19 billion, down 7.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Trupanion, Inc. (TRUP) : Free Stock Analysis Report Aflac Incorporated (AFL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research