Trupanion (NASDAQ:TRUP) Issues Quarterly Earnings Results

by · The Markets Daily

Trupanion (NASDAQ:TRUP – Get Free Report) issued its quarterly earnings results on Thursday. The financial services provider reported $0.13 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.14 by ($0.01), FiscalAI reports. Trupanion had a return on equity of 5.51% and a net margin of 1.35%.The firm had revenue of $376.85 million during the quarter, compared to analyst estimates of $375.89 million. During the same quarter last year, the firm posted $0.04 EPS. The firm’s revenue for the quarter was up 11.7% on a year-over-year basis.

Here are the key takeaways from Trupanion’s conference call:

  • Management said 2025 was a record year with nearly $1 billion in subscription revenue and a company‑record subscription adjusted operating margin of 16.5%, producing $152 million of adjusted operating income that management attributes to pricing alignment and higher per‑pet lifetime value.
  • Gross pet adds accelerated to +8% in Q4 and subscription net pet growth was 50% in Q4 (10% for the year), but the company deployed $21.6M to acquire ~65,200 pets (average PAC ~$320) and reported a blended Q4 IRR of 23%, reflecting a tradeoff between faster growth and a temporarily lower IRR.
  • For 2026 the company guided to total revenue of $1.55–$1.582 billion, subscription revenue up about 14% year‑over‑year, and total adjusted operating income of $173–$187 million, assuming current veterinary inflation trends.
  • Cash generation and the balance sheet strengthened in 2025 with free cash flow of $75.4M (up ~95% YoY), $370.7M of cash and short‑term investments, reduced debt of $111.8M, and extraordinary dividends from APIC that management says increase flexibility to fund growth or pay down debt.
  • Management plans to reinvest AOI aggressively into brand spend, veterinary distribution, claims automation, international growth and a new vet‑sold food initiative called Landspath, plus a lower‑priced Trupanion offering in the 36‑month plan, but timing and returns remain uncertain.

Trupanion Stock Down 13.0%

Shares of NASDAQ:TRUP opened at $27.96 on Friday. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.71 and a current ratio of 1.71. Trupanion has a 52-week low of $27.30 and a 52-week high of $57.88. The business’s 50 day simple moving average is $34.86 and its two-hundred day simple moving average is $40.10. The firm has a market cap of $1.21 billion, a P/E ratio of 62.13 and a beta of 1.58.

Key Headlines Impacting Trupanion

Here are the key news stories impacting Trupanion this week:

  • Positive Sentiment: Management reiterated operational momentum: a 2026 target of ~14% subscription revenue growth, plus company commentary on record retention and margin gains that support longer‑term revenue visibility and profitability expansion. Article Title
  • Positive Sentiment: Top‑line growth remained solid: Q4 revenue of $376.85M was up ~11.7% year‑over‑year and essentially in line with estimates; management also highlighted cumulative discretionary profit generation (>$500M since 2021), supporting free‑cash‑flow optionality. Article Title
  • Neutral Sentiment: Guidance largely in line with consensus: FY‑2026 revenue was guided to roughly $1.6B and Q1 revenue to $376–382M (close to street estimates), suggesting no material upside surprise in near‑term top‑line trajectory. Article Title
  • Negative Sentiment: Earnings missed marginally: Q4 EPS came in at $0.13 versus the $0.14 consensus (a $0.01 miss), which, combined with a thin net margin (~1.1%), disappointed some income‑oriented and growth investors. Article Title
  • Negative Sentiment: Market reaction and positioning: the stock had already experienced a steep slide into the print; investors reacted to the EPS miss and nondisruptive guidance by selling, producing elevated volume and driving the share price lower. Article Title Article Title

Insider Transactions at Trupanion

In other Trupanion news, CEO Margaret Tooth sold 9,803 shares of the company’s stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $35.31, for a total transaction of $346,143.93. Following the transaction, the chief executive officer owned 151,899 shares in the company, valued at approximately $5,363,553.69. This represents a 6.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, COO John R. Gallagher sold 6,383 shares of the firm’s stock in a transaction on Friday, November 28th. The shares were sold at an average price of $34.82, for a total transaction of $222,256.06. Following the completion of the transaction, the chief operating officer directly owned 32,721 shares in the company, valued at $1,139,345.22. This trade represents a 16.32% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 32,853 shares of company stock valued at $1,181,863 over the last ninety days. 5.42% of the stock is owned by company insiders.

Institutional Investors Weigh In On Trupanion

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Millennium Management LLC lifted its position in Trupanion by 185.8% in the 3rd quarter. Millennium Management LLC now owns 619,003 shares of the financial services provider’s stock valued at $26,790,000 after acquiring an additional 402,421 shares in the last quarter. Goldman Sachs Group Inc. boosted its position in shares of Trupanion by 116.4% during the fourth quarter. Goldman Sachs Group Inc. now owns 477,014 shares of the financial services provider’s stock valued at $17,826,000 after buying an additional 256,559 shares during the last quarter. Two Sigma Investments LP grew its holdings in Trupanion by 3,201.0% during the third quarter. Two Sigma Investments LP now owns 224,433 shares of the financial services provider’s stock worth $9,713,000 after buying an additional 217,634 shares in the last quarter. Marshall Wace LLP raised its position in Trupanion by 15.5% in the 3rd quarter. Marshall Wace LLP now owns 1,212,151 shares of the financial services provider’s stock valued at $52,462,000 after buying an additional 163,101 shares during the last quarter. Finally, UBS Group AG lifted its stake in Trupanion by 183.1% during the 3rd quarter. UBS Group AG now owns 176,289 shares of the financial services provider’s stock valued at $7,630,000 after acquiring an additional 114,021 shares in the last quarter.

Wall Street Analyst Weigh In

Several research firms recently issued reports on TRUP. Wall Street Zen lowered shares of Trupanion from a “buy” rating to a “hold” rating in a report on Saturday, December 6th. Cantor Fitzgerald dropped their price objective on Trupanion from $50.00 to $42.00 and set a “neutral” rating on the stock in a research note on Wednesday, January 14th. Piper Sandler decreased their target price on Trupanion from $60.00 to $45.00 and set an “overweight” rating for the company in a research note on Friday. Zacks Research upgraded Trupanion from a “hold” rating to a “strong-buy” rating in a report on Tuesday, January 6th. Finally, Stifel Nicolaus cut their price target on Trupanion from $38.00 to $35.00 and set a “hold” rating on the stock in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $45.50.

Get Our Latest Stock Report on Trupanion

Trupanion Company Profile

(Get Free Report)

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.

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