Trupanion Reports 12% Revenue Growth to $353.6 Million, Achieves Profitability Turnaround

Trupanion, Inc. reported significant financial growth in its latest quarterly results, with total revenue reaching $353.6 million for the three months ended June 30, 2025, a 12% increase from $314.8 million in the same period last year. The company's subscription business segment contributed $242.2 million, marking a 16% rise from $208.6 million, driven by an 11% increase in monthly average revenue per pet and a growth in subscription pet months. The other business segment also saw a 5% increase in revenue, totaling $111.4 million, primarily due to a 20% rise in monthly average revenue per pet.

In terms of profitability, Trupanion reported a net income of $9.4 million, or $0.22 per diluted share, compared to a net loss of $5.9 million, or $(0.14) per diluted share, in the prior year. This turnaround in profitability was attributed to improved operating results and a significant gain of $7.8 million from a nonmonetary exchange involving the acquisition of intellectual property from Baystride, Inc. The company's operating income for the quarter was $2.3 million, a notable improvement from a loss of $5.5 million in the same quarter of 2024.

Operationally, Trupanion's total enrolled pets decreased slightly to 1,660,455 from 1,699,643 year-over-year, while the number of subscription pets enrolled increased by 4% to 1,066,354. The average pet acquisition cost rose to $276 from $231, reflecting increased marketing investments aimed at acquiring new pets. The company maintained a high average monthly retention rate of 98.29%, indicating strong customer loyalty.

Strategically, Trupanion has focused on expanding its product offerings and geographic reach. The company has been actively developing its technology and enhancing member experience, which contributed to a 5% increase in technology and development expenses to $8.6 million. Additionally, Trupanion's general and administrative expenses surged by 32% to $20.1 million, driven by increased compensation and underwriting fees related to its Canadian operations. The company continues to explore opportunities for growth, including potential acquisitions and new product launches.

Looking ahead, Trupanion remains optimistic about its growth trajectory, emphasizing its commitment to improving member experience and expanding its market presence. The company plans to continue investing in pet acquisition and technology enhancements while managing costs effectively to sustain profitability. As of June 30, 2025, Trupanion had $319.6 million in cash, cash equivalents, and short-term investments, positioning it well for future growth initiatives.