Trupanion, Inc. (TRUP)

Price$27.80Cached quoteAs of 2026-09-05 00:09 UTC

AI: Fair-priced

Price checkThe shares look reasonably priced, but only if recent cash gains continue.

At the observed price, 43.9 million shares imply an equity value near $1.1 billion. That is roughly 47 times trailing net income of $23.2 million, but about 13 times trailing free cash flow of $82.2 million; free cash flow means operating cash left after capital spending. The gap matters because $38.0 million of trailing stock compensation boosted reported cash flow while diluting owners. The high earnings multiple and moderate cash multiple offset each other, supporting a Fair-priced verdict.

Big pictureRevenue keeps growing, while thin profits leave little room for higher claims.

Revenue rose from $1.29 billion in 2024 to $1.44 billion in 2025, while gross profit climbed 29% to $231 million and a $9.6 million loss became $19.4 million of profit. The latest four quarters produced about $1.52 billion of revenue, $24.1 million of operating profit, and $94.1 million of operating cash. After $11.9 million of capital spending, cash left was about $82.2 million. However, the operating margin was only 1.6%, and claim and reserve timing can make insurer cash flow uneven.

Business strengthLoyal subscribers and liquid assets provide resilience, though owners keep getting diluted.

Subscription pets increased 5% year over year to 1.125 million, while average monthly retention was 98.37%, supporting recurring revenue. Trupanion held $149.4 million in cash and $249.1 million in short-term investments against $106.9 million of debt, although regulators restrict much of insurers' capital. Owner dilution is real: shares rose from 39.5 million in 2020 to 43.9 million, while trailing stock compensation was about $38 million. The $100 million repurchase authorization could offset dilution, but it has no expiry and requires no purchases.

What could change the storyBetter claim pricing could unlock upside, while aging pets and fewer puppies threaten it.

The bull case is continued low-teens subscription growth plus better pricing: the subscription claim-cost share fell to 70.2% from 71.1%. Its adjusted operating margin—profit before pet-acquisition and selected noncash or development costs—rose to 15.0% from 13.8%. The bear case is weaker new-puppy demand, costlier aging pets, or delayed rate approvals, which can make claims rise faster than premiums. Total enrolled pets already fell 2%. Sustained claim costs above 72%, weaker subscription growth, or continued dilution without meaningful repurchases would undermine the valuation.

AI: News

Quarterly Growth and BuybackQuarterly growth, stronger cash generation, and a large repurchase authorization gave investors encouraging evidence.

On August 5, Trupanion reported second-quarter revenue of $392.9 million, up 11%, while subscription revenue rose 14% and subscription pets rose 5%. Net income fell to $6.8 million from $9.4 million, partly because the prior year included a one-time $7.8 million gain. Free cash flow—cash left after operations and capital spending—increased to $19.2 million from $12.0 million. The board authorized up to $100 million of repurchases. Shares rose 15.5% next session; the timing suggests a favorable response but cannot establish a single cause.

Pets Best Exit PlannedThe largest outside underwriting customer will leave, shrinking sales but shedding low-margin work.

In its August 5 filing, Trupanion said its Pets Best underwriting relationship will end after the third quarter of 2028, with enrollment already running off. A subsequent Stifel report said Pets Best represented about 30% of 2025 revenue and 96% of Other business revenue. This is a large sales loss, but the profit effect should be smaller: that segment's adjusted operating margin, before selected costs, was 1.6% in the quarter versus 15.0% for subscriptions. The exit also leaves results more dependent on Trupanion's own brand.

Analyst Flags Claims PressureAn analyst warned that fewer puppies and older pets could squeeze growth and raise claim costs.

On August 26, Piper Sandler lowered Trupanion to a neutral rating and cut its price target by 29%. The firm cited contracting U.S. puppy veterinary visits and an aging pandemic-era pet group likely to produce larger, costlier claims. Its concern is specific: weaker new-pet demand can slow subscriptions, while claims inflation can outrun rate increases and pressure retention. Investing.com reported a 6.4% morning decline after the downgrade; that attribution is the publisher's assessment, not proof that no other factor mattered.

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012
Revenue	$1.44B	$1.29B	$1.11B	$905.2M	$699.0M	$502.0M	$383.9M	$304.0M	$242.7M	$188.2M	$147.0M	$115.9M	$83.8M	$55.5M
Gross profit	$231.0M	$178.8M	$131.0M	$122.2M	$104.3M	$81.9M	$64.9M	$51.4M	$43.0M	$33.3M	$25.2M	$19.9M	$15.6M	$11.2M
Gross margin	16.05%	13.91%	11.82%	13.50%	14.93%	16.31%	16.91%	16.90%	17.74%	17.68%	17.17%	17.15%	18.66%	20.19%
Research & development	$37.8M	$31.3M	$21.4M	$25.1M	—	—	—	—	—	—	—	$9.9M	$4.9M	$3.4M
Operating expenses	$216.9M	$188.1M	$171.5M	$164.9M	$139.4M	$86.7M	$66.5M	$52.4M	$45.7M	$40.0M	$42.0M	$35.8M	$22.6M	$16.8M
Operating income	$13.8M	−$9.5M	−$40.7M	−$43.0M	−$35.2M	−$4.9M	−$1.9M	−$1.0M	−$2.6M	−$6.7M	−$16.8M	−$15.9M	−$7.0M	−$5.5M
Operating margin	0.96%	−0.74%	−3.67%	−4.75%	−5.04%	−0.98%	−0.50%	−0.34%	−1.09%	−3.56%	−11.41%	−13.76%	−8.33%	−9.97%
EBITDA	$29.7M	$7.0M	−$28.2M	−$32.1M	−$23.2M	$2.1M	$3.7M	$3.5M	$1.6M	−$2.9M	−$14.2M	−$14.3M	−$6.1M	−$5.2M
EBITDA margin	2.06%	0.54%	−2.54%	−3.54%	−3.32%	0.43%	0.97%	1.14%	0.66%	−1.52%	−9.68%	−12.31%	−7.26%	−9.43%
Net income	$19.4M	−$9.6M	−$44.7M	−$44.7M	—	—	—	—	—	—	—	−$21.2M	−$8.2M	−$6.4M
Net profit margin	1.35%	−0.75%	−4.03%	−4.94%	—	—	—	—	—	—	—	−18.27%	−9.75%	−11.54%
Basic EPSper basic share	$0.45	-$0.23	-$1.08	-$1.10	-$0.89	-$0.16	-$0.05	-$0.03	-$0.05	-$0.24	-$0.62	-$1.64	-$6.23	-$9.76
Diluted EPSper diluted share	$0.45	-$0.23	-$1.08	-$1.10	-$0.89	-$0.16	-$0.05	-$0.03	-$0.05	-$0.24	-$0.62	-$1.64	-$6.23	-$9.76

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

12.40%of listed shares

BlackRock, Inc.5.44M shares · Jun 30, 2026

View holders

Top 20 reported holders of TRUP
Holder	% owned
BlackRock, Inc.	12.40%5.44M shares
Capital World Investors	8.75%3.84M shares
Aflac Inc	8.29%3.64M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	4.11%1.8M shares
Polar Capital Holdings Plc	3.99%1.75M shares
VANGUARD CAPITAL MANAGEMENT LLC	3.39%1.49M shares
STATE STREET CORP	3.11%1.37M shares
FMR LLC	2.37%1.04M shares
MORGAN STANLEY	2.05%901.22K shares
GEODE CAPITAL MANAGEMENT, LLC	2.00%875.84K shares
GREENLEA LANE CAPITAL MANAGEMENT, LLC	1.77%776.49K shares
BANK OF AMERICA CORP /DE/	1.31%575.76K shares
MARSHALL WACE, LLP	1.28%561.33K shares
Kopion Asset Management, LLC	1.19%523K shares
GOLDMAN SACHS GROUP INC	1.12%491.87K shares
Qube Research & Technologies Ltd	0.93%406.22K shares
Clearbridge Investments, LLC	0.90%395.91K shares
DIMENSIONAL FUND ADVISORS LP	0.87%380.61K shares
NORTHERN TRUST CORP	0.85%372.42K shares
TUDOR INVESTMENT CORP ET AL	0.81%356.7K shares

Percentages use 43.87M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)57$9.94M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 5, 2026Form 4	WEINRAUCH STEVEEVP, North Am & Vet Strategy	SellCommon Stock	6.7K	$22.00	$146.8K	78.1K
May 28, 2026Form 4	GALLAGHER JOHN RChief Operating Officer	SellCommon Stock	3.6K	$21.69	$78.1K	33.1K
May 27, 2026Form 4	Qureshi FawwadChief Financial Officer	SellCommon Stock	170	$22.63	$3.8K	2.1K
May 27, 2026Form 4	Qureshi FawwadChief Financial Officer	SellCommon Stock	6.0K	$22.17	$133.2K	2.3K
May 25, 2026Form 4	Tooth MargaretCEO	SellCommon Stock	491	$21.86	$10.7K	176.4K

Review ownership filings at SEC.gov ↗

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Trupanion, Inc. (TRUP)

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