SEATTLE, Feb. 23, 2026 (GLOBE NEWSWIRE) -- Trupanion, Inc. (Nasdaq: TRUP), a leader in medical insurance for cats and dogs, announced today that members of Trupanion’s management team will participate in two upcoming investor conferences: The BofA Securities 2026 Animal Health Summit, taking place virtually on Thursday, February 26, 2026. Margi Tooth, Chief Executive Officer and President, and Fawwad Qureshi, Chief Financial Officer, are scheduled to present at 12:25 p.m. ET and will participate in meetings ...

Trupanion, Inc. (NASDAQ:TRUP) is one of the best pet stocks to buy according to hedge funds. On February 13, Stifel cut the price target on Trupanion, Inc. (NASDAQ:TRUP) to $35 from $38 while maintaining a Hold rating on the shares. The same day, Piper Sandler also revised the price target on the stock to $45 from $60 while keeping an Overweight rating on the shares. The firm told investors that the company beat both its and the Street’s estimates on earnings, along with the Street’s on revenues, with loss ...

Subscription Business Growth - Total pets enrolled in the subscription business grew from 31,200 on January 1, 2010, to 1,096,173 on December 31, 2025, representing a compound annual growth rate of 25%[26] - Subscription business revenue increased from $19.1 million in 2010 to $989.3 million in 2025, reflecting a compound annual growth rate of 28%[26] - Approximately 69% of the company's revenue for the year ended December 31, 2025, was generated from the subscription business segment[70] Market Penetration - The pet insurance market penetration in North America is currently at 3.9%, with approximately 180.7 million household dogs and cats[26] - The estimated penetration rate for medical insurance for pets in Continental Europe is approximately 8.6%, with around 165 million household dogs and cats[26] - The company aims to maintain high retention rates and improve market penetration through cost-efficient pet acquisition programs[63] Financial Performance and Challenges - The company incurred an accumulated deficit of $206.5 million as of December 31, 2025, indicating significant net losses since inception[61] - The company invested $85.4 million in new pet acquisition expenses for the year ended December 31, 2025, to grow its member base[64] - Fluctuations in revenue and operating results may occur due to economic conditions, affecting subscription cancellations and member retention[118] Technology and Innovation - The company has been collecting comprehensive pet health data for over 25 years, which enhances its pricing accuracy and understanding of anticipated veterinary costs[20] - The company’s patented software allows for direct payment to veterinary hospitals, significantly improving the member experience and operational efficiency[23] - The company holds 13 patents and has 23 patents pending related to veterinary integration software, claims automation, and pet tracking technology[42] Employee and Organizational Development - As of December 31, 2025, the company employed 1,121 people, with women holding 63% of leadership positions[45] - Approximately 27% of employee team members transitioned to new roles within the company each year, reflecting a commitment to career development[49] - The company recognizes the importance of family and offers benefits that support the physical, financial, and emotional wellbeing of team members and their families[48] Regulatory and Compliance Issues - Regulatory approval is required for marketing new insurance products and adjusting subscription prices, which may delay implementation and affect financial results[68] - The company is subject to numerous laws and regulations across different jurisdictions, which may increase compliance costs and operational challenges[173] - Regulatory compliance failures could result in significant liabilities and operational restrictions, adversely affecting revenue and business operations[164] Risks and Uncertainties - The company faces risks related to maintaining profitability, including reliance on Territory Partners and the ability to manage growth effectively[60] - The company may face challenges in maintaining profitability if actual costs exceed assumptions used in pricing subscriptions[67] - Changes in consumer behavior and economic conditions could adversely affect the company's ability to retain members and acquire new pets[76] Capital and Financing - The company has a credit agreement with PNC Bank providing $120 million in credit, which includes a term loan of $100 million and revolving loans of up to $20 million, impacting cash flow for interest and principal payments[156] - The company may require additional capital to meet risk-based capital requirements and pursue business objectives, which could adversely affect its financial condition if not available[136] - The company’s level of indebtedness may be adversely affected by volatility in credit markets and interest rate decisions, particularly due to floating rate borrowings under the PNC Agreement[157] Stockholder and Market Information - The company has never declared or paid cash dividends on its common stock, and it intends to retain all available funds for business development and expansion[184][206] - The market price of the common stock has been volatile, influenced by various factors including investor confidence and trading activity by major stockholders[183] - Future securities issuances could result in significant dilution to existing stockholders, impacting the market price of the common stock[182] Revenue Projections - Trupanion Inc. reported revenue of $110.29 million for the year ending December 31, 2021, representing a 10.29% increase from $100 million in 2020[211] - The company's revenue decreased to $39.70 million in 2022, a significant drop of 64.0% compared to 2021[211] - For the year ending December 31, 2023, Trupanion Inc. expects revenue to rebound to $40.26 million, indicating a growth of 2.0% from 2022[211]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Core Viewpoint - Trupanion reported quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.14 per share, but showing an increase from $0.04 per share a year ago [1][2] Earnings Performance - The earnings surprise for the quarter was -9.72%, while the previous quarter saw a positive surprise of +116.67% when actual earnings were $0.13 compared to an expected $0.06 [2] - Over the last four quarters, Trupanion has surpassed consensus EPS estimates three times [2] Revenue Performance - Trupanion's revenues for the quarter ended December 2025 were $376.85 million, exceeding the Zacks Consensus Estimate by 0.28% and up from $337.31 million year-over-year [3] - The company has topped consensus revenue estimates four times over the last four quarters [3] Stock Performance and Outlook - Trupanion shares have declined approximately 13.5% since the beginning of the year, contrasting with the S&P 500's gain of 1.4% [4] - The future performance of the stock will largely depend on management's commentary during the earnings call [4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $377.47 million, and for the current fiscal year, it is $0.51 on revenues of $1.58 billion [8] - The estimate revisions trend for Trupanion was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [7] Industry Context - The Insurance - Accident and Health industry, to which Trupanion belongs, is currently in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [9]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $376.9 million, up 12% year-over-year [12] - Subscription revenue was $261.4 million, reflecting a 15% increase year-over-year [12] - Adjusted operating income for Q4 was $45 million, up 26% from the previous year [16] - Free cash flow for the full year 2025 increased to $75.4 million, a 95% year-over-year increase [18] Business Line Data and Key Metrics Changes - Subscription pets increased by 5% year-over-year to over 1,096,000 pets [12] - Adjusted operating income from the subscription business was $43.1 million, a 23% increase from last year [15] - Other business revenue was $115.4 million for the quarter, a 5% year-over-year increase [15] Market Data and Key Metrics Changes - Average monthly retention for the trailing twelve months was 98.34%, up from 98.25% in the previous year [12] - The veterinary channel remains critical for distribution, with nearly 200 territory partners educating pet parents [10] Company Strategy and Development Direction - The company aims to invest aggressively in pet acquisition and retention strategies to strengthen the Trupanion brand [22] - Plans to broaden the existing Trupanion offering and introduce a new lower-priced product in the next 36 months [48] - Focus on enhancing brand awareness and education to reach pet parents earlier in their decision-making journey [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving consistent revenue growth and margin targets for 2026 [19] - The company anticipates total revenue for 2026 to be between $1.55 billion and $1.582 billion, with subscription revenue expected to grow approximately 14% year-over-year [19] - Management noted that veterinary inflation is being monitored closely, with no significant changes expected at this time [58] Other Important Information - The company paid an extraordinary dividend of $15 million to its operating company, following a previous $26 million dividend [18] - Non-cash expenses included $9.4 million in stock-based compensation and a $1.1 million goodwill impairment charge related to European businesses [17] Q&A Session Summary Question: Can you talk about some successes in reaching pet parents and how that will be accelerated going forward? - Management highlighted that brand spend is focused on increasing visibility among pet parents, particularly in the veterinary space, leading to quicker conversions and encouraging results [27][28] Question: Was there any favorable reserve development in the loss ratio reported? - Management noted a slight adverse development of about 30 basis points, but expressed satisfaction with the overall loss ratio improvement [30] Question: Can you provide insights on the 2026 guidance regarding gross adds and commercial strategy? - Management indicated that pricing will continue to be a dominant contributor to revenue growth, with expectations for increased gross adds and improved expense management [33] Question: What is the status of the lower-priced insurance plan? - Management confirmed plans to broaden the existing Trupanion offering and introduce a new lower-priced product as part of their 36-month strategy [48] Question: How is retention improving across different cohorts? - Management reported that retention is improving across all cohorts, with specific improvements noted in those receiving rate increases of under 20% [37][38]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $376.9 million, up 12% year-over-year [12] - Subscription revenue was $261.4 million, reflecting a 15% increase year-over-year [12] - Adjusted operating income for Q4 was $45 million, up 26% from the previous year [16] - Free cash flow for the full year 2025 increased to $75.4 million, a 95% year-over-year increase [18] Business Line Data and Key Metrics Changes - Subscription pets increased by 5% year-over-year to over 1,096,000 pets [12] - Adjusted operating margin for the subscription business was 16.5%, up from 15.3% in the prior year [15] - Revenue from other business segments was $115.4 million, a 5% increase year-over-year, but expected to decelerate [15][16] Market Data and Key Metrics Changes - Average monthly retention for the trailing 12 months was 98.34%, an improvement from 98.25% in the previous year [12] - The veterinary channel remains critical for distribution, with nearly 200 territory partners educating pet parents [10] Company Strategy and Development Direction - The company aims to invest aggressively in pet acquisition and retention strategies over the next 36 months [22] - Plans to broaden the existing Trupanion offering and introduce a new lower-priced product to capture a larger market share [48] - Focus on enhancing brand awareness and education to reach pet parents earlier in their decision-making journey [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving consistent revenue growth and margin targets for 2026 [9] - The company anticipates total revenue for 2026 to be between $1.55 billion and $1.582 billion, with subscription revenue expected to grow approximately 14% year-over-year [19] - Management noted that veterinary inflation trends are being monitored closely, with no immediate changes expected [58] Other Important Information - The company has paid over $3.5 billion in veterinary invoices historically, reinforcing its mission [6] - Non-cash expenses included $9.4 million in stock-based compensation and a $1.1 million goodwill impairment charge related to European businesses [17] Q&A Session Summary Question: Can you talk about some successes in reaching pet parents and how that will be accelerated going forward? - The company is focusing on brand spend to increase visibility among pet parents, particularly in the veterinary space, which has shown positive results in conversion rates [27][28] Question: Was there any favorable reserve development impacting the loss ratio? - There was a slight adverse development of about 30 basis points, but overall, the loss ratio was impressive [30] Question: Can you provide insights on the 2026 guidance regarding gross adds and commercial strategy? - Pricing is expected to remain a dominant contributor to revenue growth, with gross adds anticipated to increase [32][33] Question: What are the trends in retention across different cohorts? - Retention is improving across all cohorts, with specific improvements noted in those receiving rate increases of under 20% [37][38] Question: Are there plans for a lower-priced insurance plan? - The company is exploring a lower-priced offering as part of its strategy to broaden its market reach [46][48]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $376.9 million, up 12% year-over-year, with subscription revenue at $261.4 million, up 15% year-over-year [11][12] - Adjusted operating income for Q4 was $45 million, up 26% from the previous year, with a subscription adjusted operating margin of 16.5%, an increase from 15.3% [13][15] - Free cash flow for the full year of 2025 increased to $75.4 million, representing 5.2% of total revenue, a 95% year-over-year increase [16] Business Line Data and Key Metrics Changes - Subscription pets increased by 5% year-over-year to over 1,096,000 pets, including approximately 63,000 pets in Europe [11] - Adjusted operating income from the subscription business was $43.1 million, contributing 96% of total adjusted operating income for the quarter [13] - Revenue from other business segments was $115.4 million for the quarter, a 5% year-over-year increase, but expected to decelerate due to no new pet enrollments in most U.S. states [14] Market Data and Key Metrics Changes - Average monthly retention for the trailing twelve months was 98.34%, an increase from 98.25% in the previous year [11] - The veterinary channel remains critical for distribution, with nearly 200 territory partners educating pet parents about the value of medical insurance [9] Company Strategy and Development Direction - The company plans to invest aggressively in pet acquisition and retention strategies to strengthen the Trupanion brand in more households [20] - The objective of the new strategic plan is to deliver sustainable growth in adjusted operating income and intrinsic value creation [21] - The company is exploring a lower-priced insurance plan to address the needs of pet owners facing tighter budgets [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's resilience and the ability to fund growth through strong financial performance [21] - The company expects total revenue for 2026 to be in the range of $1.55 billion to $1.582 billion, with subscription revenue growth projected at approximately 14% year-over-year [17] - Management is closely monitoring veterinary inflation and expects it to remain in line with current trends [18][58] Other Important Information - The company ended 2025 with $370.7 million in cash and short-term investments, and a total debt balance of $111.8 million, a reduction of $17.1 million from the previous year [16] - Non-cash expenses included $9.4 million in stock-based compensation and a $1.1 million goodwill impairment charge related to European businesses [15] Q&A Session Summary Question: Can you talk about some successes in reaching pet parents and how that will be accelerated going forward? - Management highlighted that brand spend is focused on increasing visibility among pet parents, particularly in the veterinary space, leading to quicker conversions and encouraging results [24][26] Question: Was there any favorable reserve development in the loss ratio reported? - Management noted a slight adverse development of about 30 basis points, but expressed satisfaction with the overall loss ratio improvement [27][28] Question: Can you provide insights on the 2026 guidance regarding gross adds and commercial strategy? - Management indicated that pricing will continue to be a dominant contributor to revenue growth, with expectations for increased gross adds and diligent expense management leading to margin expansion [30][31] Question: Can you discuss the retention improvements and where they are coming from? - Management confirmed that retention is improving across all cohorts, with specific improvements noted in those receiving rate increases of under 20% [35][36] Question: What updates can you provide on the go-to-market strategy for a lower-priced plan? - Management is working on broadening the existing Trupanion offering and developing a new product that will address market gaps, with plans to leverage brand trust in the veterinary industry [46][47]

Quarterly Earnings Supplement Q4 2025 Total Subscription Revenue Growth $3.1 $4.4 $5.3 $6.3 $7.6 $8.8 $9.9 $10.7 $12.0 $13.2 $14.5 $15.7 $17.0 $18.4 $20.0 $21.4 $22.9 $24.9 $27.1 $28.6 $30.1 $32.2 $34.4 $36.7 $39.1 $42.2 $44.6 $47.4 $50.2 $52.6 $56.5 $59.0 $61.5 $63.9 $67.4 $70.9 $74.2 $77.7 $82.6 $86.6 $89.5 $92.5 $99.4 $106.4 $113.3 $120.4 $127.1 $134.1 $139.8 $145.8 $152.4 $158.6 $165.2 $173.3 $182.9 $191.5 $201.1 $208.6 $219.0 $227.8 $233.1 $242.2 $252.7 $261.4 $0 $50.0 $100.0 $150.0 $200.0 $250.0 $300. ...