Trupanion Reports Fourth Quarter & Full Year 2025 Results

Core Insights - Trupanion, Inc. reported strong financial results for Q4 and the full year 2025, achieving a total revenue of $376.9 million in Q4, a 12% increase year-over-year, and $1.439 billion for the full year, also a 12% increase compared to 2024 [7][20] - The company reached its annual margin target of 15% in 2025, while subscription revenue grew by 15% in Q4 and 16% for the full year [2][7] - Trupanion's net income for Q4 was $5.6 million, or $0.13 per share, compared to $1.7 million, or $0.04 per share, in Q4 2024, and for the full year, net income was $19.4 million, a significant turnaround from a net loss of $9.6 million in 2024 [7][20] Financial Highlights - Total revenue for Q4 2025 was $376.9 million, up 12% from Q4 2024, while full-year revenue reached $1.439 billion, also a 12% increase [7][20] - Subscription business revenue in Q4 was $261.4 million, a 15% increase year-over-year, and $989.3 million for the full year, a 16% increase [7][20] - Adjusted EBITDA for Q4 was $21.8 million, compared to $19.4 million in Q4 2024, and for the full year, it was $70.1 million, up from $46.1 million in 2024 [7][20] Operational Metrics - Total enrolled pets as of December 31, 2025, was 1,647,565, a decrease of 2% from the previous year, while subscription enrolled pets increased by 5% to 1,096,173 [7][20] - Monthly average revenue per pet rose to $80.79 in 2025 from $72.98 in 2024, and the average pet acquisition cost increased to $288 from $235 [20] - The average monthly retention rate improved slightly to 98.34% in 2025 from 98.25% in 2024 [20] Cash Flow and Investments - Operating cash flow for Q4 2025 was $29.3 million, compared to $23.7 million in Q4 2024, and for the full year, it was $89.5 million, up from $48.3 million in 2024 [7][20] - Free cash flow for Q4 was $25.3 million, an increase from $21.8 million in Q4 2024, and for the full year, it was $75.4 million, compared to $38.6 million in 2024 [7][20] - The company held $370.7 million in cash and short-term investments as of December 31, 2025, with $50 million held outside insurance entities [7][20]