Trupanion Reports Strong Third Quarter 2025 Results and Secures New Credit Facility

SEATTLE, Nov. 06, 2025 (GLOBE NEWSWIRE) -- Trupanion, Inc. (Nasdaq: TRUP), a leading provider of medical insurance for cats and dogs, today announced financial results for the third quarter ended September 30, 2025. “We delivered record quarterly profitability while accelerating subscription pet growth for the third consecutive quarter,” said Margi Tooth, Chief Executive Officer and President of Trupanion. “With a strong financial foundation, we have the flexibility to invest where it matters most - driving sustainable growth and expanding access to care. Our disciplined model continues to generate meaningful cash flow, positioning us to build on this momentum in the quarters ahead.” Third Quarter 2025 Financial and Business Highlights Total revenue was $366.9 million, an increase of 12% compared to the third quarter of 2024.Total enrolled pets (including pets from our other business segment) was 1,654,414 at September 30, 2025, a decrease of 2% over September 30, 2024.Subscription business revenue was $252.7 million, an increase of 15% compared to the third quarter of 2024.Subscription enrolled pets was 1,082,412 at September 30, 2025, an increase of 5% over September 30, 2024.Net income was $5.9 million, or $0.14 per basic and $0.13 per diluted share, compared to net income of $1.4 million, or $0.03 per basic and diluted share, in the third quarter of 2024.Adjusted EBITDA was $19.6 million, compared to adjusted EBITDA of $14.5 million in the third quarter of 2024.Operating cash flow was $29.2 million and free cash flow was $23.9 million in the third quarter of 2025. This compared to operating cash flow of $15.3 million and free cash flow of $13.4 million in the third quarter of 2024. First Nine Months 2025 Financial and Business Highlights Total revenue was $1,062.5 million, an increase of 12% compared to the first nine months of 2024.Subscription business revenue was $727.9 million, an increase of 16% compared to the first nine months of 2024.Net income was $13.8 million, or $0.32 per basic and per diluted share, compared to net loss of $(11.3) million, or $(0.27) per basic and diluted share, in the first nine months of 2024.Adjusted EBITDA was $48.4 million, compared to adjusted EBITDA of $26.7 million in the first nine months of 2024.Operating cash flow was $60.2 million and free cash flow was $50.0 million in the first nine months of 2025. This compared to operating cash flow of $24.6 million and free cash flow of $16.7 million in the first nine months of 2024.At September 30, 2025, the Company held $348.5 million in cash and short-term investments, including $58.5 million held outside the insurance entities, with an additional $15.0 million available under its credit facility. New Credit Facility with PNC BankTrupanion announced today the successful completion of a debt transaction that further enhances the company’s financial flexibility and long-term growth capacity. As part of this transaction, Trupanion entered into a new credit agreement with PNC Bank, N.A., a member of the PNC Financial Services Group, Inc. (NYSE: PNC), one of the largest diversified financial services institutions in the United States. The new three-year $120 million credit facility was used to repay the prior credit facility and has a lower interest rate, which provides additional savings to support Trupanion’s strategic initiatives and operational investments. “This new lower-cost credit facility, established with a trusted financial institution like PNC Bank, marks another important step in strengthening our capital structure,” said Fawwad Qureshi, Chief Financial Officer of Trupanion. “It provides us with greater flexibility to allocate capital toward opportunities that drive long-term shareholder value. This transaction reflects the progress we’ve made in strengthening our balance sheet over the last two years and positions us well for continued investment in sustainable growth.” The transaction underscores Trupanion’s ongoing commitment to prudent financial management as the company continues to expand its reach across North America and beyond, helping more pets gain access to high-quality medical care when they need it most. Conference CallTrupanion’s management will host a conference call today to review its third quarter 2025 results. The call is scheduled to begin shortly after 1:30 p.m. PT/ 4:30 p.m. ET. A live webcast will be accessible through the Investor Relations section of Trupanion’s website at https://investors.trupanion.com/ and will be archived online for 3 months upon completion of the conference call. Participants can access the conference call by dialing 1-844-676-1342 (United States) or 1-412-634-6683 (International). A telephonic replay of the call will also be available after the completion of the call, by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (International) and entering the replay pin number: 10203296. About TrupanionTrupanion is a leader in medical insurance for cats and dogs throughout the United States, Canada, and certain countries in Continental Europe with over 1,000,000 pets currently enrolled. For over two decades, Trupanion has given pet owners peace of mind so they can focus on their pet's recovery, not financial stress. Trupanion is committed to providing pet parents with the highest value in pet medical insurance with unlimited payouts for the life of their pets. With its patented process, Trupanion is the only North American provider with the technology to pay veterinarians directly in seconds at the time of checkout. Trupanion is listed on NASDAQ under the symbol "TRUP". The company was founded in 2000 and is headquartered in Seattle, WA. Trupanion policies are issued, in the United States, by its wholly-owned insurance entity American Pet Insurance Company or ZPIC Insurance Company and, in Canada, by Accelerant Insurance Company of Canada or GPIC Insurance Company. Policies are sold and administered in Canada by Canada Pet Health Insurance Services, Inc. dba Trupanion 309-1277 Lynn Valley Road, North Vancouver, BC V7J 0A2 and in the United States by Trupanion Managers USA, Inc. (CA license No. 0G22803, NPN 9588590). Canada Pet Health Insurance Services, Inc. is a registered damage insurance agency and claims adjuster in Quebec #603927. For more information, please visit trupanion.com. Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to, among other things, expectations, plans, prospects and financial results for Trupanion, including, but not limited to, its expectations regarding its ability to continue to grow its enrollments and revenue, and otherwise execute its business plan. These forward-looking statements are based upon the current expectations and beliefs of Trupanion’s management as of the date of this press release, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements made in this press release are based on information available to Trupanion as of the date hereof, and Trupanion has no obligation to update these forward-looking statements. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the ability to achieve or maintain profitability and/or appropriate levels of cash flow in future periods; the ability to keep growing our membership base and revenue; the accuracy of assumptions used in determining appropriate member acquisition expenditures; the severity and frequency of claims; the ability to maintain high retention rates; the accuracy of assumptions used in pricing medical plan subscriptions and the ability to accurately estimate the impact of new products or offerings on claims frequency; actual claims expense exceeding estimates; regulatory and other constraints on the ability to institute, or the decision to otherwise delay, pricing modifications in response to changes in actual or estimated claims expense; the effectiveness and statutory or regulatory compliance of our Territory Partner model and of our Territory Partners, veterinarians and other third parties in recommending medical plan subscriptions to potential members; the ability to retain existing Territory Partners and increase the number of Territory Partners and active hospitals; compliance by us and those referring us members with laws and regulations that apply to our business, including the sale of a pet medical plan; the ability to maintain the security of our data; fluctuations in the Canadian currency exchange rate; the ability to protect our proprietary and member information; the ability to maintain our culture and team; the ability to maintain the requisite amount of risk-based capital; our ability to generate sufficient cash flows to repay or otherwise comply with requirements of our outstanding debt; our ability to implement and maintain effective controls, including to remediate material weaknesses in internal controls over financial reporting; the ability to protect and enforce Trupanion’s intellectual property rights; the ability to successfully implement our alliance with Aflac; our ability to successfully finalize the transition of policies from Accelerant to our wholly owned subsidiary, GPIC; the ability to continue key contractual relationships with third parties; third-party claims including litigation and regulatory actions; the ability to recognize benefits from investments in new solutions and enhancements to Trupanion’s technology platform and website; our ability to retain key personnel; and deliberations and determinations by the Trupanion board based on the future performance of the company or otherwise. For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the Securities and Exchange Commission (SEC), including but not limited to, Trupanion’s Annual Report on Form 10-K for the year ended December 31, 2024 and any subsequently filed reports on Forms 10-Q, 10-K and 8-K. All documents are available through the SEC’s Electronic Data Gathering Analysis and Retrieval system at https://www.sec.gov or the Investor Relations section of Trupanion’s website at https://investors.trupanion.com. Non-GAAP Financial MeasuresTrupanion’s stated results may include certain non-GAAP financial measures. These non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry as other companies in its industry may calculate or use non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Trupanion’s reported financial results. The presentation and utilization of non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Trupanion urges its investors to review the reconciliation of its non-GAAP financial measures to the most directly comparable GAAP financial measures in its consolidated financial statements, and not to rely on any single financial or operating measure to evaluate its business. These reconciliations are included below and on Trupanion’s Investor Relations website. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, Trupanion believes that providing various non-GAAP financial measures that exclude stock-based compensation expense and depreciation and amortization expense allows for more meaningful comparisons between its operating results from period to period. Trupanion offsets new pet acquisition expense with sign-up fee revenue in the calculation of net acquisition cost because it collects sign-up fee revenue from new members at the time of enrollment and considers it to be an offset to a portion of Trupanion’s new pet acquisition expense. Trupanion believes this allows it to calculate and present financial measures in a consistent manner across periods. Trupanion’s management believes that the non-GAAP financial measures and the related financial measures derived from them are important tools for financial and operational decision-making and for evaluating operating results over different periods of time. Trupanion, Inc.Condensed Consolidated Statements of Operations(in thousands, except share data) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (unaudited)Revenue: Subscription business$252,697 $218,986 $727,917 $628,738 Other business 114,223 108,470 334,535 319,639 Total revenue 366,920 327,456 1,062,452 948,377 Cost of revenue: Subscription business 200,766 177,365 586,098 525,237 Other business 106,100 100,712 310,370 297,265 Total cost of revenue(1), (2) 306,866 278,077 896,468 822,502 Operating expenses: Technology and development(1) 9,887 7,933 26,545 23,083 General and administrative(1) 18,311 16,977 58,325 46,903 New pet acquisition expense(1) 21,946 18,308 62,305 53,025 Depreciation and amortization 4,051 4,381 11,804 12,542 Total operating expenses 54,195 47,599 158,979 135,553 Loss from investment in joint venture — (34) (305) (184)Operating income (loss) 5,859 1,746 6,700 (9,862)Interest expense 2,790 3,820 9,683 11,071 Other (income), net (3,530) (3,538) (18,684) (9,601)Income (loss) before income taxes 6,599 1,464 15,701 (11,332)Income tax (benefit) expense 726 39 1,898 (43)Net income (loss)$5,873 $1,425 $13,803 $(11,289) Net income (loss) per share: Basic$0.14 $0.03 $0.32 $(0.27)Diluted$0.13 $0.03 $0.32 $(0.27)Weighted average shares of common stock outstanding: Basic 43,076,695 42,233,903 42,849,769 42,076,998 Diluted 43,562,132 42,822,505 43,550,326 42,076,998 (1)Includes stock-based compensation expense as follows:Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Veterinary invoice expense$677 $847 $2,221 $2,625 Other cost of revenue 585 554 1,679 1,561 Technology and development 1,705 1,259 4,326 3,774 General and administrative 4,971 4,125 14,546 11,435 New pet acquisition expense 1,561 1,555 6,013 5,743 Total stock-based compensation expense$9,499 $8,340 $28,785 $25,138 (2)The breakout of cost of revenue between veterinary invoice expense and other cost of revenue is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Veterinary invoice expense$263,127 $238,814 $766,157 $703,485 Other cost of revenue 43,739 39,263 130,311 119,017 Total cost of revenue$306,866 $278,077 $896,468 $822,502 Trupanion, Inc.Condensed Consolidated Balance Sheets(in thousands, except share data) September 30, 2025 December 31, 2024 (unaudited) Assets Current assets: Cash and cash equivalents$154,773 $160,295 Short-term investments 193,761 147,089 Accounts and other receivables, net of allowance for credit losses of $1,595 at September 30, 2025 and $1,117 at December 31, 2024 302,534 274,031 Prepaid expenses and other assets 16,963 15,912 Total current assets 668,031 597,327 Restricted cash 34,136 39,235 Long-term investments 981 373 Property, equipment, and internal-use software, net 104,683 102,191 Intangible assets, net 24,772 13,177 Other long-term assets 7,186 17,579 Goodwill 40,384 36,971 Total assets$880,173 $806,853 Liabilities and stockholders’ equity Current liabilities: Accounts payable$12,760 $11,532 Accrued liabilities and other current liabilities 43,577 33,469 Reserve for veterinary invoices 53,972 51,635 Deferred revenue 279,713 251,640 Long-term debt - current portion 750 1,350 Total current liabilities 390,772 349,626 Long-term debt 113,790 127,537 Deferred tax liabilities 2,252 1,946 Other liabilities 4,797 4,476 Total liabilities 511,611 483,585 Stockholders’ equity: Common stock: $0.00001 par value per share, 100,000,000 shares authorized; 44,220,625 and 43,192,339 issued and outstanding at September 30, 2025; 43,516,631 and 42,488,445 shares issued and outstanding at December 31, 2024 — — Preferred stock: $0.00001 par value per share, 10,000,000 shares authorized; no shares issued and outstanding — — Additional paid-in capital 595,802 568,302 Accumulated other comprehensive income (loss) 1,379 (2,612)Accumulated deficit (212,085) (225,888)Treasury stock, at cost: 1,028,186 shares at September 30, 2025 and December 31, 2024 (16,534) (16,534)Total stockholders’ equity 368,562 323,268 Total liabilities and stockholders’ equity$880,173 $806,853 Trupanion, Inc.Condensed Consolidated Statements of Cash Flows(in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (unaudited)Operating activities Net income (loss)$5,873 $1,425 $13,803 $(11,289)Adjustments to reconcile net income (loss) to cash provided by operating activities: Depreciation and amortization 4,051 4,381 11,804 12,542 Stock-based compensation expense 9,499 8,341 28,785 25,138 Realized gain on nonmonetary exchange of preferred stock investment — — (7,783) — Other, net 215 (136) 1,164 (453)Changes in operating assets and liabilities: Accounts and other receivables (9,912) (3,794) (27,927) (22,020)Prepaid expenses and other assets 44 101 (540) 2,398 Accounts payable, accrued liabilities, and other liabilities 10,026 1,377 11,017 (350)Reserve for veterinary invoices 1,538 (3,934) 2,235 (6,469)Deferred revenue 7,904 7,535 27,668 25,088 Net cash provided by operating activities 29,238 15,296 60,226 24,585 Investing activities Purchases of investment securities (41,020) (26,125) (183,021) (107,375)Maturities and sales of investment securities 43,563 26,089 137,827 81,767 Purchases of property, equipment, and internal-use software (5,302) (1,914) (10,206) (7,858)Other 437 490 1,639 1,552 Net cash used in investing activities (2,322) (1,460) (53,761) (31,914)Financing activities Repayment of debt financing (188) (338) (15,713) (1,013)Proceeds from exercise of stock options 80 258 1,407 729 Shares withheld to satisfy tax withholding (1,179) (802) (2,867) (1,390)Other (154) (157) (614) (609)Net cash used in financing activities (1,441) (1,039) (17,787) (2,283)Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net (1,037) 481 701 19 Net change in cash, cash equivalents, and restricted cash 24,438 13,278 (10,621) (9,593)Cash, cash equivalents, and restricted cash at beginning of period 164,471 147,593 199,530 170,464 Cash, cash equivalents, and restricted cash at end of period$188,909 $160,871 $188,909 $160,871 The following tables set forth our key operating metrics. Nine Months EndedSeptember 30, 2025 2024 Total Business: Total pets enrolled (at period end) 1,654,414 1,688,903 Subscription Business: Total subscription pets enrolled (at period end) 1,082,412 1,032,042 Monthly average revenue per pet$79.84 $71.94 Average pet acquisition cost (PAC)$278 $227 Average monthly retention 98.33% 98.29% Three Months Ended Sep. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 Dec. 31, 2023Total Business: Total pets enrolled (at period end) 1,654,414 1,660,455 1,667,637 1,677,570 1,688,903 1,699,643 1,708,017 1,714,473 Subscription Business: Total subscription pets enrolled (at period end) 1,082,412 1,066,354 1,052,845 1,041,212 1,032,042 1,020,934 1,006,168 991,426 Monthly average revenue per pet$82.01 $79.93 $77.53 $76.02 $74.27 $71.72 $69.79 $67.07 Average pet acquisition cost (PAC)$290 $276 $267 $261 $243 $231 $207 $217 Average monthly retention 98.33% 98.29% 98.28% 98.25% 98.29% 98.34% 98.41% 98.49% The following table reflects the reconciliation of cash provided by operating activities to free cash flow (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net cash provided by operating activities$29,238 $15,296 $60,226 $24,585 Purchases of property, equipment, and internal-use software (5,302) (1,914) (10,206) (7,858)Free cash flow$23,936 $13,382 $50,020 $16,727 The following tables reflect the reconciliation between GAAP and non-GAAP measures (in thousands except percentages): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024Veterinary invoice expense $263,127 $238,814 $766,157 $703,485 Less: Stock-based compensation expense(1) (666) (830) (2,188) (2,535)Other business cost of paying veterinary invoices(2) (85,394) (82,507) (247,369) (239,342)Subscription cost of paying veterinary invoices (non-GAAP) $177,067 $155,477 $516,600 $461,608 % of subscription revenue 70.1% 71.0% 71.0% 73.4% Other cost of revenue $43,739 $39,263 $130,311 $119,017 Less: Stock-based compensation expense(1) (579) (536) (1,661) (1,479)Other business variable expenses(2) (20,702) (18,126) (62,969) (57,713)Subscription variable expenses (non-GAAP) $22,458 $20,601 $65,681 $59,825 % of subscription revenue 8.9% 9.4% 9.0% 9.5% Technology and development expense $9,887 $7,933 $26,545 $23,083 General and administrative expense 18,311 16,977 58,325 46,903 Less: Stock-based compensation expense(1) (6,551) (5,258) (18,340) (14,465)Development expenses(3) (1,199) (1,474) (3,551) (4,307)Fixed expenses (non-GAAP) $20,448 $18,178 $62,979 $51,214 % of total revenue 5.6% 5.6% 5.9% 5.4% New pet acquisition expense $21,946 $18,308 $62,305 $53,025 Less: Stock-based compensation expense(1) (1,527) (1,503) (5,916) (5,426)Other business pet acquisition expense(2) (5) (8) (82) (31)Subscription acquisition cost (non-GAAP) $20,414 $16,797 $56,307 $47,568 % of subscription revenue 8.1% 7.7% 7.7% 7.6%(1)Trupanion employees may elect to take restricted stock units in lieu of cash payment for their bonuses. We account for such expense as stock-based compensation according to GAAP, but we do not include it in any non-GAAP adjustments. Stock-based compensation associated with bonuses was approximately $0.2 million and $0.7 million for the three and nine months ended September 30, 2025, respectively.(2)Excludes the portion of stock-based compensation expense attributable to the other business segment(3)Consists of costs related to product exploration and development that are pre-revenue and historically have been insignificant. The following tables reflect the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Operating income (loss)$5,859 $1,746 $6,700 $(9,862)Non-GAAP expense adjustments Acquisition cost 20,419 16,805 56,389 47,599 Stock-based compensation expense(1) 9,323 8,127 28,105 23,905 Development expenses(2) 1,199 1,474 3,551 4,307 Depreciation and amortization 4,051 4,381 11,804 12,542 Loss from investment in joint venture — (34) (305) (184)Total adjusted operating income (non-GAAP)$40,851 $32,567 $106,854 $78,675 Subscription Business: Subscription operating income (loss)$7,826 $3,824 $13,410 $(4,109)Non-GAAP expense adjustments Acquisition cost 20,414 16,797 56,307 47,568 Stock-based compensation expense(1) 7,234 6,215 22,250 18,723 Development expenses(2) 826 986 2,433 2,855 Depreciation and amortization 2,790 2,929 8,087 8,315 Subscription adjusted operating income (non-GAAP)$39,090 $30,751 $102,487 $73,352 Other Business: Other business operating loss$(1,967) $(2,044) $(6,405) $(5,569)Non-GAAP expense adjustments Acquisition cost 5 8 82 31 Stock-based compensation expense(1) 2,089 1,912 5,855 5,182 Development expenses(2) 373 488 1,118 1,452 Depreciation and amortization 1,261 1,452 3,717 4,227 Other business adjusted operating income (non-GAAP)$1,761 $1,816 $4,367 $5,323 (1)Trupanion employees may elect to take restricted stock units in lieu of cash payment for their bonuses. We account for such expense as stock-based compensation in accordance with GAAP, but we do not include it in any non-GAAP adjustments. Stock-based compensation associated with bonuses was approximately $0.2 million and $0.7 million for the three and nine months ended September 30, 2025, respectively.(2)Consists of costs related to product exploration and development that are pre-revenue and historically have been insignificant. The following tables reflect the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024Subscription revenue $252,697 $218,986 $727,917 $628,738 Subscription cost of paying veterinary invoices 177,067 155,477 516,600 461,608 Subscription variable expenses 22,458 20,601 65,681 59,825 Subscription fixed expenses* 14,082 12,157 43,149 33,953 Subscription adjusted operating income (non-GAAP) $39,090 $30,751 $102,487 $73,352 Other business revenue $114,223 108,470 $334,535 $319,639 Other business cost of paying veterinary invoices 85,394 82,507 247,369 239,342 Other business variable expenses 20,702 18,126 62,969 57,713 Other business fixed expenses* 6,366 6,021 19,830 17,261 Other business adjusted operating income (non-GAAP) $1,761 $1,816 $4,367 $5,323 Revenue $366,920 $327,456 $1,062,452 $948,377 Cost of paying veterinary invoices 262,461 237,984 763,969 700,950 Variable expenses 43,160 38,727 128,650 117,538 Fixed expenses* 20,448 18,178 62,979 51,214 Total business adjusted operating income (non-GAAP) $40,851 $32,567 $106,854 $78,675 As a percentage of revenue: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024Subscription revenue 100.0% 100.0% 100.0% 100.0%Subscription cost of paying veterinary invoices 70.1% 71.0% 71.0% 73.4%Subscription variable expenses 8.9% 9.4% 9.0% 9.5%Subscription fixed expenses* 5.6% 5.6% 5.9% 5.4%Subscription adjusted operating income (non-GAAP) 15.5% 14.0% 14.1% 11.7% Other business revenue 100.0% 100.0% 100.0% 100.0%Other business cost of paying veterinary invoices 74.8% 76.1% 73.9% 74.9%Other business variable expenses 18.1% 16.7% 18.8% 18.1%Other business fixed expenses* 5.6% 5.6% 5.9% 5.4%Other business adjusted operating income (non-GAAP) 1.5% 1.7% 1.3% 1.7% Revenue 100.0% 100.0% 100.0% 100.0%Cost of paying veterinary invoices 71.5% 72.7% 71.9% 73.9%Variable expenses 11.8% 11.8% 12.1% 12.4%Fixed expenses* 5.6% 5.6% 5.9% 5.4%Total business adjusted operating income (non-GAAP) 11.1% 9.9% 10.1% 8.3% *Fixed expenses represent shared services that support both our subscription and other business segments and, as such, are generally allocated to each segment pro-rata based on revenues. Adjusted operating income is a non-GAAP financial measure that adjusts operating income (loss) to remove the effect of acquisition cost, development expenses, and gain (loss) from investment in joint venture. Non-cash items, such as stock-based compensation expense and depreciation and amortization, are also excluded. Acquisition cost, development expenses, gain (loss) from investment in joint venture, stock-based compensation expense, and depreciation and amortization are expected to remain recurring expenses for the foreseeable future, but are excluded from this metric to measure scale in other areas of the business. Management believes acquisition costs primarily represent the cost to acquire new subscribers and are driven by the amount of growth we choose to pursue based primarily on the amount of our adjusted operating income period over period. Accordingly, this measure is not indicative of our core operating income performance. We also exclude development expenses, gain (loss) from investment in joint venture, stock-based compensation expense, and depreciation and amortization because we do not view those items as reflective of our core operating income performance. Management uses adjusted operating income and the margin on adjusted operating income to understand the effects of scale in its non-acquisition cost and development expenses and to plan future advertising expenditures, which are designed to acquire new pets. Management uses this measure as a principal way of understanding the operating performance of its business exclusive of acquisition cost and new product exploration and development initiatives. Management believes disclosure of this metric provides investors with the same data that the Company employs in assessing its overall operations and that disclosure of this measure may provide useful information regarding the efficiency of our utilization of revenues, return on advertising dollars in the form of new subscribers and future use of available cash to support the continued growth of our business. The following tables reflect the reconciliation of adjusted EBITDA to net income (loss) (in thousands): Nine Months Ended September 30, 2025 2024 Net income (loss)$13,803 $(11,289) Excluding: Stock-based compensation expense(1) 28,105 23,906 Depreciation and amortization expense 11,804 12,542 Interest income (9,141) (9,412) Interest expense 9,683 11,071 Income tax (benefit) expense 1,898 (43) Loss from equity method investment — (33) Realized gain on nonmonetary exchange of preferred stock investment (7,783) — Adjusted EBITDA$48,369 $26,742 Three Months Ended Sep. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 Dec. 31, 2023Net income (loss)$5,873 $9,413 $(1,483) $1,656 $1,425 $(5,862) $(6,852) $(2,163)Excluding: Stock-based compensation expense(1) 9,323 9,268 9,514 8,036 8,127 8,381 7,398 6,636 Depreciation and amortization expense 4,051 3,962 3,791 3,924 4,381 4,376 3,785 3,029 Interest income (3,201) (3,105) (2,835) (2,999) (3,232) (3,135) (3,045) (2,842)Interest expense 2,790 3,682 3,211 3,427 3,820 3,655 3,596 3,697 Income tax (benefit) expense 726 1,133 39 38 39 (44) (38) 130 Goodwill impairment charges — — — 5,299 — — — — Loss from equity method investment — — — — (33) — — — Realized gain on nonmonetary exchange of preferred stock investment — (7,783) — — — — — — Adjusted EBITDA$19,562 $16,570 $12,237 $19,381 $14,527 $7,371 $4,844 $8,487 (1)Trupanion employees may elect to take restricted stock units in lieu of cash payment for their bonuses. We account for such expense as stock-based compensation according to GAAP, but we do not include it in any non-GAAP adjustments. Stock-based compensation associated with bonuses was approximately $0.2 million and $0.7 million for the three and nine months ended September 30, 2025, respectively. Contacts: Investors:Laura Bainbridge, Senior Vice President, Corporate CommunicationsGil Melchior, Director, Investor RelationsInvestor.Relations@trupanion.com A figure accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7c8abb73-5c61-4b32-81f0-f781475ade6a

Trupanion Reports Strong Third Quarter 2025 Results and Secures New Credit Facility

FAQ

Why Bullish?

How important is it?

Why Short Term?

Related Companies

Related News