# TRUPANION, INC. (TRUP)

Informational only - not investment advice.

CIK: 0001371285
SIC: 6324 Hospital & Medical Service Plans
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Insurance Carriers](/major-group/63/) > [SIC 6324 Hospital & Medical Service Plans](/industry/6324/)
Latest 10-K filed: 2026-02-13
SEC page: https://www.sec.gov/edgar/browse/?CIK=1371285
Filing source: https://www.sec.gov/Archives/edgar/data/1371285/000137128526000018/trup-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-13 · accession 0001371285-26-000018 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001371285.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 1,439,305,000 USD | 2025 | verified |
| Net income | 19,433,000 USD | 2025 | verified |
| Assets | 915,044,000 USD | 2025 | verified |
| Free cash flow | 75,359,000 USD | 2025 | computed |
| Net margin | 1.35% | 2025 | computed |
| Operating margin | 0.96% | 2025 | computed |
| Revenue YoY | +11.95% | 2025 | computed |
| ROE | 5.06% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | TRUP | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 1.4% | 1.0% | 67 | 10 |
| Operating margin | 1.0% | 1.3% | 44 | 10 |
| Revenue growth | 11.9% | 12.2% | 44 | 10 |
| FCF margin | 5.2% | 2.2% | 88 | 9 |
| ROE | 5.1% | 5.9% | 44 | 10 |
| ROA | 2.1% | 2.3% | 44 | 10 |
| Liabilities / equity | 1.38 | 2.43 | 11 | 10 |
| Current ratio | 1.69 | 1.50 | 67 | 10 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6324 Hospital & Medical Service Plans, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 1439305000 | USD | 2025 | 2026-02-13 |
| Net income | 19433000 | USD | 2025 | 2026-02-13 |
| Assets | 915044000 | USD | 2025 | 2026-02-13 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001371285.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 188,230,000 | 242,667,000 | 303,956,000 | 383,936,000 | 502,028,000 | 698,991,000 | 905,179,000 | 1,108,605,000 | 1,285,684,000 | 1,439,305,000 |
| Net income | -6,896,000 | -1,503,000 | -927,000 | -1,809,000 | -5,840,000 | -35,530,000 | -44,672,000 | -44,693,000 | -9,633,000 | 19,433,000 |
| Operating income | -6,698,000 | -2,642,000 | -1,045,000 | -1,920,000 | -4,927,000 | -35,196,000 | -43,001,000 | -40,659,000 | -9,514,000 | 13,837,000 |
| Diluted EPS |  |  |  |  | -0.16 | -0.89 | -1.10 | -1.08 | -0.23 | 0.45 |
| Operating cash flow | 5,006,000 | 9,666,000 | 12,680,000 | 16,157,000 | 21,544,000 | 7,458,000 | -8,000,000 | 18,638,000 | 48,287,000 | 89,488,000 |
| Capital expenditures | 1,941,000 | 3,131,000 | 56,936,000 | 5,373,000 | 7,451,000 | 12,355,000 | 17,088,000 | 18,280,000 | 9,716,000 | 14,129,000 |
| Share buybacks |  |  |  |  |  | 0.00 | 5,755,000 | 0.00 | 0.00 |  |
| Assets | 82,345,000 | 105,859,000 | 207,510,000 | 257,200,000 | 498,250,000 | 562,582,000 | 671,627,000 | 782,948,000 | 806,853,000 | 915,044,000 |
| Liabilities | 37,630,000 | 57,425,000 | 78,337,000 | 120,440,000 | 158,311,000 | 230,382,000 | 366,330,000 | 479,226,000 | 483,585,000 | 531,108,000 |
| Stockholders' equity | 44,715,000 | 48,434,000 | 129,173,000 | 136,760,000 | 339,939,000 | 332,200,000 | 305,297,000 | 303,722,000 | 323,268,000 | 383,936,000 |
| Cash and cash equivalents | 23,637,000 | 25,706,000 | 26,552,000 | 29,168,000 | 139,878,000 | 87,400,000 | 65,605,000 | 147,501,000 | 160,295,000 | 138,024,000 |
| Free cash flow | 3,065,000 | 6,535,000 | -44,256,000 | 10,784,000 | 14,093,000 | -4,897,000 | -25,088,000 | 358,000 | 38,571,000 | 75,359,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | -3.66% | -0.62% | -0.30% | -0.47% | -1.16% | -5.08% | -4.94% | -4.03% | -0.75% | 1.35% |
| Operating margin | -3.56% | -1.09% | -0.34% | -0.50% | -0.98% | -5.04% | -4.75% | -3.67% | -0.74% | 0.96% |
| Return on equity | -15.42% | -3.10% | -0.72% | -1.32% | -1.72% | -10.70% | -14.63% | -14.72% | -2.98% | 5.06% |
| Return on assets | -8.37% | -1.42% | -0.45% | -0.70% | -1.17% | -6.32% | -6.65% | -5.71% | -1.19% | 2.12% |
| Liabilities / equity | 0.84 | 1.19 | 0.61 | 0.88 | 0.47 | 0.69 | 1.20 | 1.58 | 1.50 | 1.38 |
| Current ratio | 2.15 | 1.89 | 1.87 | 1.73 | 2.24 | 1.75 | 1.62 | 1.63 | 1.71 | 1.69 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001371285.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | -0.32 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | -0.60 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | -0.33 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 285,853,000 | -4,036,000 | -0.10 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 295,857,000 | -2,163,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 306,121,000 | -6,852,000 | -0.16 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 314,800,000 | -5,862,000 | -0.14 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 327,456,000 | 1,425,000 | 0.03 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 337,307,000 | 1,656,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 341,975,000 | -1,483,000 | -0.03 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 353,557,000 | 9,413,000 | 0.22 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 366,920,000 | 5,873,000 | 0.13 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 376,853,000 | 5,630,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 384,049,000 | 4,880,000 | 0.11 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 392,934,000 | 6,831,000 | 0.16 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from TRUP's latest 10-K: [/company/TRUP/business/](/company/TRUP/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from TRUP's latest 10-K: [/company/TRUP/risk-factors/](/company/TRUP/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1371285/000137128526000172/trup-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-05
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

We provide medical insurance for cats and dogs in the United States, Canada, and certain countries in Continental Europe. Through our data-driven, vertically-integrated approach, we develop and offer high-value medical insurance products, priced to take into account each pet’s unique characteristics and coverage level. Our growing and loyal membership base provides us with highly predictable and recurring revenue.

We operate in two reporting segments: subscription business and other business. We generate revenue in our subscription business segment primarily through insurance premiums, which we refer to as subscription payments from direct-to-consumer products. We operate our subscription business segment similar to other subscription-based businesses, with a focus on achieving a target margin prior to our new pet acquisition expense and acquiring as many pets as possible at our targeted average estimated internal rate of return. Within our subscription business, we also provide "Powered by Trupanion" pet insurance product offerings marketed by third parties, low and medium average revenue per pet products marketed under the brand names Furkin and PHI Direct in Canada, and a Trupanion branded product in Germany and Switzerland. We either directly underwrite or assume full insurance risk for these products through reinsurance arrangements. We provide a full suite of services and support for these products and they are designed to align with the target margin profile of our subscription business segment. Within this segment, we also offer products in certain countries in Continental Europe, which are currently underwritten by third parties who pay us commissions that we recognize as revenue.

We generate leads for our subscription business segment from a diverse set of member acquisition channels, which we then seek to convert into members through our contact center, website and other direct-to-consumer activities. These channels include referrals from third-parties such as veterinarians and existing members. Veterinary hospitals represent our largest referral source. Our “Territory Partners” create relationships with veterinary hospital teams through face-to-face visits. Territory Partners are dedicated to cultivating direct veterinary relationships and helping those veterinarians understand the benefits of high-quality medical insurance. Veterinarians then educate pet parents, who visit our website or call our contact center to learn more about, and potentially enroll in, a Trupanion product. We also receive a significant number of new leads from existing members adding pets and referring their friends and family members. Our direct-to-consumer acquisition channels serve as important resources for pet parent education and drive new member leads and conversion. We monitor average pet acquisition cost to evaluate the efficiency in acquiring new members and measure effectiveness based on our targeted return on investment.

Our other business segment generates revenue from other product offerings, primarily by underwriting policies on behalf of third parties with whom we generally have a business-to-business relationship. This business segment has, and targets, a significantly lower margin profile than our subscription business segment and is not part of our core business strategy. The largest source of revenue within this segment is from our long-standing contractual relationship as an underwriter for Pets Best, a third-party insurance provider we have worked with since 2015. We and Pets Best have agreed to end our relationship after the third quarter of 2028. We expect that enrollment from Pets Best will continue to decline as it rolls off business and engages other third-party underwriters. Additional products in this segment include the U.S. Department of Veterans Affairs program and employer-sponsored programs, primarily for companies with animal health related operations.

20

Key Operating Metrics

The following table sets forth total enrolled pets in our subscription and our other business segment and key operating metrics for our subscription business for year-to-date values as well as each of the last eight fiscal quarters.

[[GREPCENT_TABLE]]
[["","Six Months Ended June 30,"],["","2026","","2025"],["Total Business:"],["Total pets enrolled (at period end)","1,633,131","","","1,660,455"],["Subscription Business:"],["Total subscription pets enrolled (at period end)","1,124,548","","","1,066,354"],["Monthly average revenue per pet","$","86.62","","","$","78.73"],["Average pet acquisition cost (PAC)","$","307","","","$","272"],["Average monthly retention","98.37","%","","98.29","%"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","Three Months Ended"],["","Jun. 30, 2026","","Mar. 31, 2026","","Dec. 31, 2025","","Sep. 30, 2025","","Jun. 30, 2025","","Mar. 31, 2025","","Dec. 31, 2024","","Sep. 30, 2024"],["Total Business:"],["Total pets enrolled (at period end)","1,633,131","","","1,637,665","","","1,647,565","","","1,654,414","","","1,660,455","","","1,667,637","","","1,677,570","","","1,688,903"],["Subscription Business:"],["Total subscription pets enrolled (at period end)","1,124,548","","","1,105,783","","","1,096,173","","","1,082,412","","","1,066,354","","","1,052,845","","","1,041,212","","","1,032,042"],["Monthly average revenue per pet","$","87.44","","","$","85.79","","","$","83.56","","","$","82.01","","","$","79.93","","","$","77.53","","","$","76.02","","","$","74.27"],["Average pet acquisition cost (PAC)","$","299","","","$","315","","","$","320","","","$","290","","","$","276","","","$","267","","","$","261","","","$","243"],["Average monthly retention","98.37","%","","98.35","%","","98.34","%","","98.33","%","","98.29","%","","98.28","%","","98.25","%","","98.29","%"]]
[[/GREPCENT_TABLE]]

Total pets enrolled and total subscription pets enrolled include certain pet enrollments in European markets, where policies are currently underwritten by third parties and Trupanion is acting as an insurance broker. Per pet metrics, however, exclude these European policies, as their revenue is currently earned from commissions, as opposed to the subscription payments earned by the remainder of our subscription business.

Total pets enrolled. Total pets enrolled reflects the number of pets enrolled in one of the insurance products offered in our subscription business segment or our other business segment at the end of each period presented. We monitor total pets enrolled because it provides an indication of the growth of our consolidated business.

Total subscription pets enrolled. Total subscription pets enrolled reflects the number of pets enrolled in one of the insurance products offered in our subscription business segment at the end of each period presented. We monitor total subscription pets enrolled because it provides an indication of the growth of our subscription business. Because our subscription business has a significantly higher margin profile than our other business, changes in the rate of growth of our subscription pet enrollment tend to have a greater impact on our consolidated performance.

Monthly average revenue per pet. Monthly average revenue per pet is calculated as amounts billed in a given period for subscriptions divided by the total number of subscription pet months in the period. Total subscription pet months in a period represents the sum of all subscription pets enrolled for each month during the period. We monitor monthly average revenue per pet because it is an indicator of the per pet unit economics of our subscription business.

21

Average pet acquisition cost. Average pet acquisition cost ("PAC") is calculated as net acquisition cost divided by the total number of new subscription pets enrolled in that period. Net acquisition cost, a non-GAAP financial measure, is calculated in a reporting period as new pet acquisition expense, excluding stock-based compensation expense, other business segment expense, offset by sign-up fee revenue. We exclude stock-based compensation expense because the amount varies from period to period based on number of awards issued and market-based valuation inputs. We offset sign-up fee revenue because it is a one-time charge to some new members collected at the time of enrollment used to partially offset initial setup costs, which are included in new pet acquisition expenses. We exclude other business segment pet acquisition expense because that does not relate to subscription enrollments. We monitor average pet acquisition cost to evaluate the efficiency in acquiring new members and measure effectiveness based on our targeted return on investment.

Average monthly retention. Average monthly retention is measured as the monthly retention rate of enrolled subscription pets for each applicable period averaged over the 12 months prior to the period end date. As such, our average monthly retention rate as of June 30, 2026 is an average of each month’s retention from July 1, 2025 through June 30, 2026. We calculate monthly retention as the number of pets that remain after subtracting all pets that cancel during a month, including pets that enroll and cancel within that month, divided by the total pets enrolled at the beginning of that month. We monitor average monthly retention because it provides a measure of member satisfaction and allows us to calculate the implied average subscriber life in months.

22

Non-GAAP Financial Measures

In addition to our results determined in accordance with U.S. GAAP, we believe the following non-GAAP financial measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that these non-GAAP financial measures, when taken collectively, may be helpful to investors in providing consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation, or as a substitute for, the directly comparable financial measures prepared in accordance with GAAP.

We calculate these non-GAAP financial measures by excluding certain non-cash or non-recurring expenses. We exclude non-recurring transactions and restructuring expenses as they are not indicative of our operating performance. We exclude stock-based compensation as it is non-cash in nature. Although stock-based compensation expenses are expected to remain recurring expenses for the foreseeable future, we believe excluding them allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies. We define non-GAAP development expenses as operating expenses incurred to develop new products and offerings that are pre-revenue. We define non-GAAP fixed expenses as the total of technology and development expense and general and administrative expense, less stock-based compensation expense, non-recurring transaction and restructuring expense, and development expenses related to exploring and developing new products and offerings that generally are in the pre-revenue stage or not at scale.

23

The following table presents the reconciliation of our non-GAAP financial measures from corresponding GAAP measures for year-to-date values as well as each of the last eight fiscal quarters (in thousands):

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1371285/000137128526000018/trup-20251231.htm
Complete FY 2025 MD&A: /company/TRUP/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-13
Report date: 2025-12-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Please read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and related notes included under Part II, Item 8 of this Annual Report on Form 10-K.

This section of this Form 10-K generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 that are not included in this Form 10-K can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

Overview

We provide medical insurance for cats and dogs in the United States, Canada, and certain countries in Continental Europe. Through our data-driven, vertically-integrated approach, we develop and offer high-value medical insurance products, priced to take into account each pet’s unique characteristics and coverage level. Our growing and loyal membership base provides us with highly predictable and recurring revenue.

We operate in two reporting segments: subscription business and other business. We generate revenue in our subscription business segment primarily through insurance premiums, which we refer to as subscription payments from direct-to-consumer products. We operate our subscription business segment similar to other subscription-based businesses, with a focus on achieving a target margin prior to our new pet acquisition expense and acquiring as many pets as possible at our targeted average estimated internal rate of return. Within our subscription business, we also provide "Powered by Trupanion" pet insurance product offerings marketed by third parties, low and medium average revenue per pet products marketed under the brand names Furkin and PHI Direct in Canada, and a Trupanion branded product in Germany and Switzerland. We either directly underwrite or assume full insurance risk for these products through reinsurance arrangements. We provide a full suite of services and support for these products and they are designed to align with the target margin profile of our subscription business segment. Within this segment, we also offer products in certain countries in Continental Europe, which are currently underwritten by third parties who pay us commissions that we recognize as revenue.

We generate leads for our subscription business segment from a diverse set of member acquisition channels, which we then seek to convert into members through our contact center, website and other direct-to-consumer activities. These channels include referrals from third-parties such as veterinarians and existing members. Veterinary hospitals represent our largest referral source. Our “Territory Partners” create relationships with veterinary hospital teams through face-to-face visits. Territory Partners are dedicated to cultivating direct veterinary relationships and helping those veterinarians understand the benefits of high-quality medical insurance. Veterinarians then educate pet parents, who visit our website or call our contact center to learn more about, and potentially enroll in, a Trupanion product. We also receive a significant number of new leads from existing members adding pets and referring their friends and family members. Our direct-to-consumer acquisition channels serve as important resources for pet parent education and drive new member leads and conversion. We monitor average pet acquisition cost to evaluate the efficiency in acquiring new members and measure effectiveness based on our targeted return on investment.

Our other business segment generates revenue from other product offerings, primarily by underwriting policies on behalf of third parties with whom we generally have a business-to-business relationship. This business segment has, and targets, a significantly lower margin profile than our subscription business segment and is not part of our core business strategy. The largest source of revenue within this segment is from our long-standing contractual relationship as an underwriter for Pets Best, a third-party insurance provider we have worked with since 2015. We expect that enrollment from Pets Best will continue to decline as it engages other third-party underwriters. Additional products in this segment include the U.S. Department of Veterans Affairs program and employer-sponsored programs, primarily for companies with animal health related operations.

37

Key Operating Metrics

The following tables set forth total enrolled pets in our subscription and our other business segment and key operating metrics for our subscription business for the years ended December 31, 2025, 2024 and 2023, and for each of the last eight fiscal quarters.

[[GREPCENT_TABLE]]
[["","","Year Ended December 31,"],["","","2025","","2024","","2023"],["Total Business:"],["Total pets enrolled (at period end)","","1,647,565","","","1,677,570","","","1,714,473"],["Subscription Business:"],["Total subscription pets enrolled (at period end)","","1,096,173","","","1,041,212","","","991,426"],["Monthly average revenue per pet","","$","80.79","","","$","72.98","","","$","65.26"],["Average pet acquisition cost (PAC)","","$","288","","","$","235","","","$","228"],["Average monthly retention","","98.34","%","","98.25","%","","98.49","%"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","Three Months Ended"],["","Dec. 31, 2025","","Sep. 30, 2025","","Jun. 30, 2025","","Mar. 31, 2025","","Dec. 31, 2024","","Sep. 30, 2024","","Jun. 30, 2024","","Mar. 31, 2024"],["Total Business:"],["Total pets enrolled (at period end)","1,647,565","","","1,654,414","","","1,660,455","","","1,667,637","","","1,677,570","","","1,688,903","","","1,699,643","","","1,708,017"],["Subscription Business:"],["Total subscription pets enrolled (at period end)","1,096,173","","","1,082,412","","","1,066,354","","","1,052,845","","","1,041,212","","","1,032,042","","","1,020,934","","","1,006,168"],["Monthly average revenue per pet","$","83.56","","","$","82.01","","","$","79.93","","","$","77.53","","","$","76.02","","","$","74.27","","","$","71.72","","","$","69.79"],["Average pet acquisition cost (PAC)","$","320","","","$","290","","","$","276","","","$","267","","","$","261","","","$","243","","","$","231","","","$","207"],["Average monthly retention","98.34","%","","98.33","%","","98.29","%","","98.28","%","","98.25","%","","98.29","%","","98.34","%","","98.41","%"]]
[[/GREPCENT_TABLE]]

Total pets enrolled and total subscription pets enrolled include certain pet enrollments in European markets, where policies are currently underwritten by third parties and Trupanion is acting as an insurance broker. Per pet metrics, however, exclude these European policies, as their revenue is currently earned from commissions, as opposed to the subscription payments earned by the remainder of our subscription business.

Total pets enrolled. Total pets enrolled reflects the number of pets enrolled in one of the insurance products offered in our subscription business segment or our other business segment at the end of each period presented. We monitor total pets enrolled because it provides an indication of the growth of our consolidated business.

Total subscription pets enrolled. Total subscription pets enrolled reflects the number of pets enrolled in one of the insurance products offered in our subscription business segment at the end of each period presented. We monitor total subscription pets enrolled because it provides an indication of the growth of our subscription business. Because our subscription business has a significantly higher margin profile than our other business, changes in the rate of growth of our subscription pet enrollment tend to have a greater impact on our consolidated performance.

Monthly average revenue per pet. Monthly average revenue per pet is calculated as amounts billed in a given period for subscriptions divided by the total number of subscription pet months in the period. Total subscription pet months in a period represents the sum of all subscription pets enrolled for each month during the period. We monitor monthly average revenue per pet because it is an indicator of the per pet unit economics of our subscription business.

38

Average pet acquisition cost. Average pet acquisition cost ("PAC") is calculated as net acquisition cost divided by the total number of new subscription pets enrolled in that period. Net acquisition cost, a non-GAAP financial measure, is calculated in a reporting period as new pet acquisition expense, excluding stock-based compensation expense, other business segment expense, offset by sign-up fee revenue. We exclude stock-based compensation expense because the amount varies from period to period based on number of awards issued and market-based valuation inputs. We offset sign-up fee revenue because it is a one-time charge to some new members collected at the time of enrollment used to partially offset initial setup costs, which are included in new pet acquisition expenses. We exclude other business segment pet acquisition expense because that does not relate to subscription enrollments. We monitor average pet acquisition cost to evaluate the efficiency in acquiring new members and measure effectiveness based on our targeted return on investment.

Average monthly retention. Average monthly retention is measured as the monthly retention rate of enrolled subscription pets for each applicable period averaged over the 12 months prior to the period end date. As such, our average monthly retention rate as of December 31, 2025 is an average of each month’s retention from January 1, 2025 through December 31, 2025. We calculate monthly retention as the number of pets that remain after subtracting all pets that cancel during a month, including pets that enroll and cancel within that month, divided by the total pets enrolled at the beginning of that month. We monitor average monthly retention because it provides a measure of member satisfaction and allows us to calculate the implied average subscriber life in months.

39

Non-GAAP Financial Measures

In addition to our results determined in accordance with U.S. GAAP, we believe the following non-GAAP financial measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that these non-GAAP financial measures, when taken collectively, may be helpful to investors in providing consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation, or as a substitute for, the directly comparable financial measures prepared in accordance with GAAP.

We calculate these non-GAAP financial measures by excluding certain non-cash or non-recurring expenses. We exclude non-recurring transactions and restructuring expenses as they are not indicative of our operating performance. We exclude stock-based compensation as it is non-cash in nature. Although stock-based compensation expenses are expected to remain recurring expenses for the foreseeable future, we believe excluding them allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies. We define non-GAAP development expenses as operating expenses incurred to develop new products and offerings that are pre-revenue. We define non-GAAP fixed expenses as the total of technology and development expense and general and administrative expense, less stock-based compensation expense, non-recurring transaction and restructuring expense, a

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/TRUP/mda/fy2025/
All MD&A years: /company/TRUP/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/TRUP/mda/fy2024/): filed 2025-02-27; accession 0001371285-25-000052 (https://www.sec.gov/Archives/edgar/data/1371285/000137128525000052/trup-20241231.htm)
- [FY 2023 MD&A](/company/TRUP/mda/fy2023/): filed 2024-02-27; accession 0001371285-24-000029 (https://www.sec.gov/Archives/edgar/data/1371285/000137128524000029/trup-20231231.htm)
- [FY 2022 MD&A](/company/TRUP/mda/fy2022/): filed 2023-02-16; accession 0001371285-23-000047 (https://www.sec.gov/Archives/edgar/data/1371285/000137128523000047/trup-20221231.htm)
- [FY 2021 MD&A](/company/TRUP/mda/fy2021/): filed 2022-02-17; accession 0001371285-22-000048 (https://www.sec.gov/Archives/edgar/data/1371285/000137128522000048/trup-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6324 Hospital & Medical Service Plans) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index

Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/TRUP.md · JSON record: /company/TRUP.json · verified financials: /company/TRUP/financials.json / /company/TRUP/financials.csv · machine TOC for the whole site: /llms.txt