Trupanion (TRUP) AI Stock Analysis

• Market Cap: $1.70B
• Dividend Yield: N/A
• Average Volume (3M): 438.18K
• Price to Earnings (P/E): 109.5
• Beta (1Y): 1.47
• Revenue Growth: 12.50%
• EPS Growth: N/A
• Country: US
• Employees: 1,130
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 0.13
• Shares Outstanding: 43,198,166
• 10 Day Avg. Volume: 598,607
• 30 Day Avg. Volume: 438,181
• PEG Ratio: 2.68
• Price to Book (P/B): 6.29
• Price to Sales (P/S): 1.58
• P/FCF Ratio: 52.68
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 4.15
• Enterprise Value/Ebitda: 43.26
• 1Y Price Target: $55.50
• Price Target Upside: 42.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.36
• Revenue Forecast (FY): $1.43B

• Rating: 62 Neutral
• Price Target: $41.00 ▲(5.07% Upside)

Trupanion's overall stock score is driven by strong financial performance and positive earnings call highlights, including record subscription adjusted operating income and strategic partnerships. However, the stock's high P/E ratio and bearish technical indicators weigh down the score. The company's ability to maintain profitability and cash flow efficiency will be crucial for future growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and financial stability.

Financial Flexibility

The new credit facility enhances financial flexibility, allowing for strategic investments and operational resilience, crucial for sustainable growth.

High Retention Rate

High retention rates reflect customer satisfaction and loyalty, ensuring a stable revenue base and reducing acquisition costs over time.

Negative Factors

Other Business Segment Growth Deceleration

Slower growth in other segments may limit diversification and revenue streams, potentially impacting overall business resilience and market adaptability.

Challenges with Group Channel Expansion

Challenges in expanding group channels could hinder market penetration and revenue diversification, affecting long-term growth prospects.

Low Net Profit Margin

A low net profit margin suggests limited profitability, which may constrain reinvestment capabilities and long-term financial health.

Trupanion Business Overview & Revenue Model

Company Description

Trupanion (TRUP) is a leading provider of medical insurance for pets, focusing primarily on dogs and cats. The company operates in the pet insurance sector, offering a range of insurance plans designed to cover veterinary expenses for illnesses and injuries. Trupanion's core products include comprehensive pet insurance policies that allow pet owners to manage their veterinary costs effectively, contributing to the overall health and well-being of their pets.

How the Company Makes Money

Trupanion generates revenue primarily through the sale of pet insurance policies. The company earns money by charging monthly premiums to pet owners, which vary based on factors such as the pet's age, breed, and the specific coverage selected. Additionally, Trupanion benefits from a subscription-based model, providing a steady stream of recurring revenue as customers renew their policies each year. Key revenue streams include policy premiums, as well as potential investment income generated from the reserves set aside to pay future claims. Furthermore, Trupanion has established partnerships with veterinary clinics and hospitals, which can drive customer acquisition and enhance the company's market presence. These collaborations often involve integrated services that facilitate claims processing and payment, further strengthening Trupanion's business model.

Trupanion Financial Statement Overview

Summary

Trupanion has shown improvements in revenue growth and profitability metrics, particularly in gross profit margin. The balance sheet indicates a healthier leverage position and improved return on equity. Cash flow generation has strengthened, with notable growth in free cash flow. However, maintaining profitability and cash flow efficiency will be key to sustaining long-term growth.

Income Statement

Trupanion has shown a positive trend in revenue growth, with a TTM revenue growth rate of 2.9%. The gross profit margin has significantly improved to 52.7% in the TTM, indicating better cost management. However, the net profit margin remains low at 1.1%, suggesting limited profitability. The EBIT and EBITDA margins have improved but are still modest at 1.5% and 3.3%, respectively.

Balance Sheet

The company's debt-to-equity ratio has decreased to 0.31, indicating a healthier leverage position. Return on equity has turned positive at 4.5%, reflecting improved profitability. The equity ratio stands at 41.9%, suggesting a stable capital structure. However, the company needs to maintain this trajectory to ensure long-term financial stability.

Cash Flow

Trupanion's free cash flow has grown by 17.2% in the TTM, showing improved cash generation capabilities. The operating cash flow to net income ratio is 0.21, indicating moderate cash flow efficiency. The free cash flow to net income ratio is high at 85.6%, reflecting strong cash conversion. Continued focus on cash flow management will be crucial for future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.40B	1.29B	1.11B	905.18M	698.99M	502.03M
Gross Profit	482.03M	178.80M	131.02M	122.19M	104.35M	81.90M
EBITDA	46.23M	21.33M	-20.48M	-29.01M	-23.25M	2.73M
Net Income	15.46M	-9.63M	-44.69M	-44.67M	-35.53M	-5.84M
Balance Sheet
Total Assets	880.17M	806.85M	782.95M	671.63M	562.58M	498.25M
Cash, Cash Equivalents and Short-Term Investments	348.53M	307.38M	277.17M	222.41M	213.41M	229.74M
Total Debt	114.54M	128.89M	128.93M	69.46M	0.00	0.00
Total Liabilities	511.61M	483.58M	479.23M	366.33M	230.38M	158.31M
Stockholders Equity	368.56M	323.27M	303.72M	305.30M	332.20M	339.94M
Cash Flow
Free Cash Flow	71.86M	38.57M	358.00K	-25.09M	-4.90M	14.09M
Operating Cash Flow	83.93M	48.29M	18.64M	-8.00M	7.46M	21.54M
Investing Cash Flow	-35.30M	-13.46M	7.64M	-67.52M	-51.91M	-76.75M
Financing Cash Flow	-19.46M	-3.96M	59.13M	60.74M	-1.13M	170.85M

Trupanion Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRUP, the sentiment is Negative. The current price of 39.02 is below the 20-day moving average (MA) of 41.63, below the 50-day MA of 42.66, and below the 200-day MA of 43.88, indicating a bearish trend. The MACD of -1.09 indicates Positive momentum. The RSI at 37.06 is Neutral, neither overbought nor oversold. The STOCH value of 22.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRUP.

Trupanion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITIC	80 Outperform	$523.35M	14.58	13.12%	5.62%	13.47%	26.15%
EIG	72 Outperform	$843.64M	14.77	5.86%	3.22%	1.69%	-52.43%
AMSF	72 Outperform	$774.20M	15.66	16.95%	11.37%	-1.73%	-18.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TRUP	62 Neutral	$1.70B	109.45	4.49%	―	12.50%	―
TIPT	60 Neutral	$719.03M	16.76	10.46%	2.77%	4.44%	22.40%
HIPO	55 Neutral	$898.26M	-85.19	25.65%	―	34.48%	―

Trupanion Corporate Events

Trupanion Inc. Reports Strong Q3 2025 Results

Trupanion Inc. is a leading provider of medical insurance for cats and dogs, operating primarily in the pet insurance sector across North America and parts of Europe. The company is known for its unique technology that allows direct payment to veterinarians at checkout.

Trupanion Secures $120 Million Credit Facility with PNC

On November 4, 2025, Trupanion entered into a new credit agreement with PNC Bank, securing a $120 million credit facility to enhance financial flexibility and support long-term growth. This facility, which replaces a prior agreement, offers a lower interest rate, allowing Trupanion to allocate capital towards strategic initiatives. The announcement coincides with Trupanion’s strong third-quarter financial results, including a 12% revenue increase to $366.9 million and a significant rise in net income to $5.9 million. The company continues to demonstrate robust financial performance, positioning itself for sustainable growth and expanded access to pet medical care.

The most recent analyst rating on (TRUP) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on Trupanion stock, see the TRUP Stock Forecast page.

Trupanion Appoints Bradley S. Powell to Board

On October 29, 2025, Trupanion, Inc. announced the appointment of Bradley S. Powell to its Board of Directors. Powell, who previously served as CFO at Expeditors International of Washington, brings extensive financial and strategic expertise to Trupanion. His appointment is expected to bolster Trupanion’s growth strategy and enhance shareholder value, as the company continues to scale its operations in the pet insurance industry.

The most recent analyst rating on (TRUP) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on Trupanion stock, see the TRUP Stock Forecast page.

Trupanion’s Q2 2025 Earnings Call Highlights Growth

Trupanion’s Q2 2025 earnings call revealed a positive sentiment, underscored by strong financial performance and strategic growth initiatives. The company reported significant revenue growth and improved margins, despite facing challenges such as a slight decline in overall retention and increased pet acquisition costs. The robust cash flow and improved retention in recent months, coupled with a positive outlook, suggest a solid foundation for future growth. Trupanion’s strategic positioning and raised guidance further contribute to the overall positive sentiment of the call.

Trupanion Inc. Shows Strong Financial Growth in Q2 2025

Trupanion Inc. is a leading provider of medical insurance for cats and dogs, operating primarily in the United States, Canada, and parts of Europe, known for its unique technology that allows direct payments to veterinarians. In the second quarter of 2025, Trupanion reported significant financial growth, with a 12% increase in total revenue compared to the previous year, reaching $353.6 million. The company also achieved a net income of $9.4 million, a substantial improvement from a net loss in the same period last year. Key highlights from the quarter include a 16% rise in subscription business revenue and a notable increase in adjusted EBITDA, which more than doubled from the previous year. Despite a slight decline in total enrolled pets, the subscription segment saw a 4% increase in enrolled pets, underscoring the company’s strategic focus on subscription growth. Looking ahead, Trupanion’s management remains optimistic about expanding its market presence and continuing to invest in growth opportunities, supported by a strong financial foundation.