Trupanion Inc. (TRUP)
NASDAQ:TRUP
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Trupanion
(NASDAQ:TRUP)
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Rating:64Neutral
Price Target:
$25.00
▼(-11.35% Downside)
Action:Reiterated
Date:06/16/26
The score is driven primarily by improved financial performance (profitability turning positive, stronger cash generation, and manageable leverage) and a constructive earnings outlook with reiterated AOI growth guidance. These positives are tempered by weak longer-term technical trend signals (below key moving averages with negative MACD) and a relatively high valuation (P/E ~39.9 with no dividend yield provided).
Positive Factors
Cash Generation
Sustained positive operating and free cash flow improves financial flexibility, funds reinvestment into customer acquisition and product rollout, and reduces dependence on external financing. This durable cash generation supports scaling and absorbs periodic underwriting volatility over quarters.
Negative Factors
Thin Profitability
Despite returning to positive net income, low net margins and modest ROE mean earnings provide limited buffer against claims volatility or elevated marketing spend. This keeps returns on capital subdued and makes long-term profit durability sensitive to underwriting and expense shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Sustained positive operating and free cash flow improves financial flexibility, funds reinvestment into customer acquisition and product rollout, and reduces dependence on external financing. This durable cash generation supports scaling and absorbs periodic underwriting volatility over quarters.
Read all positive factors
Trupanion Key Performance Indicators (KPIs)
Any
Pets Enrolled
Tracks the number of pets covered by Trupanion's insurance plans, indicating market penetration, customer growth, and potential for future revenue.
Tracks the number of pets covered by Trupanion's insurance plans, indicating market penetration, customer growth, and potential for future revenue.
Data provided by:
The Fly
The FlyTrupanion (TRUP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.03B
Dividend YieldN/A
Average Volume (3M)414.02K
Price to Earnings (P/E)40.3
Beta (1Y)1.13
Revenue Growth12.10%
EPS GrowthN/A
CountryUS
Employees1,130
SectorFinancial
Sector Strength70
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)0.59
Shares Outstanding43,620,472
10 Day Avg. Volume413,293
30 Day Avg. Volume414,019
Financial Highlights & Ratios
PEG Ratio-0.28
Price to Book (P/B)4.18
Price to Sales (P/S)1.12
P/FCF Ratio21.30
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit2.74
Enterprise Value/Ebitda15.77
Forecast
1Y Price Target
$39.75Price Target Upside40.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.53
Revenue Forecast (FY)$1.58B
Trupanion Business Overview & Revenue Model
Company Description
Trupanion, Inc. provides monthly subscription-based medical insurance for canine and feline companions across the United States, Canada, Puerto Rico, and Australia. The company's operations are divided into two main categories: Subscription Busine...
How the Company Makes Money
Trupanion makes money primarily by collecting recurring premiums from pet owners in exchange for providing insurance coverage for eligible veterinary medical expenses. Revenue is recognized largely from policyholder premiums (often referred to as ...
Trupanion Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong financial and operational momentum led by record per-pet economics, meaningful AOI and margin expansion, disciplined reinvestment of earnings into growth initiatives, and a solid balance sheet. Management acknowledged some challenges — higher acquisition costs, deceleration in a partner-driven segment, industry headwinds in vet visits and adoption, and an adverse reserve development — but emphasized improved efficiency (automation), encouraging early results from product expansion, and reiterated full-year guidance. Overall the positives (AOI growth, revenue beat, margin expansion, LTV improvement, net income recovery, and healthy cash/debt position) materially outweigh the lowlights, with management presenting a plan to invest AOI into scalable growth and product innovation.Positive Updates
Strong Adjusted Operating Income Growth
Total adjusted operating income (AOI) of $40.2M in Q1, up 29% year over year; subscription AOI of $38.4M (96% of total AOI), up 28% YoY. Company reiterates full-year AOI target range of $173M–$187M (≈19% YoY growth at midpoint).
Negative Updates
Rising Customer Acquisition Cost
Average pet acquisition cost increased to $315 in the quarter from $267 in the prior year period (≈18% increase), representing a higher portion of AOI deployed to growth (53% of total AOI used for pet acquisition in Q1).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Adjusted Operating Income Growth
Total adjusted operating income (AOI) of $40.2M in Q1, up 29% year over year; subscription AOI of $38.4M (96% of total AOI), up 28% YoY. Company reiterates full-year AOI target range of $173M–$187M (≈19% YoY growth at midpoint).
Read all positive updates
Company Guidance
Trupanion guided full-year 2026 total revenue of $1.556–$1.581 billion (midpoint $1.5685B), narrowed subscription revenue to $1.119–$1.135 billion (midpoint $1.127B, ~14% YoY at the midpoint), and reiterated total adjusted operating income of $173–$187 million (midpoint $180M, ~19% YoY at the midpoint). For Q2 2026 the company expects total revenue of $386–$392 million (midpoint $389M), subscription revenue of $274–$277 million (midpoint $275.5M, ~14% YoY at the midpoint), and total adjusted operating income of $40–$43 million (midpoint $41.5M, ~19% YoY at the midpoint). Management noted these projections use a 73% U.S./Canadian conversion rate and emphasized adjusted operating income as the primary metric to fund growth and investments.Trupanion Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
66
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.48B | 1.44B | 1.29B | 1.11B | 905.18M | 698.99M |
| Gross Profit | 331.53M | 410.33M | 178.80M | 131.02M | 122.19M | 104.35M |
| EBITDA | 57.57M | 51.59M | 21.33M | -20.48M | -29.01M | -23.25M |
| Net Income | 25.80M | 19.43M | -9.63M | -44.69M | -44.67M | -35.53M |
Balance Sheet | ||||||
| Total Assets | 921.58M | 915.04M | 806.85M | 782.95M | 671.63M | 562.58M |
| Cash, Cash Equivalents and Short-Term Investments | 383.66M | 370.73M | 307.38M | 277.17M | 222.41M | 213.41M |
| Total Debt | 109.35M | 111.78M | 128.89M | 128.93M | 69.46M | 0.00 |
| Total Liabilities | 526.76M | 531.11M | 483.58M | 479.23M | 366.33M | 230.38M |
| Stockholders Equity | 394.82M | 383.94M | 323.27M | 303.72M | 305.30M | 332.20M |
Cash Flow | ||||||
| Free Cash Flow | 75.07M | 75.36M | 38.57M | 358.00K | -25.09M | -4.90M |
| Operating Cash Flow | 88.12M | 89.49M | 48.29M | 18.64M | -8.00M | 7.46M |
| Investing Cash Flow | -86.80M | -95.89M | -13.46M | 7.64M | -67.52M | -51.91M |
| Financing Cash Flow | -25.14M | -22.86M | -3.96M | 59.13M | 60.74M | -1.13M |
Trupanion Technical Analysis
Negative
28.20
Price Trends
24.28
Negative
26.35
Negative
33.09
Negative
Market Momentum
-0.21
Negative
58.01
Neutral
89.27
Negative
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 28.2 is above the 20-day moving average (MA) of 22.29, above the 50-day MA of 24.28, and below the 200-day MA of 33.09, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 58.01 is Neutral, neither overbought nor oversold. The STOCH value of 89.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRUP.
Trupanion Risk Analysis
Trupanion disclosed 56 risk factors in its most recent earnings report. Trupanion reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Trupanion Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $479.00M | 12.51 | 14.03% | 4.20% | 7.19% | 27.90% | |
71 Outperform | $664.96M | 5.80 | 27.46% | ― | 20.77% | ― | |
68 Neutral | $589.73M | 12.55 | 17.85% | 6.64% | 7.83% | -1.76% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $1.03B | 40.31 | 6.87% | ― | 12.10% | ― | |
63 Neutral | $665.74M | 22.01 | 6.01% | 1.31% | -47.59% | -58.70% | |
62 Neutral | $843.74M | 134.20 | 0.83% | 2.94% | 0.41% | -91.81% |
* Financial Sector Average
TRUP
Trupanion
23.90
-28.99
-54.81%
AMSF
Amerisafe
31.00
-10.42
-25.16%
EIG
Employers Holdings
45.84
0.46
1.00%
ITIC
Investors Title Company
252.26
57.27
29.37%
TIPT
Tiptree Financial
17.66
-5.46
-23.62%
HIPO
Hippo Holdings
25.24
-4.05
-13.83%
Trupanion Corporate Events
Executive/Board ChangesShareholder Meetings
Trupanion Shareholders Back Board, Auditor and Pay Plans
Positive
Jun 15, 2026
On June 10, 2026, Trupanion, Inc. held its 2026 Annual Meeting, where stockholders elected nine directors to serve until the 2027 annual meeting or until their successors are duly elected and qualified. The voting results showed strong support for...
Executive/Board ChangesFinancial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Trupanion Announces Director’s Planned Departure and Annual Report
Neutral
Apr 27, 2026
Trupanion, Inc., a pet medical insurance provider for cats and dogs, operates on a subscription model aimed at helping pet owners manage veterinary expenses and collaborates with partners such as Aflac to support its growth in the pet insurance ma...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.