Trupanion shares soar 20% as pet insurer swings to surprise profit

Published 07/08/2025, 22:52
Trupanion shares soar 20% as pet insurer swings to surprise profit

Investing.com -- Trupanion Inc . (NASDAQ:TRUP), a provider of medical insurance for cats and dogs, reported a surprise profit for the second quarter, sending shares soaring 20.4% as the company delivered stronger-than-expected financial results.

The pet insurer posted earnings of $0.22 per share for the quarter ended June 30, dramatically outperforming analyst expectations of a $0.04 per share loss. Revenue reached $353.6 million, up 12% YoY and exceeding the consensus estimate of $346.7 million. The company’s performance was bolstered by a $7.8 million realized gain from exchanging a preferred stock investment for intellectual property.

"The second quarter was one of the strongest financial quarters in our history, marked by consistent top-line growth, robust margin expansion and strengthening retention," said Margi Tooth, Chief Executive Officer and President of Trupanion.

The company’s subscription business, which represents its core offering, grew 16% YoY to $242.2 million. Subscription enrolled pets increased 4% to 1,066,354 compared to the same period last year, though total enrolled pets across all segments decreased 2% to 1,660,455.

Adjusted EBITDA more than doubled to $16.6 million from $7.4 million in the second quarter of 2024. Operating cash flow strengthened to $15.0 million, with free cash flow of $12.0 million, compared to $6.9 million and $4.0 million respectively in the prior-year period.

The company maintained a strong financial position with $319.6 million in cash and short-term investments as of June 30, including $53.3 million held outside its insurance entities. Trupanion also has an additional $15 million available under its credit facility.

For the first half of 2025, Trupanion reported net income of $7.9 million, or $0.19 per basic share, a significant improvement from a net loss of $12.7 million, or $0.30 per share, in the first half of 2024.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.