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1. Company Snapshot

1.a. Company Description

Trupanion, Inc., together with its subsidiaries, provides medical insurance for cats and dogs on a monthly subscription basis in the United States, Canada, Puerto Rico, and Australia.The company operates in two segments, Subscription Business and Other Business.It serves pet owners and veterinarians.


The company was formerly known as Vetinsurance International, Inc.changed its name to Trupanion, Inc.in 2013.


The company was founded in 2000 and is headquartered in Seattle, Washington.

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1.b. Last Insights on TRUP

Trupanion's recent performance faces challenges from rising veterinary care costs, potentially impacting profitability. Despite a strong Q3 earnings beat, with $0.13 per share versus the $0.06 estimate, and record quarterly profitability, concerns linger. The company's growth, fueled by subscription pet growth and new products, may be offset by pricing pressure amid inflation. With a solid balance sheet and new credit facility, strategic initiatives, including a partnership renewal with the Canadian Kennel Club, position Trupanion for long-term growth.

1.c. Company Highlights

2. Trupanion's Q3 2025 Earnings: Strong Revenue Growth and Margin Expansion

Trupanion's third-quarter 2025 financial performance was robust, with total revenue reaching $366.9 million, representing a 12% year-over-year increase. The subscription business revenue was $252.7 million, up 15% year-over-year. The company's net pet adds accelerated for the third consecutive quarter, growing by 45% year-over-year. The subscription adjusted operating income was $39.1 million, a 27% year-over-year increase, with a record subscription adjusted operating margin of 15.5%. The actual EPS came out at $0.13, below estimates of $0.89.

Publication Date: Nov -23

📋 Highlights
  • Revenue Growth:: Total revenue reached $366.9M (+12% YoY), with subscription revenue at $252.7M (+15% YoY).
  • Net Pet Adds Surge:: Pet additions accelerated by 45% YoY for the third consecutive quarter.
  • Profitability Expansion:: Subscription adjusted operating income hit $39.1M (+27% YoY) with a record 15.5% margin.
  • Financial Strength:: Closed the quarter with $348.5M in cash and secured a $120M credit facility, saving $8–9M in interest.
  • Guidance Update:: Full-year 2025 revenue forecast raised to $1.433–1.439B, with adjusted operating income of $148–151M.

Financial Highlights

The company's strong financial position is evident in its cash and short-term investments, which stood at $348.5 million at the end of the quarter. Trupanion subsequently announced a new $120 million credit facility with PNC, expected to result in approximately $8 million to $9 million of interest savings. The company's guidance for the full year 2025 has been updated, with total revenue expected to be in the range of $1.433 billion to $1.439 billion and total adjusted operating income to be in the range of $148 million to $151 million.

Growth Strategy and Outlook

Trupanion plans to continue investing in growth, focusing on enrolling pets at a price that aligns with its margin profile and educating members through improved retention activity. The company aims to expand its presence and connect with pet parents earlier in their journey through partnerships and complementary channels. With a strong financial position, including record levels of margin and free cash flow, Trupanion is well-positioned to address the challenges of access to veterinary care.

Valuation and Metrics

Trupanion's current valuation metrics indicate a P/E Ratio of 100.04, a P/B Ratio of 4.2, and a P/S Ratio of 1.11. The EV/EBITDA ratio stands at 32.67. With an ROE of 4.48% and an ROIC of 1.33%, the company's profitability metrics are relatively modest. Analysts estimate next year's revenue growth at 9.6%, which may impact the company's valuation multiples. The current valuation may be factoring in a relatively high growth rate, and the stock's performance will depend on the company's ability to deliver on its growth expectations.

Partnerships and Pricing

The partnership with BMO Insurance in Canada is expected to offer the core Trupanion product, although it won't contribute meaningfully in the short to midterm. Regarding pricing going into 2026, Trupanion expects inflation to remain relatively stable, and it will monitor pricing closely. The company doesn't anticipate pricing getting back to levels seen 4-5 years ago.

3. NewsRoom

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4 Accident & Health Insurers to Watch Amid Rising Medical Costs

Dec -02

Source: zacks.com

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Trupanion's Commitment to Mission Highlighted as CEO Named 'Woman of Influence' by Puget Sound Business Journal

Nov -17

Source: prnewswire.com

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Trupanion, Inc. (TRUP) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Compared to Estimates, Trupanion (TRUP) Q3 Earnings: A Look at Key Metrics

Nov -07

Source: zacks.com

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Trupanion (TRUP) Beats Q3 Earnings and Revenue Estimates

Nov -07

Source: zacks.com

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

Nov -06

Source: globenewswire.com

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Doubling Down for Canada's Pups: The Canadian Kennel Club and the Nation's Top Pet Insurer, Trupanion, Reaffirms Alliance to Give Puppies the Best Start

Nov -04

Source: prnewswire.com

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Trupanion Appoints Bradley Powell to Board of Directors

Oct -30

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.43%)

6. Segments

Subscription

Expected Growth: 8%

Trupanion's subscription growth is driven by increasing pet adoption, humanization of pets, and rising veterinary care costs. The company's expanding distribution channels, including partnerships with veterinarians and pet retailers, also contribute to growth. Additionally, Trupanion's data-driven approach to underwriting and pricing, as well as its user-friendly online platform, enhance the customer experience and drive retention.

Other

Expected Growth: 12%

Trupanion's 12% growth driven by increasing pet adoption, humanization of pets, and rising veterinary care costs. Expanding distribution channels, strategic partnerships, and investments in digital marketing also contribute to growth. Additionally, the company's data-driven approach to underwriting and pricing enables it to target high-value customers, further fueling growth.

7. Detailed Products

Pet Insurance

Trupanion offers pet insurance policies that provide financial protection to pet owners in case their pets require veterinary care due to accidents, illnesses, or injuries.

Veterinary Direct Pay

Trupanion's Veterinary Direct Pay allows veterinarians to get paid directly for their services, reducing the administrative burden on veterinary clinics and hospitals.

Trupanion Express

Trupanion Express is a payment platform that enables veterinarians to receive payment for their services quickly and efficiently.

8. Trupanion, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Trupanion, Inc. operates in a niche market, providing medical insurance for pets. While there are some substitutes available, such as pet owners self-insuring or using non-traditional therapies, the company's specialized products and services mitigate the threat of substitutes.

Bargaining Power Of Customers

Trupanion, Inc.'s customers are primarily individual pet owners, who have limited bargaining power. The company's products are designed to provide value to customers, and the company has a strong brand reputation, which reduces the bargaining power of customers.

Bargaining Power Of Suppliers

Trupanion, Inc. has a diversified supply chain, and the company is not heavily dependent on a single supplier. The company's suppliers are primarily veterinary clinics and hospitals, which have limited bargaining power.

Threat Of New Entrants

The pet insurance industry has high barriers to entry, including regulatory hurdles and the need for specialized knowledge and expertise. Trupanion, Inc.'s established brand and distribution network also create a barrier to entry for new entrants.

Intensity Of Rivalry

The pet insurance industry is moderately competitive, with a few established players. Trupanion, Inc. competes with other pet insurance providers, but the company's specialized products and services help to differentiate it from competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.80%
Debt Cost 9.44%
Equity Weight 70.20%
Equity Cost 12.66%
WACC 11.70%
Leverage 42.45%

11. Quality Control: Trupanion, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Tiptree

A-Score: 5.9/10

Value: 8.1

Growth: 7.7

Quality: 6.9

Yield: 4.0

Momentum: 4.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
AMERISAFE

A-Score: 5.6/10

Value: 3.5

Growth: 2.2

Quality: 7.0

Yield: 10.0

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
MBIA

A-Score: 5.3/10

Value: 8.6

Growth: 1.3

Quality: 5.2

Yield: 5.0

Momentum: 9.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
ICC Holdings

A-Score: 4.8/10

Value: 4.9

Growth: 7.3

Quality: 5.1

Yield: 0.0

Momentum: 5.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Trupanion

A-Score: 3.7/10

Value: 1.9

Growth: 7.4

Quality: 5.2

Yield: 0.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
Ambac Financial Group

A-Score: 3.3/10

Value: 9.0

Growth: 2.9

Quality: 3.7

Yield: 0.0

Momentum: 1.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

36.48$

Current Price

36.48$

Potential

-0.00%

Expected Cash-Flows