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Trupanion
(NASDAQ:TRUP)
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Rating:71Outperform
Price Target:
$32.00
▲(33.39% Upside)
Action:Upgraded
Date:08/11/26
TRUP scores well on improving financial performance and cash generation, supported by constructive price momentum and upbeat/narrowed guidance with improving unit economics. The main offset is valuation, with a high P/E and no provided dividend yield to cushion the multiple, while thin margins and inflation/CAC pressures remain key execution risks.
Positive Factors
Strong cash generation
Sustained free cash flow and operating cash flow provide durable funding for growth, product investment, and capital returns. Robust cash generation reduces refinancing risk, supports repurchases/dividends, and cushions execution while the business scales enrollment and improves unit economics.
Negative Factors
Persistent veterinary inflation
Sustained double-digit veterinary inflation is a structural headwind that raises average claim severity and pressures underwriting margins. Persistent cost inflation forces higher pricing, can depress perceived value, and narrows the margin buffer between premiums and claims over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained free cash flow and operating cash flow provide durable funding for growth, product investment, and capital returns. Robust cash generation reduces refinancing risk, supports repurchases/dividends, and cushions execution while the business scales enrollment and improves unit economics.
Read all positive factors
Trupanion Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Shows profitability across different business areas, highlighting which segments drive earnings and where there may be opportunities or challenges.
Shows profitability across different business areas, highlighting which segments drive earnings and where there may be opportunities or challenges.
Data provided by:
The Fly
The FlyTrupanion (TRUP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.34B
Dividend YieldN/A
Average Volume (3M)408.19K
Price to Earnings (P/E)57.7
Beta (1Y)1.20
Revenue Growth11.80%
EPS Growth108.73%
CountryUS
Employees1,121
SectorFinancial
Sector Strength70
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)0.53
Shares Outstanding43,872,612
10 Day Avg. Volume429,443
30 Day Avg. Volume408,190
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$35.67Price Target Upside48.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.6
Revenue Forecast (FY)$1.59B
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:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call highlighted strong top-line and operating income growth, improved unit economics (25% LTV increase), accelerating net pet adds and healthy free cash flow, alongside disciplined capital allocation actions including a $100M share repurchase program and dividends unlocked from insurance entities. Offsetting risks include persistent double-digit veterinary inflation that pressures member economics, a modest decline in the value-proposition metric, rising pet acquisition cost, a year-over-year decline in net income due in part to prior-year one-time items, and a planned partner termination with Pets Best. Overall, operational momentum and cash generation appear to outweigh the manageable industry and partner challenges.Positive Updates
Revenue Growth
Total revenue of $392.9M in Q2, up 11% year-over-year; subscription revenue $276.7M, up 14% year-over-year.
Negative Updates
Veterinary Inflation and Industry Headwinds
Veterinary inflation remains at double-digit levels (though moderating), pressuring pricing and member economics and prompting higher-than-average pricing flows through the book; reported fewer wellness visits while veterinarians increased prices to maintain revenue.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Total revenue of $392.9M in Q2, up 11% year-over-year; subscription revenue $276.7M, up 14% year-over-year.
Read all positive updates
Company Guidance
Trupanion narrowed its 2026 guidance, calling for full‑year total revenue of $1.584–$1.601 billion, subscription revenue of $1.124–$1.133 billion (midpoint ≈14% YoY), and total adjusted operating income of $176–$184 million (midpoint ≈19% YoY; management also said it remains on track for about $180 million AOI); for Q3 2026 the company expects total revenue of $399–$405 million, subscription revenue of $284–$287 million (≈13% YoY at the midpoint) and total AOI of $44–$47 million (≈11% YoY at the midpoint), with guidance prepared using a 71% USD/CAD conversion rate.Trupanion Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.52B | 1.44B | 1.29B | 1.11B | 905.18M | 698.99M |
| Gross Profit | 341.83M | 410.33M | 178.80M | 131.02M | 122.19M | 104.35M |
| EBITDA | 52.26M | 51.59M | 21.33M | -20.48M | -29.01M | -23.25M |
| Net Income | 23.21M | 19.43M | -9.63M | -44.69M | -44.67M | -35.53M |
Balance Sheet | ||||||
| Total Assets | 930.81M | 915.04M | 806.85M | 782.95M | 671.63M | 562.58M |
| Cash, Cash Equivalents and Short-Term Investments | 398.49M | 370.73M | 307.38M | 277.17M | 222.41M | 213.41M |
| Total Debt | 106.91M | 111.78M | 128.89M | 128.93M | 69.46M | 0.00 |
| Total Liabilities | 521.14M | 531.11M | 483.58M | 479.23M | 366.33M | 230.38M |
| Stockholders Equity | 409.67M | 383.94M | 323.27M | 303.72M | 305.30M | 332.20M |
Cash Flow | ||||||
| Free Cash Flow | 82.18M | 75.36M | 38.57M | 358.00K | -25.09M | -4.90M |
| Operating Cash Flow | 94.08M | 89.49M | 48.29M | 18.64M | -8.00M | 7.46M |
| Investing Cash Flow | -66.88M | -95.89M | -13.46M | 7.64M | -67.52M | -51.91M |
| Financing Cash Flow | -11.82M | -22.86M | -3.96M | 59.13M | 60.74M | -1.13M |
Trupanion Technical Analysis
Positive
23.99
Price Trends
25.42
Positive
25.08
Positive
29.38
Positive
Market Momentum
1.38
Negative
66.73
Neutral
89.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRUP, the sentiment is Positive. The current price of 23.99 is below the 20-day moving average (MA) of 26.52, below the 50-day MA of 25.42, and below the 200-day MA of 29.38, indicating a bullish trend. The MACD of 1.38 indicates Negative momentum. The RSI at 66.73 is Neutral, neither overbought nor oversold. The STOCH value of 89.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $543.20M | 13.44 | 14.63% | 3.71% | 8.67% | 21.89% | |
76 Outperform | $871.91M | 6.88 | 27.38% | ― | 19.34% | ― | |
73 Outperform | $512.52M | 11.06 | 18.37% | 8.55% | 9.54% | -5.60% | |
71 Outperform | $1.34B | 57.74 | 5.96% | ― | 11.80% | 108.73% | |
68 Neutral | $672.18M | -150.42 | 68.25% | 1.35% | -73.08% | -226.17% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $875.22M | 70.62 | 0.82% | 2.61% | -5.83% | -82.97% |
* Financial Sector Average
TRUP
Trupanion
30.60
-17.99
-37.02%
AMSF
Amerisafe
27.65
-14.44
-34.31%
EIG
Employers Holdings
48.73
8.07
19.84%
ITIC
Investors Title Company
287.71
59.46
26.05%
TIPT
Tiptree Financial
18.05
-3.87
-17.65%
HIPO
Hippo Holdings
33.04
1.42
4.49%
Trupanion Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Trupanion posts Q2 growth, boosts shareholder returns
Positive
Aug 5, 2026
In its second-quarter 2026 results released on August 5, Trupanion reported total revenue of $392.9 million, up 11% year over year, with subscription revenue rising 14% and subscription enrolled pets growing 5%. Total enrolled pets across segments...
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...
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.