Trupanion (TRUP) Q1 2026 earnings summary

Executive summary

• Adjusted operating income (AOI) exceeded $40 million in Q1 2026, up 29% year-over-year, supporting ongoing investment in growth initiatives.

• Revenue grew 12% year-over-year to $384.0 million for Q1 2026, with net income of $4.9 million versus a loss in Q1 2025.

• Subscription business revenue rose 16% to $269.5 million, with enrolled pets up 5% to 1,105,783; average monthly revenue per pet increased 11% to $85.79.

• Strategic initiatives include expanding product flexibility, launching a new digital-first product, and reorganizing growth under unified leadership.

• Total enrolled pets declined 2% year-over-year to 1,637,665, reflecting a decrease in the other business segment.

Financial highlights

• Net income was $4.9 million ($0.11 per share) compared to a net loss of $1.5 million in Q1 2025.

• Total Q1 revenue reached $384 million, up 12% year-over-year; subscription revenue was $269.5 million, up 16%.

• Free cash flow was $13.7 million; operating cash flow was $14.6 million.

• Adjusted EBITDA increased to $17.4 million from $12.2 million year-over-year.

• Subscription adjusted operating margin hit 14.2%, the highest Q1 margin in company history.

Outlook and guidance

• Full-year 2026 revenue expected between $1.556 billion and $1.581 billion; subscription revenue between $1.119 billion and $1.135 billion.

• Full-year adjusted operating income projected at $173–$187 million, about 19% growth at midpoint.

• Q2 2026 revenue guidance is $386–$392 million, with adjusted operating income of $40–$43 million.

• Management expects continued growth in subscription business, with ongoing investments in pet acquisition and technology.

• Anticipates further transition of Canadian business to GPIC, impacting taxable income and capital requirements.