Trupanion (TRUP) Q4 2025 earnings summary

Executive summary

• Achieved record year in 2025 with total revenue of $1.44 billion, up 12% year-over-year, and strong Q4 performance; subscription revenue reached $989.3 million, up 16%.

• Ended 2025 with nearly 1.1 million pets protected and over $3.5 billion paid in veterinary invoices historically.

• Net income for 2025 was $19.4 million, reversing a net loss of $9.6 million in 2024, aided by a $7.8 million realized gain from a preferred stock exchange.

• Focused on brand expansion, member retention, and new product development to drive future growth.

• Achieved four consecutive quarters of higher retention and accelerating gross pet adds.

Financial highlights

• Q4 2025 total revenue was $376.9 million, up 12% year-over-year; subscription revenue was $261.4 million, up 15%.

• Free cash flow for Q4 was $25.3 million, up from negative $1.9 million in Q4 2024; full-year free cash flow was $75.4 million, nearly doubling year-over-year.

• Net income for Q4 was $5.6 million ($0.13 per share), up from $1.7 million ($0.04 per share) last year.

• Ended 2025 with $370.7 million in cash and short-term investments and reduced debt to $111.8 million.

• Subscription business margin reached 14.7% for the year, up from 12.6% in 2024.

Outlook and guidance

• 2026 total revenue expected between $1.55 billion and $1.582 billion; subscription revenue between $1.117 billion and $1.137 billion (14% growth midpoint).

• Adjusted operating income for 2026 projected at $173–$187 million (19% growth midpoint).

• Q1 2026 revenue guidance: $376–$382 million; subscription revenue $265–$268 million; AOI $38–$41 million (27% growth midpoint).

• Guidance assumes veterinary inflation in line with current trends and uses a 73% USD/CAD conversion rate.

• Management highlighted four consecutive quarters of higher retention and accelerating gross pet adds, supporting confidence in the next strategic plan.