Trupanion Extends Retention Streak as Cash Flow Hits Record

The Tip Desk · November 11, 2026 · 3 min read

Free cash flow reached $28.5 million in the third quarter as net income rose to $9.3 million, or $0.21 a share, from $5.9 million a year earlier.

Trupanion, Inc. (TRUP), a provider of medical insurance for cats and dogs, reported net income of $9.3 million, or $0.21 a share, for the third quarter ended September 30, 2026, compared with $5.9 million, or $0.14 basic and $0.13 diluted a share, a year earlier.

Total revenue was $405.6 million, up 11% from the third quarter of 2025, after 11% growth in the second quarter and 12% growth in the first quarter. Subscription business revenue was $287.9 million, up 14%, matching the second-quarter increase and slowing from 16% in the first quarter. Other business revenue was $117.7 million.

Chief Executive Officer Margi Tooth said the quarter showed record cash flow, increased profitability, and the seventh consecutive quarter of improvement in retention. Operating cash flow was $30.7 million and free cash flow was $28.5 million, versus $29.2 million and $23.9 million a year earlier. Adjusted EBITDA was $20.8 million, compared with $19.6 million.

Subscription enrolled pets were 1,145,160 at September 30, 2026, up 6% from a year earlier, after 5% growth at both June 30 and March 31. Total enrolled pets, including the other business segment, were 1,626,901, down 2% from September 30, 2025.

Monthly average revenue per pet was $88.95 in the third quarter, versus $82.01 a year earlier. Average pet acquisition cost was $279, versus $290. Average monthly retention was 98.38%, versus 98.33%.

Subscription cost of paying veterinary invoices was 69.7% of subscription revenue, versus 70.1% a year earlier. Subscription adjusted operating income was $45.4 million, or 15.8% of subscription revenue, versus $39.1 million, or 15.5%. Other business adjusted operating income was $1.6 million, or 1.4% of other business revenue, versus $1.8 million, or 1.5%. Total business adjusted operating income was $47.0 million, or 11.6% of revenue, versus $40.9 million, or 11.1%.

GAAP operating income was $9.5 million, compared with $5.9 million a year earlier. Interest expense was $1.8 million, versus $2.8 million.

In June the board authorized a share repurchase program of up to $100.0 million with no expiration date. During the third quarter the company repurchased approximately 0.8 million shares for about $25.0 million, leaving about $75.0 million remaining under the program. Tooth said the company is investing with discipline in organic growth and that the buyback reflects confidence in the long-term value it is building.

Cash and short-term investments were $396.8 million at September 30, 2026, with $3.5 million available under the credit facility before a $15.0 million October repayment that left $18.5 million of capacity.