trup-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


			☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


			☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____

Commission File Number: 001-36537

TRUPANION, INC.

(Exact name of registrant as specified in its charter)


Delaware						83-0480694
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

6100 4th Avenue S, Suite 200

Seattle,

Washington

98108


			(855)			727 - 9079

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common stock, $0.00001 par value per share	TRUP	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☒

Yes

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒

Yes

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of April 24, 2025, there were approximately 42,783,675 shares of the registrant’s common stock outstanding.

TRUPANION, INC.

TABLE OF CONTENTS


		Page

PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	35
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3.	Defaults Upon Senior Securities	36
Item 4.	Mine Safety Disclosures	36
Item 5.	Other Information	36
Item 6.	Exhibits	37
	Signatures	38

Note About Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act), and Section 27A of the Securities Act of 1933, as amended (Securities Act). All statements contained in this Quarterly Report on Form 10-Q other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “potentially,” “estimate,” “target,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “plan” and “expect,” and similar expressions that convey uncertainty of future events or outcomes, are intended to identify forward-looking statements.

These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including, without limitation, those discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission on February 27, 2025, in particular the risk factors discussed under the heading "Risk Factors" in Part I, Item 1A. Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

You should not rely on forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. We undertake no obligation to update publicly any forward-looking statements for any reason, except as required by law.

Unless otherwise stated or the context otherwise indicates, references to “we,” “us,” “our” and similar references refer to Trupanion, Inc. and its subsidiaries taken as a whole.

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements


TRUPANION, INC. Condensed Consolidated Statements of Operations (in thousands, except share data) (unaudited)
	Three Months Ended March 31,
		2025		2024
Revenue		$	341,975	$	306,121
Cost of revenue:
Veterinary invoice expense(1)		247,450		233,569
Other cost of revenue(1)		43,422		36,325
Total cost of revenue		290,872		269,894
Operating expenses:
Technology and development(1)		8,072		6,960
General and administrative(1)		19,892		14,673
New pet acquisition expense(1)		20,516		16,843
Depreciation and amortization		3,791		3,785
Total operating expenses		52,271		42,261
Loss from investment in joint venture		(305)		(103)
Operating loss		(1,473)		(6,137)
Interest expense		3,211		3,596
Other (income), net		(3,240)		(2,843)
Loss before income taxes		(1,444)		(6,890)
Income tax (benefit) expense		39		(38)
Net loss		$	(1,483)	$	(6,852)

Net loss per share:
Basic and diluted		$	(0.03)	$	(0.16)

Weighted average shares of common stock outstanding:
Basic and diluted		42,775,955		41,917,094


(1)Includes stock-based compensation expense as follows:
Veterinary invoice expense	$	770	$	924
Other cost of revenue	489		466
Technology and development	1,151		1,254
General and administrative	4,528		3,449
New pet acquisition expense	2,892		2,059

See accompanying notes to the condensed consolidated financial statements.


TRUPANION, INC. Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) (unaudited)
	Three Months Ended March 31,
		2025		2024
Net loss		$	(1,483)	$	(6,852)
Other comprehensive income (loss):
Foreign currency translation adjustments		1,352		(1,332)
Net unrealized gain (loss) on available-for-sale investments		545		(652)
Other comprehensive income (loss), net of taxes		1,897		(1,984)
Comprehensive income (loss)		$	414	$	(8,836)

See accompanying notes to the condensed consolidated financial statements.


TRUPANION, INC. Condensed Consolidated Balance Sheets (in thousands, except share data)
	March 31, 2025		December 31, 2024
Assets	(unaudited)
Current assets:
Cash and cash equivalents	$	166,308	$	160,295
Short-term investments	155,508		147,089
Accounts and other receivables, net of allowance for credit losses of $1,046 at March 31, 2025 and $1,117 at December 31, 2024	290,104		274,031
Prepaid expenses and other assets	16,417		15,912
Total current assets	628,337		597,327
Restricted cash	39,702		39,235
Long-term investments	376		373
Property, equipment, and internal-use software, net	101,938		102,191
Intangible assets, net	12,130		13,177
Other long-term assets	16,356		17,579
Goodwill	38,323		36,971
Total assets	$	837,162	$	806,853
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	9,681	$	11,532
Accrued liabilities and other current liabilities	36,907		33,469
Reserve for veterinary invoices	54,042		51,635
Deferred revenue	267,357		251,640
Long-term debt - current portion	1,350		1,350
Total current liabilities	369,337		349,626
Long-term debt	127,526		127,537

SEC Form 10-Q filed by Trupanion Inc.