Trupanion posts Q1 growth, tweaks 25-year-old product
Trupanion reported first quarter 2026 results with continued growth across its subscription business and a shift in how it plans to measure performance going forward.
Total revenue reached $384 million, up 12% year over year and ahead of expectations. Adjusted operating income came in at $40.2 million, up 29%, while net income was $4.9 million, marking the fourth consecutive quarter of profitability.
Subscription revenue increased 16% to $269.5 million, with adjusted operating margin reaching 14.2%, the highest first quarter margin in the company’s history. Free cash flow totaled $13.7 million.
Trupanion ended the quarter with 1.106 million subscription pets, up 5% year over year, including about 64,000 in Europe. The company added roughly 64,700 pets in the quarter. Monthly retention improved slightly to 98.35%, while average monthly revenue per pet rose 11% to $85.79.
On the product side, Trupanion is making its first meaningful changes to its core offering in 25 years, introducing more flexibility through different deductible and coinsurance options. Early results show customers are still choosing coverage levels close to the original product, suggesting pricing flexibility may expand access without materially changing risk selection.
The company is also preparing to launch a new digital-first product later this year, aimed at younger pet owners looking for lower entry price points. The offering will be fully online with more flexible communication options and is designed to broaden the addressable market.
Automation continues to expand, with claims automation reaching 62%, up from 56% last year, lowering processing costs and improving member experience.
The veterinary channel remains central to growth. While the number of hospitals using Trupanion software increased, same-store productivity declined, reflecting a broader slowdown in vet visits. Management expects this to normalize over time as usage deepens. The company also noted a continued shift toward more cats entering the portfolio, a trend it has been tracking for the past two years.
