Trupanion: Pets Best is winding down, Chewy remains small
Trupanion reported second-quarter 2026 results on August 5, posting net income of $6.8 million, or $0.16 per diluted share, its fifth consecutive quarter of GAAP profitability.
Here are the key takeaways from the earnings call:
Trupanion is moving on from Pets Best
The company said it has agreed with Pets Best to conclude their relationship following the third quarter of 2028, a move that makes strategic sense after JAB indirectly acquired Pets Best in 2024.
AI is about removing friction, not replacing people
Trupanion said its AI investments are focused on simplifying operations, improving efficiency, and allowing employees to spend more time on customer interactions rather than administrative work.
Pet growth accelerated
The company added approximately 18,800 net subscription pets during the quarter, a 39% increase over the prior year, helped by stronger acquisition returns and stable retention. Gross pet additions increased 9% year over year.
Product changes are improving economics
Expanded deductible and coinsurance options increased the lifetime value of newly enrolled pets by 25%, while making monthly premiums more affordable. The expanded deductible and coinsurance offering has reached about 50% of its rollout, with management expecting further improvements in conversion as deployment continues across North America.
“Every dollar we invest in pet acquisition today has the potential to create significantly more long-term value than it did just a year ago.”
New products remain on track
Management said its new digital insurance offering remains on schedule to launch by the midpoint of its current strategic plan, targeting customer segments not currently served by Trupanion’s flagship product.
Revenue grew 11%
Quarterly revenue increased 11% to $392.9 million, while subscription revenue rose 14% to $276.7 million. Subscription pets reached 1.125 million, including roughly 66,000 in Europe.
$100 million buyback authorized
Following regulatory approval to upstream $44 million from its insurance subsidiary, Trupanion authorized a $100 million share repurchase program, which management described as another capital allocation tool alongside acquisitions, technology investments, and debt reduction.
Veterinary inflation remains elevated
Management said veterinary inflation continues to run at double-digit levels, although it expects inflation to moderate over time. Higher veterinary pricing continues to flow through premium increases.
Pet food remains a long-term investment
Trupanion said manufacturing development for its pet food initiative is nearing completion, but the business is not expected to contribute meaningful revenue during the current strategic plan.
Chewy remains a small contributor
Trupanion didn’t mention Chewy on the earnings call, but the comparison is worth noting. The company added approximately 18,800 net subscription pets in one quarter—roughly as many as the Chewy partnership has accumulated nationwide since launching about four years ago. The comparison suggests Trupanion’s owned channels remain its primary growth engine.
