Trupanion (TRUP) investor relations material

Strategic vision and future plans

• The company is entering a new strategic phase focused on product innovation, channel development, and geographic expansion, with a significant push in Europe, especially Germany.

• Investment in the food initiative aims to capture a share of the $60B pet food market, with the product expected to be margin accretive.

• Channel partnerships, affiliate relationships, and veterinary partnerships are prioritized, with dedicated teams and digital assets driving growth.

• International business is expanding rapidly, with launches in Germany, Switzerland, Czechia, Slovakia, and Belgium, and harmonized technology and operations supporting efficient growth.

• All territories are enabled for growth through technology launches, distribution alignment, and operational harmonization.

Financial guidance and performance

• Five-year revenue CAGR is 23%, with subscription revenue CAGR at 21%, and full-year 2025 revenue guidance raised to a midpoint of $1.426B.

• Adjusted Operating Income (AOI) rebounded with a 54% YoY increase in 2024, projected to grow 30% in 2025 to $108M, and 2025 AOI guidance at $146M, a 27.5% YoY increase.

• Over $3.5B in claims have been paid, with daily claims volume at 1.7 million, reflecting high product utilization.

• Free cash flow reached $61M over the past four quarters, driven by higher AOI, and $65M in capital released from the insurance entity over two years.

• The company raised guidance for revenue, subscription revenue, and AOI for the year, citing strong first-half performance.

Business developments and operational improvements

• Retention remains a top priority, with industry-leading rates and targeted messaging for cohorts experiencing higher rate increases.

• Acquisition spend is increasing, focusing on brand exposure, test spend, and responsible growth, especially in core channels and digital conversion.

• Technology investments, including the Vision platform and Vet Portal, have improved automation, reduced claim processing times to under 25 hours, and increased operational efficiency.

• Over one third of invoices are paid directly to vets in under five minutes, with automation rates in the vet portal at approximately 70%.

• The company is leveraging AI for productivity gains, quality assurance, and to enhance digital and member experiences.