Trupanion (TRUP) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 11% YoY to $405.6M; record adjusted operating income (AOI) was $47.0M, and free cash flow reached a record $28.5M.

• Subscription pets grew 6% YoY to 1.145M; monthly retention improved for the seventh consecutive quarter to 98.38%.

• More than 20,500 net new pets were added as growth investments supported higher lifetime value and contribution per pet.

Financial highlights

• Q3 net income was $9.3M, or $0.21 per basic and diluted share, versus $5.9M a year earlier; adjusted EBITDA was $20.8M versus $19.6M.

• Operating cash flow was $30.7M; free cash flow was $28.5M versus $23.9M YoY. Q3 capital expenditures were $2.2M.

• 9M revenue was $1,182.6M, net income $21.0M, and adjusted EBITDA $57.9M; 9M operating cash flow was $66.3M and free cash flow $61.4M.

Outlook and guidance

• FY2026 revenue guidance is $1.590B–$1.597B; subscription revenue is $1.131B–$1.133B, with 14% midpoint YoY growth.

• FY2026 total AOI guidance is $179M–$182M, representing 19% YoY growth at the midpoint.

• Q4 revenue guidance is $407M–$414M, subscription revenue $297M–$299M, and total AOI $48M–$51M; midpoint YoY growth is ~14% for subscription revenue and ~10% for AOI.

• Guidance assumes a 72% U.S.-Canadian currency conversion rate; revenue projections are sensitive to exchange-rate movements.

• Double-digit veterinary cost inflation is expected to persist through 2027; pricing reflects cost trends, while average member increases are expected to ease as prior adjustments catch up.