Trupanion (TRUP) Surpasses $1B in Subscription Revenue and Returns to Profitability in 2025

Trupanion Inc. (NASDAQ:TRUP) is one of the best fintech stocks to invest in. On February 12, Trupanion delivered the full-year 2025 financial report, highlighted by ~$1 billion in annual subscription revenue. Total revenue for the year grew 12% to over $1.4 billion, while net income reached $19.4 million, which was a sharp recovery from the $9.6 million net loss reported in 2024.

This financial turnaround was driven by a 15% annual subscription-adjusted operating margin and a 33% increase in adjusted operating income, as the company successfully aligned its pricing with rising veterinary costs and improved its per-pet margins. Q4 showcased continued operational strength, with subscription revenue rising 15% year-over-year to $261.4 million and average monthly retention climbing to 98.34%. Despite a 2% decrease in total enrolled pets, primarily due to a decline in the lower-margin other-business segment, subscription pets grew 5% to nearly 1.1 million.

Trupanion Inc. (NASDAQ:TRUP) issued a robust outlook for 2026, projecting total revenue between $1.55 and $1.582 billion. The company expects adjusted operating income to grow by approximately 19% at the midpoint, supported by continued pricing discipline and efficient expense management. While inflation in veterinary services remains a headwind, management is exploring new, lower-priced product offerings to address tighter pet owner budgets over the next 36 months.

Trupanion Inc. (NASDAQ:TRUP), together with its subsidiaries, provides medical insurance for cats and dogs on a subscription basis in the US, Canada, Continental Europe, and Australia. The company has two segments, Subscription Business and Other Business, and serves pet owners and veterinarians.

While we acknowledge the potential of TRUP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. Follow Insider Monkey on Google News.