Trupanion bets on pet acquisition to reignite enrollment growth

Trupanion hit $392.9 million (€341.8M) in revenue during the second quarter (Q2) of fiscal year (FY) 2026, which ended on 30 June 2026, an 11% year-over-year (YoY) rise. First-half (H1) revenue reached $777 million (€676M), 12% above the same period last year.

Quarterly net income fell 27% YoY to $6.8 million (€5.9M), equivalent to $0.16 (€0.14) in basic and diluted earnings per share (EPS). The quarterly decline, however, did not push the company’s H1 performance into negative territory: net income for the 6 months climbed 48% to $11.7 million (€10.2M).

At the end of the quarter, the Seattle-headquartered company authorized an extraordinary dividend payment of $44 million (€38M) and a share repurchase program of up to $100 million (€86.5M) with no expiration date.

Business highlights

The American pet insurer had 1,633,131 enrolled pets as of 30 June 2026, 2% fewer than a year earlier. Subscription enrollment, meanwhile, stood at 1,124,548 pets, representing a 5% YoY increase, including approximately 66,000 pets in Europe.

Revenue from existing pets hit a record $383.7 million (€333.8M) during Q2, while new-pet revenue rose 27% YoY to $7.9 million (€6.9M).

“In the quarter, returns on our pet acquisition investment contributed to an acceleration in gross pet adds, up 9% year-over-year,” says Trupanion CEO and President Margi Tooth.

Together with stable retention, the pet insurer added approximately 18,800 net subscription pets during the quarter, a 39% increase from the same period a year prior.

Subscription business revenue totaled $546.1 million (€475.1M) during H1, up 15% YoY.

Digitail partnership

Trupanion also partnered with Digitail, a veterinary software company, to integrate its Veterinary Portal – used by more than 11,000 veterinary hospitals across North America – into Digitail’s practice management platform.

The integration allows veterinary teams to submit Trupanion claims and receive payments through its VetDirect Pay technology. Participating hospitals can also indicate Trupanion’s Exam Day Offer to eligible puppies and kittens, providing coverage when activated within 24 hours of an exam.

Guidance

Trupanion CFO Fawwad Qureshi says the company now expects FY2026 total revenue to range between $1.584 billion (€1.37B) and $1.601 billion (€1.39B).

Subscription revenue expectations have also been narrowed to between $1.124 billion (€978M) and $1.133 billion (€986M). 

Additionally, the company narrowed its operating income forecast to between $176 million (€153M) and $184 million (€160M), representing 19% YoY growth at the midpoint.

For the third quarter of 2026, the insurance provider expects total revenue of $399 million (€347M) to $405 million (€352M). Subscription revenue is forecast at $284 million (€247M) to $287 million (€250M), representing approximately 13% YoY growth at the midpoint.