Trupanion lifts profits while Lemonade faces higher claims costs

US pet insurance providers Trupanion and Lemonade reported positive momentum in the third quarter of 2026, expanding their portfolios while pursuing investments in technology and customer acquisition.

Trupanion: more revenue and enrollment

Washington-based pet insurer Trupanion reported an 11% increase in revenue to $405.6 million (€363.3M) in Q3 FY2026, ended 30 September 2026.

Net income rose approximately 58% to $9.3 million (€8.3M), equivalent to $0.21 (€0.19) per basic and diluted share, compared with $5.9 million (€5.3M) a year earlier.

Subscription business revenue increased 14% year-over-year (YoY) to $287.9 million (€257.9M). Subscription enrolled pets totaled 1.1 million at quarter-end, up 6% YoY, while total enrolled pets stood at 1.62 million, down 2%.

The average pet acquisition cost was $279 (€250), down from $290 (€260) in Q3 2025.

For 9M FY2026, Trupanion’s revenue reached $1. billion (€1.), up 11% YoY, while subscription revenue grew 15% to $834 million (€747M). Net income increased to $21.0 million (€18.8M), from $13.8 million (€12.4M).

The pet insurance player added more than 20,500 net new pets during the quarter, an increase of over 28% compared with Q3 2025. Acquisition spending per pet declined modestly, largely due to improved conversion.

Lemonade: increasing pet insurance premiums

American digital insurer Lemonade reported total revenue of $336.1 million (€301M) in Q3 2026, up 73% YoY. Gross profit increased 48% to $118.1 million (€105.8M).

The pet insurance in-force premium (IFP) increased 53% YoY to $603 million (€540M) at the end of Q3 2026, compared with $394 million (€353M) a year earlier.

IFP represents the annualized value of premiums associated with policies in force at the end of the reporting period. Pet insurance accounted for approximately 39% of Lemonade’s total IFP of $1.551 billion (€1.390B), which grew 34% YoY.

Premium per pet customer rose 9% to $854 (€765), from $782 (€700) in Q3 2025.

However, the pet segment’s gross loss ratio also increased, reaching 75%, compared with 71% a year earlier.

Investments

Technology and automation investments supported customer acquisition and retention at Trupanion. The company reported stronger web conversion following improvements to its online enrolment process and the rollout of expanded deductible and coinsurance options across Canada and approximately 90% of the US.

During Q3, Trupanion repurchased approximately 800,000 shares for a total of $25 million (€22.4M). As of 30 September, a further $75 million (€67.2M) remained available under the program.

Lemonade said it increased investment by $28 million YoY in Q3 for marketing and customer acquisition. The company said to investors this reflected its decision to capitalize on strong marketing efficiency and expected in-force premium growth to outpace the increase in growth spending from Q4 onward.

The insurer also highlighted its AI-based technology platform, Lemonade OS, as a driver of operational efficiency and expansion. It launched 25 new product-geography combinations during 2026, while its customer base grew 23% to 3.52 million.

Outlook

Trupanion expects total revenue of $1.590 billion to $1.597 billion (€1.425B–€1.431B) for FY2026, while its subscription revenue forecast has been narrowed to $1.131 billion to $1.133 billion (€1.013B–€1.015B). The midpoint of the subscription revenue range represents 14% YoY growth.

Adjusted operating income is projected to reach $179 million to $182 million (€160.3M–€163.0M), representing 19% YoY growth at the midpoint.

For Q4, the company expects total revenue of $407 million to $414 million (€364.5M–€370.8M), with subscription revenue forecast at $297 million to $299 million (€266.0M–€267.8M).

CFO Fawwad Qureshi said the revenue projections are subject to exchange-rate movements, predominantly between the US and Canadian currencies. The company used a 72% conversion rate in its fourth-quarter and full-year projections.

Lemonade also raised its full-year 2026 financial outlook following its third-quarter performance. The company now expects revenue of $1.231 billion to $1.235 billion (€1.103B–€1.107B), compared with its previous forecast of $1.214 billion to $1.220 billion (€1.087B–€1.092B).

For Q4, Lemonade expects revenue of $342 million to $346 million (€306M–€310M) and gross earned premium of $379 million to $383 million (€339M–€343M).