Trupanion, Inc. (NASDAQ: TRUP), the leading medical insurance provider for cats and dogs, reported Q2 2026 revenue of $392.9 million, up 11% year-over-year, with subscription business revenue growing 14% to $276.7 million. The results beat consensus estimates on both revenue and profitability.
Subscription enrolled pets reached 1,124,548, a 5% year-over-year increase, while net additions to the subscription base surged 39% compared to the prior year period. Average monthly revenue per pet rose 9% to $87.44, reflecting both price adjustments and a growing share of higher-value policies. The company’s subscription adjusted operating margin expanded from 13.8% to 15.0%, and monthly retention improved to 98.37% on a trailing 12-month basis.
Trupanion also announced that the New York Department of Financial Services approved a $44 million extraordinary dividend from its American Pet Insurance Company subsidiary, bringing total excess capital unlocked over three years to approximately $130 million. The Board of Directors authorized a $100 million share repurchase program with no expiration date. The company generated $19.2 million in free cash flow during the quarter and held $398.5 million in cash and short-term investments at quarter end.
For full-year 2026, Trupanion guided to total revenue of $1.584-1.601 billion and subscription revenue of $1.124-1.133 billion, representing approximately 14% year-over-year growth at the midpoint. Total adjusted operating income is expected to reach $176-184 million, up approximately 19% year-over-year. The results confirm pet insurance as one of the fastest-growing segments in the pet industry, with rising veterinary costs driving owner demand for financial protection.
