Should Trupanion’s (TRUP) Earnings Beat and Raised Guidance Prompt a Closer Look at Its Growth?

• Trupanion reported third-quarter 2025 earnings, showing net income of US$5.87 million versus US$1.43 million a year earlier, and raised its full-year revenue guidance to a range between US$1.433 billion and US$1.439 billion.
• The company also entered a new multi-year credit agreement for US$120 million, repaid prior debt, and is projecting continued double-digit subscription revenue growth amid operational improvements.
• We’ll explore how Trupanion’s stronger profitability and updated guidance could influence its long-term growth and business outlook.

These 13 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

Trupanion Investment Narrative Recap

To be a Trupanion shareholder, you need to believe that the company can maintain high retention and accelerate true subscriber growth, not just boost average revenue per user through price hikes. The latest earnings and updated guidance signal a healthier outlook and support confidence in Trupanion’s operational improvements, but concerns about stagnating new pet additions and ongoing competition remain material risks that could limit near-term upside or slow future revenue expansion.

One announcement that stands out is Trupanion’s new multi-year US$120 million credit agreement, which refinances prior debt and extends maturities through 2028. While this move strengthens Trupanion’s balance sheet and gives the company more flexibility to invest in pet acquisition and technology, it also comes at a time when efficient use of capital will be key to translating top-line gains into durable profit, especially with competitor activity on the rise.

On the other hand, investors should be aware that if competitive pressure forces Trupanion to rely too much on price increases rather than actual subscriber growth...

Read the full narrative on Trupanion (it's free!)

Trupanion's outlook anticipates $1.7 billion in revenue and $17.4 million in earnings by 2028. This is based on an annual revenue growth rate of 8.3% and a $6.4 million increase in earnings from the current $11.0 million.

Uncover how Trupanion's forecasts yield a $56.50 fair value, a 50% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided 5 fair value estimates for Trupanion, ranging from US$31.00 to US$62.97 per share. Given the focus on subscriber growth amid industry competition, opinions differ widely on how effectively Trupanion can convert revenue momentum into sustainable performance.

Explore 5 other fair value estimates on Trupanion - why the stock might be worth as much as 67% more than the current price!

Build Your Own Trupanion Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Trupanion research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Trupanion research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Trupanion's overall financial health at a glance.

Ready To Venture Into Other Investment Styles?

Our daily scans reveal stocks with breakout potential. Don't miss this chance:

• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 37 best rare earth metal stocks of the very few that mine this essential strategic resource.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com