Trupanion, Inc. (NASDAQ:TRUP) Shows Momentum; Near-Term Upside Likely Amid Improving Metrics

Trupanion enters the coming weeks with operational momentum and product integrations that support a constructive near-term outlook.

Recent News

Aug 4, 2026 — Trupanion announced integration with Digitail to reduce paperwork and speed clinic workflows; June 22, 2026 — company data showed pet anxiety claims materially higher year-over-year; June 19, 2026 — Trupanion published seasonal guidance on summer pet hazards; June 18, 2026 — Trupanion named winners of the 2026 Veterinary Appreciation Day awards; May 26, 2026 — the company reported a milestone exceeding $4 billion in paid claims.

Technical Analysis

Directional indicators: ADX sits at 16.65, indicating no strong trend while DI+ at 28.10 (dip & reversal) and DI- at 21.82 (peak & reversal) together signal a bullish turn in directional momentum, though the underlying trend lacks strength.

MACD: MACD equals 0.26 with a signal line at 0.17 and a dip & reversal pattern; MACD currently sits above its signal line, a bullish momentum confirmation that supports short-term upward bias.

MRO: The MRO reads -5.17 (dip & reversal), indicating price sits below the model target and therefore carries potential to move higher toward target levels if momentum persists.

RSI: RSI at 53.6 with a dip & reversal shows rising relative strength without overbought conditions, consistent with measured upside rather than an extended surge.

Price vs. averages and bands: Last close $26.99 sits above the 20-day average $25.15, the 50-day average $24.59, and both the 12- / 26-day EMAs ($25.65 / $25.37), signaling short-term strength; price remains below the 200-day average $29.72, placing medium-term resistance near that level. Price trades just above the 1x upper Bollinger band ($26.54) and below the 2x upper band ($27.92), indicating proximity to the short-term upper volatility band.

Ichimoku & support: Tenkan/Kijun at $26.38 with Senkou span values around $23.70–$25.30 puts the current price above the cloud midpoint, offering additional short-term technical support; the super trend lower support sits at $24.82. Volume today (621,499) exceeds the 10-day average (564,578) and the 200-day average (424,571), giving conviction to the recent directional moves.

 


Fundamental Analysis

Top-line and growth: Trailing total revenue stands at $392,934,000 with revenue growth of 2.31% year-to-date while QoQ revenue growth accelerated 21.22% and revenue growth YoY contracted 31.68%. The QoQ pickup alongside a YoY contraction suggests recent operational acceleration after a weaker prior-year comparison.

Profitability: Operating margin equals 7.43% and operating margin QoQ improved by 4.14 percentage points, while EBIT margin sits at 2.34% with an EBIT margin QoQ improvement of 14.91% but an EBIT margin YoY decline of 41.77%. Those margin gains sequentially support the near-term valuation case even as annual comparisons remain depressed.

Earnings and cash flow: Reported EPS equaled $0.86 versus an estimate of $0.94, an EPS shortfall of $0.08 or a -8.51% surprise. Free cash flow totaled $19,159,000, yielding 1.74% (free cash flow yield), and free cash flow QoQ showed strong improvement. Cash and short-term investments total $398,491,000 and operating cash flow ended the period at $12,246,000, leaving liquidity ample relative to $106,909,000 of total debt; the cash ratio stands near 0.98 and current ratio at 1.77.

Capital structure and coverage: Debt to equity measures ~0.26 and debt to EBITDA runs near 8.30x while interest coverage equals 5.02x. The leverage profile remains manageable in absolute dollars but the elevated debt-to-EBITDA figure implies earnings must remain stable to meaningfully reduce leverage over time.

Returns and valuation: Return on equity measures roughly 1.67% and return on assets about 0.74%, both low but improving sequentially. WMDST values the stock as trading at a forward P/E of 22.85 with a trailing P/E of 29.18 and an enterprise multiple of 62.86; book value per share sits near $9.34 and the mean analyst price target reported in the data equals $23.86, below the last close. The EPS miss versus estimate and elevated enterprise multiple temper the valuation case despite stronger QoQ margin and cash-flow trends.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2026-06-30
REPORT DATE: 2026-08-05
NEXT REPORT DATE: 2026-11-04
CASH FLOW  Begin Period Cash Flow $ 182.9 M
 Operating Cash Flow $ 12.2 M
 Capital Expenditures $ -1.82 M
 Change In Working Capital $ 676.0 K
 Dividends Paid —
 Cash Flow Delta $ -4.57 M
 End Period Cash Flow $ 178.3 M
 
INCOME STATEMENT REVENUE
 Total Revenue $ 392.9 M
 Forward Revenue $ 679.8 M
COSTS
 Cost Of Revenue $ 327.8 M
 Depreciation $ 3.7 M
 Depreciation and Amortization $ 3.7 M
 Research and Development $ 12.8 M
 Total Operating Expenses $ 363.8 M
PROFITABILITY
 Gross Profit $ 65.1 M
 EBITDA $ 12.9 M
 EBIT $ 9.2 M
 Operating Income $ 29.2 M
 Interest Income —
 Interest Expense $ 1.8 M
 Net Interest Income $ -1.83 M
 Income Before Tax $ 7.4 M
 Tax Provision $ 542.0 K
 Tax Rate 7.351 %
 Net Income $ 6.8 M
 Net Income From Continuing Operations $ 6.8 M
EARNINGS
 EPS Estimate $ 0.94
 EPS Actual $ 0.86
 EPS Difference $ -0.08
 EPS Surprise -8.511 %
 Forward EPS $ 1.08
 
BALANCE SHEET ASSETS
 Total Assets $ 930.8 M
 Intangible Assets $ 62.0 M
 Net Tangible Assets $ 347.7 M
 Total Current Assets $ 719.4 M
 Cash and Short-Term Investments $ 398.5 M
 Cash $ 149.4 M
 Net Receivables $ 302.2 M
 Inventory —
 Long-Term Investments $ 47.0 M
LIABILITIES
 Accounts Payable $ 12.0 M
 Short-Term Debt $ 10.0 M
 Total Current Liabilities $ 405.5 M
 Net Debt —
 Total Debt $ 106.9 M
 Total Liabilities $ 521.1 M
EQUITY
 Total Equity $ 409.7 M
 Retained Earnings $ -194.74 M
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share $ 9.34
 Shares Outstanding 43.872 M
 Revenue Per-Share $ 8.96
VALUATION
 Market Capitalization $ 1.1 B
 Enterprise Value $ 809.5 M
 Enterprise Multiple 62.863
Enterprise Multiple QoQ -24.112 %
Enterprise Multiple YoY -38.65 %
Enterprise Multiple IPRWA —
 EV/R 2.06
CAPITAL STRUCTURE
 Asset To Equity 2.272
 Asset To Liability 1.786
 Debt To Capital 0.207
 Debt To Assets 0.115
Debt To Assets QoQ -3.194 %
Debt To Assets YoY -14.931 %
Debt To Assets IPRWA —
 Debt To Equity 0.261
Debt To Equity QoQ -5.774 %
Debt To Equity YoY -18.964 %
Debt To Equity IPRWA —
PRICE-BASED VALUATION
 Price To Book (P/B) 2.688
Price To Book QoQ -13.722 %
Price To Book YoY -53.823 %
Price To Book IPRWA —
 Price To Earnings (P/E) 29.185
Price To Earnings QoQ -19.269 %
Price To Earnings YoY -86.767 %
Price To Earnings IPRWA —
 PE/G Ratio 2.846
 Price To Sales (P/S) 2.802
Price To Sales QoQ -12.501 %
Price To Sales YoY -52.113 %
Price To Sales IPRWA —
FORWARD MULTIPLES
Forward P/E 22.853
Forward PE/G 2.228
Forward P/S 1.62
EFFICIENCY OPERATIONAL
 Operating Leverage 7.584
ASSET & SALES
 Asset Turnover Ratio 0.424
Asset Turnover Ratio QoQ 1.444 %
Asset Turnover Ratio YoY 1.094 %
Asset Turnover Ratio IPRWA —
 Receivables Turnover 1.295
Receivables Turnover Ratio QoQ 2.272 %
Receivables Turnover Ratio YoY 6.731 %
Receivables Turnover Ratio IPRWA —
 Inventory Turnover —
Inventory Turnover Ratio QoQ —
Inventory Turnover Ratio YoY —
Inventory Turnover Ratio IPRWA —
 Days Sales Outstanding (DSO) 70.479
CASH CYCLE
 Cash Conversion Cycle Days (CCC) 66.973
Cash Conversion Cycle Days QoQ -1.217 %
Cash Conversion Cycle Days YoY —
Cash Conversion Cycle Days IPRWA —
CAPITAL DEPLOYMENT
 Cash Conversion Ratio 1.252
 CapEx To Revenue -0.005
 CapEx To Depreciation -0.497
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital $ 506.6 M
 Net Invested Capital $ 516.6 M
 Invested Capital $ 516.6 M
 Net Tangible Assets $ 347.7 M
 Net Working Capital $ 314.0 M
LIQUIDITY
 Cash Ratio 0.983
 Current Ratio 1.774
Current Ratio QoQ 2.75 %
Current Ratio YoY 5.003 %
Current Ratio IPRWA —
 Quick Ratio —
Quick Ratio QoQ —
Quick Ratio YoY —
Quick Ratio IPRWA —
COVERAGE & LEVERAGE
 Debt To EBITDA 8.302
 Cost Of Debt 1.57 %
 Interest Coverage Ratio 5.025
Interest Coverage Ratio QoQ 20.305 %
Interest Coverage Ratio YoY 30.028 %
Interest Coverage Ratio IPRWA —
 Operating Cash Flow Ratio 0.03
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO) 3.507
DIVIDENDS
 Dividend Coverage Ratio —
 Dividend Payout Ratio —
 Dividend Rate —
 Dividend Yield —
PERFORMANCE GROWTH
 Asset Growth Rate 1.002 %
 Revenue Growth 2.314 %
Revenue Growth QoQ 21.215 %
Revenue Growth YoY -31.68 %
Revenue Growth IPRWA —
 Earnings Growth 10.256 %
Earnings Growth QoQ -97.949 %
Earnings Growth YoY -101.231 %
Earnings Growth IPRWA —
MARGINS
 Gross Margin 16.576 %
Gross Margin QoQ 3.529 %
Gross Margin YoY 6.894 %
Gross Margin IPRWA —
 EBIT Margin 2.343 %
EBIT Margin QoQ 14.909 %
EBIT Margin YoY -41.774 %
EBIT Margin IPRWA —
 Return On Sales (ROS) 7.426 %
Return On Sales QoQ 4.137 %
Return On Sales YoY 18.494 %
Return On Sales IPRWA —
CASH FLOW
 Free Cash Flow (FCF) $ 19.2 M
 Free Cash Flow Yield 1.74 %
Free Cash Flow Yield QoQ 55.635 %
Free Cash Flow Yield YoY 198.969 %
Free Cash Flow Yield IPRWA —
 Free Cash Growth 39.369 %
Free Cash Growth QoQ -186.056 %
Free Cash Growth YoY -378.108 %
Free Cash Growth IPRWA —
 Free Cash To Net Income 2.805
 Cash Flow Margin 3.117 %
 Cash Flow To Earnings 1.793
VALUE & RETURNS
 Economic Value Added $ 0.04
 Return On Assets (ROA) 0.738 %
Return On Assets QoQ 38.983 %
Return On Assets YoY -33.93 %
Return On Assets IPRWA —
 Return On Capital Employed (ROCE) 1.752 %
 Return On Equity (ROE) 0.017
Return On Equity QoQ 34.871 %
Return On Equity YoY -37.047 %
Return On Equity IPRWA —
 DuPont ROE 1.698 %
 Return On Invested Capital (ROIC) 1.651 %
Return On Invested Capital QoQ 29.694 %
Return On Invested Capital YoY -38.897 %
Return On Invested Capital IPRWA —

Six-Week Outlook

The near-term setup favors modest upside: technical momentum indicators (DI+ recovery, MACD above its signal, EMAs under price) and rising volume support additional gains, while the negative MRO and RSI in neutral territory suggest room to run. Expect constrained volatility with resistance clustered near the 200-day average around $29.72 and initial downside support near the super trend level at $24.82. Watch incoming operational updates and cash-flow prints for confirmation that QoQ margin gains translate into sustained improvement in return metrics.

About Trupanion, Inc.

Trupanion, Inc. (NASDAQ:TRUP) delivers medical insurance solutions for cats and dogs through a monthly subscription model. Headquartered in Seattle, Washington, Trupanion caters to pet owners and veterinarians across the United States, Canada, Continental Europe, and Australia. The company divides its operations into two main segments: Subscription Business and Other Business. The Subscription Business segment provides pet owners with comprehensive coverage plans, while the Other Business segment offers additional services related to pet health and wellness. Founded in 2000, Trupanion initially operated under the name Vetinsurance International, Inc. before rebranding in 2013. Through its offerings, Trupanion aims to alleviate the financial burden of veterinary care, enabling pet owners to access necessary medical treatments for their pets without hesitation. By partnering with veterinary practices, Trupanion facilitates direct payments, streamlining the insurance process and enhancing the customer experience.



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