Share count
44Mpeak FY2025
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TRUP, Trupanion Inc.
Managed Care financial
Revenue is Subscription business (69%) and Other business (31%).
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$1.4B
+11.9% YoY · 23% 5-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue $384M +12.3% vs yr-ago qtr
Operating margin 1.2% yr-ago −0.4%
Net income $5M yr-ago ($1M)
Net margin 1.3% yr-ago −0.4%
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What it is
- A managed-care business, taking in premiums and paying out its members' medical claims.
- What moves the needle
- The medical loss ratio and membership. What decides it: keeping medical costs below the premiums collected, where a regulated floor sets how much must be paid out as care, so the spread is thin; membership growth across commercial, Medicare and Medicaid; and the cost discipline on what little is left. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- The split between premiums and medical costs is not cleanly tagged in the filings. That leaves a thin operating margin, a median of about −1.0%, the sign of a volume-and-cost-control business rather than a high-margin one, though turns that sliver over fast enough to earn roughly −3% on equity. Whether membership keeps growing and medical costs stay below premiums, especially as the Medicare Advantage and Medicaid mix shifts, is what the 10-K decides, not an earnings multiple.
Every line is arithmetic on the company's filings, shown in full in the sections below.
Where the money comes from
read the 10-K →The biggest segment, Subscription business, is also where the profit is made: 69% of revenue and 100% of the profitable segments' operating profit. Other business ran a $8M operating loss.
Revenue by reportable segment, FY2025
Operating profit profitable segments only
- Subscription business69%$989M100% of profit
- Other business31%$450Mloss of $8M
From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of the profitable segments' operating profit (a loss-making segment carries its loss in dollars in the legend, not a share of the bar), before unallocated corporate costs.
The record
Ten years of arithmetic, read across the cycle.
The record, 2016–2025
realized figures from each filing · older years to the left| 2016’16 | 2017’17 | 2018’18 | 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMMar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | |||||||||||
| $188M | $243M | $304M | $384M | $502M | $699M | $905M | $1.1B | $1.3B | $1.4B | $1.5B | RevenueRevenue |
| −3.6% | −1.1% | −0.3% | −0.5% | −1.0% | −5.0% | −4.8% | −3.7% | −0.7% | 1.0% | 1.4% | Operating marginOp. mgn |
| ($7M) | ($2M) | ($927K) | ($2M) | ($6M) | ($36M) | ($45M) | ($45M) | ($10M) | $19M | $26M | Net incomeNet inc. |
| Cash flow & returns | |||||||||||
| -15% | -3% | -1% | -1% | -2% | -11% | -15% | -15% | -3% | 5% | 7% | Return on equityROE |
| −15% | −3% | −1% | −1% | −2% | −11% | −15% | −15% | −3% | 5% | 7% | Retained to equityRetained/eq |
| Balance sheet | |||||||||||
| $82M | $106M | $208M | $257M | $498M | $563M | $672M | $783M | $807M | $915M | $922M | Total assetsAssets |
| $45M | $48M | $129M | $137M | $340M | $332M | $305M | $304M | $323M | $384M | $395M | Shareholders’ equityEquity |
| Per share | |||||||||||
| 28.5M | 29.6M | 32.0M | 34.6M | 35.9M | 40.1M | 40.8M | 41.4M | 42.2M | 43.6M | 43.7M | Shares out (diluted)Shares |
| $6.60 | $8.20 | $9.51 | $11.08 | $14.00 | $17.41 | $22.20 | $26.75 | $30.50 | $33.05 | $33.91 | Revenue / shareRev/sh |
| $-0.24 | $-0.05 | $-0.03 | $-0.05 | $-0.16 | $-0.89 | $-1.10 | $-1.08 | $-0.23 | $0.45 | $0.59 | EPS (diluted)EPS |
| $1.57 | $1.64 | $4.04 | $3.95 | $9.48 | $8.28 | $7.49 | $7.33 | $7.67 | $8.81 | $9.04 | Book value / shareBVPS |
Per-share growththe realized rate an owner's share compounded
| 9-yr | 5-yr | |
|---|---|---|
| Revenue / share | +19.6%/yr | +18.7%/yr |
| Owner earnings / share | +36.2%/yr | +34.5%/yr |
| Capital spending / share | +19.0%/yr | +9.3%/yr |
| Book value / share | +21.2%/yr | −1.4%/yr |
The record, charted
FY2016–2025Each measure over its full record; the current point and the worst year marked.
Revenue
$1.4Blow FY2016
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 10-K · source on SEC EDGAR →
Material weakness in financial controls
“We have in the past identified material weaknesses or significant deficiencies in our internal control over financial reporting, which have been remediated.”
The figures below are only as sound as the controls that produced them. read the note →
Is it a good business?
- Not enough dataIndustry peers: median 86%
In the filing’s words The filing discloses a material weakness in its financial controls — the reported numbers here, and the record built on them, are only as reliable as the controls that produced them.
What this means
Premiums or medical claims weren't cleanly tagged in the filing data.
- Operating margin 1.0%Very thin (<2%)Operating income $14M ÷ revenue $1.4BIndustry peers: median 2%
What this means
Health plans earn a sliver on enormous revenue, so a few points of margin is the norm and the business is really a volume-and-cost-control game. Because the margin is so thin, a small miss on medical costs swings profit hard, which is why membership scale and cost management matter more than price.
- Below the cost of equityNet income $19M ÷ equity $384MIndustry peers: median 9%
What this means
The thin margin turns over fast on a modest capital base, so a plan earning its keep still shows a good return on equity. Durably above the ~10% cost of equity is what compounds value; a year below it usually means medical costs outran premiums.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
In its own filing Named as a competitive risk
Its FY2025 10-K names artificial intelligence as a competitive threat.
“Our failure to pay veterinary invoices, accurately and in a timely manner, or to deploy resources appropriately, could result in unanticipated costs to us, lead to material litigation, undermine member goodwill and our reputation, and impair our brand image and, as a result, materially and adversely affect our competit…”
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of the latest quarter, Mar 31, 2026Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assets$705M
- Cash & short-term investments$384M
- Other current assets$322M
Current liabilities$408M
- Debt due within a year$10M
- Accounts payable$13M
- Other current liabilities$386M
Current ratio1.73×all current assets ÷ what's due · Graham looked for 2×
Quick ratio1.73×stricter: inventory excluded
Cash ratio0.94×strictest: cash alone against what's due
Working capital$297Mthe cushion left after near-term bills
Debt due this year vs. cash$10M due · $384M cash
covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet
Revenue, latest quarter vs. a year ago+12.3%the freshest read on whether the business is still growing
Current ratio, recent quarters1.6× → 1.7×
Deeper floors
Tangible book value$333Mequity stripped of goodwill & intangibles
Net current asset value$178MGraham's net-net: current assets less all liabilities
Debt incl. operating leases$124M$14M of it operating leases
Deferred revenue$287Mcustomer cash collected before delivery; operating float
From the company's latest filing.
Management, ownership & pay
read the proxy →From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.
| Fiscal year | Chief executive | Pay, as filed | “Actually paid” | Owner earnings |
|---|---|---|---|---|
| 2021 | Darryl Rawlings | $5.0M | $5.9M | ($5M) |
| 2022 | Darryl Rawlings | $1.7M | −$4.0M | ($19M) |
| 2023 | Darryl Rawlings | $322k | −$231k | $6M |
| 2024 | Darryl Rawlings | $1.7M | $3.0M | $39M |
| 2024 | Margi Tooth | $4.4M | $6.6M | $39M |
| 2025 | Margi Tooth | $4.1M | $2.6M | $75M |
Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.
- Insider ownership5.6%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
- CEO pay ratio41:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
- Stock-based compensation$38M
The slice of the business handed to employees in shares this year, 3% of revenue, equal to 277% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.
What an owner would ask, FY2025
read the 10-K →- Which reported numbers are a judgment call?Management names Income taxes, Insurance reserves as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →
The questions the record and the charts do not answer on their own; each carries the figure and the place to look.
Peers, Managed Care
The same industry, side by side on the medical-loss-ratio lens. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Medical loss ratio | Op. margin | ROE |
|---|---|---|---|---|
| ELVElevance Health Inc. | $199.1B | 87% | 5.3% | 14% |
| CNCCentene Corporation | $194.8B | — | 2.2% | 9% |
| HUMHumana Inc. | $129.7B | 89% | 3.9% | 17% |
| MOHMolina Healthcare | $45.4B | — | 3.9% | 26% |
| OSCROscar Health | $11.7B | 85% | -14.9% | -41% |
| ALHCAlignment Healthcare | $3.9B | — | -3.9% | -69% |
| CLOVClover Health Investments Corp. | $1.9B | 83% | -16.3% | -74% |
| TRUPTrupanion Inc. | $1.4B | — | -1.0% | -3% |
| Group median | — | — | 0.6% | 3% |
The price
What a price has to assume.
What the price implies
reverse-DCFType today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Trupanion Inc. has delivered.
Trupanion Inc.’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.
$
Through the cycle, Trupanion Inc. earns about $39M on its 2.7% median owner-earnings margin. This year’s 5.2% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.
Base
—
The assumptions
9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Implied by the price—
Owner-earnings growth · ’16→’25+32%/yr
Owner-earnings growth · ’16→’25+32%/yr
Owner-earnings yield—
What a growth belief costs, in multiples
The growth each return requires, at your price
P/E (3-yr earnings ’23–’25)—
P/B—
Graham’s price gate—
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Against a high-grade bond: Graham’s yardstick bond yield%
Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Owner-earnings yield—
High-grade bond yield—
Margin over the bond—
Owner earnings $75M on 44M shares outstanding, per the 10-Q cover, as of 2026-04-23; net cash $275M. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Cite: Owner Scorecard, "Trupanion Inc. (TRUP), the owner's record," https://ownerscorecard.com/c/TRUP, data as of 2026-07-09.
Manual order: ← TRU its page in the Manual TRV →
Industry order: ← OSCR the Managed Care chapter UNH →