Shares of Trupanion (TRUP), a leading provider of medical insurance for pets, soared 6.48% in pre-market trading on Friday following the release of its impressive first-quarter 2025 financial results. The company's performance exceeded analyst expectations, showcasing strong growth in its subscription business and improved profitability metrics.

Trupanion reported a narrower loss of $0.03 per share for Q1 2025, surpassing the consensus estimate of a $0.05 loss per share. This marks a significant improvement from the $0.16 loss per share recorded in the same quarter last year. The company's revenue climbed 11.7% year-over-year to $341.98 million, beating analyst projections of $337.82 million. Notably, the subscription business revenue grew by an impressive 15.9% to $233.1 million, with total subscription pets enrolled increasing by 5% to 1,052,845 compared to the previous year.

Key highlights from Trupanion's Q1 2025 results include a substantial increase in adjusted EBITDA, which more than doubled to $12.2 million from $4.8 million in Q1 2024. The company also reported improvements in its monthly average revenue per pet and overall operational efficiencies. Trupanion's CEO and President, Margi Tooth, expressed optimism about the company's performance, citing early momentum in both customer retention and pet acquisition. The strong start to the year and expanded margins in the subscription business have positioned Trupanion well for continued growth and investment in its core operations.