Shares of Trupanion (TRUP) surged 12% in after-hours trading on Thursday following the release of its strong second-quarter 2025 financial results that exceeded analyst expectations. The pet insurance provider reported significant growth in revenue and a return to profitability, marking a turnaround from the previous year's losses.

Trupanion reported a net income of $9.4 million, or $0.22 per share, for the second quarter, compared to a net loss of $5.9 million, or $0.14 per share, in the same period last year. This impressive bottom-line improvement significantly beat the analyst consensus estimate of a $0.03 loss per share. The company's total revenue increased by 12% year-over-year to $353.6 million, surpassing the analyst expectations of $346.7 million.

Key highlights from the report include a 16% growth in subscription business revenue, driven by a 4% increase in enrolled pets. The company also benefited from a $7.8 million gain from the exchange of a preferred stock investment for intellectual property. Trupanion's CEO, Margi Tooth, commented on the results, stating, "The second quarter was one of the strongest financial quarters in our history, marked by consistent top-line growth, robust margin expansion and strengthening retention." The strong performance and positive outlook appear to have boosted investor confidence, leading to the significant after-hours stock price increase.