Shares of Trupanion (TRUP) surged 8.62% in Thursday's trading session following the release of the company's first-quarter 2025 earnings report, which exceeded analyst expectations. The pet insurance provider delivered better-than-anticipated financial results, driven by strong growth in its subscription business and improved profitability metrics.

Trupanion reported Q1 revenue of $341.98 million, up 11.7% year-over-year and surpassing the consensus estimate of $337.82 million. The company's loss per share narrowed significantly to $0.03, beating the expected loss of $0.05. Notably, the subscription business revenue grew by 15.9% to $233.1 million, with total subscription pets enrolled increasing by 5% to 1,052,845 compared to the same period last year.

The company's financial performance showed marked improvement, with adjusted EBITDA rising to $12.2 million from $4.8 million in Q1 2024. Trupanion's CEO and President, Margi Tooth, highlighted the strong start to the year, noting early momentum in both retention and pet acquisition. The positive results and outlook have bolstered investor confidence, contributing to the significant stock price increase.