TRUPANION, INC. Stock Compensation Disclosure
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Veterinary invoice expense | $ | 2,841 | $ | 3,460 | $ | 3,667 | |||||||||||
| Other cost of revenue | 2,284 | 2,063 | 1,612 | ||||||||||||||
| Technology and development | 6,036 | 4,934 | 2,846 | ||||||||||||||
| General and administrative | 19,571 | 15,696 | 17,717 | ||||||||||||||
| New pet acquisition expense | 7,580 | 7,279 | 7,319 | ||||||||||||||
| Total expensed stock-based compensation | 38,312 | 33,432 | 33,161 | ||||||||||||||
| Capitalized stock-based compensation | 229 | 505 | 2,135 | ||||||||||||||
| Total stock-based compensation | $ | 38,541 | $ | 33,937 | $ | 35,296 | |||||||||||
| Number of Options | Weighted Average Exercise Price per Share | Aggregate Intrinsic Value (in thousands) | |||||||||||||||
| Outstanding as of January 1, 2023 | 629,650 | $ | 13.53 | $ | 21,410 | ||||||||||||
| Granted | — | — | — | ||||||||||||||
| Exercised | (213,848) | 12.47 | 3,720 | ||||||||||||||
| Forfeited | (6,832) | 12.80 | — | ||||||||||||||
| Outstanding as of December 31, 2023 | 408,970 | 14.09 | 6,715 | ||||||||||||||
| Granted | — | — | — | ||||||||||||||
| Exercised | (61,136) | 12.91 | 1,590 | ||||||||||||||
| Forfeited | (500) | 14.93 | — | ||||||||||||||
| Outstanding as of December 31, 2024 | 347,334 | 14.30 | 11,775 | ||||||||||||||
| Granted | — | — | — | ||||||||||||||
| Exercised | (142,572) | 11.90 | 3,620 | ||||||||||||||
| Forfeited | (7,530) | 9.82 | — | ||||||||||||||
| Outstanding as of December 31, 2025 | 197,232 | 16.20 | 4,175 | ||||||||||||||
| Exercisable at December 31, 2025 | 197,232 | $ | 16.20 | $ | 4,175 | ||||||||||||
| Number of Shares | Weighted Average Grant Date Fair Value per Share | |||||||||||||
| Unvested shares as of January 1, 2023 | 1,112,552 | $ | 84.46 | |||||||||||
| Granted | 366,870 | 26.77 | ||||||||||||
| Vested | (669,413) | 72.52 | ||||||||||||
| Forfeited | (95,627) | 79.60 | ||||||||||||
| Unvested shares as of December 31, 2023 | 714,382 | 66.64 | ||||||||||||
| Granted | 957,168 | 29.21 | ||||||||||||
| Vested | (629,217) | 57.46 | ||||||||||||
| Forfeited | (71,594) | 44.00 | ||||||||||||
| Unvested shares as of December 31, 2024 | 970,739 | 37.35 | ||||||||||||
| Granted | 1,043,549 | 45.37 | ||||||||||||
| Vested | (864,810) | 43.78 | ||||||||||||
| Forfeited | (134,704) | 35.83 | ||||||||||||
| Unvested shares as of December 31, 2025 | 1,014,774 | $ | 40.32 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 12, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 14, 2019 | |
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.