v3.26.1
Segments (Notes)
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting [Text Block] Segments
The Company has two reporting segments: subscription business and other business. The subscription business segment generates revenue primarily from subscription payments related to the Company's direct-to-consumer products. The other business segment generates revenue from other product offerings, primarily by underwriting policies on behalf of third parties with whom the Company has a business-to-business relationship. The other business segment has, and targets, a lower margin profile than the Company's subscription business segment. The Company does not undertake marketing efforts for these policies and has a business-to-business relationship with these third-parties.
The Company's chief operating decision maker is its Chief Executive Officer. The chief operating decision maker reviews revenue and operating income (loss) to evaluate segment performance. Revenue, veterinary invoice expense, other cost of revenue, and new pet acquisition expenses are generally directly attributed to each segment. Other operating expenses, such as technology and development expense, general and administrative expense, and depreciation and amortization, are generally allocated proportionately based on revenue in each segment. Interest and other expenses and income taxes are not allocated to the segments, nor included in the measure of segment profit or loss. The Company does not analyze discrete segment balance sheet information related to long-term assets. Substantially all of the Company’s long-lived assets were located in the United States as of June 30, 2026 and December 31, 2025.
Operating income (loss) of the Company’s segments was as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Subscription business:
Revenue$276,690 $242,156 $546,144 $475,220 
Veterinary invoice expense194,803 172,874 386,217 341,055 
Other cost of revenue25,451 22,614 50,489 44,278 
Technology and development 8,981 5,881 16,903 11,381 
General and administrative 13,748 13,782 27,151 27,339 
New pet acquisition expense22,790 19,768 45,373 40,280 
Depreciation and amortization2,586 2,714 5,187 5,297 
Subscription business operating income8,331 4,523 14,824 5,590 
Other business:
Revenue116,244 111,401 230,839 220,312 
Veterinary invoice expense84,665 82,706 174,687 161,975 
Other cost of revenue22,882 20,536 38,968 42,294 
Technology and development3,773 2,705 7,145 5,277 
General and administrative 5,777 6,340 11,476 12,675 
New pet acquisition expense15 75 43 79 
Depreciation and amortization1,087 1,248 2,192 2,456 
Other business operating loss(1,955)(2,209)(3,672)(4,444)
Loss from investment in joint venture— — — (305)
Operating income6,376 2,314 11,152 841 
Interest expense1,832 3,682 3,707 6,893 
Other (income), net(2,829)(11,914)(5,884)(15,154)
Income before income taxes$7,373 $10,546 $13,329 $9,102 
The following table presents the Company’s revenue by geographic region of the member (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
United States$325,918 $293,979 $644,096 $579,803 
Canada and other67,016 59,578 132,887 115,729 
Total revenue$392,934 $353,557 $776,983 $695,532