Document

Trupanion’s management will host a conference call today to review its fourth quarter and full year 2024 results. The call is scheduled to begin shortly after 1:30 p.m. PT/ 4:30 p.m. ET. A live webcast will be accessible through the Investor Relations section of Trupanion’s website at https://investors.trupanion.com/ and will be archived online for 3 months upon completion of the conference call. Participants can access the conference call by dialing 1-877-300-8521 (United States) or 1-412-317-6026 (International). A telephonic replay of the call will also be available after the completion of the call, by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (International) and entering the replay pin number: 10194900.

Trupanion is a leader in medical insurance for cats and dogs throughout the United States, Canada, certain countries in Continental Europe, and Australia with over 1,000,000 pets currently enrolled. For over two decades, Trupanion has given pet owners peace of mind so they can focus on their pet's recovery, not financial stress. Trupanion is committed to providing pet parents with the highest value in pet medical insurance with unlimited payouts for the life of their pets. With its patented process, Trupanion is the only North American provider with the technology to pay veterinarians directly in seconds at the time of checkout. Trupanion is listed on NASDAQ under the symbol "TRUP". The company was founded in 2000 and is headquartered in Seattle, WA. Trupanion policies are issued, in the United States, by its wholly-owned insurance entity American Pet Insurance Company and, in Canada, by Accelerant Insurance Company of Canada. Trupanion Australia is a partnership between Trupanion and Hollard Insurance Company. Policies are sold and administered in Canada by Canada Pet Health Insurance Services, Inc. dba Trupanion 309-1277 Lynn Valley Road, North Vancouver, BC V7J 0A2 and in the United States by Trupanion Managers USA, Inc. (CA license No. 0G22803, NPN 9588590). Canada Pet Health Insurance Services, Inc. is a registered damage insurance agency and claims adjuster in Quebec #603927. Trupanion Australia is a partnership between Trupanion and Hollard Insurance Company. For more information, please visit trupanion.com.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to, among other things, expectations, plans, prospects and financial results for Trupanion, including, but not limited to, its expectations regarding its ability to continue to grow its enrollments and revenue, and otherwise execute its business plan. These forward-looking statements are based upon the current expectations and beliefs of Trupanion’s management as of the date of this press release, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements made in this press release are based on information available to Trupanion as of the date hereof, and Trupanion has no obligation to update these forward-looking statements.

In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the ability to achieve or maintain profitability and/or appropriate levels of cash flow in future periods; the ability to keep growing our membership base and revenue; the accuracy of assumptions used in determining appropriate member acquisition expenditures; the severity and frequency of claims; the ability to maintain high retention rates; the accuracy of assumptions used in pricing medical plan subscriptions and the ability to accurately estimate the impact of new products or offerings on claims frequency; actual claims expense exceeding estimates; regulatory and other constraints on the ability to institute, or the decision to otherwise delay, pricing

modifications in response to changes in actual or estimated claims expense; the effectiveness and statutory or regulatory compliance of our Territory Partner model and of our Territory Partners, veterinarians and other third parties in recommending medical plan subscriptions to potential members; the ability to retain existing Territory Partners and increase the number of Territory Partners and active hospitals; compliance by us and those referring us members with laws and regulations that apply to our business, including the sale of a pet medical plan; the ability to maintain the security of our data; fluctuations in the Canadian currency exchange rate; the ability to protect our proprietary and member information; the ability to maintain our culture and team; the ability to maintain the requisite amount of risk-based capital; our ability to implement and maintain effective controls, including to remediate material weaknesses in internal controls over financial reporting; the ability to protect and enforce Trupanion’s intellectual property rights; the ability to successfully implement our alliance with Aflac; the ability to continue key contractual relationships with third parties; third-party claims including litigation and regulatory actions; the ability to recognize benefits from investments in new solutions and enhancements to Trupanion’s technology platform and website; our ability to retain key personnel; and deliberations and determinations by the Trupanion board based on the future performance of the company or otherwise.

For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the Securities and Exchange Commission (SEC), including but not limited to, Trupanion’s Annual Report on Form 10-K for the year ended December 31, 2024 and any subsequently filed reports on Forms 10-Q, 10-K and 8-K. All documents are available through the SEC’s Electronic Data Gathering Analysis and Retrieval system at https://www.sec.gov or the Investor Relations section of Trupanion’s website at https://investors.trupanion.com.

Trupanion’s stated results may include certain non-GAAP financial measures. These non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry as other companies in its industry may calculate or use non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Trupanion’s reported financial results. The presentation and utilization of non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Trupanion urges its investors to review the reconciliation of its non-GAAP financial measures to the most directly comparable GAAP financial measures in its consolidated financial statements, and not to rely on any single financial or operating measure to evaluate its business. These reconciliations are included below and on Trupanion’s Investor Relations website.

Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, Trupanion believes that providing various non-GAAP financial measures that exclude stock-based compensation expense and depreciation and amortization expense allows for more meaningful comparisons between its operating results from period to period. Trupanion offsets new pet acquisition expense with sign-up fee revenue in the calculation of net acquisition cost because it collects sign-up fee revenue from new members at the time of enrollment and considers it to be an offset to a portion of Trupanion’s new pet acquisition expense. Trupanion believes this allows it to calculate and present financial measures in a consistent manner across periods. Trupanion’s management believes that the non-GAAP financial measures and the related financial measures derived from them are important tools for financial and operational decision-making and for evaluating operating results over different periods of time.


Trupanion, Inc. Condensed Consolidated Statements of Operations (in thousands, except share data)
	Three Months Ended December 31,				Year Ended December 31,
	2024		2023		2024		2023
	(unaudited)
Revenue:
Subscription business	$	227,783	$	191,537	$	856,521	$	712,906
Other business	109,524		104,320		429,163		395,699
Total revenue	337,307		295,857		1,285,684		1,108,605
Cost of revenue:
Subscription business	181,614		158,631		706,851		613,686
Other business	102,770		97,162		400,035		363,903
Total cost of revenue(1), (2)	284,384		255,793		1,106,886		977,589
Operating expenses:
Technology and development(1)	8,172		5,969		31,255		21,403
General and administrative(1)	16,828		13,390		63,731		60,207
New pet acquisition expense(1)	18,354		17,189		71,379		77,372
Goodwill impairment charges	5,299		—		5,299		—
Depreciation and amortization	3,924		3,029		16,466		12,474
Total operating expenses	52,577		39,577		188,130		171,456
Gain (loss) from investment in joint venture	2		(79)		(182)		(219)
Operating income (loss)	348		408		(9,514)		(40,659)
Interest expense	3,427		3,697		14,498		12,077
Other expense (income), net	(4,773)		(1,256)		(14,374)		(7,701)
Income (loss) before income taxes	1,694		(2,033)		(9,638)		(45,035)
Income tax expense (benefit)	38		130		(5)		(342)
Net income (loss)	$	1,656	$	(2,163)	$	(9,633)	$	(44,693)

Net income (loss) per share:
Basic	$	0.04	$	(0.05)	$	(0.23)	$	(1.08)
Diluted	$	0.04	$	(0.05)	$	(0.23)	$	(1.08)

Weighted average shares of common stock outstanding:
Basic	42,402,323		41,716,527		42,158,773		41,436,882
Diluted	42,903,536		41,716,527		42,158,773		41,436,882


(1)Includes stock-based compensation expense as follows:	Three Months Ended December 31,				Year Ended December 31,

	2024		2023		2024		2023
Cost of revenue	$	1,337	$	1,478	$	5,523	$	5,279
Technology and development	1,160		861		4,934		2,846
General and administrative	4,261		3,269		15,696		17,717
New pet acquisition expense	1,536		1,693		7,279		7,319
Total stock-based compensation expense	$	8,294	$	7,301	$	33,432	$	33,161

(2)The breakout of cost of revenue between veterinary invoice expense and other cost of revenue is as follows:
	Three Months Ended December 31,				Year Ended December 31,
	2024		2023		2024		2023
Veterinary invoice expense	$	245,663	$	217,739	$	949,148	$	831,055
Other cost of revenue	38,721		38,054		157,738		146,534
Total cost of revenue	$	284,384	$	255,793	$	1,106,886	$	977,589


Trupanion, Inc. Condensed Consolidated Balance Sheets (in thousands, except share data)
	December 31, 2024		December 31, 2023

Assets
Current assets:
Cash and cash equivalents	$	160,295	$	147,501
Short-term investments	147,089		129,667
Accounts and other receivables, net of allowance for credit losses of $1,117 at December 31, 2024 and $1,085 at December 31, 2023	274,031		267,899
Prepaid expenses and other assets	15,912		17,022
Total current assets	597,327		562,089
Restricted cash	39,235		22,963
Long-term investments	373		12,866
Property, equipment and internal-use software, net	102,191		103,650
Intangible assets, net	13,177		18,745
Other long-term assets	17,579		18,922
Goodwill	36,971		43,713
Total assets	$	806,853	$	782,948
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	11,532	$	10,505
Accrued liabilities and other current liabilities	33,469		34,052
Reserve for veterinary invoices	51,635		63,238
Deferred revenue	251,640		235,329
Long-term debt - current portion	1,350		1,350
Total current liabilities	349,626		344,474
Long-term debt	127,537		127,580
Deferred tax liabilities	1,946		2,685
Other liabilities	4,476		4,487
Total liabilities	483,585		479,226
Stockholders’ equity:
Common stock: $0.00001 par value per share, 100,000,000 shares authorized; 43,516,631 and 42,488,445 shares issued and outstanding at December 31, 2024 and 42,887,052 and 41,858,866 shares issued and outstanding at December 31, 2023	—		—
Preferred stock: $0.00001 par value per share, 10,000,000 shares authorized; no shares issued and outstanding	—		—
Additional paid-in capital	568,302		536,108
Accumulated other comprehensive income (loss)	(2,612)		403
Accumulated deficit	(225,888)		(216,255)
Treasury stock, at cost: 1,028,186 shares at December 31, 2024 and December 31, 2023	(16,534)		(16,534)
Total stockholders’ equity	323,268		303,722
Total liabilities and stockholders’ equity	$	806,853	$	782,948


Trupanion, Inc. Condensed Consolidated Statements of Cash Flows (in thousands)
	Three Months Ended December 31,				Year Ended December 31,
	2024		2023		2024		2023
	(unaudited)
Operating activities
Net income (loss)	$	1,656	$	(2,163)	$	(9,633)	$	(44,693)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization	3,924		3,029		16,466		12,474
Stock-based compensation expense	8,294		7,301		33,432		33,161
Goodwill impairment charges	5,299		—		5,299		—
Other, net	(1,294)		2,481		(1,748)		1,347
Changes in operating assets and liabilities:
Accounts and other receivables	15,303		10,153		(6,717)		(35,440)
Prepaid expenses and other assets	817		854		3,215		(1,907)
Accounts payable, accrued liabilities, and other liabilities	2,433		5,476		2,084		1,644
Reserve for veterinary invoices	(4,841)		1,788		(11,310)		19,485
Deferred revenue	(7,890)		(11,412)		17,199		32,567
Net cash provided by (used in) operating activities	23,701		17,507		48,287		18,638
Investing activities
Purchases of investment securities	(26,118)		(56,547)		(133,493)		(165,936)
Maturities and sales of investment securities	45,886		42,905		127,653		190,270


Purchases of property, equipment, and internal-use software	(1,858)		(3,970)		(9,716)		(18,280)


Other	548		165		2,099		1,585
Net cash provided by (used in) investing activities	18,458		(17,447)		(13,457)		7,639
Financing activities

Proceeds from debt financing, net of financing fees	—		—		—		60,102

Repayments of debt financing	(338)		(337)		(1,350)		(1,717)
Proceeds from exercise of stock options	36		1,374		752		2,655
Shares withheld to satisfy tax withholding	(1,142)		(240)		(2,519)		(1,536)
Other	(230)		(228)		(840)		(378)
Net cash provided by (used in) financing activities	(1,674)		569		(3,957)		59,126
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net	(1,826)		1,254		(1,807)		424
Net change in cash, cash equivalents, and restricted cash	38,659		1,883		29,066		85,827
Cash, cash equivalents, and restricted cash at beginning of period	160,871		168,581		170,464		84,637
Cash, cash equivalents, and restricted cash at end of period	$	199,530	$	170,464	$	199,530	$	170,464


The following tables set forth our key operating metrics.

	Year Ended December 31,
	2024			2023
Total Business:
Total pets enrolled (at period end)	1,677,570			1,714,473
Subscription Business:
Total subscription pets enrolled (at period end)	1,041,212			991,426
Monthly average revenue per pet	$	72.98		$	65.26
Average pet acquisition cost (PAC)	$	235		$	228
Average monthly retention	98.25		%	98.49		%


	Three Months Ended
	Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024			Dec. 31, 2023			Sep. 30, 2023			Jun. 30, 2023			Mar. 31, 2023
Total Business:
Total pets enrolled (at period end)	1,677,570			1,688,903			1,699,643			1,708,017			1,714,473			1,712,177			1,679,659			1,616,865
Subscription Business:
Total subscription pets enrolled (at period end)	1,041,212			1,032,042			1,020,934			1,006,168			991,426			969,322			943,958			906,369
Monthly average revenue per pet	$	76.02		$	74.27		$	71.72		$	69.79		$	67.07		$	65.82		$	64.41		$	63.58
Average pet acquisition cost (PAC)	$	261		$	243		$	231		$	207		$	217		$	212		$	236		$	247
Average monthly retention	98.25		%	98.29		%	98.34		%	98.41		%	98.49		%	98.55		%	98.61		%	98.65		%


The following table reflects the reconciliation between GAAP and non-GAAP measures (in thousands except percentages):
	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Veterinary invoice expense	$	245,663		$	217,739		$	949,148		$	831,055
Less:
Stock-based compensation expense(1)	(800)			(885)			(3,335)			(3,450)
Other business cost of paying veterinary invoices(4)	(85,378)			(77,572)			(324,720)			(287,858)
Subscription cost of paying veterinary invoices (non-GAAP)	$	159,485		$	139,282		$	621,093		$	539,747
% of subscription revenue	70.0		%	72.7		%	72.5		%	75.7		%

Other cost of revenue	$	38,721		$	38,054		$	157,738		$	146,534
Less:
Stock-based compensation expense(1)	(476)			(386)			(1,955)			(1,544)
Other business variable expenses(4)	(17,336)			(19,301)			(75,050)			(75,756)
Subscription variable expenses (non-GAAP)	$	20,909		$	18,367		$	80,733		$	69,234
% of subscription revenue	9.2		%	9.6		%	9.4		%	9.7		%

Technology and development expense	$	8,172		$	5,969		$	31,255		$	21,403
General and administrative expense	16,828			13,390			63,731			60,207
Less:
Stock-based compensation expense(1)	(5,277)			(3,797)			(19,742)			(19,869)
Non-recurring transaction or restructuring expenses(2)	—			—			—			(4,175)
Development expenses(3)	(1,322)			(1,683)			(5,624)			(5,100)
Fixed expenses (non-GAAP)	$	18,401		$	13,879		$	69,620		$	52,466
% of total revenue	5.5		%	4.7		%	5.4		%	4.7		%

New pet acquisition expense	$	18,354		$	17,189		$	71,379		$	77,372
Less:
Stock-based compensation expense(1)	(1,482)			(1,567)			(6,908)			(7,000)
Other business pet acquisition expense(4)	(8)			(77)			(39)			(200)
Subscription acquisition cost (non-GAAP)	$	16,864		$	15,545		$	64,432		$	70,172
% of subscription revenue	7.4		%	8.1		%	7.5		%	9.8		%

(1) Trupanion employees may elect to take restricted stock units in lieu of cash payment for their bonuses. We account for such expense as stock-based compensation according to GAAP, but we do not include it in any non-GAAP adjustments. Stock-based compensation associated with bonuses was approximately $0.3 million and $1.5 million for the three and twelve months ended December 31, 2024, respectively. (2) Consists of business acquisition transaction expenses, severance and legal costs due to certain executive departures, and a $3.8 million non-recurring settlement of accounts receivable in the first quarter of 2023 related to uncollected premiums in connection with the transition of underwriting a third-party business to other insurers. (3) Consists of costs related to product exploration and development that are pre-revenue and historically have been insignificant. (4) Excludes the portion of stock-based compensation expense attributable to the other business segment.


The following table reflects the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages):
	Three Months Ended December 31,				Year Ended December 31,
	2024		2023		2024		2023
Operating income (loss)	$	348	$	408	$	(9,514)	$	(40,659)
Non-GAAP expense adjustments
Acquisition cost	16,872		15,622		64,471		70,372
Stock-based compensation expense(1)	8,035		6,636		31,940		31,864
Development expenses(3)	1,322		1,683		5,624		5,100
Depreciation and amortization	3,924		3,029		16,466		12,474
Goodwill impairment charges	5,299		—		5,299		—
Non-recurring transaction or restructuring expenses(2)	—		—		—		4,175
Gain (loss) from investment in joint venture	2		(79)		(182)		(219)
Total adjusted operating income (non-GAAP)	$	35,798	$	27,457	$	114,468	$	83,545

Subscription Business:
Subscription operating income (loss)	$	2,995	$	1,300	$	(1,118)	$	(35,994)
Non-GAAP expense adjustments
Acquisition cost	16,864		15,545		64,432		70,172
Stock-based compensation expense(1)	6,263		5,006		24,985		24,488
Development expenses(3)	893		1,090		3,745		3,281
Depreciation and amortization	2,650		1,961		10,970		8,021
Goodwill impairment charges	5,299		—		5,299		—
Non-recurring transaction or restructuring expenses(2)	—		—		—		218
Subscription adjusted operating income (non-GAAP)	$	34,964	$	24,902	$	108,313	$	70,186

Other Business:
Other business operating income (loss)	$	(2,649)	$	(813)	$	(8,214)	$	(4,446)
Non-GAAP expense adjustments
Acquisition cost	8		77		39		200
Stock-based compensation expense(1)	1,772		1,630		6,955		7,376
Development expenses(3)	429		593		1,879		1,819
Depreciation and amortization	1,274		1,068		5,496		4,453
Non-recurring transaction or restructuring expenses(2)	—		—		—		3,957
Other business adjusted operating income (non-GAAP)	$	834	$	2,555	$	6,155	$	13,359

(1) Trupanion employees may elect to take restricted stock units in lieu of cash payment for their bonuses. We account for such expense as stock-based compensation in accordance with GAAP, but we do not include it in any non-GAAP adjustments. Stock-based compensation associated with bonuses was approximately $0.3 million and $1.5 million for the three and twelve months ended December 31, 2024, respectively.
(2) Consists of business acquisition transaction expenses, severance and legal costs due to certain executive departures, and a $3.8 million non-recurring settlement of accounts receivable in the first quarter of 2023 related to uncollected premiums in connection with the transition of underwriting a third-party business to other insurers.
(3) Consists of costs related to product exploration and development that are pre-revenue and historically have been insignificant.


The following table reflects the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages):
	Three Months Ended December 31,						Year Ended December 31,

	2024			2023			2024			2023
Subscription revenue	$	227,783		$	191,537		$	856,521		$	712,906
Subscription cost of paying veterinary invoices	159,485			139,281			621,093			539,746
Subscription variable expenses	20,909			18,367			80,733			69,234
Subscription fixed expenses*	12,425			8,987			46,382			33,740
Subscription adjusted operating income (non-GAAP)	$	34,964		$	24,902		$	108,313		$	70,186
Other business revenue	109,524			104,320			429,163			395,699
Other business cost of paying veterinary invoices	85,378			77,572			324,720			287,858
Other business variable expenses	17,336			19,301			75,050			75,756
Other business fixed expenses*	5,976			4,892			23,238			18,726
Other business adjusted operating income (non-GAAP)	$	834		$	2,555		$	6,155		$	13,359
Revenue	337,307			295,857			1,285,684			1,108,605
Cost of paying veterinary invoices	244,863			216,854			945,813			827,605
Variable expenses	38,245			37,668			155,783			144,990
Fixed expenses*	18,401			13,879			69,620			52,466
Total business adjusted operating income (non-GAAP)	$	35,798		$	27,457		$	114,468		$	83,545

As a percentage of revenue:	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Subscription revenue	100.0		%	100.0		%	100.0		%	100.0		%
Subscription cost of paying veterinary invoices	70.0		%	72.7		%	72.5		%	75.7		%
Subscription variable expenses	9.2		%	9.6		%	9.4		%	9.7		%
Subscription fixed expenses*	5.5		%	4.7		%	5.4		%	4.7		%
Subscription adjusted operating income (non-GAAP)	15.3		%	13.0		%	12.6		%	9.8		%

Other business revenue	100.0		%	100.0		%	100.0		%	100.0		%
Other business cost of paying veterinary invoices	78.0		%	74.4		%	75.7		%	72.7		%
Other business variable expenses	15.8		%	18.5		%	17.5		%	19.1		%
Other business fixed expenses*	5.5		%	4.7		%	5.4		%	4.7		%
Other business adjusted operating income (non-GAAP)	0.8		%	2.4		%	1.4		%	3.4		%

Revenue	100.0		%	100.0		%	100.0		%	100.0		%
Cost of paying veterinary invoices	72.6		%	73.3		%	73.6		%	74.7		%
Variable expenses	11.3		%	12.7		%	12.1		%	13.1		%
Fixed expenses*	5.5		%	4.7		%	5.4		%	4.7		%
Total business adjusted operating income (non-GAAP)	10.6		%	9.3		%	8.9		%	7.5		%

*Fixed expenses represent shared services that support both our subscription and other business segments and, as such, are generally allocated to each segment pro-rata based on revenues.

Adjusted operating income is a non-GAAP financial measure that adjusts operating income (loss) to remove the effect of acquisition cost, development expenses, non-recurring transaction or restructuring expenses, and gain (loss) from investment in joint venture. Non-cash items, such as goodwill impairment charges, stock-based compensation expense and depreciation and amortization, are also excluded. Acquisition cost, development expenses, gain (loss) from investment in joint venture, stock-based compensation expense, and depreciation and amortization are expected to remain recurring expenses for the foreseeable future, but are excluded from this metric to measure scale in other areas of the business. Management believes acquisition costs primarily represent the cost to acquire new subscribers and are driven by the amount of growth we choose to pursue based primarily on the amount of our adjusted operating income period over period. Accordingly, this measure is not indicative of our core operating income performance. We also exclude development expenses, gain (loss) from investment in joint venture, stock-based compensation expense, and depreciation and amortization because some investors may not view those items as reflective of our core operating income performance.

Management uses adjusted operating income and the margin on adjusted operating income to understand the effects of scale in its non-acquisition cost and development expenses and to plan future advertising expenditures, which are designed to acquire new pets. Management uses this measure as a principal way of understanding the operating performance of its business exclusive of acquisition cost and new product exploration and development initiatives. Management believes disclosure of this metric provides investors with the same data that the Company employs in assessing its overall operations and that disclosure of this measure may provide useful information regarding the efficiency of our utilization of revenues, return on advertising dollars in the form of new subscribers and future use of available cash to support the continued growth of our business.


The following tables reflect the reconciliation of adjusted EBITDA to net income (loss) (in thousands):

	Year Ended December 31,
	2024		2023
Net loss	$	(9,633)	$	(44,693)
Excluding:
Stock-based compensation expense	31,942		31,864
Depreciation and amortization expense	16,466		12,474
Interest income	(12,411)		(9,011)
Interest expense	14,498		12,077
Income tax benefit	(5)		(342)
Goodwill impairment charges	5,299		—
Non-recurring transaction or restructuring expenses	—		4,175
Gain from equity method investment	(33)		(110)
Adjusted EBITDA	$	46,123	$	6,434

	Three Months Ended
	Dec. 31, 2024		Sep. 30, 2024		Jun. 30, 2024		Mar. 31, 2024		Dec. 31, 2023		Sep. 30, 2023		Jun. 30, 2023		Mar. 31, 2023
Net income (loss)	$	1,656	$	1,425	$	(5,862)	$	(6,852)	$	(2,163)	$	(4,036)	$	(13,714)	$	(24,780)
Excluding:
Stock-based compensation expense	8,036		8,127		8,381		7,398		6,636		6,585		6,503		12,140
Depreciation and amortization expense	3,924		4,381		4,376		3,785		3,029		2,990		3,253		3,202
Interest income	(2,999)		(3,232)		(3,135)		(3,045)		(2,842)		(2,389)		(2,051)		(1,729)
Interest expense	3,427		3,820		3,655		3,596		3,697		3,053		2,940		2,387
Income tax expense (benefit)	38		39		(44)		(38)		130		(43)		(238)		(191)
Goodwill impairment charges	5,299		—		—		—		—		—		—		—
Non-recurring transaction or restructuring expenses	—		—		—		—		—		8		65		4,102
Gain from equity method investment	—		(33)		—		—		—		(110)		—		—
Adjusted EBITDA	$	19,381	$	14,527	$	7,371	$	4,844	$	8,487	$	6,058	$	(3,242)	$	(4,869)