Lemonade’s net loss narrows in Q2’25 as in-force premiums rise 29% YoY

Lemonade reported a net loss of $43.9 million for the second quarter of 2025, an improvement from the $57.2 million loss in the same quarter a year earlier, primarily driven by higher revenue, partially offset by increased growth spending.

In force premium in Q2’25 totalled $1.08 billion, up 29% from $838.8 million in Q2’24.

Customer count increased by 24% to 2,693,107, compared to 2,167,194 a year earlier.

Premium per customer rose to $402 at the end of the quarter, a 4% increase from $387.

Gross earned premiums reached $252.3 million, up $52.4 million, or 26%, from $199.9 million, primarily due to growth in IFP earned during the quarter.

Revenue increased by $42.1 million, or 35%, to $164.1 million from $122 million, driven by higher gross earned premiums, ceding commission income, and net investment income.

Gross profit stood at $64.3 million, up $33.5 million, or 109%, from $30.8 million in the prior-year quarter. The increase was driven by 35% revenue growth and a 10-point improvement in the net loss ratio. Adjusted gross profit was $65.6 million, a 96% increase from $33.4 million.

Total operating expense, excluding net loss and loss adjustment expense, rose to $129.2 million, an increase of $22.6 million, or 21%, driven by higher growth spend for customer acquisition. This was partially offset by a one-time $11.7 million tax refund received under the Employee Retention Credit (ERC) program.

Adjusted EBITDA loss was $40.9 million, compared to a loss of $43 million in Q2’24.

The company’s cash, cash equivalents, and investments totalled approximately $1.03 billion.

Adjusted free cash flow in Q2’25 was $25 million, up from $2 million a year earlier.

for the year beginning July 1st, 2025, reducing the ceded proportion of its quota share reinsurance from approximately 55% to approximately 20%.