Lemonade Inc. delivered its strongest quarterly performance with in-force premium reaching $1.083 billion in Q2 2025, marking the seventh consecutive quarter of growth acceleration. The company's Israeli co-founder and president, Shai Wininger, shared the news on X.
The digital insurer reported 29% year-over-year premium growth while revenue climbed 35% to $164.1 million. Net losses narrowed to $43.9 million from $57.2 million in the prior year, a 23% improvement.
Strong underwriting drives profitability
Gross profit surged 109% to $64.3 million, with gross margin expanding 14 percentage points to 39%. The company's trailing twelve-month gross loss ratio improved to 70% from 79% in the prior year.
Customer base grew 24% to 2.69 million, while premium per customer rose 4% to $402.
Thrilled to share @lemonade_inc's results for Q2 2025
๐ $1.083 Billion In-Force Premium, 7th Q of accelerating growth (+29% YoY)
๐ Loss Ratio: 67% (12pt improvement YoY!)
๐ Generated $25M of adj. Free Cash Flow
๐ Gross Margin up 14pts to 39%, Gross Profit +109%
๐ 2.7Mโฆโ Shai Wininger (@shai_wininger) August 5, 2025
Car and Europe fuel expansion
Lemonade's car insurance division achieved 12% sequential growth with gross loss ratio improving to 82%, down 13 points year-over-year. European operations generated over 200% growth, reaching $43 million in in-force premium while contributing more than 20% of net new customers.
Strategic reinsurance shift
The company reduced its proportional quota share reinsurance program from 55% to 20% cession effective July 1, allowing it to retain more premium revenue and gross profit.
Lemonade, $LMND, Q2-25. Results:
๐ EPS: -$0.60 ๐ข
๐ฐ Revenue: $164.1M ๐ข
๐ Net Loss: ($43.9M)
๐ Revenue rose 35% YoY while gross profit more than doubled. Strong growth from Car and Europe contributed to record in-force premium of $1.08B. pic.twitter.com/I82tLPaUWk— EarningsTime (@Earnings_Time) August 5, 2025
Raised guidance
Based on strong performance, Lemonade raised full-year 2025 guidance for in-force premium to $1.213-$1.218 billion and revenue to $710-$715 million. The company maintained expectations for positive adjusted free cash flow in 2025 and positive adjusted EBITDA before end of 2026.
Cash and investments totaled $1.03 billion as of June 30, with $277 million held as regulatory surplus.
