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