Q4 2025 Lemonade Inc Earnings Call Transcript
Key Points
- Lemonade Inc (LMND) reported its strongest quarter ever, with in-force premium growing to $1.24 billion, up 31% year over year.
- Revenue increased by 53%, reflecting both growth and improving economics across the business.
- Gross profit rose 73% year over year to a record $111 million, with a triple-digit annual compound growth rate over three years.
- The company generated $37 million in positive adjusted free cash flow in Q4, marking the second consecutive year of cash reserve growth.
- Lemonade Inc (LMND) is investing in AI technologies to enhance market operations, pricing, and cross-selling capabilities, aiming for a durable competitive advantage.
- Despite improvements, Lemonade Inc (LMND) reported a net loss of $22 million in Q4, or a loss of $0.29 per share.
- Operating expenses, excluding loss and loss adjustment expenses, increased by $30 million or 24% compared to the prior year.
- Sales and marketing expenses rose by $17 million or 35%, primarily due to increased growth spending.
- The company faces challenges in expanding its autonomous car insurance product to all US states due to regulatory hurdles.
- Lemonade Inc (LMND) continues to operate at a loss, with an adjusted EBITDA loss of $5 million in Q4, although this is an improvement from the previous year.
Ladies and gentlemen, thank you for standing by.
Today's conference call will begin shortly.
If you would like to register a question at any time, please press star one on your telephone keypad.
Hello everybody and welcome to the lemonade Q4 2025 earnings call.
My name is Elliott, and I'll be coordinating your call today.
If you'd like to direct our questions during today's events, please press star one on your telephone keypad.
And I'd like to hand over to the lemon, the lemonade team.
Please go ahead.
Good morning and welcome to Lemonade, 4th quarter, 2025 earnings call.
Joining us on our call today, we have Daniel Schreiber, CEO and co-founder, Shai Wenninger, President co-founder, and Tim Bixby, Chief Financial Officer.
Holder to shareholder, covering the company's 4th quarter, 2025 financial results is available on our investor relations website at lemonade.com/investor.
I'd like to remind you that management's remarks made on this
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