Q3 2025 Lemonade Inc Earnings Call Transcript

Nov 5, 2025 / 01:00 PM GMT

Release Date Price: €68.16 (+31.08%)

Transcript 10-Q8-K

Key Points

Positve

Lemonade Inc (LMND) reported an 8th consecutive quarter of accelerating growth with enforce premium reaching $1.16 billion.
Revenue increased by 42% year-on-year, with gross profit more than doubling to $80 million.
The company's gross margin climbed into the 40s, and the gross loss ratio improved to 62%, marking the lowest ever for the company.
Lemonade Inc (LMND) achieved a superior level of efficiency with a loss adjustment expense (LAE) ratio of 7%, significantly better than larger carriers.
The company reported positive adjusted free cash flow for the second consecutive quarter, amounting to $18 million.

Negative

Despite improvements, Lemonade Inc (LMND) still reported an adjusted EBITDA loss of $26 million for the quarter.
Operating expenses, excluding loss and loss adjustment expense, increased by $17 million or 13% compared to the prior year.
The company continues to face challenges in retention, with efforts to 'clean the book' impacting customer base pruning.
There is uncertainty regarding the timeline for widespread autonomy in car insurance, which could impact future growth strategies.
The company is cautious about retention and growth in Q4, indicating potential challenges in maintaining the current growth trajectory.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

LMND.N - Lemonade Inc
Q3 2025 Lemonade Inc Earnings Call
Nov 05, 2025 / 01:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning and thank you all for attending the Lemonade Q3 2025 earnings call.

My name is Bria and I'll be your moderator for today.

All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end.

I will now hand over to the semenade team to begin.

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Unidentified_2 [2]
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Good morning and welcome to Lemonade's 3rd quarter 2025 earnings tall. Joining us on our call today, we have Daniel Schreiber, CEO and co-founder, Shai Winninger, President and co-founder, and Tim Bixby, Chief

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