Lemonade, Inc. Earnings Recaps
Q3 2025
Nov 6, 2025
Lemonade reported strong Q3 2025 results, achieving 30% growth in in-force premium to $1.16 billion and improving profitability metrics, paving the way towards expected EBITDA profitability in Q4 of next year.
Key takeaways
- Revenue rose 42% year-on-year, driven by a record addition of over 176,000 new customers.
- Gross margin improved significantly, reaching 40% with gross profit more than doubling to $18 million.
- The LAE ratio decreased to 7%, highlighting operational efficiency and the impact of AI on claim processing.
- The company achieved its lowest gross loss ratios ever, at 62% for Q3 and 67% on a trailing 12-month basis.