Lemonade, Inc. Q3 2025 Earnings Recap

LMND Q3 2025 November 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.

Earnings Per Share Beat

$-0.51 vs $-0.72 est.

+29.2% surprise

Revenue Miss

194500000 vs 218066670 est.

-10.8% surprise

Market Reaction

1-Day -4.57%

5-Day +0.52%

30-Day -4.39%

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.

This summary was generated by AI from the official earnings call transcript and is provided for informational purposes only. It does not constitute financial advice. For the complete transcript and financial data, visit LMND on AllInvestView.