From Yahoo Finance: 2025-05-06 09:20:00

Lemonade surpassed analyst estimates with strong revenue, premium, and customer growth in Q1 2025, despite being impacted by California wildfires. The company’s earnings beat expectations, with revenue at $151.2 million, a 27% increase, and in-force premiums reaching $1 billion, up 26% year over year. Gross loss ratio improved to 78%.

Lemonade’s customer count rose by 21% to 2.5 million, with premium per customer up 4% to $396. The company’s progress in underwriting insurance business is evident, with a 100 basis point improvement in the gross loss ratio to 78%, despite a 16-point hit from the California wildfires.

Investors responded positively to Lemonade’s results, with shares up 8% in premarket trading. Although the company is not yet profitable, it remains on track to achieve positive adjusted free cash flow in 2025, maintaining full-year guidance despite challenges like the wildfires.

While Lemonade is still working towards profitability, its growth trajectory is promising. The company’s continued investment in growth, including a rise in sales and marketing expenses, indicates a focus on long-term success. Adjusted free cash flow and cash flow from operations were negative in the quarter.



Read more at Yahoo Finance: Solid Growth in Tough Quarter