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Mar 31, 2025
Lemonade Q1 2025 Earnings Report
Lemonade reported strong top-line growth and crossed $1B in in-force premium in Q1 2025.
Key Takeaways
Lemonade posted a 27% YoY increase in revenue and in-force premium in Q1 2025, despite challenges from the California Wildfires. Net loss widened, but key metrics like adjusted gross profit and customer growth remained solid.
Forward Guidance
Lemonade expects continued strong IFP growth and reaffirmed positive adjusted FCF for FY 2025 despite wildfire-related headwinds.
Positive Outlook
- IFP guidance for FY 2025 raised to $1.203–1.208B
- Revenue guidance for FY 2025 raised to $661–663M
- Adjusted Free Cash Flow expected to be positive for FY 2025
- GEP and revenue outlook improved
- Lemonade Car cross-sell rates more than doubled YoY
Challenges Ahead
- California Wildfires had a $22M impact on Q1 Adj. EBITDA
- Adjusted EBITDA loss expected to remain sizable for FY 2025 at $135–140M
- Annual Dollar Retention declined to 84% from 88%
- Car segment loss ratios remain above target
- Operating expenses rose 29% YoY due to growth spend and wildfire-related assessments
Historical Earnings Impact
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Avg. Return Before/After Earnings
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