Lemonade achieved its best quarter ever in Q4 2024, driven by accelerating topline growth, stable expenses, and significantly reduced Adjusted EBITDA losses. The company reported strong positive Adjusted Free Cash Flow, marking its first full year of positive Adj. FCF.
Delivered $27 million in Adjusted Free Cash Flow (Adj. FCF) in Q4 2024, contributing to a full year of positive Adj. FCF at $48 million.
In Force Premium (IFP) grew 26% year-over-year to $944 million, marking the fifth consecutive quarter of accelerating growth.
Achieved a gross loss ratio of 63% for the fourth quarter, the best result ever, with the trailing twelve months (TTM) gross loss ratio at 73%, within target range.
Gross Profit increased 90% year-over-year to $64 million, with a margin expansion of 14 points to 43%, and FY 2024 gross profit nearly doubled to $167 million.
Lemonade expects continued IFP growth and sequential Adjusted EBITDA improvement in 2025, despite an anticipated increase in growth spend and the impact of CA wildfires, remaining on track for positive Adj. EBITDA by the end of 2026.
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