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Dec 31, 2025
Lemonade Q4 2025 Earnings Report
Lemonade reported strong Q4 2025 results with accelerating premium growth and significantly improved profitability metrics.
Key Takeaways
Lemonade delivered strong top-line growth in Q4 2025, with revenue rising to $228.1 million and in-force premium increasing 31% year-over-year to $1.2365 billion. Gross profit surged 73% to $110.6 million, while net loss narrowed to $21.7 million and adjusted EBITDA loss improved substantially to $4.6 million.
In-force premium grew 31% year-over-year to $1.2365 billion.
Revenue increased 53% year-over-year to $228.1 million.
Gross profit rose 73% year-over-year to $110.6 million with margin expansion to 48%.
Adjusted EBITDA loss improved significantly to $4.6 million from $23.8 million a year ago.
Forward Guidance
For 2026, Lemonade guided to continued strong in-force premium growth and significant improvement in adjusted EBITDA, targeting profitability on an adjusted EBITDA basis in Q4 2026.
Positive Outlook
- Full-year 2026 in-force premium guidance of $1625000000 to $1630000000.
- Expected more than 50% improvement in adjusted EBITDA loss year-over-year.
- Anticipated positive adjusted EBITDA in Q4 2026.
- Projected first full year of adjusted EBITDA profitability in 2027.
- Revenue guidance for full-year 2026 of $1187000000 to $1192000000.
Challenges Ahead
- Full-year 2026 adjusted EBITDA still expected to be a loss of $52000000 to $48000000.
- Q1 2026 adjusted EBITDA loss guided between $25000000 and $22000000.
- Continued investment in growth initiatives may pressure margins near term.
- Exposure to regulatory and underwriting risks remains.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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