The earnings call presented a strong financial performance with significant growth in key metrics such as IFP, gross profit, and adjusted free cash flow. However, challenges remain with non-renewals affecting annual dollar retention and increased operating expenses. The strategic expansion in Europe and improvements in Lemonade Car are positive indicators for future growth.

Company Guidance

During Lemonade's Q2 2025 earnings call, the company reported impressive financial performance across various metrics. In-force premium (IFP) saw a 29% year-on-year growth, marking the seventh consecutive quarter of acceleration, while gross profit increased by over 100%, contributing to a gross margin of 39%. The gross loss ratio improved by 12 points to 67%, and the trailing 12-month gross loss ratio hit a record low of 70%. Lemonade's European business also demonstrated strong results with $43 million in European IFP, a 200% growth, and a gross loss ratio improvement to 83%. The company achieved a significant $25 million in adjusted free cash flow, a tenfold increase from the same period last year. Additionally, Lemonade announced a reduction in its quota share program from 55% to 20%, reflecting confidence in its improved loss ratios and capital efficiency, with expectations that revenue growth rates will outpace IFP growth rates during the transition period.

Strong IFP Growth

Seventh consecutive quarter of IFP growth acceleration with a 29% year-on-year growth, surpassing $1 billion.

Improved Gross Loss Ratio

Gross loss ratio for Q2 was 67%, a 12-point improvement from the previous year, with a trailing 12-month gross loss ratio of 70%.

Substantial Gross Profit Increase

Gross profit grew by over 100% in Q2, with a gross margin of 39%, one of the highest recorded.

Significant Growth in Lemonade Car

Lemonade Car crossed $150 million of in force premium, showing significant growth and improved gross loss ratio to 82%, a 13-point improvement.

European Market Expansion

Europe IFP reached $43 million, representing over 200% growth, marking the fourth consecutive quarter of growth rate acceleration.

Adjusted Free Cash Flow Surge

Adjusted free cash flow was $25 million, a tenfold increase compared to Q2 2024.

Lemonade (LMND) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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LMND Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 11, 2025	2025 (Q3)	-0.72 / -	-0.95	―	―	―
Aug 05, 2025	2025 (Q2)	-0.79 / -0.60	-0.81	25.93% (+0.21)	―
May 06, 2025	2025 (Q1)	-0.94 / -0.86	-0.67	-28.36% (-0.19)	―
Feb 25, 2025	2024 (Q4)	-0.60 / -0.42	-0.61	31.15% (+0.19)	―
Oct 30, 2024	2024 (Q3)	-1.02 / -0.95	-0.88	-7.95% (-0.07)	―
Jul 30, 2024	2024 (Q2)	-0.88 / -0.81	-0.97	16.49% (+0.16)	―
Apr 30, 2024	2024 (Q1)	-0.80 / -0.67	-0.95	29.47% (+0.28)	―
Feb 27, 2024	2023 (Q4)	-0.77 / -0.61	-0.93	34.41% (+0.32)	―
Nov 01, 2023	2023 (Q3)	-0.94 / -0.88	-1.37	35.77% (+0.49)	―
Aug 02, 2023	2023 (Q2)	-1.03 / -0.97	-1.1	11.82% (+0.13)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

LMND Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 05, 2025	$37.00	$47.93	+29.54%
May 06, 2025	$30.00	$30.31	+1.03%
Feb 25, 2025	$31.99	$31.48	-1.59%
Oct 30, 2024	$18.75	$23.77	+26.77%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.