Lemonade's earnings call highlighted significant improvements in key metrics like IFP growth, loss ratio, and cash flow. The company's strategic initiatives, particularly in the car and European markets, are yielding positive results. However, challenges remain in the homeowners segment and increased marketing expenses. Overall, the positive developments outweigh the challenges.

Company Guidance -

Q3 2025

During Lemonade's Q2 2025 earnings call, the company reported strong financial performance across key metrics. In force premium (IFP) grew by 29% year-on-year to over $1 billion, and the gross loss ratio improved to 67%, a 12-point improvement from the previous year. The trailing 12-month gross loss ratio reached 70%, the best in the company's history. Gross profit increased by over 100%, and gross margin reached 39%, one of the highest recorded. Adjusted free cash flow was $25 million, a tenfold increase from Q2 2024. The European business saw IFP grow by over 200%, marking the eighth consecutive quarter of triple-digit growth. Lemonade Car continued its momentum, with IFP surpassing $150 million, and the car gross loss ratio improved by 13 points to 82%. The company also reduced the scope of its quota share program from 55% to 20%, reflecting confidence in its improved loss ratios and capital efficiency. Lemonade plans to continue leveraging AI to manage risk and drive profitable growth.

Record IFP Growth and Improved Loss Ratio

Lemonade achieved a 29% year-on-year growth in in force premium (IFP) for the seventh consecutive quarter, with a gross loss ratio of 67%, a 12-point improvement compared to last year.

Significant Gross Profit Increase

Gross profit grew over 100% year-on-year in Q2 2025, with a gross margin of 39%.

Strong Cash Flow Generation

Adjusted free cash flow reached $25 million in Q2, more than a tenfold increase from the second quarter of 2024.

Car Insurance Growth

Lemonade Car's IFP surpassed $150 million, with a 13-point improvement in the gross loss ratio to 82% compared to last year.

European Market Expansion

European IFP reached $43 million, representing over 200% growth, with an 83% gross loss ratio, marking a 15-point improvement.

Successful Reinsurance Program Update

The company reduced its quota share program from 55% to 20%, reflecting confidence in improved loss ratios.

Lemonade (LMND) Earnings, Revenues Date & History

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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)	-0.73 / -	-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.