Lemonade, Inc. Reports 35% Revenue Growth to $164.1 Million in Q2 2025

Lemonade, Inc. reported significant financial results for the second quarter of 2025, with total revenue reaching $164.1 million, a 35% increase from $122.0 million in the same period last year. The company's net earned premium rose by 26% to $112.5 million, driven by a 26% increase in gross written premium, which amounted to $284.5 million. Despite the revenue growth, Lemonade recorded a net loss of $43.9 million, a 23% improvement compared to the $57.2 million loss reported in the prior year. The company's total expenses also increased, totaling $206.7 million, up from $177.1 million, primarily due to higher sales and marketing costs.

In the first half of 2025, Lemonade's total revenue increased by 31% to $315.3 million, compared to $241.1 million in the first half of 2024. The net loss for this period was $106.3 million, slightly higher than the $104.5 million loss from the previous year. The increase in revenue was attributed to a combination of factors, including a 25% rise in net earned premium and a 53% increase in ceding commission income, which reached $57.3 million. The company also reported a 20% increase in net investment income, totaling $18.9 million.

Lemonade's customer base expanded significantly, with the number of customers reaching 2.69 million by the end of June 2025, up from 2.17 million a year earlier. This growth was supported by successful digital advertising campaigns and partnerships, as well as geographic expansion and new product offerings. The average premium per customer decreased slightly to $84, down from $88 in the previous year, reflecting a shift towards higher-value policies and an increase in the prevalence of multiple policies per customer.

Operationally, Lemonade has continued to invest heavily in sales and marketing, with expenses in this area rising by 62% to $59.6 million in the second quarter. The company also reported a significant increase in technology development expenses, which rose by 6% to $22.4 million. Despite these investments, general and administrative expenses decreased by 13% to $25.8 million, reflecting improved operational efficiencies. The company’s total assets increased to $1.93 billion as of June 30, 2025, up from $1.85 billion at the end of 2024.

Looking ahead, Lemonade remains focused on expanding its product offerings and geographic reach while managing its growth effectively. The company has entered into a financing agreement with General Catalyst, which provides up to $200 million for sales and marketing growth efforts through 2026. Despite the challenges posed by market conditions and competition, Lemonade aims to leverage its innovative business model and technology to enhance customer experience and drive profitability in the future.