Insurtech Lemonade reported a fourth quarter 2025 net loss of about $21.7 million compared with a loss of about $30 million during the same time in 2024.
Revenue and gross profit increased 53% and 73%, respectively, versus Q4 2024. However, operating expense increased $16.7 million, or 13%, to $141.2 million.
Operating expense for Q4 was $154.2 million, an increase of 24% compared with Q4 2024, primarily due to higher growth spend for customer acquisition. The New York-based insurer of car, home, renters, and pet insurance grew in force premium for the ninth straight quarter. IFP grew 31% to end 2025 at $1.24 billion.
“Faster growth expands our data advantage, which sharpens our AI-powered segmentation and pricing models,” Lemonade said in a letter to shareholders.
Lemonade has been growing its customer count steadily. As of the end of 2025, it now stands at nearly 3 million compared with 2.4 million at the end of 2024. Pet insurance is Lemonade’s largest line of business with $439 million in force premium.
Lemonade said it expects a “broader breakout” for its auto insurance business in 2025 after spending much of 2025 on “product optimization.” Currently, Lemonade Car has in force premium of about $187 million but its telematics and AI models have proven to “identify attractive risks and offer [customers] competitive prices”—prices that reflect human or autonomous driving.
“Recent advances in autonomous driving capabilities are meaningfully increasing real-world utilization, reinforcing our conviction that autonomy-aware pricing has become increasingly relevant,” Lemonade said in the letter. The insurer recently launched Lemonade Autonomous Car insurance, starting with a collaboration with Tesla to access to vehicle data.
Related: Insurtech Lemonade Starts Autonomous Car Product With Tesla’s Data
“Our platform is built around usage-based pricing, real-time data, and flexible coverage, precisely the infrastructure needed for the future,” Lemonade said. “We believe we are positioned to move faster than incumbents to capitalize on this shift as driving itself evolves, leading the transition towards autonomy-aware car insurance pricing.”
Topics Profit Loss
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