NYSE$LMND

Lemonade Inc. · Q3 2025 earnings

Q3 2025 earnings · · Before market open · Investor relations

Briefing

Lemonade reported Q3 2025 total revenue of $194.5M with a net loss of $37.5M.

Third-quarter total revenue grew 42% year over year to $194.5 million on higher in-force premium and customer growth. The insurtech reported a net loss as it invests in growth, technology, and geographic expansion.

  • Q3 total revenue $194.5M (+42% YoY).
  • Gross earned premium and customer growth support top-line momentum.
  • Adjusted gross profit margin expansion remains a key metric.
  • Catastrophe losses and growth investment affect near-term profitability.

Headline financials

Total Revenue

$195M

Previous: $137M+42.4%
EPS (adj)

-$0.51

Previous: -$0.95+46.3%
In-Force Premium

$1.16B

Previous: $889M+30.2%
Customers

2.9M

Previous: 2.3M+24.1%
Premium per Customer

$403.00

Previous: $384.00+4.9%
Gross Earned Premium

$275M

Previous: $213M+28.9%
Annual Dollar Retention

85.0%

Previous: 87.0%-2.3%
Adjusted Gross Profit

$80.9M

Previous: $38.6M+109.6%
Adjusted EBITDA

-$25.6M

Previous: -$49M+47.8%
Gross Profit Margin

41.0%

Previous: 27.0%+51.9%
Adjusted Gross Profit Margin

42.0%

Previous: 28.0%+50.0%
Adj GP to GEP Ratio

29.0%

Previous: 18.0%+61.1%
Gross Loss Ratio

62.0%

Previous: 73.0%-15.1%
Net Loss Ratio

64.0%

Previous: 81.0%-21.0%
Capital Expenditures

-$6.3M

Previous: -$6.2M-1.6%
Net Income

-$37.5M

Previous: -$67.7M+44.6%
Operating Income

-$36.3M

Previous: $23.7M-253.2%
Gross Profit

$79.9M

Previous: $137M-41.5%

Revenue & EPS history

Lemonade · Revenue · Quarterly

$195M

Q3 2025+42.4%vs Q3 2024
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

Management targets continued premium growth and margin improvement without quarterly EPS guidance.

Tailwinds

  • Revenue and customer growth momentum.
  • Technology and distribution expansion.

Headwinds

  • Catastrophe and loss-ratio volatility.
  • Competitive pricing in personal lines.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2025

Historical avgQ3 2025

+0.8%

Avg return

Earnings day

+3.7%

Avg return

5 days after

+10.5%

Avg return

30 days after

44%

11 / 25 earnings

Positive

+57.5%

Q3 2023

Best reaction

-25.2%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.7%-13.6%-11.5%
Q4 2025-6.1%-20.6%-2.4%
Q3 2025+34.3%+34.5%+34.6%
Q1 2025+0.8%+3.6%+19.2%
Q4 2024+12.6%+18.5%+3.1%
Q3 2024+28.8%+33.6%+176.3%
Q2 2024-23.6%-26.6%-18.1%
Q1 2024+3.0%+4.1%-4.2%
Q4 2023-25.2%-20.6%-24.4%
Q3 2023+57.5%+53.1%+66.4%
Q2 2023-22.4%-26.8%-36.3%
Q1 2023+32.0%+47.8%+64.1%
Q4 2022-2.9%-0.7%-21.1%
Q3 2022+11.2%+13.7%-7.3%
Q2 2022+14.1%+27.5%-3.2%
Q1 2022-6.7%+13.7%+3.5%
Q4 2021+2.3%+5.8%+12.7%
Q3 2021-10.8%-9.3%-34.0%
Q2 2021-10.0%-7.6%-14.0%
Q1 2021-12.4%-1.9%+43.8%
Q1 2020-12.4%-1.9%+43.8%
Q4 2020-22.2%-29.8%-27.8%
Q3 2020-15.0%-1.0%+38.9%
Q2 2020-5.6%-2.0%-20.1%
Q4 2019-5.6%-2.0%-20.1%
Q3 2019
Q2 2019
Q4 2018
Q3 2018
Q2 2018

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