Lemonade reports Q1 results

Lemonade released its Q1 2025 results, ending the quarter with 2,545,496 customers, a 21% year-over-year increase. The company added ~115k customers to its overall count during the quarter.

In-force premium was over $1 billion, an increase of 27% compared to the same period last year.

Premium per customer stood at $396, 4% higher compared to Q1 2024.

The company spent $43.2 million on sales and marketing during the quarter compared to $30.4 million in Q1 2024.

Loss ratio (losses and loss adjustment expenses to premiums earned) was 82% in the quarter and combined ratio stood at 204%.

Lemonade reported a net loss of $62.4 million in the quarter, a 32% increase compared to the same period last year. The loss includes ~$22 million of unfavorable impact of the California wildfires.

The company’s cash, cash equivalents, and investments totaled approximately $1 billion at March 31, 2025. Approximately $259 million is carried by Lemonade’s insurance subsidiaries as regulatory surplus.