Lemonade reports Q4 2025 results

Lemonade released its Q4 2025 results, ending the quarter with 2,984,513 customers, a 23% year-over-year increase. The company added ~115k customers to its overall count during the quarter.

In-force premium was $1.23 billion, an increase of 31% compared to the same period last year.

Premium per customer stood at $414, 7% higher compared to Q4 2024.

The company spent $64.2 million on sales and marketing during the quarter compared to $47.7 million in Q4 2024.

Lemonade reported a net loss of $21.7 million in the quarter, a 28% improvement compared to the same period last year.

The company generated $37 million of adjusted free cash flow, and $21 million of cash flow from operations.

The combined ratio (including marketing expenses) for the quarter was 138.6%, compared to 184.4% in Q4 2024. For the full year, it dropped to 167.7% from 197.1%.

The company’s cash, cash equivalents, and investments totaled approximately $1.12 billion at December 31, 2025. Lemonade was required to hold approximately $250 million of regulatory surplus at its insurance subsidiaries.