What is the revenue and EPS growth rate for Lemonade year over year?

What were the key takeaways from Lemonade's earnings call?

What is Lemonade's gross profit margin?

What is Lemonade's latest dividend and current dividend yield?

What does Lemonade do and what are its main business segments?

What guidance did Lemonade's management provide for the next earnings period?

What factors drove the changes in Lemonade's revenue and profit?

What were the key takeaways from Lemonade’s earnings call?

- **Revenue Surge**: 42% YoY revenue growth to $195M, driven by 30% IFP expansion and 50%+ cross-sell of car insurance to existing customers.
- **Profitability Leap**: Gross profit doubled to $80M, gross margin hit 41%, and loss ratio improved to 62% (down 11 points YoY).
- **AI Efficiency**: 7% LAE ratio vs. industry 9%, claims handled 3x faster with AI. European business grew 170% YoY, with U.K. renters leading at 50%+ retention.
- **Cash Flow Strength**: Positive free cash flow ($18M) and adjusted EBITDA loss narrowing to $26M (50% YoY improvement).
- **Strategic Reinsurance**: Ceding rate dropping to 20% by mid-2026, enabling margin retention and 30%+ top-line growth.

**【CEO Summary Section】**
- **Revenue and Premium Growth**: Q3 revenue grew 42% YoY to $195 million, with in-force premium reaching $1.16 billion (30% YoY growth). Cross-sell of car insurance to existing customers contributed over 50% of new car policies, driving CAC-less growth.
- **Profitability Improvements**: Gross profit doubled to $80 million, gross margin rose to 41%, and trailing 12-month loss ratio improved to 67% (down 3 points sequentially). AI-driven efficiency reduced LAE ratio to 7%, half of large carriers' 9%.
- **AI and Automation**: Local, an AI-powered no-code insurance product builder, enables 3x faster claims handling and modular product development. Integration with Tesla API enhances usage-based pricing accuracy.

**【CFO Financial Commentary】**
- **Financial Highlights**: Adjusted EBITDA loss narrowed to $26 million (50% YoY improvement), free cash flow turned positive at $18 million. Q4 revenue guidance implies 49% YoY growth, with full-year gross earned premium projected at $1.044 billion.
- **Expense Management**: Operating expenses grew 13% YoY to $141 million, but variable costs declined as AI reduced headcount needs. Growth spend ($180 million annually) maintains LTV:CAC >3:1 across channels.
- **Reinsurance Strategy**: Quota share ceding rate dropped to 40% in Q3, expected to fall to 20% by mid-2026, reducing reliance on partners and improving margin retention.

**【Q&A Key Highlights】**
- **AI and Efficiency**: 7% LAE ratio vs. industry 9%, claims handled 3x faster with Blender AI. AI now writes 90% of code, freeing engineers for strategic initiatives.
- **Market Expansion**: European in-force premium grew 170% YoY, with U.K. renters leading at 50%+ retention. Pet insurance via Chewy partnership now 5% of business, with stable 62% loss ratio.
- **Risk Management**: Home insurance book cleanup continues, but 30% IFP growth maintained. Gross profit optimization prioritizes dollars over loss ratio, e.g., trading higher loss ratios for revenue growth in price-sensitive segments.


Lemonade, Inc. (LMND) Q3 2025 Earnings Call Transcript

- **Revenue & Profit Growth**: 29% IFP growth, 109% gross profit increase, $25M free cash flow (10x YoY). 
- **Car Business Expansion**: $150M IFP, 10 states launched, 50% U.S. market target by 2026. 
- **AI-Driven Efficiency**: Europe gross loss ratio 83% vs. U.S. 70%, 20% faster product launches. 
- **Reinsurance Shift**: 55%→20% quota share reduces capital needs, revenue retention boost. 
- **2025 Outlook**: $1.2B IFP, $710M revenue, $135M EBITDA loss, on track for 2026 breakeven.

**【CEO Summary Section】**
- Q2 2025: In-force premium (IFP) grew 29% YoY, trailing 12-month gross loss ratio improved to 70% (from 79% a year ago). Gross profit increased 109%, with 39% gross margin, highest on record. Adjusted free cash flow reached $25M (10x YoY). 
- Car business: IFP crossed $150M, Q2 gross loss ratio 82% (13pt improvement YoY). Expansion to 10 states, targeting 50% U.S. car market coverage by end-2026. 
- Reinsurance: Reduced quota share from 55% to 20%, enabling revenue retention growth outpacing IFP. 

**【President’s European Update】**
- Europe: Q2 IFP $43M (200% YoY growth), 8th consecutive quarter of triple-digit growth. Gross loss ratio 83% (15pt improvement YoY). 
- LoCo AI platform: Rapid product launches (e.g., France renters in 3 days) with 20% lower loss ratio than U.S. peers. 

**【CFO Financial Commentary】**
- Q2 2025: Revenue $164M (+35% YoY), GAAP net loss $44M (-26% YoY). Adjusted EBITDA loss $41M (vs. $43M prior). 
- Expense control: Tech dev +6%, G&A -13% YoY. Headcount +5% vs. 29% IFP growth. 
- 2025 Outlook: IFP $1.21B-$1.22B, revenue $710M-$715M, adj. EBITDA loss $135M-$140M. 

**【Q&A Highlights】**
- Reinsurance transition: 45% quota share in H2 2025, 20% by Q3 2026. Captive reinsurers offset capital needs. 
- Car loss ratio: 20pt improvement from first to renewal policy. Cross-sell growth driving efficiency. 
- Growth spend: $170M in 2025 (80% financed via synthetic agents). 
- Europe: 250K+ customers across 4 markets, targeting 30%+ annual growth. 
- EBITDA breakeven: Expected before end-2026, driven by 30%+ IFP growth and 70% gross loss ratio stability.

Lemonade, Inc. (LMND) Q2 2025 Earnings Call Transcript

- **Revenue Growth Accelerates**: Q1 2025 IFP up 27% to $1.03B, driven by AI-powered cost efficiency and no material expense rise.
- **Car Business Breakthrough**: First quarter of Car IFP outpacing rest of business, with 60%+ conversion rate improvement and 2.5M non-car customers as growth engine.
- **EBITDA Target Confirmed**: Reaffirmed 2026 breakeven despite $44M wildfire impact, with 2025 adj free cash flow positive.
- **AI-Driven Efficiency**: 10qtrs of declining real expenses (-10% YoY) vs +65% book, proving AI's ability to decouple growth from costs.


**【CEO Opening Remarks】**
- Q1 2025 revenue grew 27% YoY to $151 million, driven by 27% IFP growth to $1.03 billion. AI-powered cost efficiency enabled a 65% book expansion with no material expense rise.
- Reaffirmed EBITDA breakeven target by end-2026, with 2025 adjusted free cash flow positive despite $44M wildfire impact.
- Tariff monitoring: 25% auto parts tariff could increase loss trends by single digits, to be reflected in rates.

**【Michal Langer - Car Business Update】**
- Car business IFP growth outpaced rest of company for first time, with 60%+ conversion rate improvement from day-zero telematics trials.
- Cross-sell volume doubled YoY, with 2.5M non-car customers representing $3B annual auto spend opportunity.
- 40% US auto market coverage expanded to Colorado; older cohorts show 10+pt loss ratio improvement at renewal.

**【Tim Bixby - Financial Highlights】**
- Q1 GAAP net loss $62M (-$0.86 EPS), adj EBITDA loss $47M. IFP $1.03B (+27%), gross earned premium $234M (+24%).
- Gross loss ratio 78% (79% prior year), trailing 12m TTM ratio 73% stable. Adj gross profit +25% YoY to $65M.
- Operating expenses +29% to $127M, driven by $38M growth spend (vs $20M prior year). Synthetic agents fund 80% of growth spend.
- 2025 guidance: IFP $1.203B-$1.208B, adj EBITDA loss $140M-$135M. Q2 IFP $1.061B-$1.064B, adj EBITDA loss $44M-$41M.

**【Key Q&A Themes】**
- **Wildfire Subrogation**: Recovered $8M via Eaton fire sale; expect 2-year recovery process for remaining $36M FAIR plan assessment.
- **Tariff Impact**: 25% auto parts tariff could add 1-2pts to car loss ratio; no material impact on home, renters, or European businesses.
- **Car Expansion**: 10% multi-policy rate in fully-stacked states vs 5% overall; targeting 10+pts cross-sell growth via state expansion.
- **AI Advantage**: 10qtrs of declining real expenses (-10% YoY) vs +65% book, proving AI-driven operating leverage.


Lemonade (LMND)-6 May 25-2025 Q1 Earnings call transcript

- **Record Growth**: 26% IFP growth in Q4, first cash flow positive year with $48M net cash inflow.
- **Margin Expansion**: Gross profit doubles to $167M, TTM loss ratio improves 12pts to 73%.
- **Wildfire Resilience**: $45M gross loss mitigated to $20M net via reinsurance, with 90% claims from renters.
- **2025 Outlook**: 28% IFP growth, EBITDA positive by year-end, $165M growth spend (+130% YoY).
- **Auto Ambition**: 2M+ waitlist positions Lemonade to scale car insurance with 3:1 LTV/CAC efficiency.
- **Profitability Path**: GAAP net income positive by 2027, driven by 30%+ IFP growth and 5%+ margin expansion.


**【CEO Opening Remarks】**
- Q4 2024 marked Lemonade's best quarter ever, with 26% IFP growth (5th consecutive quarter of accelerating growth) and $27M adjusted free cash flow, resulting in a full-year cash flow positive of $48M.
- Gross profit doubled year-over-year to $167M, driven by a 12-point improvement in TTM gross loss ratio to 73%.
- 2025 guidance includes 28% IFP growth, sustained margin expansion, and EBITDA positivity by year-end, despite $20M wildfire impact.

**【Shai Wininger on California Wildfires】
- Lemonade handled 850+ claims during the fires, settling hundreds in real-time with AI support.
- Gross loss impact was $45M, but reinsurance reduced net impact to $20M, demonstrating prudent underwriting and risk management.
- Customer feedback highlighted superior service, reinforcing brand loyalty during crises.

**【CFO Financial Highlights】
- Q4 revenue: $149M (+29% YoY), driven by 25% IFP growth and 32% investment income increase.
- Gross loss ratio: 63% (Q4) vs. 77% prior year, with ex-CAT ratio at 62%.
- Operating expenses (excluding growth spend): down 5% in inflation-adjusted terms, with EBITDA loss of $24M (improved $5M YoY).
- 2025 guidance: IFP of $1.2B (+30%), adjusted EBITDA loss of $135M-$140M, and $165M growth spend (+130% YoY).

**【Q&A Key Takeaways】
- **Auto Strategy**: 2025 focus on scaling car insurance via telematics and cross-selling to existing 2.4M customers. Early tests show attractive LTV/CAC ratios, with potential for 40%+ multiline customer rates.
- **Profitability Path**: EBITDA positive by end-2025, GAAP net income positive by 2027, driven by 3:1 LTV/CAC and 28% IFP growth.
- **Wildfire Risks**: Diversified reinsurance coverage limited net impact to $20M, with 90% of claims from renters but 70% dollar impact from homes.
- **Tech Spend**: Flatlining R&D costs ($22M) reflect AI-driven efficiency, enabling 26% IFP growth with no headcount increase.


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