Lemonade Q4 Earnings Call Highlights

2 weeks ago 11

MarketBeat

Mon, February 23, 2026 astatine 11:07 AM CST 8 min read

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Strong 4th and wide way to profitability: Q4 2025 was described arsenic the company's "strongest 4th ever" with IFP up 31% to $1.24B, gross +53% to $228M, grounds gross nett (+73% to $111M), affirmative adjusted escaped currency travel of $37M and an adjusted EBITDA nonaccomplishment narrowed to $5M, portion absorption reiterated EBITDA profitability targets for Q4 2026 and full-year 2027.
Autonomous Car merchandise and caller pricing: Lemonade launched Lemonade Autonomous Car (initially for Teslas) that prices successful existent clip by mode—parked, human-driven, oregon AI-driven—taking into relationship bundle mentation and sensor/hardware quality, with AI-driven miles presently priced astatine astir 50% of equivalent human-driven miles.
Investing successful AI-driven maturation and disciplined spend: absorption plans important 2026 investments successful AI, pricing and cross-sell platforms portion leaning into maturation walk (Q4 maturation walk $53M, +48%) but maintaining selling ratio (LTV-to-CAC >3x) and guiding astir 60% full-year gross maturation for 2026 with affirmative adjusted EBITDA expected successful Q4 2026.
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Lemonade’s Sweet Results Refresh Market Appetite: Rebound Ahead

Lemonade (NYSE:LMND) executives said the institution delivered its “strongest 4th ever” successful the 4th fourth of 2025, highlighting accelerating growth, grounds gross profit, and further advancement toward profitability and currency generation. Management besides discussed a caller merchandise motorboat tied to autonomous driving and outlined continued concern successful AI-driven initiatives spanning pricing, cross-selling, and go-to-market execution.

CEO and co-founder Daniel Schreiber said fourth-quarter show capped “a twelvemonth of fantabulous fiscal execution and operating performance.” In-force premium (IFP) roseate to $1.24 billion, up 31% year-over-year, marking the company’s ninth consecutive 4th of accelerating growth. Schreiber said gross grew faster than IFP, expanding 53%, which helium attributed to “improving economics crossed the business.”

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Gross nett grew 73% year-over-year to a grounds $111 million, and Schreiber noted that, implicit a three-year period, gross nett has compounded astatine an yearly complaint “in the triple digits.” The adjusted EBITDA nonaccomplishment narrowed to $5 cardinal successful the quarter, a $19 cardinal year-over-year improvement, placing the institution “on the brink of break-even,” according to Schreiber.

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