In its Q1 2025 results, Lemonade has reported total revenue of $151.2 million, marking an increase of $32.1 million or 27%, compared to Q1 2024, primarily due to the increase in gross earned premium, ceding commission income, and net investment income.

Meanwhile, the firm’s in force premium, defined as the aggregate annualised premium for customers as of the period end date, increased by 27% to $1,007.8 million as compared to Q1 2024.

Lemonade’s gross earned premium was also up in the opening quarter, reaching $233.6 million, marking an increase of $45.7 million or 24% as compared to Q1 2024.

According to the firm, this was primarily due to the increase of in force premium earned during the quarter.

Lemonade’s Q1 2025 gross profit was $38.6 million, which marked an increased of $3.9 million or 11% as compared to Q1 2024, primarily due to the aforementioned 27% increase in revenue.

However, the firm still reported a net loss in Q1 2025 of $62.4 million, compared to a net loss of $47.3 million in Q1 2024.

“This year-over-year decline is primarily attributable to the increase in growth spend and the impact of the California Wildfires and FAIR Plan assessment, partially offset by the increase in revenue,” Lemonade explained.

Looking at the California Wildfires’ impact more closely, the firm said it saw a net loss of $29 million from the event, which was in line with its expectations.

Lemonade commented, “Leveraging our industry leading technology, including aerial imagery and AI, we created a streamlined experience for our customers in their greatest time of need. We were able to resolve many claims within minutes, and several at their policy limits.

“At the same time, we had the right balance of documentation and fraud review to help ensure we paid claims accurately, and preserved our rights to recover from responsible parties.”

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