Lemonade reported a Q4 net loss of $0.29 per share, beating the expected $0.41 loss and improving from a $0.42 loss in Q4 2024. Operating revenues rose 53.3% year-over-year to $228.1 million, driven by higher gross earned premiums and ceding commission income.

Gross earned premium increased 28% year-over-year to $290.2 million, while gross profit climbed 73% to $110.6 million. In-force premium grew 31% to $1,236.5 million, customer count rose 23% to 3 million, and adjusted EBITDA loss narrowed to $4.6 million from $23.8 million.

Full-year operating revenues reached $737.9 million, up 40.2%, and net loss per share narrowed to $2.24 from $2.85 in 2024. Adjusted EBITDA loss improved to $118.1 million from $149.7 million, as cash and investments grew 9.7% to $1.1 billion.

Management expects Q1 in-force premium of $1,321–$1,326 million, gross earned premiums of $299–$302 million and revenues of $246–$251 million, with adjusted EBITDA loss of $22–$25 million. Full-year 2026 guidance estimates in-force premium of $1,625–$1,630 million and revenues of $1,187–$1,192 million with an adjusted EBITDA loss of $48–$52 million.