Lemonade Cuts Gross Loss Ratio to 67% and Posts Positive Free Cash Flow
LMND•Lemonade’s in-force premiums grew 30% year-over-year, accelerating from 24% in the prior period, while its trailing-12-month gross loss ratio fell from 77% to 67%. The insurer’s gross profit more than doubled year-over-year and it achieved positive adjusted free cash flow, marking a clear path toward sustained profitability.
1. Stellar Growth and Profitability Gains in 2025
Lemonade delivered exceptional growth in 2025, with in-force insurance premiums rising 30% year over year—an acceleration from the 24% increase recorded in the prior twelve-month period. Over the same interval, the company’s trailing-12-month gross loss ratio contracted markedly from 77% to 67%, well below its long-term target of 75%. This decline enabled gross profit to more than double year over year, and for the first time Lemonade reported positive adjusted free cash flow, underscoring the company’s successful transition toward sustainable profitability.
