InsurTech Lemonade reported a second-quarter 2025 net loss of about $44 million compared with a loss of $57.2 million a year ago during the same time.
Though still a loss, it was a 23 percent improvement from the prior year, which Lemonade attributed to higher revenue offset by higher growth spend.
The New York-based insurer said Q2 operating expenses were up to $129.2 million—$49.7 million in sales and marketing, which was over the total this time last year of $25.8 million.
Revenue grew 35 percent to $164.1 million in Q2 while premium for active policies, or in-force premiums (IFP) , grew 29 percent to about $1.1 billion. Lemonade said the manner in which it renewed its reinsurance program allows it to retain more revenue and gross profit. The insurer reduced its quota share program from 55 percent to 20 percent cession.
Lemonade said its Q2 gross loss ratio was 67 compared with 70 for Q2 2024.
Lemonade’s car product turned in another quarter of IFP growth at $150 million, up 12 percent for the third quarter in a row of sequential growth. “We expect more of the same in the coming quarters,” the insurer said in a letter to shareholders. Lemonade said it has invested further in telematics after experiments using telematics sooner in the customer lifecycle yielded good results. Car’s gross loss ratio for Q2 was 82—the lowest since Lemonade Car was launched.
Car growth spend was up 25 percent, and the insurer expanded to Indiana in July after launching in Colorado during the first three months of the year.
Lemonade also highlighted European business, with renters and homeowners products in Germany, France, the Netherlands and the UK. Europe has “lower catastrophe exposure and a regulatory environment that enables rapid pricing and underwriting iteration, free of rate filing,” Lemonade said in the letter. Q2 IFP in Europe has growth more than 200 percent year-over-year to $43 million.
“Compared to when we grossed the $50 million IFP threshold in the U.S., our European business has grown a gross loss ratio over 20 points better,” said Lemonade.
For the year as of June 30, Lemonade’s net income loss was $106.3 million compared with $104.5 last year.