Lemonade(US:LMND)2025-11-05 00:03Financial Performance - In Force Premium (IFP) reached $1.16 billion, growing 30% year-over-year, marking the eighth consecutive quarter of accelerating growth[9] - Total revenue for the three months ended September 30, 2025, was $194.5 million, a 42.4% increase from $136.6 million in the same period of 2024[1] - Gross profit rose 113% year-over-year to $79.9 million, with a gross profit margin improvement of 17 percentage points to 41%[36] - Adjusted Free Cash Flow for the quarter was $18.1 million, down from $37.6 million in the same quarter last year[42] - Total revenue for Q3 2025 was $194.5 million, up 42.4% from $136.6 million in Q3 2024[76] - Adjusted gross profit for Q3 2025 was $80.9 million, representing an adjusted gross profit margin of 42%, compared to 28% in Q3 2024[76] - The net loss for the three months ended September 30, 2025, was $(37.5) million, compared to $(67.7) million in the prior year[1] - Adjusted EBITDA for the three months ended September 30, 2025, was $(25.6) million, an improvement from $(49.0) million in the same period of 2024[1] - The company reported a comprehensive loss of $36.5 million for the three months ended September 30, 2025, compared to a comprehensive loss of $59.2 million for the same period in 2024[72] Customer Growth - Total customers increased by 24% to 2,869,900 compared to the third quarter of 2024[31] - The number of customers at the end of the period reached 2,869,900, up from 2,313,113, representing a 24% growth[1] - The number of customers at the end of Q3 2025 was 2,870,000, up 45% from Q3 2023[92] Loss Ratios and Profitability - The gross loss ratio improved by 11 percentage points year-over-year to 62%, with a trailing twelve months loss ratio of 67%[9] - The gross loss ratio for the three months ended September 30, 2025, was 62%, an improvement from 73% in the same period of 2024[1] - The gross loss ratio improved to 62% in Q3 2025, down from 73% in Q3 2024[108] Guidance and Future Expectations - The company expects IFP growth of 30% for FY 2026, with continued leverage of AI to stabilize operating expenses[27] - The company raised guidance for FY 2025 across IFP, GEP, revenue, and Adjusted EBITDA[27] Cash and Investments - Cash, cash equivalents, and investments totaled approximately $1.06 billion as of September 30, 2025[41] - Cash, cash equivalents, and restricted cash at the end of the period were $355.5 million, down from $385.7 million at the beginning of the period[75] - The company’s investments totaled $705.3 million as of September 30, 2025, an increase from $634.9 million as of December 31, 2024[74] Expenses - The company incurred total expenses of $230.8 million for the three months ended September 30, 2025, compared to $202.4 million for the same period in 2024[72] - Sales and marketing expenses for Q3 2025 were $98.2 million, reflecting a 10% increase from Q3 2024[100]