Financial Data and Key Metrics Changes - In-force premium grew to $1.24 billion, up 31% year-over-year, marking nine consecutive quarters of accelerating growth [5][11] - Revenue increased by 53% to $228 million, significantly outpacing in-force premium growth [13] - Gross profit rose 73% year-over-year to a record $111 million, with adjusted gross profit increasing 69% to $112 million [6][12] - Adjusted EBITDA loss narrowed to $5 million, representing a $19 million improvement year-over-year [6][17] - Positive adjusted free cash flow of $37 million was generated in Q4, marking the second consecutive year of cash reserve growth [6][14] Business Line Data and Key Metrics Changes - Customer growth was 23%, with approximately 550,000 new customers added in 2025, a 35% increase from the previous year [11] - Gross loss ratio reported at 52%, with favorable prior period development contributing positively [11] - Annual Dollar Retention (ADR) remained stable at 85%, indicating effective customer retention efforts [14] Market Data and Key Metrics Changes - Pet and Car insurance segments are experiencing hypergrowth, with in-force premium growth in the 50s and Europe in the triple digits [7][20] - The Autonomous Car insurance product is positioned to leverage telematics for precise risk assessment and pricing [9][10] Company Strategy and Development Direction - The company is focused on leveraging AI technologies to enhance go-to-market operations, pricing, and cross-selling capabilities, aiming for a durable competitive advantage [7][8] - The launch of the Lemonade Autonomous Car product is a strategic initiative to adapt to the evolving insurance landscape as vehicles become increasingly autonomous [9][10] - The company plans to continue diversifying growth drivers, reducing reliance on any single segment or product line [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving EBITDA profitability in Q4 2026 and for the full year of 2027, with a continued focus on maintaining a solid LTV to CAC ratio [6][17][38] - The company anticipates significant investments in R&D and technology development to enhance operational efficiency and customer experience [31][32] - Management believes that the evolving insurance landscape presents limitless market opportunities despite potential market contractions due to AI advancements [24][25] Other Important Information - The company ended the quarter with approximately $1.1 billion in cash and investments, with $250 million required as regulatory surplus [14] - Operating expenses increased by 24% year-over-year, primarily due to growth spending, while maintaining stable marketing efficiency [15][16] Q&A Session Summary Question: Improvement in marketing efficiency and implications for 2026 - Management indicated that Q4 performance reflects a strategy to reinvest marketing efficiency into growth while maintaining a solid LTV to CAC ratio [26][28] Question: Target for premiums to surplus and operational leverage - Management expects to maintain a capital-light structure with sufficient surplus to support ambitious growth rates through 2027 and beyond [36][38][39] Question: Integration of AI tools like ChatGPT in policy binding - The company currently utilizes its own AI for customer interactions but has not launched a ChatGPT interface yet [42][46] Question: Future of car insurance pricing models - The company envisions a mix of variable and fixed pricing models for car insurance, leveraging real-time data for precise pricing [48][49] Question: Strategic initiatives for cross-selling and home insurance growth - Cross-selling remains a key focus, with over 5% of customers holding multiple policies, contributing significantly to in-force premium [52][55]

Financial Data and Key Metrics Changes - In-force premium grew to $1.24 billion, up 31% year-over-year, marking nine consecutive quarters of accelerating growth [5][11] - Revenue increased by 53% to $228 million, significantly outpacing in-force premium growth [13] - Gross profit rose 73% year-over-year to a record $111 million, with adjusted gross profit increasing 69% to $112 million [6][12] - Adjusted EBITDA loss narrowed to $5 million, representing a $19 million improvement year-over-year [6][17] - Positive adjusted free cash flow of $37 million was generated in Q4, marking the second consecutive year of cash reserves growth [6][14] Business Line Data and Key Metrics Changes - Customer growth was 23%, with approximately 550,000 new customers added in 2025, a 35% increase from the previous year [11] - Gross loss ratio reported at 52%, with favorable prior period development contributing positively [11][12] - Annual dollar retention remained stable at 85%, reflecting ongoing efforts in the home business [14] Market Data and Key Metrics Changes - Pet and car insurance segments are experiencing hypergrowth, with in-force premium growth in the 50s and Europe in the triple digits [7][20] - The autonomous car insurance product is expected to significantly impact future growth, with pricing based on real-time data from vehicles [9][10] Company Strategy and Development Direction - The company is focused on leveraging AI technologies to enhance go-to-market operations, pricing, and cross-selling capabilities [7][8] - The launch of Lemonade Autonomous Car aims to redefine auto insurance pricing based on driving behavior rather than traditional proxies [9][10] - The company plans to continue expanding its autonomous car product across the U.S., targeting a majority of the population by 2027 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving EBITDA profitability in Q4 2026 and for the full year of 2027 [6][17] - The company is committed to maintaining a strong LTV to CAC ratio while investing in growth initiatives [28][29] - Management believes that the evolving insurance landscape due to AI will create new opportunities despite potential market contractions [24][25] Other Important Information - The company ended the quarter with approximately $1.1 billion in cash and investments, with $250 million held as regulatory surplus [14] - Operating expenses increased by 24% year-over-year, primarily due to growth spending [15][16] Q&A Session Summary Question: Improvement in marketing efficiency and EBITDA guidance - Management acknowledged the improvement in marketing efficiency and indicated that growth spending would continue to increase in 2026, reflecting optimism about future growth [26][28][29] Question: Target for premiums to surplus and operational leverage - Management confirmed expectations for positive EBITDA in Q4 2026 and the full year of 2027, with ample surplus to support ambitious growth rates [36][38][39] Question: Integration of AI tools like ChatGPT - Management stated that while they currently use their own AI for customer interactions, they are open to exploring integrations with tools like ChatGPT in the future [42][46][47] Question: Future of car insurance pricing models - Management indicated that both variable and fixed pricing models will be offered, with a focus on precision pricing based on real-time data [48][49] Question: Strategic initiatives and cross-selling - Management highlighted the importance of cross-selling and the potential for significant future ROI from investments in pricing and underwriting capabilities [52][55][56] Question: Opportunity from Tesla's FSD initiative - Management expressed optimism about the partnership with Tesla and the potential for autonomous driving to enhance their pricing model, while refraining from commenting on Tesla's specific goals [57][58]

Financial Data and Key Metrics Changes - In-force premium grew to $1.24 billion, up 31% year-over-year, marking nine consecutive quarters of accelerating growth [5][12] - Revenue increased by 53% to $228 million, significantly outpacing in-force premium growth [13] - Gross profit rose 73% year-over-year to a record $111 million, with adjusted gross profit increasing 69% to $112 million [6][13] - Adjusted EBITDA loss narrowed to $5 million, a $19 million improvement year-over-year [6][18] - Positive adjusted free cash flow of $37 million was generated in Q4, marking the second consecutive year of cash reserve growth [6][12] Business Line Data and Key Metrics Changes - Customer growth was 23%, with approximately 550,000 new customers added in 2025, a 35% increase from the prior year [12] - Gross loss ratio reported at 52%, with a favorable prior period development of 9% driven by home and car products [12][13] - Annual dollar retention remained stable at 85% [14] Market Data and Key Metrics Changes - Pet and car insurance segments are experiencing hypergrowth, with in-force premium growth in the 50s and Europe in triple digits [7][21] - The autonomous car insurance product is expected to significantly impact future growth, with pricing based on real-time data from vehicles [10][11] Company Strategy and Development Direction - The company is focused on leveraging AI technologies to enhance go-to-market operations, pricing, and cross-selling capabilities [8][9] - The autonomous insurance initiative, particularly for Lemonade Autonomous Car, is seen as a key growth driver [10] - The company aims to maintain a competitive advantage through its AI-first culture and technology-driven approach [23][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving EBITDA profitability in Q4 2026 and for the full year of 2027 [6][41] - The company is committed to investing in R&D and enhancing its technology infrastructure to support future growth [35][36] - Management highlighted the importance of maintaining a strong LTV to CAC ratio while increasing growth spend [30][32] Other Important Information - The company ended the quarter with approximately $1.1 billion in cash and investments, with $250 million required as regulatory surplus [14] - Operating expenses increased by 24% year-over-year, primarily due to growth spending [14][15] Q&A Session Summary Question: Improvement in marketing efficiency and EBITDA guidance - Management indicated that the guidance reflects a strong track record and that they are optimistic about growth in 2026, with plans to reinvest marketing efficiency into growth initiatives [28][30][32] Question: Adjusted EBITDA profitability target and premium to surplus - Management confirmed expectations for positive EBITDA in Q4 2026 and the full year of 2027, with ample surplus to support ambitious growth rates [38][41][42] Question: Integration of AI tools like ChatGPT - Management stated that while they currently use their own AI for customer interactions, they are open to exploring other AI tools in the future [45][49] Question: Autonomous vehicle insurance product and pricing models - Management confirmed that they offer both pay-per-mile and fixed pricing models, emphasizing the precision of their pricing based on real-time data [50][52] Question: Strategic initiatives and cross-selling - Management highlighted the importance of cross-selling and the potential for multiple policies to drive growth, while also focusing on enhancing underwriting capabilities [55][57]

Updated as of December 31, 2025 Investor Presentation Forward-Looking Statements This presentation contains statements, estimates or projections that constitute "forward-looking statements" as defined under U.S. federal securities laws. Statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding our anticipated financial performance, our future profitability, our growth expectations and acceleratio ...

Core Viewpoint - Lemonade, Inc. has released its fourth quarter and full year 2025 financial results, which are available on its website [1] Financial Results - The financial results for Q4 2025 and the full year can be found in the Q4 2025 Letter to Shareholders [1] - A conference call is scheduled for today at 8:00 am Eastern time to discuss these results [1]

Lemonade Shareholder Letter Q4 2025 $1,237M131% IN FORCE PREMIUM (IFP) $414-7% PREMIUM PER CUSTOMER 2,984,513123% TOTAL CUSTOMERS IN FORCE PREMIUM ($s in m) KEY METRICS ($s in m) GEP ADJUSTED EBITDA NET LOSS $290 $1,237 $226 $181 $944 $747 ($5) ($24) ($30) ($22) ($29) ($42) Q4 23 Q4 25 Q4 23 Q4 24 Q4 25 Q4 24 NET LOSS / (23%) (7%) (13%) GEP ADJUSTED FREE CASH FLOW ($s in m) ADJUSTED FREE CASH FLOW CASH FLOW FROM OPERATING ACTIVITIES $37 $27 $21 $14 ($11) ($16) Q4 23 Q4 24 Q4 25 1 $111 $64 Dear Shareholders, ...

Core Insights - Sun Cruiser is expanding its flavor lineup with the introduction of Blueberry Lemonade & Vodka, responding to consumer demand for this flavor [1][2] - The new product features a combination of blueberry and lemon flavors, with an alcohol by volume (ABV) of 4.5%, 100 calories, and 1g of sugar per serving [2] - The Blueberry Lemonade & Vodka will replace Half & Half in the Lemonade Variety Pack, which now includes Blueberry Lemonade, Pink Lemonade, Strawberry Lemonade, and Classic Lemonade [2][8] Product Offerings - The Blueberry Lemonade & Vodka will be available in 8-pack and 12-pack cans nationwide, as well as in 570mL single-serve cans in New England and the Northeast [8] - A new Sampler Variety Pack will be launched, featuring Classic Iced Tea, Half & Half, Pink Lemonade, and Classic Lemonade, allowing consumers to enjoy a mix of flavors [3][8] - The refreshed Lemonade Variety Pack will consist solely of lemonade flavors, enhancing the brand's offerings in the ready-to-drink spirits category [2][8] Brand Positioning - Sun Cruiser is positioned as a brand for outdoor enjoyment, made with real ingredients and premium vodka, appealing to consumers looking for refreshing and easy-drinking options [6] - The brand has experienced significant growth and excitement since its launch, indicating strong consumer interest and market potential [2][6]

Health insurance company Lemonade Inc (NYSE:LMND) is gearing up for its fourth-quarter report, due out before the open on Thursday, Feb. 19. Per Zacks Research, analysts anticipate losses of 41 cents per share on revenue of $216 million, a 2.4% and 45.6% improvement, respectively, from the same quarter a year ago. On the charts, Lemonade stock pulled back sharply after its Jan. 22 more than four-year high of $99.90, though the stock appears to have found support at the $60 level and 180-day moving average. ...

Key Takeaways Lemonade's in-force premium is expected to reach about $1.2B, aided by customer and policy growth. Higher premium per customer and Europe strength likely boosted gross and earned premiums. Revenues may rise on stronger premiums and investment income despite higher expenses. Lemonade Inc. (LMND) is expected to witness an improvement in its top and bottom lines when it reports fourth-quarter 2025 results on Feb. 19.   The Zacks Consensus Estimate for LMND’s fourth-quarter top line is pegged at $ ...

Core Viewpoint - Lemonade has shown signs of improvement in its business performance, particularly in loss ratios and claims handling efficiency, despite a history of weak share price performance since its IPO in 2020 [2][3][7]. Company Performance - Lemonade went public in 2020 with a mission to create a more appealing insurance experience through a digital-first model utilizing AI [1]. - The stock has experienced significant volatility, losing 80% of its value from February 2021 to February 2025, but has recently seen a recovery, trading around $60 after nearly doubling in the past year [2][3]. - The company reported a trailing-12-month gross loss ratio of 77% in Q3 2024, which improved to an all-time low of 62% by Q3 2025, indicating better pricing accuracy and claims predictability [7]. Industry Context - The industry loss ratio for property and casualty insurance was reported at 68.4% as of September 2025, providing a benchmark for evaluating Lemonade's performance improvements [8]. - The upcoming Q4 2025 earnings report, scheduled for February 19, will provide further insights into Lemonade's business momentum [9].