Lemonade (LMND) Q2 Revenue Jumps 35%
Lemonade (NYSE:LMND), a digital-first insurance company known for its use of artificial intelligence (AI) to automate policy sales and claims, reported results for Q2 2025 on August 4, 2025. The company delivered faster GAAP revenue growth than expected, with revenue (GAAP) of $164.1 million versus analyst estimates of $160.77 million. Adjusted gross profit (non-GAAP) of $65.6 million was up sharply from last year, and the gross loss ratio—a key measure of insurance profitability—improved to 67%. Earnings per share (GAAP) narrowed to ($0.60), which was better than the ($0.81) GAAP net loss per share result in Q2 2024. Overall, this marked one of the company’s strongest periods for growth, with rising metrics in both its car and European insurance businesses, although customer retention trends and significant changes to its reinsurance strategy remain closely watched areas.
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Lemonade is a tech-driven insurance platform offering renters, homeowners, car, pet, and life insurance. Its main operations use AI “agents” to guide customers through buying insurance and filing claims. The company says that AI handles the vast majority of its interactions, aiming to reduce operating costs and greatly speed up typical insurance transactions.
Source Fool.com
