Insurtech Lemonade reported a fourth quarter 2025 net loss of about $21.7 million compared with a loss of about $30 million during the same time in 2024.
Revenue and gross profit increased 53% and 73%, respectively, versus Q4 2024. However, operating expense increased $16.7 million, or 13%, to $141.2 million.
Operating expense for Q4 was $154.2 million, an increase of 24% compared with Q4 2024, primarily due to higher growth spend for customer acquisition
. The New York-based insurer of car, home, renters, and pet insurance grew in force premium for the ninth straight quarter. IFP grew 31% to end 2025 at $1.24 billion.
“Faster growth expands our data advantage, which sharpens our AI-powered segmentation and pricing models,” Lemonade said in a letter to shareholders.
Lemonade has been growing its customer count steadily. As of the end of 2025, it now stands at nearly 3 million compared with 2.4 million at the end of 2024. Pet insurance is Lemonade’s largest line of business with $439 million in force premium.
Lemonade said it expects a “broader breakout” for its auto insurance business in 2025 after spending much of 2025 on “product optimization.” Currentl
, Lemonade Car has in force premium of about $187 million but its telematics and AI models have proven to “identify attractive risks and offe
r [customers] competitive prices”—prices that reflect human or autonomous driving.
“Recent advances in autonomous driving capabilities are meaningfully increasing real-world utilization, reinforcing our conviction that autonomy-aware pricin
g has become increasingly relevant,” Lemonade said in the letter. The insurer recently launched Lem
onade Autonomous Car insurance, starting with a collaboration with Tesla to access to vehicle data.
Watch More Image Part 2 >>>
Related: Insurtech Lemonade Starts Autonomous Car Product With Tesla’s Data
“Our platform is built around usage-based pricing, real-time data, and flexible coverage, precis
ely the infrastructure needed for the future,” Lemonade said. “We believe we are positioned to move faster than incumbents to capitalize on this shift as driving it
self evolves, leading the transition towards autonomy-aware car insurance pricing.”
The Public Health Advocacy Institute (PHAI) filed the suit on behalf of two Pennsylvania residents against DraftKings, FanDuel and Genius Sports Ltd. and t
he National Football League (NFL), one of the largest shareholders in Genius Sports, which supplies data from professional sports leagues needed to support online sports gambling.
The complaint filed in a Philadelphia court alleges that the platforms use technology including artific
ial intelligence to “supercharge” betting and create “addicted gamblers and encourage them to make more of the microbets.
” While DraftKings and FanDuel provide the platform and incentives, Genius Sports and the NFL supply the data needed and they all profit from a “coordinated effort to
convert ordinary sports fans into non-stop gamblers,” the plaintiffs contend.
The plaintiffs are suing under the Pennsylvania Unfair Trade Practices and Consumer Protection Law, as well as for design defects, a failure to warn the public as to the un
reasonably dangerous nature of the products, negligence, intentional infliction of emotional distress, and other legal theories.
The companies have not yet responded to the litigation.
