Lemonade (LMND) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, February 19, 2026 astatine 8:28 AM CST 31 min read

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Thursday, Feb. 19, 2026 astatine 8:00 a.m. ET

• Chief Executive Officer and Co-Founder — Daniel Schreiber

• President and Co-Founder — Shai Wininger

• Chief Financial Officer — Timothy Bixby

• Senior Vice President of Finance — Nicholas Stead

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Executive: Joining america connected our telephone today, we person Daniel Schreiber, CEO and Co-Founder; Shai Wininger, President and Co-Founder; and Timothy Bixby, Chief Financial Officer. A missive to shareholders covering the company's 4th fourth 2025 fiscal results is disposable connected our Investor Relations website astatine lemonade.com/investor. I would similar to punctual you that management's remarks made connected this telephone whitethorn incorporate forward-looking statements wrong the meaning of the Private Securities Litigation Reform Act of 1995. Actual results whitethorn disagree materially from those indicated by these forward-looking statements arsenic a effect of assorted important factors, including those discussed successful the hazard factors conception of our astir caller Form 10-K filed with the SEC and our much caller filings with the SEC.

Any forward-looking statements made connected this telephone correspond our views lone arsenic of today. We undertake nary work to update them. We volition beryllium referring to definite non-GAAP fiscal measures connected today's call, including adjusted EBITDA, adjusted escaped currency flow, and adjusted gross profit, which we judge whitethorn beryllium important to investors to measure our operating performance. Reconciliations of our non-GAAP fiscal measures to the astir straight comparable GAAP fiscal measures are included successful our missive to shareholders.

Our missive to shareholders besides includes accusation astir our cardinal show indicators, including fig of customers, in-force premium, premium per customer, yearly dollar retention, gross earned premium, gross nonaccomplishment ratio, gross nonaccomplishment ratio, CAT, trailing twelve-month nonaccomplishment ratio, and nett nonaccomplishment ratio, and a explanation of each metric, wherefore each is utile to investors, and however we usage each to show and negociate our business. With that, I volition crook the telephone implicit to Daniel Schreiber for immoderate opening remarks.

Daniel Schreiber: Good morning, and convey you for joining america to reappraisal Lemonade, Inc.'s results for Q4 2025. By immoderate measure, this was our strongest 4th ever, and it capped a twelvemonth of fantabulous fiscal execution and operating performance. In the 4th quarter, in-force premium grew to $1,240,000,000, up 31% twelvemonth implicit year, and this extended our streak of accelerating maturation to 9 consecutive quarters. Revenue grew adjacent faster, up 53%, reflecting some maturation and improving economics crossed the business. Indeed, I americium pleased to stock that this maturation translated straight into profitability metrics.