Insurtech Lemonade reported a first quarter 2026 net loss of about $35.8 million compared with a loss of about $62.4 million during the same time in 2025.
However, Lemonade said its topline growth was positive, with 159% increase in year-to-year gross profit to about $100 million, and 32% growth of in-force premium (IFP) to about $1.3 billion. Revenue jumped 71% compared with Q1 2025 to $258 million.
In a letter to shareholders, Lemonade said it reached about $1 million of IFP per employee and has reduced its team size 6% since the last quarter of 2022.
“We believe we are already roughly at parity with incumbents such as progressive, Allstate, GEICO, and Travelers, while being a fraction of the size,” Lemonade said.
Pet insurance, the insurtech’s largest line of business, reached the $500 million IFP plateau early in Q2 2026 with a growth rate of 55% in 2025. In additional, IFP for the car insurance product grew 60% year-over-year.
“Car new business is growing rapidly across both direct-to-consumer and cross-sale channels, each increasing [more than] 100%,” Lemonade said, adding that it is “encouraged” by the performance of its autonomous car product, which it expects to expand to additional states this year.
Related: Insurtech Lemonade Starts Autonomous Car Product With Tesla’s Data
Operating expenses—customer acquisition costs, and sales and marketing—increased $32.1 million to about $159.3 million during Q1.
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