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.
The recent escalation of the Middle East war introduces geopolitical instability with potential long-lasting effects on commodities, financing conditions, global supply chains, and macro-credit conditions depending on the duration and scale of the conflict.
S&P Global Ratings’ base case for the Middle East war assumes that elevated hostilities will persist into early April, with the Strait of Hormuz facing material disruptions. We continue to recognize the risk of spillovers and security incidents continuing beyond this period.
While market conditions have historically normalized quickly after geopolitical events, the current war appears distinct and some credit impacts are inevitable. The extent of those will depend on whether the effects remain localized or become more pervasive. Our initial assessment suggests that insurers and reinsurers will be able to manage the situation over the short term, but the scale and duration of the war will dictate the ultimate outcome.
(Editor’s note: S&P Global Ratings says there is a high degree of unpredictability around the duration and scale of the Middle East war and its potential effect on commodity prices, supply chains, economies, and credit conditions. As a result, its baseline forecasts carry a significant amount of uncertainty. As situations evolve, S&P will gauge the macro and credit materiality of potential shifts and reassess its guidance accordingly.)