Lemonade, Inc. announced its fourth quarter and full year 2024 financial results, highlighting accelerating topline growth and expense stability. For Q4 2024, the company reported a loss of $30 million, or 42 cents per share, and generated $27 million in Adjusted Free Cash Flow. This marked its first quarter ever with positive Adjusted EBITDA excluding growth spend.
For the full year 2024, In-Force Premium (IFP) reached $944 million, representing 26% year-over-year growth, and the Adjusted EBITDA loss improved by 13% year-over-year to ($150) million. Full-year revenue was US$526.5 million, up 23% from 2023. The company's trailing twelve-month gross loss ratios were consistent with its long-term target range, reflecting improved underwriting precision.
Lemonade provided an initial estimate for the impact of the California wildfires on its Q1 2025 results, projecting approximately $45 million in gross losses and an Adjusted EBITDA impact of about $20 million. The company also announced the second extension and expansion of its Synthetic Agents program with General Catalyst, providing an incremental $200 million for growth investment through December 2026.
Growth investment doubled from $55 million in 2023 to $122 million in 2024, with 80% financed by the Synthetic Agent partner, maintaining an LTV/CAC ratio above 3:1. This contributed to five consecutive quarters of IFP growth acceleration. The pet insurance business showed industry-leading growth and efficiency, operating in a rapidly expanding market with low penetration.
For the first quarter of 2025, Lemonade expects revenue in the range of $143 million to $145 million. The company's disciplined expense management, with non-growth expenses increasing only 2% in 2024, demonstrates significant operating leverage alongside its 26% topline growth.
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