The New York-based insurance company reported fourth-quarter revenue of $228.1 million, comfortably outperforming the $217.9 million anticipated by analysts polled by FactSet. Its net loss contracted to $21.7 million, or 29 cents per share, marking a significant improvement from the $30 million loss, or 42 cents per share, recorded during the same period last year. The results beat the consensus estimate, which had braced for a wider loss of 39 cents per share.

Operational Growth and Metrics

The expansion was driven by a customer base that grew 23% to reach 2.98 million by the end of the quarter. Lemonade also successfully extracted more value from its existing users, with the average premium per customer rising 7% to $414. These results reflect the company’s ongoing efforts to scale its AI-driven platform while managing loss ratios more effectively than in previous cycles.

Looking ahead, Lemonade issued optimistic guidance that suggests sustained momentum through the middle of the decade. The company projects first-quarter revenue between $246 million and $251 million, while its 2026 revenue target is now set at approximately $1.19 billion. This long-term outlook sits above the $1.16 billion consensus previously held by Wall Street analysts. Following the report, shares climbed to $74.33 in early trading.