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Lemonade achieved the IFP milestone in 8.5 years of selling its first policy, marking an approximate 150% compound annual growth rate.
Retail investors on Stocktwits cheered for digital insurance company Lemonade (LMND) after the firm disclosed that it has surpassed $1 billion of In Force Premium (IFP).
In Force Premiums are the policies for which a policyholder continues to pay premiums, making them active policies.
Lemonade achieved the milestone after selling its first policy 8.5 years ago, marking an approximate 150% compound annual growth rate.
Lemonade President and co-founder Shai Wininger highlighted the importance of surpassing $1 billion in IFP with positive free cash flow and a healthy loss ratio.
Lemonade also announced the launch of Lemonade Car in Colorado beginning Wednesday, boosting the insurer’s availability to roughly 40% of the U.S. car insurance market.
“Coloradans spend about $7B on car insurance annually, with Lemonade’s existing Colorado customers spending hundreds of millions a year on car insurance, making the state a promising market for Lemonade Car,” the company said.
The insurer believes Lemonade Car will play a significant role in the company’s accelerating growth plan.
Following the disclosure, retail sentiment on Stocktwits flipped into the ‘bullish’ territory (57/100) from ‘neutral’ a day ago.
During the fourth-quarter (Q4) earnings report, the company projected its IFP to hit $1.2 billion to $1.21 billion for the full year 2025.
Revenue for the first quarter (Q1) was projected at $143 million to $145 million.
The company estimates its first quarter earnings before interest, tax, depreciation, and amortization (EBITDA) loss at $46 million to $49 million. Lemonade said its guidance includes an estimated $20 million unfavorable impact due to the California wildfires.
Lemonade stock has traded almost flat in 2025 but has gained over 120% in the past 12 months.
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