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 a 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, referring to the IFP per employee metric.

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.

Operating expenses—customer acquisition costs, and sales and marketing—increased $32.1 million to about $159.3 million during Q1.