Two years ago, Lemonade was growing IFP at 18% with a 19% gross profit margin and a net loss equal to 36% of gross earned premium. By Q3 2025, IFP growth had accelerated to 30% and margins more than doubled to 41%, while net loss as a percentage of GEP improved to 14%. The company maintained a 3:1 lifetime value to customer acquisition cost (LTV/CAC) ratio, with marketing spend more than tripling. AI-driven segmentation and pricing helped offset higher spending by keeping operating costs nearly flat.