Shares of Lemonade, Inc. (LMND) are soaring 23.64% in Tuesday's trading session following the release of its impressive second quarter 2025 financial results. The insurtech company reported significant growth across key metrics and raised its full-year guidance, boosting investor confidence.

Lemonade's Q2 performance was marked by robust growth, with revenue reaching $164.1 million, surpassing the analyst consensus estimate of $160.4 million. The company's In Force Premium (IFP) grew to $1.08 billion, representing a 29% year-over-year increase and marking the seventh consecutive quarter of growth acceleration. The adjusted EBITDA loss of $41 million was also better than the expected $42.4 million loss.

The company's improving fundamentals were further evidenced by a significant improvement in its gross loss ratio. The Q2 gross loss ratio of 67% marks a 12-point improvement from the previous year. Lemonade Car and the European market were highlighted as key growth drivers. Adding to the optimism, Lemonade raised its full-year 2025 guidance for IFP, Gross Earned Premium (GEP), and Revenue, while maintaining its adjusted EBITDA guidance. The company also reiterated its expectation of positive adjusted free cash flow for FY 2025 and anticipates achieving positive adjusted EBITDA before the end of FY 2026, signaling a clear path towards profitability.