Lemonade, Inc.LMND

Lemonade, Inc. Segments Disclosure

10-KFiled Feb 25, 20263 min read
Segment Information
The Company operates in one report segment providing personal property and casualty insurance products within the United States and Europe, including the UK. Insurance coverage under the homeowners multi-peril, inland marine and general liability and private passenger auto lines of business are offered to individual customers through its direct to consumer distribution channel which follows the same underwriting and claims process. The Company's Chief Operating Decision Makers (“CODM”) is the Chief Executive Officer. The CODM manages the Company’s operations, evaluates the operating performance and decides on allocation of resources based on segment / consolidated net income (loss). Loss and loss adjustment expenses and advertising expenses (growth spend), as included in “Sales and marketing expenses”, in the consolidated statements of operations and comprehensive income (loss), represents the significant expenses which are regularly provided and reviewed by the CODM. The operating results of the personal property and casualty insurance reportable segment is presented in the following table below ($ in millions):

Years ended December 31,
202520242023
Total revenue$737.9 $526.5 $429.8 
less: Loss and loss adjustment expenses, net347.0 277.0 280.4 
         Other insurance expense93.7 76.8 59.2 
         Sales and marketing37.1 44.8 46.7 
         Advertising expenses187.3 121.5 55.2 
         Technology development93.9 85.8 88.8 
         General and administrative122.3 98.0 102.2 
         Interest expense17.3 6.2 0.4 
         Depreciation and amortization15.2 20.0 20.0 
         Other expenses (1)(2)(3)
(15.0)0.3 6.7 
         Income tax (benefit) expense4.6 (1.7)7.1 
Segment / Consolidated Net loss$(165.5)$(202.2)$(236.9)
(1)    Includes $11.7 million of tax refund under the Employee Retention Credit Program (Note 17), $2.3 million of gain from early lease termination (Note 21) and $1.0 million recovery related to a liability claim exposure (Note 20) for the year ended December 31, 2025.
(2)     Includes asset impairment charge of $0.3 million related to the New York office sublease (Note 21) for the year ended December 31, 2024.
(3)     Includes asset impairment charge of $3.7 million related to the San Francisco office sublease (Note 21) and $3.0 million accrual for a potential liability claim related to Metromile (Note 20) for the year ended December 31, 2023.

The measure of segment assets is based on total assets as reported on the consolidated balance sheets. The Company does not allocate its assets, including investments, or income taxes in evaluating the segment / consolidated net income (loss).

The Company operates primarily within the U.S. and does not have revenue from transactions with a single policyholder representing 10% or more of its revenues. Gross written premium by location is as follows ($ in millions):

 Years ended December 31,
 202520242023
LocationAmount% of GWPAmount% of GWPAmount% of GWP
California$256.8 21.9 %$225.6 24.3 %$191.6 25.9 %
Texas148.8 12.7 %133.7 14.4 %117.5 15.9 %
New York116.4 9.9 %96.3 10.4 %80.8 10.9 %
Washington60.2 5.1 %38.9 4.2 %25.9 3.5 %
Illinois54.0 4.6 %43.7 4.7 %35.3 4.8 %
New Jersey52.7 4.5 %44.3 4.8 %37.6 5.1 %
Colorado 40.9 3.5 %29.2 3.1 %22.0 3.0 %
Florida33.8 2.9 %19.4 2.1 %9.3 1.3 %
Pennsylvania33.0 2.8 %24.9 2.7 %19.7 2.7 %
Arizona29.4 2.5 %22.4 2.4 %18.0 2.4 %
All others299.0 25.6 %230.6 24.7 %171.4 23.2 %
United States$1,125.0 96.0 %$909.0 97.8 %$729.1 98.7 %
Europe and UK
46.3 4.0 %20.0 2.2 %9.3 1.3 %
Total$1,171.3 100.0 %$929.0 100.0 %$738.4 100.0 %
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Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 26, 2025
2023Feb 28, 2024
2022Mar 3, 2023
2021Mar 1, 2022

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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