LMND

What is the current churn rate and customer acquisition cost, and are there any trends in policy growth or retention?

Created August 06, 2025 at 07:44 PM

Answer based on the provided news release

The news item you provided only announces that Lemonade, Inc. (NYSE: LMND) has posted its second‑quarter 2025 financial results and will host a conference call to discuss them. The summary does not contain any of the following details:

Current churn rate (the percentage of customers who discontinue coverage)
Customer acquisition cost (CAC) (the cost to acquire a new policyholder)
Policy‑growth trends (e.g., number of new policies, net new policies, or premium growth)
Retention trends (e.g., renewal rates, retention‑rate changes over time)

Because the excerpt you shared does not include those metrics, we cannot provide the current churn rate, CAC, or any analysis of policy‑growth or retention trends from this source alone.

What you can do next

Review the Q2 2025 Letter to Shareholders – The press release mentions that the full results are posted on Lemonade’s website. The letter typically contains a Management Discussion & Analysis (MD&A) section that includes:
- Churn or “cancellation” rates.
- Customer acquisition cost (often reported as “CAC” or “cost of acquisition per policy”).
- Policy‑growth figures (new policies written, net policy growth, premium growth).
- Retention/renewal metrics.
Listen to the conference call – The call scheduled for 8:00 a.m. Eastern (5:00 a.m. Pacific) will likely include a Q&A segment where analysts may ask about churn, CAC, and growth trends. The transcript (often posted after the call) will also contain those details.
Look at the Form 10‑Q (or 10‑Q‑like) filing – Quarterly SEC filings contain a “Liquidity and Capital Resources” and “Results of Operations” sections that typically disclose churn, CAC, and policy‑growth data for the quarter and year‑to‑date.

Bottom line

The current churn rate, CAC, and policy‑growth/retention trends are not included in the provided news excerpt.
To obtain those figures, you’ll need to consult the full Q2 2025 results (letter to shareholders) or the accompanying SEC filing.

If you can provide the relevant portion of the letter or the SEC filing, I can help interpret the numbers and trends for you.

Other Questions About This News

What was the change in gross profit margin and loss ratio versus the prior quarter and year‑over‑year? What is the expected impact of the Q2 results on the company’s growth trajectory and long‑term strategic plan? Did management address any guidance on capital raise, share buybacks, or dividend policy? What new products, markets, or partnerships were announced, and how might they affect future revenue streams? What was the impact of any recent regulatory changes or insurance‑industry trends on Lemonade’s underwriting performance? How did Lemonade's Q2 2025 revenue and earnings compare to consensus analyst estimates? How might the Q2 results and guidance affect the stock’s valuation multiples (P/E, P/Revenue) and target price? What guidance did management provide for Q3 2025 and full‑year 2025 earnings, revenue, and cash flow? How did underwriting profit and expense ratio trend and what impact does that have on profitability outlook? How does Lemonade’s Q2 performance compare to its main competitors (e.g., Hippo, Root, or traditional insurers) in terms of growth and profitability? What is the stock’s expected reaction to the earnings release and guidance—will we see volatility or a sustained trend? What is the outlook for claim frequency and severity in the next quarters, and how might that affect the loss ratio? Did the company's balance sheet show any significant changes in cash, debt, or liquidity that could affect capital allocation? Are there any changes to the company's AI or automation initiatives that could improve operational efficiency or risk assessment?