What Lemonade, Inc. told the SEC could break it.

Key Lemonade operations are concentrated in Israel — its co-founders, much of its product-development staff, help desk and online sales support, and ~310 full-time employees as of year-end 2025 — so escalating Israel–Iran tensions, military reserve call-ups or regional conflict could disrupt its product development and support functions.

“We maintain offices in Israel and some of our officers, employees and directors are located in Israel, including our Co-Founders and some of our product development staff, help desk and online sales support operations. As of December 31, 2025, we had approximately 310 full-time employees in Israel.”

About 45% of Lemonade's 2025 gross written premium (California alone ~21.9%) comes from just three states — California, New York and Texas — so a major catastrophe in any of them, or adverse regulatory/rate action there, would disproportionately hit losses and revenue.

“Approximately 45% of our gross written premium for the year ended December 31, 2025 originated from customers in California, New York, and Texas.”

Lemonade's California homeowners exposure subjects it to California FAIR Plan assessments when that catastrophe pool cannot cover wildfire losses; it was assessed $6.9 million in February 2025 (with ~$19.6 million tied to related catastrophe events), recoverable only up to 50% via multi-year recoupment, so future wildfire seasons could drive further assessment costs.

“Additionally, the Company received a $6.9 million assessment from the California FAIR Plan in February 2025, which was paid and expensed in the first quarter of 2025.”