Insurer Lemonade Inc's Q2 revenue rises on premium growth
LMND•Outlook for 2026
Lemonade sees Q3 2026 revenue between $323 million and $326 million.
The company expects full-year 2026 revenue of $1,214 million to $1,220 million.
Lemonade expects positive adjusted EBITDA in Q4 2026.
Result drivers and key details
- Premium growth & retention - Revenue rose 79% year over year, primarily driven by a 32% increase in in force premium and higher premium retention following reduced quota share cession rates.
- Claims handling efficiency - Record-low 5% LAE ratio attributed to advances in AI and automation in claims operations.
- Underwriting improvement - Gross profit rose 76% year over year, reflecting premium growth acceleration and expanding gross margins.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Net Loss | $43 mln | ||
| Q2 Adjusted EBITDA | Beat | -$19 mln | -$20.89 mln (8 Analysts) |
| Q2 Adjusted Gross Profit | $114.40 mln | ||
| Q2 Gross Profit | $113 mln |
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and 3 "sell" or "strong sell".
