Lemonade Jumps 13% After Q4 Beats: 53% Revenue Growth, Narrower Loss
Lemonade reported Q4 sales of $228.1 million, beating estimates by $12.3 million, while its 29 cent per share loss outperformed the 41 cent consensus. Revenue grew 53% year over year, adjusted gross profit rose 69% to $112 million, and cash plus investments totaled $1.12 billion.
1. Q4 Financial Results
Lemonade delivered sales of $228.1 million in Q4, beating the $215.8 million consensus by $12.3 million, and reported a loss of $0.29 per share versus the expected $0.41 loss.
2. Profitability and Cash Position
Adjusted gross profit rose 69% year over year to $112.0 million, and adjusted EBITDA loss narrowed to $4.6 million from $23.8 million a year ago. Cash, equivalents, and investments stood at $1.12 billion as of December 31, 2025.
3. Growth Metrics
In force premium increased 31% year over year to $1.237 billion and gross earned premium rose 28% to $290.2 million. Premium per customer climbed 7% to $414, driven by growth across most business lines.
4. Outlook and Short Interest
For Q1, the company guides in force premium of $1.321–$1.326 billion and sales of $246–$251 million, above the $241.8 million estimate. The 21.1% short float may amplify future stock moves.