Digital insurer Lemonade's Q3 revenue beats estimates

LEMONADE

05/11/2025 11:12

Overview

Lemonade Q3 revenue grows 42% yr/yr, beating analyst expectations

Adjusted EBITDA loss improves, beating analyst expectations

Gross profit more than doubles, driven by revenue growth and improved loss ratios

Outlook

Lemonade raises FY 2025 IFP, GEP, revenue, and adj. EBITDA guidance

Company expects 30% IFP growth in FY 2026

Lemonade aims for positive adj. EBITDA in Q4 2026

Result Drivers

IFP GROWTH - Lemonade's In Force Premium grew 30% YoY, marking the eighth consecutive quarter of accelerating growth

GROSS PROFIT IMPROVEMENT - Gross profit increased 113% YoY to $80 mln, with gross profit margin improving by 14 percentage points to 41%

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$194.50 mln
$184.51 mln (9 Analysts)
Q3 Net Income
-$38 mln
Q3 Adjusted EBITDA
Beat
-$26 mln
-$34.80 mln (7 Analysts)
Q3 Adjusted Gross Profit
$80.90 mln
Q3 Gross Profit
$80 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and 4 "sell" or "strong sell"

The average consensus recommendation for the property & casualty insurance peer group is "buy."

Wall Street's median 12-month price target for Lemonade Inc is $43.50, about 34.9% below its November 4 closing price of $58.66

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)