Insurer Lemonade Inc's Q2 revenue rises on premium growth

LEMONADE

29/07/2026 11:17

Overview
US digital insurer's Q2 revenue rose 79% yr/yr, driven by premium growth and retention
Q2 adjusted EBITDA loss narrowed and beat analyst expectations
Company cites improved underwriting and claims efficiency as key drivers of results

Outlook
Lemonade sees Q3 2026 revenue between $323 mln and $326 mln
Company expects full-year 2026 revenue of $1,214 mln to $1,220 mln
Lemonade expects positive adjusted EBITDA in Q4 2026

Result Drivers
PREMIUM GROWTH & RETENTION - Revenue rose 79% yr/yr, 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% yr/yr, reflecting premium growth acceleration and expanding gross margins

Key Details
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
 

Analyst Coverage
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"
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 $72.50, about 16.7% above its July 28 closing price of $62.11

Reuters Recommended Reads
July 28 - Slide Insurance Q2 net income nearly doubles on premium growth
July 28 - Hanover Insurance Q2 net income rises on lower catastrophe losses
July 28 - Arch Capital's quarterly profit hit by softer underwriting, higher catastrophe losses

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(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.)