Insurtech firm Lemonade's Q1 revenue, profit beat analyst estimates on premiums strength

LEMONADE

29/04/2026 11:16

Overview

US insurance tech firm's Q1 revenue rose 71% yr/yr, beating analyst expectations

Adjusted EBITDA loss for Q1 narrowed and beat analyst expectations

Gross profit for Q1 increased 159% yr/yr, driven by improved underwriting results

Outlook

Lemonade raises FY 2026 guidance for IFP, GEP, revenue, and adj EBITDA loss

Company expects Q2 2026 revenue of $287 mln to $290 mln and adj EBITDA loss of $19 mln to $23 mln

Lemonade reiterates expectation to achieve positive adj EBITDA in Q4 2026

Result Drivers

HIGHER PREMIUM RETENTION - Co said revenue growth was driven by higher gross earned premium and increased premium retention after reducing quota share cession rates

IMPROVED UNDERWRITING - Gross profit rose due to improved underwriting results and a lower net loss ratio, as well as the absence of prior-year wildfire impacts

AI-DRIVEN OPERATIONAL EFFICIENCY - Co said AI-powered automation expanded team capacity and supported growth without adding headcount

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$258 mln
$251.50 mln (11 Analysts)
Q1 Net Income
-$36 mln
Q1 Adjusted EBITDA
Beat
-$17 mln
-$23.32 mln (9 Analysts)
Q1 Gross Profit
$100 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "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 $65.00, about 1.2% below its April 28 closing price of $65.77

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