Lemonade Q4 revenue beats estimates

LEMONADE

19/02/2026 11:12

Overview

Insurance provider's Q4 revenue grew 53% yr/yr, beating analyst expectations

Adjusted EBITDA loss for Q4 narrowed, beating analyst expectations

Company reported 73% increase in gross profit due to revenue growth and improved loss ratio

Outlook

Lemonade expects FY 2026 IFP growth of 32%

Company projects FY 2026 adjusted EBITDA loss of $52 mln-$48 mln

Lemonade anticipates positive adjusted EBITDA for Q4 2026

Result Drivers

AI AND DATA ADVANTAGE - Lemonade's AI-powered segmentation and pricing models improved unit economics, contributing to revenue and gross profit growth

DIVERSIFIED GROWTH - Growth in Pet, Car, and Europe led to strong underwriting performance and expanding contribution to gross profit

OPERATIONAL EFFICIENCY - Improved operational efficiency through AI and automation helped sustain operating leverage

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$228 mln
$215.84 mln (11 Analysts)
Q4 Net Income
-$22 mln
Q4 Adjusted EBITDA
Beat
-$4.60 mln
-$12.39 mln (8 Analysts)
Q4 Adjusted Gross Profit
$112 mln
Q4 Gross Profit
$111 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 5 "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 $85.00, about 29.3% above its February 18 closing price of $65.73

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.)