Lemonade, Inc. Earnings Recaps
Q3 2026
Nov 8, 2026
Lemonade shares fell 9.6% after earnings, suggesting investors focused on execution and profitability risk despite management reiterating its timeline. The key concern is that the company still expects an adjusted EBITDA loss in Q3 and is relying on a first positive quarter in Q4 and annual profitability in 2027; the transcript provided does not include detailed guidance or the full financial outlook.
Key takeaways
- In-force premium reached $1.55 billion, up 34% year over year; customer count grew 23% and premium per customer grew 9%.
- Revenue rose 73% to $336 million, while gross profit increased 48% to a record $118 million.
- Adjusted EBITDA loss was $20 million, which management said was in line with expectations. It reiterated expectations for positive adjusted EBITDA in Q4 2026 and for 2027 as a whole.
- The reported gross loss ratio was 65%, including about 2 points of favorable prior-period development; net prior-year development was $4 million favorable in Q3.
- Car in-force premium grew 63% year over year, and Lemonade Car was available in 14 states. Management said underwriting performance was broadly in line with expectations.
Q3 2025
Nov 6, 2025
Lemonade reported strong Q3 2025 results, achieving 30% growth in in-force premium to $1.16 billion and improving profitability metrics, paving the way towards expected EBITDA profitability in Q4 of next year.
Key takeaways
- Revenue rose 42% year-on-year, driven by a record addition of over 176,000 new customers.
- Gross margin improved significantly, reaching 40% with gross profit more than doubling to $18 million.
- The LAE ratio decreased to 7%, highlighting operational efficiency and the impact of AI on claim processing.
- The company achieved its lowest gross loss ratios ever, at 62% for Q3 and 67% on a trailing 12-month basis.