Digital insurance group Lemonade (LMND) reports Q1 earnings tomorrow – April 29 – with analysts expecting an increase in both earnings and revenues. But the stock is down around 8% so far this year given concerns over the company’s growth path, rising inflation fears and property market wobbles.
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Forget margin or options. Here's how the pros trade TSLAAccording to TipRanks’ Options Tool, options traders expect about a 14.66% move in either direction in LMND stock in reaction to its Q1 results.
What Wall Street Expects
Wall Street expects Lemonade to report a quarterly loss of $0.58 per share, which would represent a year-over-year increase of 32.6%. Revenues are expected to be $254.03 million, up 68% from the year-ago quarter.
Will Lemonade beat these expectations? As can be seen below, it has a strong track record of doing just that in recent quarters.
Key Issues Ahead of Earnings
In Q4, Lemonade reported that in‑force premium reached $1,240,000,000, up 31% year‑over‑year. This extended nine consecutive quarters of accelerating growth. Its revenues grew 53% year‑over‑year to $228,000,000.
The company added about 550,000 new customers in 2025, around 35% more than the prior year. It also highlighted diversified growth including pet and car lines. However, it still posted a net loss, with an increase in bad debt and interest expense.
Analysts will be looking at pressures on the financial sector, as a result of the Iran war, such as higher inflation and interest rate fears. The risk of an increase in bad debt will also be under the spotlight.
They will also likely want to learn more about how its insurance product for users of Tesla’s (TSLA) advanced driver assistance system – Full Self-Driving – is progressing. It has promised to cut per-mile rates by around 50%.
Indeed, Morgan Stanley led by Bob Huang recently upgraded the stock from Hold to Buy, with a price target of $85, up from $80. The upgrade was largely due to Lemonade’s early positioning in the emerging market for autonomous vehicle insurance. It sees it as a key advantage that could help the company build a strong foothold as self-driving technology becomes more widely adopted.
Is LMND a Good Stock to Buy Now?
On TipRanks, LMND has a Hold consensus based on 2 Buy, 4 Hold and 2 Sell ratings. Its highest price target is $85. LMND stock’s consensus price target is $54.40, implying a 17.07% downside.
