Lemonade (LMND)
NYSE:LMND
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Earnings Data
Report Date
Aug 05, 2026TBA (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
-0.55Last Year’s EPS
-0.6Same Quarter Last Year
Based on 9 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong and accelerating top-line growth (IFP +32% YoY, revenue +71% YoY), substantial expansion in gross profit (+159%) and improving profitability measures (adjusted EBITDA loss narrowed 64% and adjusted free cash flow positive). Management highlighted sustainable unit economics (LTV:CAC >3), operational leverage from AI-driven automation (IFP per employee >$1M, LAE ~6%), and material progress in key product lines (Pet IFP $500M). Key challenges remain: a relatively high gross loss/combined ratio (~138% combined per analyst), rising operating expenses and stock-based comp, ADR pressure from prior book clean-up, and remaining GAAP net losses. Given the pronounced improvements in growth, margins, cash flow, and explicit targets toward breakeven (positive EBITDA quarter expected in Q4), the positive developments materially outweigh the lingering lowlights.Company Guidance
Strong In-Force Premium Growth
In-force premium (IFP) reached $1.33 billion, up 32% year-over-year, extending an accelerating growth streak to 10 consecutive quarters.
Revenue Upsurge
Revenue grew 71% year-over-year to $258 million, outpacing IFP growth by roughly 40 percentage points due in part to a reinsurance transition and higher premium retention.
Large Gross Profit and Margin Expansion
Gross profit increased 159% to $100 million and adjusted gross profit rose 119% to $101 million. Both gross margin and adjusted gross margin were 39% (using revenue as the denominator).
Improved Unit Economics (Adjusted Gross Profit as % of GEP)
Adjusted gross profit as a percentage of gross earned premium was 33% in Q1, up 13 percentage points from 20% in the prior year period.
Progress Toward Profitability (Adjusted EBITDA & Net Loss)
Adjusted EBITDA loss narrowed 64% year-over-year to a loss of $17 million (from an EBITDA loss of $47 million in the prior year). Net loss improved to $36 million (−$0.47 per share) vs. $62 million (−$0.86) a year ago. Management reiterated expectation of a full quarter of positive EBITDA in Q4 and full-year EBITDA positive in 2027.
Positive Adjusted Free Cash Flow and Liquidity
Adjusted free cash flow was $17 million in Q1 (a $48 million improvement year-over-year), marking the fourth consecutive quarter of positive adjusted free cash flow and 7 of the last 8 quarters positive. Cash and investments totaled roughly $1.1 billion, with about $290 million required as regulatory surplus.
Customer & Sales Momentum
Customer count grew 23% year-over-year; added 158,000 new customers in Q1 (37% more than ~115,000 in the prior year). Highest-ever new sales volume in Q1 and near-doubling year-over-year of cross-sells to existing customers.
Pet Insurance Milestone & Cross-Sell Advantage
Pet insurance (PE) became the company's largest line and reached $500 million of IFP (first product to reach this). Company cited a strong cross-sell pipeline with over 3 million customers available for low/no-CAC sales, and stated that '85 million of current pet IFP was sourced from our existing customer base.'
Marketing Efficiency and LTV:CAC
Despite growing gross marketing spend ~200% since Q1 2023 (and gross spend of $54 million in Q1, +43% YoY), the company maintained an LTV to CAC ratio above 3x and plans total gross spend of ~ $235 million for 2026 while preserving marketing efficiency.
Operational Leverage and Automation Benefits
IFP per employee surpassed $1 million (nearly 3x improvement over the past 4 years), driven by AI and automation. Loss adjustment expense (LAE) ratio was ~6%, described as best-in-class and reflecting lower claims adjudication costs through automation.
Reinsurance Retention Driving Revenue Mix
A reinsurance transition increased premium retention and revenue growth. Q1 retention rate seeded around 30% (down from a peak of 55% last year); management expects ceding rate to move to ~25% in Q2 and normalize around ~20% in Q3 (phasing in over 4 quarters).
Raised Guidance
Management raised full-year top- and bottom-line guidance: guidance implies ~32% top-line growth in Q2 and ~33% full-year top-line growth. The guidance implies approximately 77% revenue growth for Q2 and ~63% revenue growth for the full year (per company disclosure).
LMND Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
LMND Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 29, 2026 | $65.77 | $56.00 | -14.85% |
Feb 19, 2026 | $65.73 | $61.67 | -6.18% |
Nov 05, 2025 | $58.66 | $78.73 | +34.21% |
Aug 05, 2025 | $37.00 | $47.93 | +29.54% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Lemonade (LMND) report earnings?
Lemonade (LMND) is schdueled to report earning on Aug 05, 2026, TBA (Confirmed).
What is Lemonade (LMND) earnings time?
Lemonade (LMND) earnings time is at Aug 05, 2026, TBA (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is LMND EPS forecast?
LMND EPS forecast for the fiscal quarter 2026 (Q2) is -0.55.
