📈 Price History

Ratio Health

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By Category

📊 Sector Averages

About

Lemonade, Inc. provides various insurance products in the United States, Europe, and the United Kingdom. The company provides renters and homeowners, building, car, pet, and life insurance products, as well as landlord insurance products. It also offers insurance for stolen or damaged property, and personal liability that protects its customers if they are responsible for an accident or damage to another person or their property. In addition, it operates as an agent for other insurance companies. The company was formerly known as Lemonade Group, Inc. Lemonade, Inc. was incorporated in 2015 and is headquartered in New York, New York.

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

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📊 Quick Scorecard

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🔍 Concall Decoded

🎙 Management Tone Tracker Confident Specific → Stable 4 quarters analysed

Q2 2025

Confident Specific

The tone is overwhelmingly positive and data-rich, with phrases like 'excellent', 'pleasure to report', 'best results ever', and 'strong Adjusted Free Cash Flow generation of $25 million, more than a tenfold increase'. Management repeatedly cites specific metric improvements (29% IFP growth, 67% Gross Loss Ratio, 12-point improvement) without hedging.

Q3 2025

Confident Specific

Management uses strong language ('another very strong quarter', 'record low loss ratios', 'extraordinary', 'hallmark of an AI first company') and provides concrete numbers (30% IFP growth, 62% loss ratio, gross profit doubled) to support claims. They proactively reframe metrics (gross profit over loss ratio) to guide investor interpretation.

Q4 2025

Confident Specific

Management used phrases like 'strongest quarter ever', 'excellent financial execution', 'on the brink of break-even', and provided specific metrics (31% IFP growth, 53% revenue growth, 73% gross profit growth) with clear forward guidance for EBITDA profitability.

Q1 2026 latest

Confident Specific

Management consistently uses strong positive language such as 'excellent quarter', 'continued acceleration', 'strong underwriting performance', and provides specific figures like 32% IFP growth, 159% gross profit growth, and explicit guidance for EBITDA positivity in Q4 2026.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis appears stronger after this call. Management demonstrated accelerating growth (32% IFP), improving profitability (gross profit +159%, EBITDA loss narrowing), and tangible operating leverage from AI (IFP/employee >$1M, LAE ratio 6%). Notably, cash flow from operations turned positive and free cash flow was positive for the fourth consecutive quarter. The reiterated guidance for EBITDA-positive Q4 2026 provides a clear near-term catalyst. Key watch items for next quarter: growth spend step-up of ~12% in Q2 (to ~$235M full year), progress on reinsurance renewal (potential higher retention), and continued acceleration in car and pet IFP. The autonomous vehicle initiative, though early, positions the company for a structural advantage. Risks include competitive pressures, CAT exposure, and execution on scaling multiple products simultaneously. Overall, the path to profitability is becoming clearer and the growth narrative remains intact.

AI-generated concall tone analysis · Updated 2026-06-08 · Not investment advice

🎙 Management Tone Confident Specific → Stable 4 quarters Full tone analysis in Intelligence →

📊 MIXED Lemonade Q1 2026: IFP $1.33B (+32%), revenue up 71%, EBITDA loss narrows 64%.

Revenue & Profitability

Revenue was $258 million, up 71% year-over-year. Net loss was $36 million ($0.47 per share), compared to a loss of $62 million ($0.86 per share) in the prior year. Adjusted EBITDA loss improved to $17 million from $47 million. Gross profit surged 159% to $100 million. Adjusted free cash flow was positive $17 million, the fourth consecutive quarter of positive adjusted free cash flow. IFP growth was 32%, customer growth 23%, and premium per customer grew 7%.

Outlook

Management highlighted an 'unlimited TAM' and expressed confidence in continued growth acceleration, expecting Q4 2026 to be an EBITDA-positive full quarter and full year 2027 to be EBITDA positive. They see tailwinds from growing cross-sell adoption, expanding car insurance, and the emerging autonomous vehicle market. No specific macro headwinds were cited.

Growth Drivers

Key growth levers include pet insurance (largest line, $500M IFP), car insurance (growing 60% year-over-year, from 9% a year ago), and cross-sells (near doubling year-over-year). Diversified distribution channels (direct, partners like Chewy, Homesite) and expanding autonomous vehicle insurance drive new customer acquisition. For 2026, full-year growth spend is expected at $235 million, with Q2 growth spend stepping up 12% versus Q1.

Balance Sheet & CapEx

Not discussed in this earnings call.

Margins

Gross margin (adjusted) was 39% in Q1, up from 20% of GEP a year ago. The loss ratio (gross) was 62%, including 5% catastrophe impact, while the LAE ratio was 6%, considered best-in-class. Operating expenses excluding loss and LAE grew 25% versus IFP growth of 32%, demonstrating operating leverage. Headcount increased only 2% year-over-year. Stock-based compensation guidance was raised to $95 million for the full year 2026.

Key Risks

Key risks included the impact of the 'clean the book' non-renewal initiative in homeowners, which temporarily depressed annual dollar retention (85%, flat sequentially), and catastrophe exposure (5% CAT impact in Q1 from winter storms). The reinsurance renewal in July could affect premium retention and margins. Stock-based compensation increased due to multi-year founder grants. No other macroeconomic or competitive risks were explicitly flagged.

Generated by AI · Q1 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q2 2026 Q2 2026 2026-07-29

Q2 2026 saw accelerating growth with IFP up 32.5% and revenue up 79% year-over-year, while gross profit rose 76% and adjusted EBITDA loss improved 54%. Technology-driven efficiency led to a record 5% LAE ratio, and guidance was raised for gross earned premium and revenue.

Q1 2026 Q1 2026 2026-04-29

In-force premium grew 32% year-over-year to $1.33B, with revenue up 71% and gross profit up 159%. Pet insurance became the largest segment, and car insurance sales surged, while adjusted EBITDA loss narrowed 64%. Full-year guidance was raised, with positive EBITDA expected in Q4.

Q4 2025 Q4 2025 2026-02-19

Q4 saw record growth with in-force premium up 31% and revenue up 53% year-over-year, while adjusted EBITDA loss narrowed to $5 million. Autonomous Car insurance launched, and guidance calls for continued 30%+ growth and EBITDA profitability by 2027.

Q3 2025 Q3 2025 2025-11-05

In force premium and revenue grew 30% and 42% year-over-year, respectively, with gross profit more than doubling and loss ratios at record lows. Car and European segments led growth, while AI-driven efficiency and positive cash flow support raised guidance and continued profitability improvements.

Q2 2025 Q2 2025 2025-08-05

Q2 saw 29% IFP growth, a 12-point drop in Gross Loss Ratio, and over 100% gross profit growth. Car and European segments outperformed, while a reinsurance shift will boost revenue retention. Full-year guidance and positive EBITDA timeline remain unchanged.

📊 Analysis Methodology

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