Lemonade (NYSE:LMND) Posts Quarterly Earnings Results, Meets Expectations

Lemonade (NYSE:LMND) announced its earnings results on Wednesday. The company reported ($0.56) earnings per share for the quarter, meeting the consensus estimate of ($0.56), FiscalAI reports. The company had revenue of $294.40 million for the quarter, compared to the consensus estimate of $291.01 million. Lemonade had a negative return on equity of 26.48% and a negative net margin of 14.19%.The company’s revenue was up 79.4% on a year-over-year basis. During the same period last year, the business posted ($0.60) EPS.

Here are the key takeaways from Lemonade’s conference call:

• Growth and profitability continued to improve: In-force premium rose 32.5% year over year to $1.43 billion, revenue increased 79% to $294 million, and adjusted EBITDA loss narrowed 54% to $19 million. Management reiterated its expectation for positive adjusted EBITDA in Q4 2026 and for the full year 2027.
• Lemonade reported record claims-handling efficiency, with its loss-adjustment-expense ratio falling to 5% versus an estimated industry average of about 9%. Management said continued AI automation should support profitability, pricing flexibility, and operating leverage.
• The company expanded its footprint with 14 new state-product combinations in the past 100 days, including renters expansion and autonomous-car launches in Colorado and Indiana. Management expects car insurance to reach a majority of U.S. drivers by the end of 2027.
• Reinsurance and growth financing improved: the renewed reinsurance program modestly increases retained premiums while adding stronger catastrophe and named-storm protection, and the synthetic-agents extension provides $250 million of 2027–2028 growth financing at roughly a 9.8% cost.
• Pet insurance loss ratios rose modestly because of industry-wide veterinary-cost inflation, although Lemonade is taking rate increases to offset the pressure. Annual dollar retention remained at 85%, still affected by prior homeowners “clean the book” actions.

Lemonade Stock Performance

Shares of NYSE:LMND traded up $0.57 during trading on Friday, hitting $49.14. 1,141,000 shares of the stock were exchanged, compared to its average volume of 2,030,732. Lemonade has a 1-year low of $35.70 and a 1-year high of $99.90. The company’s fifty day simple moving average is $61.24 and its 200-day simple moving average is $63.65. The company has a market capitalization of $3.77 billion, a price-to-earnings ratio of -26.84 and a beta of 1.79.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on LMND. UBS Group set a $75.00 price objective on Lemonade in a research report on Thursday, May 21st. Weiss Ratings reiterated a “sell (d-)” rating on shares of Lemonade in a report on Friday, July 17th. Truist Financial lowered their target price on shares of Lemonade from $98.00 to $70.00 and set a “buy” rating on the stock in a research note on Wednesday, April 29th. Citizens Jmp decreased their target price on Lemonade from $85.00 to $80.00 and set a “market outperform” rating on the stock in a report on Thursday, April 30th. Finally, TD Cowen reaffirmed a “hold” rating on shares of Lemonade in a research note on Monday, June 8th. Four investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $64.11.

Insiders Place Their Bets

In other news, insider John Sheldon Peters sold 3,608 shares of the stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $52.94, for a total transaction of $191,007.52. Following the completion of the sale, the insider owned 81,386 shares of the company’s stock, valued at $4,308,574.84. This represents a 4.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Maya Prosor sold 1,220 shares of the firm’s stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $53.17, for a total value of $64,867.40. Following the completion of the transaction, the insider owned 187,573 shares in the company, valued at $9,973,256.41. The trade was a 0.65% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 10,007 shares of company stock worth $620,201. Insiders own 12.20% of the company’s stock.

Institutional Investors Weigh In On Lemonade

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD raised its position in shares of Lemonade by 186.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 1,484,175 shares of the company’s stock worth $105,644,000 after purchasing an additional 965,321 shares during the period. Bank of America Corp DE boosted its holdings in Lemonade by 28.1% during the second quarter. Bank of America Corp DE now owns 993,669 shares of the company’s stock worth $43,533,000 after purchasing an additional 217,913 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in Lemonade by 50.6% during the fourth quarter. Goldman Sachs Group Inc. now owns 866,476 shares of the company’s stock worth $61,676,000 after acquiring an additional 291,122 shares during the period. Two Sigma Investments LP increased its position in shares of Lemonade by 45.0% during the 3rd quarter. Two Sigma Investments LP now owns 813,062 shares of the company’s stock valued at $43,523,000 after purchasing an additional 252,298 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its position in shares of Lemonade by 2.6% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 522,257 shares of the company’s stock valued at $37,174,000 after buying an additional 13,114 shares during the last quarter. 80.30% of the stock is owned by institutional investors.

About Lemonade

Lemonade, Inc (NYSE: LMND) is a New York–based technology-driven insurance carrier that leverages artificial intelligence and behavioral economics to streamline the purchase and management of policies. Founded in 2015, the company offers renters, homeowners, pet, term life and car insurance products tailored for digitally savvy consumers. By automating underwriting and claims processing through chatbots and machine learning, Lemonade aims to deliver a more transparent and user-friendly experience than traditional insurers.

The company’s product suite includes standalone policies for renters and homeowners, customizable pet insurance plans, and term life coverage with simple online applications.