Lemonade (NYSE:LMND) Announces Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Lemonade (NYSE:LMND) posted its quarterly earnings results on Thursday. The company reported ($0.56) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.58) by $0.02, Zacks reports. The firm had revenue of $336.10 million for the quarter, compared to the consensus estimate of $322.74 million. Lemonade had a negative net margin of 14.19% and a negative return on equity of 26.78%. The business’s revenue was up 72.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.51) earnings per share.

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

• Growth accelerated: In Force Premium rose 34% to $1.55 billion, revenue grew 73% to $336 million, and gross profit reached a record $118 million. Management expects positive Adjusted EBITDA in Q4 2026 and reiterated its goal of full-year profitability in 2027.
• Car and geographic expansion are gaining momentum: Lemonade Car In Force Premium grew 63% year over year and is now available in 14 states; the company also made Renters available nationwide. Management said Car underwriting trends are healthy, while noting growth is not constrained by geographic reach.
• Cross-sales are becoming a larger growth driver: Year-to-date cross-sales exceeded $100 million and are growing at about twice the overall In Force Premium rate, with bundled premium nearing 20% of the total. Management said these sales benefit from both deeper penetration of existing customers and new product launches.
• Claims-cost pressure is weighing on results: Higher veterinary costs are pressuring Pet loss ratios and were the main reason full-year revenue guidance increased while Adjusted EBITDA guidance remained unchanged. Management expects rate increases to help moderate Pet losses over coming quarters; elevated catastrophe and large losses also lifted Europe’s quarterly loss ratio.
• Personal AI agents are a longer-term opportunity, not yet a volume driver: Management said it is not seeing meaningful business volume from personal agents yet, but plans to enable them to interact with Lemonade OS and believes its integrated, AI-native platform could provide an advantage.

Lemonade Stock Performance

Shares of NYSE LMND traded down $1.89 during mid-day trading on Friday, hitting $39.59. 1,683,682 shares of the stock were exchanged, compared to its average volume of 1,111,121. The company has a market cap of $3.06 billion, a P/E ratio of -21.06 and a beta of 1.98. The stock’s fifty day simple moving average is $46.66 and its two-hundred day simple moving average is $57.69. Lemonade has a twelve month low of $39.11 and a twelve month high of $99.90.

Wall Street Analysts Forecast Growth

LMND has been the topic of a number of analyst reports. Piper Sandler lowered their target price on shares of Lemonade from $51.00 to $47.00 and set a “neutral” rating on the stock in a research note on Friday. Morgan Stanley dropped their price target on shares of Lemonade from $56.00 to $48.00 and set an “equal weight” rating for the company in a research report on Tuesday, October 6th. Truist Financial cut their price target on shares of Lemonade from $70.00 to $60.00 and set a “buy” rating for the company in a research note on Friday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Lemonade in a report on Thursday, October 15th. Finally, Keefe, Bruyette & Woods upgraded Lemonade from an “underperform” rating to a “market perform” rating and set a $48.00 price objective on the stock in a research note on Thursday, July 30th. Four investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $61.12.

Insider Activity at Lemonade

In other news, insider Maya Prosor sold 1,040 shares of the firm’s stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $54.63, for a total value of $56,815.20. Following the completion of the sale, the insider directly owned 186,533 shares in the company, valued at approximately $10,190,297.79. This trade represents a 0.55% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider John Peters sold 11,000 shares of the company’s stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $52.55, for a total transaction of $578,050.00. Following the transaction, the insider owned 76,942 shares in the company, valued at approximately $4,043,302.10. This trade represents a 12.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 15,148 shares of company stock worth $804,250 over the last three months. 12.20% of the stock is owned by company insiders.

Lemonade News Roundup

Here are the key news stories impacting Lemonade this week:

• Positive Sentiment: Q3 revenue rose 72.8% year over year to $336.1 million, above the $322.7 million consensus estimate. The $0.56-per-share loss was slightly narrower than analysts expected, and Q4 revenue guidance of $342 million to $346 million edged above estimates. Lemonade Q3 results
• Neutral Sentiment: Truist cut its price target to $60 from $70 but kept a Buy rating; Citizens JMP lowered its target to $75 from $80 and maintained Market Outperform. Piper Sandler reduced its target to $47 from $51 and retained a Neutral rating. The target cuts temper the analyst outlook, while the ratings remain mixed but generally supportive. Truist rating
• Negative Sentiment: The loss widened from $0.51 per share a year earlier, and coverage flagged rising expenses as a potential headwind to Lemonade’s AI-driven growth. The post-earnings decline suggests investors focused on profitability concerns despite the revenue and EPS beats. Q3 expense headwinds analysis

About Lemonade

Lemonade, Inc is a technology-driven insurance company that offers insurance products through digital platforms, including its mobile application and website. The company uses artificial intelligence, automation and data analytics to support policy purchasing, customer service and claims processing.

Lemonade’s product offerings include renters, homeowners, car, pet and term life insurance. Coverage and product availability vary by jurisdiction, and some policies are provided through regulated insurance subsidiaries or underwritten in partnership with other insurers.

Founded in 2015 by Daniel Schreiber and Shai Wininger, Lemonade serves customers in the United States and selected European markets, including Germany, the Netherlands, France and the United Kingdom.