Lemonade (NYSE:LMND) Releases Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Lemonade (NYSE:LMND) posted its quarterly earnings results on Thursday. The company reported ($0.29) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.41) by $0.12, FiscalAI reports. The company had revenue of $228.10 million for the quarter, compared to analyst estimates of $218.07 million. Lemonade had a negative net margin of 22.43% and a negative return on equity of 31.25%. The company’s quarterly revenue was up 53.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.42) earnings per share.

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

• Company reported strong operating momentum with in‑force premium of $1.24 billion (+31% YoY), revenue +53%, gross profit +73% to $111 million, adjusted EBITDA loss narrowed to $5 million and adjusted free cash flow of $37 million, and management reiterated EBITDA profitability in Q4 2026 and full‑year 2027.
• Launched Lemonade Autonomous Car (initially for Teslas) using telematics that price by mode (park/human/AI); the company says Tesla FSD miles are >50% safer and are currently priced at about 50% of human‑driven miles, which could lower rates and customer acquisition costs over time.
• Growth spend ramped materially (Q4 growth spend $53 million, +48% YoY; plan for ~$225 million in growth spend for the year) while marketing efficiency stayed strong with an LTV:CAC above 3x, signaling management will continue to trade near‑term investment for faster top‑line expansion.
• Management is investing heavily in AI, a “pricing machine,” cross‑sell platform, and a local platform, arguing Lemonade’s decade of proprietary data and AI‑first culture provide a durable competitive edge versus legacy incumbents.
• Balance sheet and capital positioning appear supportive of growth with roughly $1.1 billion in cash and investments (about $250 million held as regulatory surplus) and a capital‑light reinsurance/captive structure that management says can support ambitious expansion.

Lemonade Stock Down 7.2%

Shares of LMND stock opened at $57.23 on Friday. The firm has a market cap of $4.28 billion, a P/E ratio of -25.32 and a beta of 2.03. The business has a 50-day moving average price of $77.49 and a two-hundred day moving average price of $66.22. Lemonade has a 12-month low of $24.31 and a 12-month high of $99.90.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on LMND shares. Piper Sandler set a $65.00 target price on Lemonade in a research report on Thursday. Cantor Fitzgerald increased their price objective on Lemonade from $85.00 to $92.00 and gave the stock an “overweight” rating in a report on Wednesday, January 14th. Morgan Stanley set a $85.00 price target on Lemonade and gave the company an “equal weight” rating in a research report on Tuesday, December 16th. Citizens Jmp set a $80.00 price target on shares of Lemonade in a report on Monday, November 24th. Finally, Keefe, Bruyette & Woods boosted their price objective on shares of Lemonade from $35.00 to $40.00 and gave the company an “underperform” rating in a research note on Tuesday, November 25th. Four analysts have rated the stock with a Buy rating, two have given a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $71.71.

Insider Buying and Selling at Lemonade

In other news, COO Adina Eckstein sold 41,557 shares of Lemonade stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $78.95, for a total value of $3,280,925.15. Following the transaction, the chief operating officer owned 204,229 shares in the company, valued at approximately $16,123,879.55. The trade was a 16.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Daniel A. Schreiber sold 126,625 shares of Lemonade stock in a transaction that occurred on Thursday, January 22nd. The stock was sold at an average price of $94.74, for a total value of $11,996,452.50. Following the completion of the transaction, the chief executive officer directly owned 1,523,534 shares in the company, valued at $144,339,611.16. This trade represents a 7.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 250,540 shares of company stock valued at $22,007,574 over the last ninety days. Insiders own 14.70% of the company’s stock.

Institutional Trading of Lemonade

A number of institutional investors have recently made changes to their positions in LMND. AQR Capital Management LLC boosted its position in Lemonade by 0.7% during the 4th quarter. AQR Capital Management LLC now owns 21,569 shares of the company’s stock valued at $1,535,000 after buying an additional 159 shares during the period. The Manufacturers Life Insurance Company increased its position in shares of Lemonade by 0.8% in the fourth quarter. The Manufacturers Life Insurance Company now owns 32,431 shares of the company’s stock valued at $2,308,000 after acquiring an additional 259 shares during the period. Caitong International Asset Management Co. Ltd raised its stake in shares of Lemonade by 8,080.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 409 shares of the company’s stock valued at $29,000 after acquiring an additional 404 shares during the last quarter. PNC Financial Services Group Inc. boosted its holdings in shares of Lemonade by 58.4% during the fourth quarter. PNC Financial Services Group Inc. now owns 1,182 shares of the company’s stock worth $84,000 after purchasing an additional 436 shares during the period. Finally, Xponance LLC boosted its holdings in shares of Lemonade by 10.4% during the fourth quarter. Xponance LLC now owns 4,811 shares of the company’s stock worth $342,000 after purchasing an additional 452 shares during the period. Hedge funds and other institutional investors own 80.30% of the company’s stock.

Key Stories Impacting Lemonade

Here are the key news stories impacting Lemonade this week:

• Positive Sentiment: Q4 beat and strong top-line: Lemonade reported a clearer-than-expected beat on both EPS (loss narrower than expected) and revenue, with FY‑2026 revenue guidance raised above consensus — evidence the growth story is intact. Lemonade Announces Fourth Quarter and Full-Year 2025 Financial Results
• Positive Sentiment: Margin improvement and cash generation: Management highlighted wider gross margins, free cash flow turning positive ($37M) and a moved-up timeline to adjusted‑EBITDA positivity and profitability — a major de‑risk for growth investors. Lemonade’s Sweet Results Refresh Market Appetite: Rebound Ahead
• Positive Sentiment: Bullish flow and investor interest: Heavy pre/post-earnings call option activity (large call purchases) and premarket buying signaled speculative bullishness and helped fuel the earlier jump. Lemonade (LMND) Stock Jumps 17% After Q4 Earnings Beat
• Neutral Sentiment: Analyst/valuation re-check: Coverage notes the upside from results but many houses remain cautious or neutral; MarketBeat shows a mixed analyst consensus and a ~$70 blended target — supportive but not runaway bullish. Lemonade (LMND) Valuation Check After Encouraging Q4 Results And Outlook
• Neutral Sentiment: Product & AI roadmap: Coverage highlights accelerating growth levers (Pet, Car, Europe) and ongoing AI investment (including autonomous car insurance experiments) — long‑term positives that may take quarters to fully monetize. LMND Q4 Deep Dive: Accelerating Growth, Autonomous Car Insurance, and AI Investment Shape 2026 Outlook
• Negative Sentiment: Near-term underwriting headwinds: ADR dipped modestly due to non-renewals of poorly performing policies — improves portfolio quality but can pressure near-term retention/premium metrics. Lemonade’s Sweet Results Refresh Market Appetite: Rebound Ahead
• Negative Sentiment: High short interest and volatility risk: Short interest remains elevated (~18%) and institutional trading has been heavy, so price swings and pullbacks (profit‑taking) are likely until further confirmatory quarters or analyst upgrades. Lemonade’s Sweet Results Refresh Market Appetite: Rebound Ahead

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.