Lemonade (NYSE:LMND) Announces Earnings Results

Lemonade (NYSE:LMND) released its earnings results on Thursday. The company reported ($0.56) EPS for the quarter, topping analysts’ consensus estimates of ($0.58) by $0.02, Zacks reports. The firm had revenue of $336.10 million during the quarter, compared to analyst estimates 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 quarterly revenue was up 72.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.51) EPS.

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 Down 4.6%

Lemonade stock traded down $1.89 during mid-day trading on Friday, hitting $39.59. 1,683,682 shares of the company’s stock were exchanged, compared to its average volume of 1,111,121. The company’s 50 day simple moving average is $46.66 and its 200-day simple moving average is $57.69. The firm has a market capitalization of $3.06 billion, a P/E ratio of -21.06 and a beta of 1.98. Lemonade has a fifty-two week low of $39.11 and a fifty-two week high of $99.90.

Analysts Set New Price Targets

A number of brokerages recently commented on LMND. Citizens Jmp decreased their price objective on Lemonade from $80.00 to $75.00 and set a “market outperform” rating for the company in a research note on Friday. Wall Street Zen lowered Lemonade from a “hold” rating to a “sell” rating in a research note on Saturday. Keefe, Bruyette & Woods upgraded Lemonade from an “underperform” rating to a “market perform” rating and set a $48.00 target price on the stock in a report on Thursday, July 30th. Morgan Stanley reduced their target price on Lemonade from $56.00 to $48.00 and set an “equal weight” rating on the stock in a report on Tuesday, October 6th. Finally, Piper Sandler decreased their target price on Lemonade from $51.00 to $47.00 and set a “neutral” rating for the company in a research report on Friday. Four equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Lemonade presently has an average rating of “Hold” and a consensus target price of $61.12.

Insider Transactions at Lemonade

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

Lemonade News Summary

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

Lemonade Company Profile

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.