Quarterly ResultJul 29, 2026, 06:07 AM
Lemonade Q2 Revenue +79% to $294M; IFP +32%; Adj. EBITDA Loss ($19M)
AI Summary
Lemonade, Inc. reported excellent second quarter 2026 results, with revenue surging 79% to $294 million and In Force Premium (IFP) growing 32.4% to $1.43 billion. The company significantly improved its profitability metrics, with Gross Profit increasing 76% to $113 million and Adjusted EBITDA loss narrowing by 54% to ($19) million. Efficiency gains were notable, with the LAE ratio reaching a record low of 5%. Strategic updates include a new reinsurance program reducing the quota share cession rate and an extended synthetic agents program providing $250 million in capital at a reduced cost. Lemonade reiterated its expectation for positive Adjusted EBITDA in Q4 2026.
Key Highlights
- Q2 Revenue increased 79% year-over-year to $294 million.
- In Force Premium (IFP) grew 32.4% to $1.43 billion.
- Gross Profit rose 76% year-over-year to $113 million.
- Adjusted EBITDA loss improved 54% year-over-year to ($19) million.
- LAE ratio (cost of handling claims) declined to a record low 5%.
- New reinsurance program reduces effective quota share cession rate from ~20% to ~18%.
- Extended synthetic agents program provides up to $250 million capital at a ~9.8% cost of capital.
- Company expects positive Adjusted EBITDA of approximately $8 million in Q4 2026.
Price Impact
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