Lemonade, Inc. Q1 FY26 Results

Summary

Lemonade reported an excellent first quarter for 2026, characterized by accelerated topline growth and significant improvements in profitability metrics. In Force Premium expanded by 32% year-over-year to $1.33 billion, while revenue saw a substantial 71% increase to $258.0 million. Gross Profit surged by 159% to $100.1 million, and the Adjusted EBITDA loss narrowed considerably by 64% to ($17.1) million. Management expressed confidence in achieving an Adjusted EBITDA positive quarter by Q4 2026, with improved full-year 2026 guidance reflecting an expected 33% IFP growth.

Key Highlights

1. 1

   Lemonade's In Force Premium (IFP) continued its growth acceleration streak, increasing by 32% year-over-year to $1.33 billion in Q1 2026.

2. 2

   Revenue for the first quarter surged by 71% year-over-year to $258.0 million, primarily reflecting the impact of a recent reinsurance transition and higher premium retention.

3. 3

   Gross Profit significantly improved by 159% year-over-year, reaching $100.1 million in Q1 2026, driven by revenue growth and improved net loss ratio.

4. 4

   The Adjusted EBITDA loss narrowed by 64% year-over-year to ($17.1) million, demonstrating strong operating leverage and progress towards profitability.

5. 5

   Net Loss for the quarter improved by 43% year-over-year to ($35.8) million, or ($0.47) per share.

6. 6

   Adjusted Free Cash Flow turned positive at $17.4 million, representing a substantial $48.4 million improvement compared to the prior year's first quarter.

7. 7

   The Pet line of business surpassed $500 million in In Force Premium early in Q2 2026, becoming the company's largest product and the #1 most searched pet insurance brand in the U.S.

8. 8

   Lemonade Car demonstrated strong momentum with In Force Premium growing 60% year-over-year, its fastest growth rate to date, and the autonomous Car product showing ~70% higher new customer conversion rates.