| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 294.40 | 14.1% | 79.4% |
| Total Income | 294.40 | 14.1% | 79.4% |
| Expenditure | 336.20 | 14.9% | 62.6% |
| PBT | -41.80 | 20.8% | 1.9% |
| Net Profit | -43.40 | 21.2% | 1.1% |
| OPM | — | ||
| NPM | -14.74% | 0.87pp | 12.01pp |
| EPS | -0.56 | 19.1% | 6.7% |
Lemonade Reports Q2 2026 Results: In Force Premium Grows 32% to $1.43 Billion
29 Jul 2026 · 29 Jul, 3:37 pm
Summary
Lemonade, Inc. announced strong second quarter 2026 results, characterized by robust topline growth and improved underwriting performance. In Force Premium (IFP) surged 32.4% year-over-year to $1.43 billion, with revenue climbing 79% to $294 million. Gross Profit saw a significant 76% increase to $113 million. The company's Adjusted EBITDA loss narrowed by 54% to ($19) million, and management reiterated its expectation to reach Adjusted EBITDA positivity in Q4 2026. The LAE ratio reached a new low of 5%, highlighting operational efficiency gains.
Key Highlights
- 1
In Force Premium (IFP) grew by 32.4% year-over-year to $1.43 billion, marking the 11th consecutive quarter of acceleration.
- 2
Revenue increased by 79% year-over-year to $294 million, driven by the reinsurance transition and higher premium retention.
- 3
Gross Profit increased by 76% year-over-year to a record $113 million, with TTM gross profit up 98% to $404 million.
- 4
Adjusted EBITDA loss improved by 54% year-over-year to ($19) million.
- 5
Net loss for the quarter was ($43) million, in line with the prior year, though the prior year included a $12 million favorable tax refund.
- 6
The Loss Adjustment Expense (LAE) ratio declined to a record low of 5%, significantly below the industry average of approximately 9%.
- 7
The company expects to achieve its first Adjusted EBITDA positive quarter in Q4 2026.
Management Comments
Tim Bixby
Our second quarter results were excellent, once again characterized by robust topline growth and healthy underwriting performance. We steadily progress towards our first Adj. EBITDA positive quarter, which we continue to expect in Q4 2026. Top Line: At $1.43 billion, In Force Premium grew 32.4%, our 11th consecutive quarter of acceleration. Revenue grew faster still, by 79% to $294 million, reflecting the impact of our reinsurance transition and higher premium retention. Gross Profit: increased 76% YoY to a record $113 million, while TTM gross profit increased 98% to $404 million. Sustained notable gross profit growth reflects the combined impact of premium growth acceleration and steadily expanding gross margins over time. Bottom Line: Adj. EBITDA loss of ($19) million improved 54% year over year. Net loss was ($43) million, in line with the prior year. Note that the prior year net loss result includes $12 million favorable impact of a one-time ERC tax refund.
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