| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 336.10 | 14.2% | 72.8% |
| Total Income | 336.10 | 14.2% | 72.8% |
| Expenditure | 379.30 | 12.8% | 64.3% |
| PBT | -43.20 | 3.4% | 19.0% |
| Net Profit | -43.70 | 0.7% | 16.5% |
| OPM | — | ||
| NPM | -13.00% | 1.74pp | 6.28pp |
| EPS | -0.56 | 0.0% | 9.8% |
Lemonade Reports Q3 2026 Results: In Force Premium Up 34%, Revenue Up 73%
05 Nov 2026 · 4h ago
Summary
Lemonade, Inc. announced strong third-quarter results for 2026, characterized by accelerating topline growth and healthy underwriting performance. In Force Premium grew 34% year-over-year to $1.55 billion, while revenue surged by 73% to $336 million. Gross Profit also saw a substantial increase of 48% to $118 million. The company reported a net loss of ($43.7) million and an Adjusted EBITDA loss of ($20.4) million, which were in line with expectations. Management reiterated their expectation of achieving positive Adjusted EBITDA in Q4 2026 and highlighted the company's resilience and predictability in its business model amidst macroeconomic volatility.
Key Highlights
- 1
In Force Premium reached $1.55 billion, marking the 12th consecutive quarter of acceleration with a 34% year-over-year increase.
- 2
Revenue grew significantly by 73% year-over-year to $336 million.
- 3
Gross Profit increased by 48% year-over-year to a record $118 million.
- 4
Net loss for the quarter was ($43.7) million, with an Adjusted EBITDA loss of ($20.4) million, in line with expectations.
- 5
Adjusted Free Cash Flow improved year-over-year to $27 million, up $9 million.
- 6
The company reiterated its expectation of generating positive Adjusted EBITDA for the first time in Q4 2026.
- 7
Geographic expansion accelerated in 2026, with 25 new product-geography combinations launched, powered by Lemonade OS.
Management Comments
Tim Bixby
Our third quarter results were excellent, once again characterized by accelerating topline growth and healthy underwriting performance. We reiterate our expectation of generating positive Adjusted EBITDA for the first time in Q4 2026, an expectation we first outlined for investors in 2022. Since that time, amid considerable macroeconomic volatility and uncertainty, we have consistently delivered against our financial ambitions, accelerating growth beyond prior expectations while remaining firmly on track with our profitability commitments. This track record underscores the predictability and resilience of our business model, reinforcing our confidence in our ability to sustain industry-leading growth while expanding profitability in the years ahead.
Informational and educational content only. Not investment advice.