Lemonade, Inc. provides various insurance products in the United States, Europe, Louisiana, and the United Kingdom. The company provides renters and homeowners, building, car, pet, and life insurance products, as well as landlord insurance products. It also offers insurance for stolen or damaged property, and personal liability that protects its customers if they are responsible for an accident or damage to another person or their property. In addition, it operates as an agent for other insurance companies. The company was formerly known as Lemonade Group, Inc. Lemonade, Inc. was incorporated in 2015 and is headquartered in New York, New York.
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Lemonade Targets First-Ever Positive Adjusted EBITDA in Q4 2026
Lemonade said it expects to post its first-ever quarter of positive adjusted EBITDA in the fourth quarter of 2026, projecting about $8 million. The company narrowed its second-quarter adjusted EBITDA loss to $19 million from $41 million a year earlier, and guided to a $20 million to $23 million loss in the third quarter before turning positive in Q4. Revenue jumped 79% to $294 million in Q2, while in-force premiums rose 32.4% to $1.4 billion, marking the 11th straight quarterly increase. Lemonade also reported its best-ever loss adjustment expense ratio of 5%, roughly half the 9% industry average, which it attributed to its AI-driven claims processing. For the full year, the company projects revenue of about $1.2 billion, up 63% from $738 million in 2025, and a net loss of $47 million to $51 million, with positive adjusted EBITDA expected for all of 2027.
Lemonade Inc. posted second-quarter 2026 results with revenue of $294.4 million, up 79% year over year and beating the Zacks Consensus Estimate, while the bottom line matched expectations. In-force premium grew 32% to $1.43 billion, and the net loss ratio improved 800 basis points to 61%. Adjusted EBITDA loss narrowed to $18.7 million from $40.9 million a year earlier, and the company guided for third-quarter revenue of $323 to $326 million and full-year 2026 revenue of $1.214 to $1.220 billion. Despite the improving fundamentals, the stock trades at a price-to-book multiple of 7.87, well above the industry average of 3.03, and analyst estimates for 2026 and 2027 earnings have edged lower in the past week. Zacks Investment Research rates Lemonade a Hold, citing its premium valuation and muted analyst sentiment even as the company targets adjusted EBITDA profitability by the fourth quarter of 2026.
Lemonade Targets $10 Billion In-Force Premium by 2034, Sees Potential 10X Stock Return
Lemonade outlined a 10-year plan to grow its in-force premium to $10 billion by 2034, a target that could translate to a tenfold return for shareholders. The AI-driven insurer reported a record 3.3 million policyholders as of June 30, up 23% year over year, with in-force premium reaching $1.4 billion, a 32% increase. Second-quarter revenue soared 79% to $294.4 million, driven by a record-low gross loss ratio of 60% and a loss adjustment expense ratio of just 5%, nearly half the industry average. Management raised its full-year 2026 revenue forecast to $1.217 billion, while the adjusted EBITDA loss more than halved to $18.7 million. The stock trades at a price-to-sales ratio of 4.2, below its three-year average of 5.3, and the company expects that even without multiple expansion, a sixfold increase in in-force premium could lead to a tenfold revenue gain if current efficiency metrics hold.
Lemonade's Full-Year In-Force Premium Outlook Misses Wall Street Estimates
Lemonade's full-year in-force premium outlook fell slightly short of Wall Street estimates, sending its stock lower after the second-quarter earnings report. The online insurer guided for in-force premium between $1.632 billion and $1.639 billion, below the consensus target of more than $1.642 billion, even as it raised its full-year revenue growth forecast to 65%. Revenue surged 79% year over year to $294 million, beating estimates by $3 million, while the net loss narrowed to $43.4 million, or $0.56 per share, matching expectations. Customer count rose 23% to 3.31 million, and the company reiterated its goal of achieving positive adjusted EBITDA by the fourth quarter of 2026.
Lemonade CFO Tim Bixby to step down, Nick Stead to take over in 2027
Lemonade announced that longtime CFO Tim Bixby will step down to become a board member, with Senior Vice President Finance Nick Stead taking over as CFO from January 1, 2027. The leadership transition was disclosed alongside second-quarter 2026 results, which showed revenue rising to US$294.4 million from US$164.1 million a year earlier while net loss remained roughly flat. Management reaffirmed a path to positive adjusted EBITDA by the fourth quarter of 2026 and for the full year 2027, though cautious guidance tempered optimism about the pace toward profitability.
Lemonade Stock Could Reach $100 in 2027 on Path to Profitability
Lemonade stock could reach $100 in 2027, implying a 40% increase from its current price, as the insurance technology company accelerates growth and moves toward profitability. In-force premium rose 32% year over year in the first quarter of 2026, marking the tenth consecutive quarter of acceleration, while revenue surged 71%. The company added nearly 600,000 customers over the trailing 12 months to reach 3.1 million, with premium per customer up 7% to $424. Management expects adjusted EBITDA to turn positive by the end of this year and net income to follow next year. Trading at 6.8 times trailing-12-month sales, the stock could gain 70% without becoming more expensive if sales growth continues at current rates.
Jim Cramer on Lemonade: “It Would Change My View on It if They Started Making Money”
Jim Cramer said on Mad Money that Lemonade would become a better stock and company if it started making money. He noted the insurance technology company uses AI to set policies and has seen growth accelerate while losses shrink over the past 18 months, with the stock climbing from the mid-teens to nearly $100 earlier this year before pulling back to under $66. Cramer called it a compelling story and suggested it may be the kind of stock to buy during sell-offs.
Lemonade Stock Surges 24% After Renegotiating Reinsurance Program
Lemonade stock skyrocketed nearly 24% this week after the company renegotiated its reinsurance program to retain more premium income. The insurer lowered its quota share cession to around 18% from roughly 20%, effectively paying a lower rate to maintain coverage while also gaining expanded protection against catastrophic and major weather events. The new program is expected to be in force for a standard 12-month term. The adjustment allows Lemonade to retain more of the economics from its growing business, and the reinsurer's willingness to accept a lower cession while broadening protections signals increasing confidence in Lemonade as an underwriter.
Lemonade shares rose 12% in June after the digital insurer announced a renegotiated reinsurance agreement that reduces the percentage of premiums ceded to third-party reinsurers from 20% to 18%, while also providing better coverage and adding a new partner. The company is onboarding new customers rapidly, with in-force premium growth accelerating for ten consecutive quarters, and management expects adjusted EBITDA to turn positive by the end of the year. The improved reinsurance terms allow Lemonade to retain more gross profit, supporting its path toward profitability.
Property and Casualty Insurers Post Mixed Q1 as Bowhead Specialty Leads with 26.9% Revenue Growth
Property and casualty insurance stocks delivered mixed first-quarter results, with aggregate revenues beating analyst consensus by 1.9%. Bowhead Specialty reported revenues of $155.7 million, up 26.9% year on year and exceeding expectations by 5.5%, driven by 24% growth in gross written premiums. Stewart Information Services posted the best performance relative to estimates with revenues of $781.3 million, a 27.7% increase that beat forecasts by 4.6%, while Fidelity National Financial was the weakest, missing revenue expectations by 10.7% with $3.23 billion. Lemonade achieved the fastest revenue growth among peers at 70.6% to $258 million, and American Financial Group's revenues rose 1.7% to $1.76 billion but fell 5% short of estimates. Share prices across the group have risen 7.9% on average since reporting.
Lemonade expanded its renters insurance into Mississippi and launched Autonomous Car coverage for Tesla drivers in Colorado, while renewing its reinsurance program on improved terms that lower its quota share cession to about 18% and broaden catastrophe protection. These moves aim to widen its customer base, deepen AI-driven product use, and retain more underwriting profit while still transferring peak risks. The reinsurance renewal directly affects how much gross profit flows through the income statement, though it slightly increases exposure to large losses. Lemonade's narrative projects $2.1 billion revenue and $59.3 million earnings by 2029, requiring 40.6% yearly revenue growth and a $224.8 million earnings increase from a current loss of $165.5 million.
Lemonade Stock Surges 249% in Three Years as AI-Driven Insurance Disrupts Industry
Lemonade shares have surged 249% over the past three years as the AI-powered insurer disrupts the traditional insurance market. The company now serves over 3.1 million customers, up 182% from five years ago, with in-force premiums soaring 429% and revenue growing 11-fold during that period. Lemonade operates a fully digital, direct-to-consumer model with no physical branches or agents, and 70% of its policyholders are under age 35. Management expects to achieve positive adjusted EBITDA for the first time in the fourth quarter of this year, though Wall Street analysts do not forecast positive earnings per share until 2028. The stock's massive run-up raises questions about whether it is too late to buy, pending clearer visibility into sustained profitability.
StockStory Highlights Dynatrace as Cash-Producing Stock to Watch, Flags FactSet and Lemonade as Sells
StockStory identified Dynatrace as a cash-producing stock worth investigating, citing its 26.2% trailing 12-month free cash flow margin, 24% billings growth, and 81.7% gross margin. The firm also flagged FactSet and Lemonade as stocks to ignore, pointing to FactSet's 5.6% annual sales growth and 7.1% annual EPS growth, and Lemonade's 2.3% free cash flow margin, 18.4% annual book value per share decline, and negative return on equity.
Lemonade enters $250M financing pact with Hannover Re
Lemonade has entered a business financing agreement with Hannover Re that provides up to $250 million of capital to fund its sales and marketing growth efforts from January 1, 2027 through December 31, 2028. In the first year, Lemonade can access up to $150 million, with the full $250 million available starting January 1, 2028. Under the pact, Hannover will finance up to 80% of monthly growth spend, capped at $20 million per reference cohort, and Lemonade will repay each financed amount based on a percentage of premiums collected from the associated customer cohorts. The repayment includes the funded amount plus a rate of return equal to the greater of 0% or the three-year U.S. Treasury Bill rate plus 5.8%, after which Lemonade retains all future reference premium from each cohort. Lemonade stock fell 0.4% in premarket trading following the announcement.
Lemonade Expands Renters Insurance to Montana, TD Cowen Lifts Price Target to $55
Lemonade, Inc. announced on June 11 that its renters' insurance product is now available in Montana, expanding its U.S. geographic footprint. Management said the launch aligns with the company's mission to simplify insurance through technology, giving Montana residents easier digital access to renters coverage. On June 8, TD Cowen raised its price target on Lemonade to $55 from $33 while maintaining a Hold rating, reflecting a more favorable outlook on the company's prospects. Lemonade is a digital insurance company founded in 2015 that uses artificial intelligence and behavioral economics, and it also offers pet health insurance for dogs and cats.
Lemonade launches first-of-its-kind autonomous car insurance in Colorado
Lemonade announced that its Autonomous Car insurance is now available in Colorado. The first-of-its-kind product gives Tesla owners 50% off every mile driven using Tesla's Full Self-Driving (Supervised) technology. Shai Wininger, President and Co-Founder of Lemonade, said the product cuts Tesla's cost of ownership by slashing insurance prices in half for miles driven with FSD (Supervised), as Tesla's safe tech reduces accident chances and Lemonade's pricing models pass real savings to customers. Colorado Tesla drivers can get a quote through the Lemonade app or at tesla.lemonade.com/fsd, with further savings when bundled with Lemonade Renters, Pet, or Home insurance. Lemonade continues to offer its existing Car insurance in Arizona, California, Colorado, Illinois, Indiana, Ohio, Oregon, Tennessee, Texas, and Washington.