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 IncCompany outlines growth plan and raises revenue forecast, improving financial outlook.
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