CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.96% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open platformOpen platform

Lemonade Inc Q3 revenue beats estimates on premium growth

By Reuters News


Overview

  • US digital insurer's Q3 revenue rose 73% yr/yr, beating analyst expectations

  • Adjusted EBITDA loss for Q3 slightly missed analyst expectations


Outlook

  • Lemonade expects Q4 2026 revenue of $342 mln to $346 mln

  • Company raises full-year 2026 revenue guidance to $1,231 mln to $1,235 mln


Result Drivers

  • PREMIUM GROWTH - In force premium rose 34% yr/yr to $1.55 bln, driven by a 23% increase in customers and a 9% rise in premium per customer

  • REVENUE DRIVERS - Revenue rose 73% yr/yr to $336 mln, primarily due to growth in gross earned premium and higher premium retention rate from reduced quota share cession rates

  • OPERATING EXPENSES - Operating expenses rose 36% yr/yr, mainly due to higher customer acquisition spending, increased stock-based compensation, and higher insurance-related costs


Company press release: Full Story


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$336 mln

$322.74 mln (10 Analysts)

Q3 Net Loss

$44 mln

Q3 Adjusted EBITDA

Miss

-$20 mln

-$19.09 mln (9 Analysts)

Q3 Adjusted Gross Profit

$120.50 mln

Q3 Gross Profit

$118 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the property & casualty insurance peer group is "hold"

  • Wall Street's median 12-month price target for Lemonade Inc is $53.00, about 15.5% above its November 4 closing price of $45.90


Reuters Recommended Reads

  • Nov 4 - Palomar Q3 net income beat estimates as premiums rise 28%

  • Nov 4 - Root Q3 revenue slightly misses estimates

  • Nov 5 - AI-powered insurance startup Kalepa valued at $470 million in new funding round


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.