Insurtech firm Lemonade's Q1 revenue, profit beat analyst estimates on premiums strength

Lemonade

Lemonade

LMND

0.00


Overview

  • US insurance tech firm's Q1 revenue rose 71% yr/yr, beating analyst expectations

  • Adjusted EBITDA loss for Q1 narrowed and beat analyst expectations

  • Gross profit for Q1 increased 159% yr/yr, driven by improved underwriting results


Outlook

  • Lemonade raises FY 2026 guidance for IFP, GEP, revenue, and adj EBITDA loss

  • Company expects Q2 2026 revenue of $287 mln to $290 mln and adj EBITDA loss of $19 mln to $23 mln

  • Lemonade reiterates expectation to achieve positive adj EBITDA in Q4 2026


Result Drivers

  • HIGHER PREMIUM RETENTION - Co said revenue growth was driven by higher gross earned premium and increased premium retention after reducing quota share cession rates

  • IMPROVED UNDERWRITING - Gross profit rose due to improved underwriting results and a lower net loss ratio, as well as the absence of prior-year wildfire impacts

  • AI-DRIVEN OPERATIONAL EFFICIENCY - Co said AI-powered automation expanded team capacity and supported growth without adding headcount


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Revenue

Beat

$258 mln

$251.50 mln (11 Analysts)

Q1 Net Income

-$36 mln

Q1 Adjusted EBITDA

Beat

-$17 mln

-$23.32 mln (9 Analysts)

Q1 Gross Profit

$100 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and 3 "sell" or "strong sell"

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

  • Wall Street's median 12-month price target for Lemonade Inc is $65.00, about 1.2% below its April 28 closing price of $65.77


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