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

Reuters
2026.04.29 10:16

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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/Mis Actual Consensu

s s

Estimate

Q1 Beat $258 mln $251.50

Revenue mln (11

Analysts

)

Q1 Net -$36 mln

Income

Q1 Beat -$17 mln -$23.32

Adjusted mln (9

EBITDA Analysts

)

Q1 Gross $100 mln

Profit

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