Zacks Investment Research·19h ago
Lemonade Stock Surges 88.7% in a Year: How Should You Play the Stock?LMND's AI-driven platform, premium growth and improving underwriting support long-term growth, though its premium valuation remains a concern.
Lemonade, Inc.(LMND)Earnings, Financials & Key Ratios
LMND•NYSE•Insurance & Managed Care
$77.59
Price updated Jul 7, 2026
SectorFinancial ServicesIndustryProperty & Casualty InsuranceSub-IndustryPersonal auto and homeowners insurers
AboutLemonade, Inc. provides various insurance products in the United States and Europe. Its insurance products include 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. The company also offers renters, homeowners, pet, car, and life insurance products, as well as landlord insurance policies. In addition, it operates as an agent for other insurance companies. The company was formerly known as Lemonade Group, Inc. and changed its name to Lemonade, Inc. Lemonade, Inc. was incorporated in 2015 and is headquartered in New York, New York.Show more
- Revenue$738M+40.2%
- Combined Ratio121.81%-12.2%
- Net Income-$166M+18.2%
- Return on Equity-29.37%+5.4%
- Medical Cost Ratio59.72%-11.1%
- Operating Margin-21.81%+43.7%
- Net Margin-22.43%+41.6%
- ROA-8.77%+24.5%
- Equity / Assets27.71%-13.7%
LMND Price & Volume
Lemonade, Inc. (LMND) stock price & volume — 10-year historical chart
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Aggressive Revenue Scaling Faces Persistent Underwriting Headwinds
Investment Thesis • Updated 2026Q1
VerdictNegative
Growth:Accelerating
Profitability:Negative
Financial:Strained
Cash Flow:Burning
Primary Risk:Underwriting volatility and capital
Key Thesis Takeaways
- Lemonade continues to demonstrate rapid top-line expansion, evidenced by a 55.0% year-over-year revenue growth rate in 2026Q1, yet the company remains structurally challenged by persistent underwriting losses.
- While the combined ratio has improved from a 148.2% peak in 2024Q3 to 114.8% in 2026Q1, the firm's reliance on proportional reinsurance and the ongoing erosion of equity from $708.9 million in 2023Q4 to $518.0 million in 2026Q1 suggest significant long-term capital sustainability risks.
- Investors should monitor whether the company can achieve underwriting profitability before its constrained capital buffer limits further market share acquisition.
Verdict Logic
the company's persistent underwriting losses, evidenced by a 114.8% combined ratio in 2026Q1, combined with a shrinking equity base of $518.0 million, suggest significant execution risk.
LMND Growth Metrics
Lemonade, Inc. (LMND) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years-
5 Years50.87%
3 Years42.19%
TTM46.99%
Profit CAGR
10 Years-
5 Years-
3 Years-
TTM36.08%
EPS CAGR
10 Years-
5 Years-
3 Years-
TTM37.17%
Return on Capital
10 Years-36.32%
5 Years-28.86%
3 Years-26.19%
Last Year-22.72%
LMND Recent Earnings
Lemonade, Inc. (LMND) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 12/12 qtrs (100%)●Beat Revenue 8/12 qtrs (67%)
Q2 2026Latest
Apr 29, 2026Metric
Actual
Est
EPS
$0.47+19.0%
$0.58
Rev
$258M+2.6%
$252M
Q1 2026
Feb 19, 2026Metric
Actual
Est
EPS
$0.29+29.3%
$0.41
Rev
$228M+4.7%
$218M
Q4 2025
Nov 5, 2025Metric
Actual
Est
EPS
$0.51+29.2%
$0.72
Rev
$195M-10.8%
$218M
Q3 2025
Aug 5, 2025Metric
Actual
Est
EPS
$0.60+25.9%
$0.81
Rev
$164M-10.8%
$184M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | Apr 29, 2026 | $0.47vs $0.58+19.0% | $258Mvs $252M+2.6% |
| Q1 2026 | Feb 19, 2026 | $0.29vs $0.41+29.3% | $228Mvs $218M+4.7% |
| Q4 2025 | Nov 5, 2025 | $0.51vs $0.72+29.2% | $195Mvs $218M-10.8% |
| Q3 2025 | Aug 5, 2025 | $0.60vs $0.81+25.9% | $164Mvs $184M-10.8% |
Based on last 12 quarters of dataView full earnings history →
Latest LMND News
Recent stock market news and headlines for Lemonade, Inc. (LMND)
PRNewsWire·1 day ago
Lemonade Expands Renters Insurance to VermontVermont Renters Can Now Get Fast, Affordable Coverage Starting at $5 Per Month NEW YORK, July 7, 2026 /PRNewswire/ -- Lemonade (NYSE: LMND), the tech-first insurance company, today announced the availability of its renters insurance in Vermont. The expansion gives renters across the state a simple, fast way to get coverage that fits their lifestyles.
The Motley Fool·1 day ago
Why Lemonade Stock Leaped TodayLemonade's bargaining power is increasing as it scales its business. The company's profit margins are improving.
The Motley Fool·4 days ago
Why Lemonade Stock Skyrocketed This WeekThe company renegotiated its existing reinsurance program. It's effectively paying a lower rate to maintain it.
The Motley Fool·6 days ago
Why Lemonade Stock Popped 12% in JuneLemonade renegotiated its reinsurance program to cede a lower percentage of premiums while gaining more coverage. It's onboarding new customers at a rapid pace, and top-line growth is accelerating.
Peers Comparison
Key metrics vs top competitors for Lemonade, Inc. (LMND)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $77.59 | $5.96B | -33.73 | 40.15% | -22.43% | -29.37% | — | |
| $63.60 | $891.41M | 28.39 | 28.95% | 3.7% | 15.88% | — | |
| $28.42 | $739.81M | 12.80 | 25.93% | 23.45% | 27.43% | — | |
| $10.21 | $1.01B | -4.44 | 7.26% | -8.08% | -36.58% | — | |
| $31.12 | $8.07B | -18.41 | 27.5% | -0.3% | -3.26% | — | |
| $234.40 | $136.97B | 12.19 | 16.32% | 12.93% | 35.45% | — |
Compare LMND vs Peers
Lemonade, Inc. (LMND) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
LMND SEC Filings & Documents
Lemonade, Inc. (LMND) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
Apr 29, 2026·SEC
Material company update
Feb 19, 2026·SEC
Material company update
Jan 27, 2026·SEC
10-K Annual Reports
310-Q Quarterly Reports
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LMND Frequently Asked Questions
Lemonade, Inc. (LMND) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
How fast is Lemonade, Inc. growing?
Lemonade, Inc. (LMND) grew revenue by 40.2% over the past year. This is strong growth.
Is LMND profitable?
Lemonade, Inc. (LMND) reported a net loss of $138.9M for fiscal year 2025.
Dividend & Returns
What is LMND's return on equity?
Lemonade, Inc. (LMND) has a return on equity (ROE) of -29.4%. Negative ROE indicates the company is unprofitable.
Industry Metrics
What is Lemonade, Inc.'s combined ratio?
Lemonade, Inc. (LMND) has a combined ratio of 121.8%. A ratio above 100% means claims and expenses exceed premiums.