Revenue growth accelerated to 55.0% in 2026Q1, though the company remains unprofitable with a combined ratio of 114.8% indicating continued underwriting strain.
| Revenue | 821.1M | 737.9M | 526.5M | 429.8M | 256.7M | 128.4M | 94.4M | 67.3M | 22.5M | 2.4M |
| Revenue Growth % | 46.99% | 40.15% | 22.5% | 67.43% | 99.92% | 36.02% | 40.27% | 199.11% | 837.5% | - |
| Medical Costs & Claims | 430.4M | 440.7M | 353.8M | 339.6M | 228.3M | 105.5M | 74M | 55.4M | 19.4M | 0 |
| Medical Cost Ratio % | 52.42% | 59.72% | 67.2% | 79.01% | 88.94% | 82.17% | 78.39% | 82.32% | 86.22% | 0% |
| Gross Profit | 390.7M | 297.2M | 172.7M | 90.2M | 28.4M | 22.9M | 20.4M | 11.9M | 3.1M | 2.4M |
| Gross Margin % | 47.58% | 40.28% | 32.8% | 20.99% | 11.06% | 17.83% | 21.61% | 17.68% | 13.78% | 100% |
| Gross Profit Growth % | - | 72.09% | 91.46% | 217.61% | 24.02% | 12.25% | 71.43% | 283.87% | 29.17% | - |
| Operating Expenses | 524.8M | 458.1M | 376.6M | 320M | 323.2M | 256.5M | 141.2M | 119.8M | 55.7M | 28.7M |
| OpEx / Revenue % | 63.91% | 62.08% | 71.53% | 74.45% | 125.91% | 199.77% | 149.58% | 178.01% | 247.56% | 1195.83% |
| Depreciation & Amortization | 13.4M | 15.2M | 20M | 20M | 12.2M | 3.7M | 1.7M | 600K | 100K | 28M |
| Combined Ratio % | 116.33% | 121.81% | 138.73% | 153.47% | 214.84% | 281.93% | 227.97% | 260.33% | 333.78% | 1195.83% |
| Operating Income | -134.1M | -160.9M | -203.9M | -229.8M | -294.8M | -233.6M | -120.8M | -107.9M | -52.6M | -26.3M |
| Operating Margin % | -16.33% | -21.81% | -38.73% | -53.47% | -114.84% | -181.93% | -127.97% | -160.33% | -233.78% | -1095.83% |
| Operating Income Growth % | - | 21.09% | 11.27% | 22.05% | -26.2% | -93.38% | -11.96% | -105.13% | -100% | - |
| EBITDA | -120.7M | -145.7M | -183.9M | -209.8M | -282.6M | -229.9M | -119.1M | -107.3M | -52.5M | 1.7M |
| EBITDA Margin % | -14.7% | -19.75% | -34.93% | -48.81% | -110.09% | -179.05% | -126.17% | -159.44% | -233.33% | 70.83% |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Operating Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | -134.1M | -160.9M | -203.9M | -229.8M | -294.8M | -233.6M | -120.8M | -107.9M | -52.6M | -28M |
| Pretax Margin % | -16.33% | -21.81% | -38.73% | -53.47% | -114.84% | -181.93% | -127.97% | -160.33% | -233.78% | -1166.67% |
| Income Tax | 4.8M | 4.6M | -1.7M | 7.1M | 3M | 7.7M | 1.5M | 600K | 300K | 100K |
| Effective Tax Rate % | -3.58% | -2.86% | 0.83% | -3.09% | -1.02% | -3.3% | -1.24% | -0.56% | -0.57% | -0.36% |
| Net Income | -138.9M | -165.5M | -202.2M | -236.9M | -297.8M | -241.3M | -122.3M | -108.5M | -52.9M | -28.1M |
| Net Margin % | -16.92% | -22.43% | -38.4% | -55.12% | -116.01% | -187.93% | -129.56% | -161.22% | -235.11% | -1170.83% |
| Net Income Growth % | 36.08% | 18.15% | 14.65% | 20.45% | -23.41% | -97.3% | -12.72% | -105.1% | -88.26% | - |
| EPS (Diluted) | -1.82 | -2.30 | -2.85 | -3.40 | -4.59 | -3.94 | -2.21 | -2.49 | -1.21 | -2.58 |
| EPS Growth % | 37.17% | 19.3% | 16.18% | 25.93% | -16.5% | -78.28% | 11.24% | -105.79% | 53.1% | - |
| EPS (Basic) | - | -2.30 | -2.85 | -3.40 | -4.59 | -3.94 | -2.21 | -2.49 | -1.21 | -2.58 |
| Diluted Shares Outstanding | 76.31M | 71.82M | 71.02M | 69.66M | 64.92M | 61.22M | 55.32M | 43.61M | 43.61M | 10.89M |
Persistent Underwriting Loss Volatility
According to the provided financial data, Lemonade achieved a 55.0% year-over-year revenue growth in 2026Q1, signaling a robust expansion phase that continues to outpace the company's historical growth rates observed in earlier periods like 2024Q3, where growth was reported at a more modest 19.3%.
The acceleration in top-line growth suggests that the company's multi-line strategy is successfully capturing market share, likely driven by the cross-selling of Homeowners and Pet insurance to the existing Renters base. However, investors should monitor whether this rapid scaling is being achieved through sustainable organic acquisition or if it relies heavily on the 'Synthetic Agents' financing program, which may mask the true cost of customer acquisition.
Based on reported figures, the combined ratio in 2026Q1 stood at 114.8%, which, while an improvement from the 148.2% peak observed in 2024Q3, indicates that the company continues to operate at an underwriting loss, necessitating reliance on external capital to fund ongoing operational deficits.
The persistent combined ratio above 100% suggests that the company's AI-driven underwriting has yet to achieve the consistent loss-ratio efficiency required for standalone profitability. The volatility in the loss ratio, which fluctuated between 35.7% and 73.7% over the last ten quarters, implies that the model remains highly sensitive to external catastrophe events and inflationary pressures in the auto and property segments.
As indicated by the income statement trends, the company's reliance on proportional reinsurance treaties creates a structural ceiling on gross margins, with the 2026Q1 combined ratio of 114.8% highlighting the difficulty of achieving profitability when a significant portion of premiums is ceded to third-party reinsurers.
The reliance on ceding commissions to offset operating expenses warrants further investigation, as any hardening in the reinsurance market could force a compression of margins. If the company cannot demonstrate a path to reducing its reliance on these treaties, the 'capital-light' thesis may be challenged by the reality of high reinsurance costs and limited underwriting control.
Financial statements reveal that the integration of Metromile and the subsequent expansion into the auto insurance market have contributed to significant earnings volatility, with operating income reaching a low of -$65.8M in 2024Q3 before showing signs of stabilization at -$34.6M in the most recent quarter.
The shift into the auto segment appears to have introduced a higher severity risk profile that the company's algorithms are still calibrating. Investors should monitor whether the recent narrowing of operating losses represents a permanent inflection toward efficiency or merely a temporary fluctuation in claim frequency.
Quick answers to the most common questions about buying LMND stock.
For fiscal year 2025, Lemonade, Inc. (LMND) reported total revenue of $737.9M. This represents a 30645.8% increase compared to $2.4M in 2017.
Lemonade, Inc. (LMND) reported a net loss of $165.5M for the fiscal year ending 2025.
Lemonade, Inc. (LMND) reported an operating income of $-160.9M, resulting in an operating profit margin of -21.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Lemonade, Inc. (LMND) generated $297.2M in gross profit for the year, representing a gross profit margin of 40.3%. This demonstrates the company's core pricing power and production efficiency.