Lemonade, Inc. (LMND)

Key figures

The last twelve months reported, with the latest price and balance sheet.

Revenue, last twelve months

$975.0M

Revenue growth

62.3%

Net income, last twelve months

-$138.4M

Operating margin

-13.7%

Net margin

-14.2%

Free cash flow

$8.1M

Return on equity

-27.7%

Market value

$3.5B

Cash

$367.6M

Shares outstanding

77.3M

Financial statements

Revenue, profit and cash flow by fiscal year, each year linked to its annual report.

By quarter

What the company said with its results

From the second quarter of 2026 results, filed 29 July 2026.

• In force premium grew 32%. In force premium reached $1.43 billion, up 32.4% from a year earlier; customers rose 23% to 3,308,666 and premium per customer rose to $433.
• Revenue rose 79% on higher retention. Revenue reached $294.4 million, driven by gross earned premium growth and higher premium retention after lower quota share cession rates took effect in Q3 2025.
• Gross profit reached a record. Gross profit rose 76% to $113.2 million; trailing twelve-month gross profit rose 98% to $404 million.
• Net loss near prior-year level. Net loss was $43.4 million, or $0.56 per share, against $43.9 million, or $0.60 per share, in the second quarter of 2025.
• Adjusted EBITDA loss narrowed 54%. Adjusted EBITDA loss was $18.7 million, against $40.9 million a year earlier; management attributed the improvement to revenue growth and better underwriting, partly offset by higher growth spend.
• Pet added the most IFP dollars. Pet IFP rose to $543 million from $350 million and Car to $239 million from $150 million; Pet had the largest dollar increase of the lines shown.
• Homeowners IFP grew, premium per customer fell. Homeowners multi-peril IFP rose to $554 million from $523 million, while premium per customer for that line fell to $240 from $260 a year earlier.
• Premium per customer rose 8%. Premium per customer was $433 at quarter end, up 8% from the second quarter of 2025.
• Annual dollar retention at 85%. Annual dollar retention was 85%, a one point increase on the second quarter of 2025 and flat on the first quarter of 2026.
• LAE ratio fell to record 5%. The LAE ratio, excluding prior period development, declined to 5%, described as a record low, as IFP reached $1.43 billion.
• Gross loss ratio improved to 60%. The gross loss ratio was 60% in Q2 2026, against 67% a year earlier, and 58% excluding catastrophe losses.
• AI and automation credited for claims gains. Management said the claims gains reflect AI and automation, including higher instant claim rates in Pet and Renters and expanded AI-assisted workflows.
• Growth spend reached $64.4 million. Growth spend in sales and marketing was $64.4 million in Q2 2026, up from $49.7 million a year earlier and $25.8 million in Q2 2024.
• Growth spend held near 3x LTV/CAC. Management said growth spend increased while returns held at about 3x LTV/CAC, notwithstanding soft market dynamics in the broader insurance industry.

Company events

The newest 8-K filings of 55 held.

Every filing

The newest filings with the SEC of 151 held.

Insider trades

Form 4 trades by officers, directors and 10% owners, last 12 months.

Planned insider sales

Form 144 notices, filed when the sell order goes to the broker.

Large holders

Schedule 13D and 13G filings by holders of more than 5% of the voting shares.

Trades by members of the House

From each member's periodic transaction report.

Short interest

Shares sold short and not yet bought back, on each FINRA settlement date.

Funds that hold it

From each fund's latest Form 13F.

397 funds held it at 30 Jun 2026: 175 added and 84 trimmed in the quarter. The largest:

Peers

Companies in the same industry.

• Berkshire Hathaway Inc. (BRK.B): revenue $384.7B, market value $1.17T
• Chubb Ltd. (CB): revenue $61.8B, market value $136.0B
• Progressive Corp. (PGR): revenue $91.1B, market value $131.2B
• Travelers Companies, Inc. (TRV): revenue $48.9B, market value $80.7B
• Allstate Corp. (ALL): revenue $70.1B, market value $63.6B
• American International Group, Inc. (AIG): revenue $26.6B, market value $41.9B
• Arch Capital Group Ltd. (ACGL): revenue $19.2B, market value $35.0B
• Hartford Insurance Group, Inc. (HIG): revenue $29.0B, market value $34.8B
• Everest Group, Ltd. (EG): revenue $16.8B, market value $28.8B
• Cincinnati Financial Corp. (CINF): revenue $13.3B, market value $27.5B

What the company does

Lemonade, Inc. is an insurance company that sells renters, homeowners, pet, car and life insurance directly to consumers through its website and iOS and Android apps. It owns insurance carriers in the United States and Europe, including the UK, and runs them on its own technology stack. It says AI Maya, its onboarding bot, and its APIs sell 98% of its policies.

What it sells

Renters and homeowners insurance is offered in the United States, France, the Netherlands and the UK, with contents and liability insurance in Germany. In the UK, the Netherlands and France it also offers Buildings insurance. The UK and France expansions were supported by existing partnerships with Aviva and BNP Paribas Cardif.

Pet insurance covers diagnostics, procedures, medication, accidents and illness, with optional wellness and extended accident and illness add-ons. Lemonade Car is offered in a number of states. Its pay-per-mile policies are written for six-month terms, and a pricing model in certain markets uses vehicle telemetry to separate human-driven miles from autonomous miles.

Life insurance is provided through a partnership with a third-party carrier, Legal & General Group. Customers get a quote on Lemonade's interface and then move to the partner to complete the application. Terms run from 10 to 40 years.

How the technology works

AI Maya handles onboarding, quotes and payments. AI Jim is the claims bot. At 31 December 2025 it took the first notice of loss without human intervention 96% of the time, and roughly 55% of claims were automated. Claims it cannot settle go to human claims staff. CX.AI is a bot platform that handles over half of customer inquiries.

Three internal applications sit behind these bots. Forensic Graph is used to predict, deter, detect and block fraud. Blender is the management platform for customer experience, underwriting, claims, growth, marketing, finance and risk teams. Cooper is an internal bot that runs tasks such as software testing and deployment. All six applications run on the Customer Cortex, where customer data is collected and analysed.

How it earns money and manages risk

Lemonade collects premiums on policies it underwrites, which generally run for one year. It also receives ceding commissions from reinsurers and investment income, mainly from cash, money market funds and short-term fixed income securities. Commissions on policies placed with third-party insurers, and installment fees from policyholders, add to its income. Placed premium is about 4% of in force premium.

Under proportional contracts, Lemonade cedes a share of premium to reinsurers. About 55% of the book was reinsured through 30 June 2025 and about 20% through 30 June 2026. The current contracts are with Hannover Ruck SE and MAPFRE Re Compania De Reaseguros S.A. Per risk contracts and a one-year catastrophe excess of loss policy cover larger claims. Lemonade also keeps risk in a Cayman Islands captive, Lemonade Re SPC, and a Bermuda captive cell facility.

Under its Giveback program, customers pick a charitable cause after buying a policy. The board decides each year whether to pay it, and it is not a contractual obligation. Since 2017 the company has donated over $12 million to customer-chosen causes.

Where it operates

Lemonade is licensed to sell renters, homeowners, pet and car policies in 50 states and Washington, D.C. At 31 December 2025 it operated in 41 states and Washington, D.C., which together hold approximately 95% of the United States population. It also holds a pan-European license covering 30 countries and currently sells in Germany, the Netherlands, France and the UK.

Its U.S. carriers, Lemonade Insurance Company and Metromile Insurance Company, are domiciled in New York and Delaware. California regulates certain aspects of Metromile Insurance Company as a commercially domiciled insurer. Lemonade Insurance N.V. is supervised in the Netherlands by De Nederlandsche Bank and the Autoriteit Financiële Markten. In the UK, its branches are overseen by the Prudential Regulation Authority and the Financial Conduct Authority.

Who it competes with

The filing names traditional insurers as competitors: Allstate, Farmers, Liberty Mutual, State Farm, GEICO, Progressive and Travelers. In pet insurance it names Nationwide, Embrace and Trupanion. It says these incumbents are larger and have greater name recognition, higher financial ratings and more resources. Many can bundle homeowners with other products. Lemonade also competes with new entrants.

Its people and structure

Of the 1,282 employees, 810 are in the United States. The rest are mainly in Israel and the Netherlands. A total of 382 employees hold licenses required by the states in which they work. By the company's estimate, it has about 2,300 customers per employee, against about 300 to about 600 at five competing U.S. insurers. Lemonade is a public benefit corporation and a Certified B Corp.

*From Lemonade's annual report on Form 10-K for the year ended 31 December 2025. [The filing](https://www.sec.gov/Archives/edgar/data/1691421/000169142126000016/lmnd-20251231.htm)*

From the company's 10-K.