)
Overview
<ul>
<li>US insurance tech firm’s Q1 revenue rose 71% yr/yr, beating analyst expectations</li>
<li>Adjusted EBITDA loss for Q1 narrowed and beat analyst expectations</li>
<li>Gross profit for Q1 increased 159% yr/yr, driven by improved underwriting results</li>
</ul>
Outlook
<ul>
<li>Lemonade raises FY 2026 guidance for IFP, GEP, revenue, and adj EBITDA loss</li>
<li>Company expects Q2 2026 revenue of $287 mln to $290 mln and adj EBITDA loss of $19 mln to $23 mln</li>
<li>Lemonade reiterates expectation to achieve positive adj EBITDA in Q4 2026</li>
</ul>
Result Drivers
<ul>
<li>HIGHER PREMIUM RETENTION - Co said revenue growth was driven by higher gross earned premium and increased premium retention after reducing quota share cession rates</li>
<li>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</li>
<li>AI-DRIVEN OPERATIONAL EFFICIENCY - Co said AI-powered automation expanded team capacity and supported growth without adding headcount</li>
</ul>
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
<ul>
<li>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”</li>
<li>The average consensus recommendation for the property &amp; casualty insurance peer group is “buy.”</li>
<li>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.)</li>
</ul>

LMND

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