Open report — full analysis, no account required.
Sign up to generate reports and read filings that aren't on the open list.
Get notified when LMND files again. Create a free account and we'll email you the moment its next filing is analyzed.
Get filing alertsLemonade reports Q2 2026 results: 32% IFP growth, $113M gross profit, narrows Adj. EBITDA loss 54%
Filed July 29, 2026 · Period ending July 29, 2026 · ~2 min read
Key Changes
-
high
In Force Premium reached $1.43B (up 32.4% YoY, 11th consecutive quarter of acceleration); revenue grew 79% to $294M; gross profit hit record $113M (up 76%); Adj. EBITDA loss narrowed to $19M from $41M prior year (54% improvement).
Exhibit 99.1 view on EDGAR → -
high
Renewed reinsurance program effective July 1 reduces quota share cession from ~20% to ~18%, expands catastrophe protection to up to $40M per event ($100M aggregate), and adds named storm coverage previously excluded.
Exhibit 99.1 view on EDGAR → -
high
Loss adjustment expense ratio improved to record low 5% (down from 13% when IFP crossed $1B), roughly half the ~9% industry average, reflecting AI and automation gains in claims handling.
Exhibit 99.1 view on EDGAR → -
medium
New synthetic agents financing agreement with Hannover Re (effective Jan 2027) provides up to $250M capital at ~9.8% cost, a reduction of >600 basis points from prior terms.
Exhibit 99.1 view on EDGAR → -
high
Reaffirmed Q4 2026 Adj. EBITDA profitability target; full-year guidance implies ~$8M positive Adj. EBITDA in Q4. Full-year 2026 Adj. EBITDA loss guided to $51M–$47M.
Exhibit 99.1 view on EDGAR →
Summary
Lemonade reported strong Q2 2026 results with In Force Premium reaching $1.43 billion, up 32.4% year-over-year and marking the 11th consecutive quarter of growth acceleration. Revenue grew 79% to $294 million, driven by the reinsurance transition and higher premium retention.
Gross profit hit a record $113 million, up 76%, while the Adjusted EBITDA loss narrowed to $19 million from $41 million in the prior-year quarter, a 54% improvement. The company's loss adjustment expense ratio fell to a record low 5%, roughly half the industry average of 9%, demonstrating the efficiency gains from AI-driven claims automation.
The company renewed its reinsurance program effective July 1, reducing the quota share cession rate from approximately 20% to 18%, allowing Lemonade to retain more premium and improve unit economics. The new program materially expands catastrophe protection to up to $40 million per event (subject to a $100 million aggregate limit) and now includes named storm coverage, which was excluded under the prior structure. Separately, Lemonade announced a new synthetic agents financing agreement with Hannover Re, effective January 2027, providing up to $250 million of capital at approximately 9.8% cost, a reduction of more than 600 basis points from prior terms. The company reaffirmed its target of reaching positive Adjusted EBITDA in Q4 2026, with full-year guidance implying approximately $8 million of profitability in the fourth quarter.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Lemonade announced Q2 2026 financial results via shareholder letter on July 29, 2026.
Added in current filing · verify on EDGAR →
On July 29, 2026, Lemonade, Inc. (the "Company") announced its financial results for the three and six months ended June 30, 2026, by issuing a letter to shareholders.
Lemonade disclosed its financial results for the second quarter and first half of 2026 through a shareholder letter. The 8-K itself does not contain the actual financial figures; those are in the attached Exhibit 99.1 shareholder letter, which is furnished but not filed.
Event · Exhibit 99.1
Lemonade reported Q2 2026 results with 32% IFP growth, 76% gross profit increase, and improved Adj. EBITDA loss of $19M, reaffirming Q4 profitability target.
Added in current filing · view on EDGAR →
At $1.43 billion, In Force Premium grew 32.4%, our 11th consecutive quarter of acceleration. Revenue grew faster still, by 79% to $294 million, reflecting the impact of our reinsurance transition and higher premium retention. • Gross Profit: increased 76% YoY to a record $113 million, while TTM gross profit increased 98% to $404 million. ... • Bottom Line: Adj. EBITDA loss of ($19) million improved 54% year over year. Net loss was ($43) million, in line with the prior year.
Lemonade disclosed Q2 2026 results showing strong topline growth with In Force Premium reaching $1.43 billion (up 32.4% year-over-year) and revenue of $294 million (up 79%). Gross profit hit a record $113 million, up 76% from the prior year. The Adjusted EBITDA loss narrowed to $19 million from $41 million in Q2 2025, a 54% improvement. Net loss was $43 million, flat year-over-year, though the prior year included a $12 million one-time tax refund benefit.
Added in current filing · view on EDGAR → · paraphrased
Q3 2026 ... In force premium (IFP) $1,537-$1,540 ... Gross earned premium (GEP) $356-$359 ... Revenue $323-$326 ... Adjusted EBITDA loss1 ($23)-($20) ... Full Year 2026 ... In force premium (IFP) $1,632-$1,639 ... Gross earned premium (GEP) $1,374-$1,378 ... Revenue $1,214-$1,220 ... Adjusted EBITDA loss1 ($51)-($47)
Lemonade provided guidance for Q3 2026 with IFP of $1,537-$1,540 million, revenue of $323-$326 million, and Adjusted EBITDA loss of $23-$20 million. Full year 2026 guidance includes IFP of $1,632-$1,639 million, revenue of $1,214-$1,220 million, and Adjusted EBITDA loss of $51-$47 million. The company continues to expect positive Adjusted EBITDA in Q4 2026, with guidance implying approximately $8 million for the fourth quarter.
Thanks — your feedback helps us improve report quality.
Figures/quotes linked to EDGAR · Narrative written by AI · Jul 30, 2026 · How we verify