Q2 2026 Lemonade Inc Earnings Call Transcript
Key Points
- Lemonade Inc (LMND) reported a 32.5% year-over-year growth in in-force premium, reaching $1.43 billion, marking 11 consecutive quarters of accelerating growth.
- Revenue increased by 79% to $294 million, and gross profit rose by 76% year-over-year to a record $113 million.
- The company improved its adjusted EBITDA loss by 54% to $19 million and is on track to achieve its first positive adjusted EBITDA quarter in Q4 2026.
- Lemonade Inc (LMND) achieved its best-ever LAE ratio of 5%, significantly below the industry average of 9%, indicating superior efficiency in handling claims.
- The company expanded its geographical reach by launching 14 additional state product combinations, including the introduction of its autonomous car product in Colorado and Indiana.
- Despite improvements, Lemonade Inc (LMND) still reported a net loss of $43 million in Q2 2026, although this was a slight improvement from the previous year.
- Operating expenses, excluding loss and loss adjustment expense, increased by 41% to $182 million in Q2, which could impact future profitability.
- The company's Pet insurance segment experienced a modest increase in the gross loss ratio due to industry-wide vet cost inflation.
- There is concern over the efficiency of growth spending, as some investors noted that growth spend outpaced the corresponding growth in in-force premium.
- The transition of CFO responsibilities from Tim Bixby to Nick Stead, while planned, introduces potential uncertainty in financial leadership.
Hello, everyone. Thank you for joining us, and welcome to the Lemonade second-quarter 2026 earnings call. (Operator Instructions)
I will now hand the conference over to the Lemonade team. Please go ahead.
Good morning, and welcome to Lemonade's second-quarter 2026 earnings call.
Joining us on the call today, we have Daniel Schreiber, CEO and Co-Founder; Shai Wininger, President and Co-Founder; Tim Bixby, Chief Financial Officer; and Nick Stead, SVP Finance. A letter to shareholders covering the company's second-quarter 2026 financial results is available on our investor relations website at lemonade.com/investor.
I would like to remind you that management's remarks made on this call may contain forward-looking statement within the meaning of Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Risk Factors section of our most recent form 10-K
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