Lemonade, Inc. (NYSE:LMND) shares are trading lower after the company reported mixed second-quarter results.
The company lost 56 cents per share, in line with analyst expectations.
Revenue came in at $294.4 million, exceeding the consensus estimate of $290.876 million.
Earnings Snapshot
- Revenue rose 79% year over year (Y/Y), driven by higher gross earned premiums and an improved premium retention rate.
- Adjusted gross profit increased 74% Y/Y to $114.4 million, reflecting higher revenue.
- Adjusted EBITDA loss narrowed to $18.7 million from the loss of $40.9 million in the prior-year quarter, supported by revenue growth and improved underwriting results.
- In-force premium rose 32% Y/Y to $1.43 billion, while premium per customer increased 8% Y/Y to $433 in the quarter. Gross earned premium increased 32% Y/Y to $332.4 million in the first quarter.
- As of June 30, cash, cash equivalents, and investments totaled approximately $1.2 billion.
Outlook
The company raised its fiscal year 2026 revenue guidance to $1.214 billion-$1.22 billion from the previous range of $1.197 billion-$1.203 billion, above the analyst estimate of $1.207 billion.
For the third quarter of 2026, Lemonade expects revenue of $323 million-$326 million, compared with the consensus estimate of $320.445 million.
The company sees an in-force premium outlook of $1.632 billion-$1.639 billion in FY26 and $356 million-$359 million in the third quarter.
LMND Stock Price Activity: Lemonade shares were down 23.02% at $47.81 at the time of publication on Wednesday.
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