Lemonade Inc
LMND.US Full Coverage
Last updated:
Volume
52W avg
Day Range
52W High
52W Low
Market Cap
Div Yield
Forward P/E
P/B
Headlines
FY2026 Q1
Lemonade delivered its tenth consecutive quarter of accelerating top‑line growth, beating all guidance. IFP rose 32.3% YoY to $1.33 bn and revenue jumped 70.6% to $258 m, while Adjusted EBITDA loss narrowed 63.6% to $(17.1) m versus the guided $(22‑25) m range. Management raised its FY‑2026 IFP growth target to 33% and reaffirmed its timeline to achieve positive Adjusted EBITDA by Q4 2026.
In Force Premium (IFP)
$1.33B
+32.3% YoY
Revenue
$258.0M
+70.6% YoY
Gross Profit
$100.1M
+159.3% YoY
Adjusted EBITDA
$(17.1)M
+$29.9M YoY
Gross Loss Ratio
62%
-16 pps YoY
What We're Watching
Opportunity
Annual Dollar Retention (ADR) Inflection
📅
Next 1-2 Quarters
What to Monitor
A sequential improvement in the headline ADR metric from its current 85% level, now that the headwind from the homeowners' book non-renewals is "largely wrapped up."
Why It Matters
An improving ADR would signal better underlying customer health and increased lifetime value, providing a powerful, CAC-free tailwind to growth and profitability. It would validate that the "clean the book" initiative's negative impact was transitory.
Operational
Marketing Efficiency at Increased Scale
📅
Ongoing (FY 2026)
What to Monitor
The company's ability to maintain its LTV to CAC ratio at or above the stated 3x target as it increases its full-year growth spend to the newly guided ~$235 million.
Why It Matters
This is the core of Lemonade's growth algorithm. Sustaining efficiency at a higher spend level is proof that its AI-driven marketing engine can scale effectively, which is fundamental to achieving both the 33% IFP growth target and long-term profitability.
Strategic
Reinsurance Program Renewal
📅
Q2 2026
What to Monitor
The final terms of the July 1 reinsurance treaty renewal, specifically the ceded premium rate. Monitor for confirmation of a "greater rate of retention" as signaled by management as a likely outcome.
Why It Matters
A higher retention rate would materially accelerate revenue and net earned premium growth relative to IFP growth, providing a direct tailwind to profitability metrics. It would also signal increased confidence in Lemonade's underwriting from both the company and its reinsurance partners.
Risk
Stock-Based Compensation (SBC) Baseline
📅
Ongoing (FY 2026)
What to Monitor
Whether the quarterly SBC expense normalizes around the new ~$24 million baseline implied by the Q2 and full-year guidance, and management's commentary on the long-term effective dilution rate.
Why It Matters
The significant increase in SBC, driven by founder grants, creates a new, higher baseline for a key non-cash expense. Ensuring this remains manageable as a percentage of revenue is critical for assessing the path to GAAP profitability and long-term shareholder dilution.
Opportunity
Cross-Sell & Bundling Penetration
📅
Ongoing
What to Monitor
Growth in the percentage of total IFP from multi-line customers (currently 18%) and the percentage of multi-line customers (currently ~5%). Look for continued momentum in cross-sales.
Why It Matters
Cross-selling is a highly efficient, CAC-free growth lever. Increasing the bundling rate directly improves customer lifetime value, which in turn allows the company to invest more in growth while maintaining strong unit economics, accelerating the entire business flywheel.
