Lemonade (LE0) Q2 2026 Earnings Report
CH:LE0 Q2 2026 EPS Results
- Actual EPS
- -CHF 0.46
- Consensus EPS
- -CHF 0.47
- Beat/Miss
- Beat by +CHF 0.00
- One Year Ago EPS
- -CHF 0.49
CH:LE0 Q2 2026 Revenue Results
- Actual Revenue
- CHF 226.00M
- Expected Revenue
- CHF 240.03M
- Beat/Miss
- Missed by -CHF 14.03M
- YoY Revenue Growth
- +104.94%
Earnings Announcement Details
- Quarter
- Q2 2026
- Date
- 07/29/2026
- Time
- Before Open
- Conference Call
- Wednesday, July 29, 2026
Lemonade's next earnings date is estimated for November 5, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
The call was broadly positive: strong top-line acceleration (revenue +79%, IFP +32.5%), record gross profit, meaningful improvements in adjusted EBITDA and free cash flow, industry-leading claims efficiency (LAE 5%), and positive operating momentum across car and product expansion. Key near-term challenges include elevated operating expenses, ongoing GAAP net losses, seasonal negative operating cash flow, and pressure in pet insurance from vet cost inflation. Management provided reassuring context on capital (reinsurance and financing improvements), sustainable unit economics (LTV:CAC ~3x), and guidance that targets adjusted EBITDA breakeven in Q4, supporting an overall constructive outlook.
Lemonade reiterated its IFP and EBITDA guidance while raising targets for gross earned premium and revenue, guiding to roughly 33% IFP growth (Q3 and full‑year 2026), about 9% revenue growth in Q3 and ~65% revenue growth for full‑year 2026, and maintaining a positive adjusted‑EBITDA full quarter in Q4 2026 (implied Q4 adjusted‑EBITDA ≈ $8M) while remaining on track for positive adjusted‑EBITDA for full‑year 2027.
- Strong Top-Line and Premium GrowthRevenue grew 79% year-over-year to $294 million; in-force premium (IFP) reached $1.43 billion, up ~32.5% YoY. Customer count grew 23% and premium per customer increased 8%.
- Record Gross Profit and Improved MarginsGross profit rose 76% YoY to a record $113 million. Adjusted gross profit increased 74% to $114 million; gross margin was 38% and adjusted gross margin 39%. Adjusted gross profit as a percentage of gross earned premium improved to 34% (up 8 percentage points from 26% prior year).
- Substantial Improvement in Adjusted EBITDA and Cash FlowAdjusted EBITDA loss improved 54% to a $19 million loss (vs. $41 million prior year). Adjusted free cash flow was positive $19 million (fifth consecutive quarter, 8 of last 9). Ending cash and investments totaled roughly $1.2 billion (about $330 million required regulatory surplus).
- Best-Ever Claims Handling Efficiency (LAE)LAE ratio fell to a company-best 5% in Q2 vs. an industry average of ~9%, with record low LAE across product lines, reflecting AI-driven claims automation and lower cost-to-serve.
- Accelerating Growth Momentum and Positive GuidanceCompany extended streak of accelerating IFP growth to 11 consecutive quarters and reiterated guidance while raising gross earned premium and revenue guidance. Q3 / full-year guidance contemplates ~33% IFP growth; company remains on track for a positive adjusted EBITDA quarter in Q4 and positive adjusted EBITDA for full year 2027.
- Product and Geographic ExpansionLaunched 14 additional state-product combinations in the past ~100 days, including moves toward nationwide renters availability and launch of autonomous car product in Colorado and Indiana. Expect majority of U.S. drivers to have car product availability before the end of 2027.
- Strong Car and Cross-Sell MomentumCar product grew ~60% YoY in Q2. Car sales show strong mix of new-customer acquisition and cross-sell (40–50% of new-to-Lemonade car sales are through cross-sell).
- Improved Reinsurance and Growth Financing TermsReinsurance renewal modestly increased retained premium share while materially strengthening catastrophe protection (including named storm coverage). Synthetic agents extension provides $250 million of growth financing at ~9.8% cost, improving cost of capital by more than 6 percentage points.
- Favorable Prior-Period Reserve DevelopmentReported favorable prior-period development of 7% on a gross basis (net prior-period development $12 million favorable in Q2, $16 million YTD), driven primarily by homeowners, multi-peril and car.
CH:LE0 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Nov 05, 2026 | 2026 (Q3) | -0.48- | -0.42 | ― | ― |
| Jul 29, 2026 | 2026 (Q2) | -0.47-0.46 | -0.49 | 6.67% (+0.03) | |
| Apr 29, 2026 | 2026 (Q1) | -0.47-0.39 | -0.71 | 45.35% (+0.32) | |
| Feb 19, 2026 | 2025 (Q4) | -0.32-0.24 | -0.35 | 30.95% (+0.11) | |
| Nov 05, 2025 | 2025 (Q3) | -0.58-0.42 | -0.78 | 46.32% (+0.36) | |
| Aug 05, 2025 | 2025 (Q2) | -0.65-0.49 | -0.67 | 25.93% (+0.17) | |
| May 06, 2025 | 2025 (Q1) | -0.78-0.71 | -0.55 | -28.36% (-0.16) | |
| Feb 25, 2025 | 2024 (Q4) | -0.49-0.35 | -0.5 | 31.15% (+0.16) | |
| Oct 30, 2024 | 2024 (Q3) | -0.84-0.78 | -0.73 | -7.95% (-0.06) | |
| Jul 30, 2024 | 2024 (Q2) | -0.73-0.67 | -0.8 | 16.49% (+0.13) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
