Lemonade earnings date
Lemonade (LE0) Q3 2026 Earnings Report
DE:LE0 Q3 2026 EPS Results
- Actual EPS
- -EUR 0.51
- Consensus EPS
- -EUR 0.52
- Beat/Miss
- Beat by +EUR 0.02
- One Year Ago EPS
- -EUR 0.46
DE:LE0 Q3 2026 Revenue Results
- Actual Revenue
- EUR 288.08M
- Expected Revenue
- EUR 291.71M
- Beat/Miss
- Missed by -EUR 3.63M
- YoY Revenue Growth
- +96.36%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/05/2026
- Time
- Before Open
- Conference Call
- Thursday, November 5, 2026
Lemonade's next earnings date is estimated for March 2, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was strongly positive overall, with accelerating in-force premium and revenue growth, record gross profit, improving underwriting, positive free cash flow, rapid car and geographic expansion, and reiterated expectations for positive adjusted EBITDA in Q4 2026 and for full-year 2027. The main challenges were the current net loss, higher operating expenses, a pet loss-ratio headwind caused by veterinary-cost inflation, and elevated European losses, but management described these issues as understood and addressed through pricing and expense actions.
Management’s current view represents 33% Q4 and full year IFP growth at the high end of our guidance range, roughly 52% Q4 revenue growth, 67% full year 2026 revenue growth and positive adjusted EBITDA of $5 million to $9 million in the fourth quarter; Lemonade remains on track to deliver its first positive adjusted EBITDA quarter in the current quarter and expects 2027 will be EBITDA positive on an annual basis. The growth rate of growth spend is expected to slow significantly in Q4 2026 and onwards, stock-based compensation expense is not expected to be a driver of year-over-year expense growth beginning in Q2 2027, interest expense growth should moderate over time, and other insurance expense will continue to grow. Pet loss ratio is expected to moderate over time and normalize in the upcoming several quarters, while car expansion is expected to pick up even more speed in the coming quarters.
- Accelerating Premium and Revenue GrowthIn-force premium reached $1.55 billion, up 34% year-over-year and extending Lemonade's streak of accelerating growth to 12 consecutive quarters. Revenue increased 73% to $336 million, while gross profit rose 48% to a record $118 million.
- Strong Customer and Premium-per-Customer GrowthIn-force premium growth was driven by customer growth of 23% and premium per customer growth of 9%. Lemonade added roughly 212,000 new customers in Q3, 20% more than the roughly 177,000 added in the prior-year quarter.
- Rapid Car Business ExpansionCar in-force premium grew 63% year-over-year, with record levels of new business across direct channels and sales to existing Lemonade customers. Lemonade car is now available in 14 states covering more than half of the U.S. population, following launches in Missouri, Florida and Pennsylvania.
- Healthy Car Underwriting PerformanceThe overall car calendar-quarter loss ratio was around 63%, with prior-period development providing a meaningful benefit. Excluding that effect, the car loss ratio was trending in the low to mid-70s range, while frequency and severity for both new and renewal business were described as trending healthily and in line with expectations.
- Improving Underwriting ResultsThe reported gross loss ratio was 65%, including about 2% of favorable prior-period development driven primarily by car and renters. Net prior-period development was also 2% favorable, with $4 million favorable in Q3 and about $20 million favorable year-to-date. The vast majority of the development was not catastrophe-related.
- Record Gross Profit and Higher MarginsAdjusted gross profit increased 49% to $121 million. Gross margin was 35% and adjusted gross margin was 36%, while adjusted gross profit as a percentage of gross earned premium increased to 33% from 29% in the prior-year quarter.
- Progress Toward ProfitabilityAdjusted EBITDA loss improved about 20% year-over-year to $20 million, in line with expectations. Management reiterated that it remains on track to deliver its first positive adjusted EBITDA quarter in Q4 2026 and expects 2027 to be EBITDA positive on an annual basis.
- Positive Cash Flow and Strong LiquidityAdjusted free cash flow was positive for the sixth consecutive quarter at $27 million, and operating cash flow was positive at $7 million. Lemonade ended the quarter with roughly $1.2 billion in cash and investments, including about $350 million required to be held as regulatory surplus.
- Improved Customer RetentionAnnual dollar retention increased by 1 percentage point sequentially to 86%.
- Operating Leverage from TechnologyLemonade ended the quarter with 1,321 employees, 18 fewer than in Q2 and fewer than four years ago, while nearly tripling its premium base and doubling its customer count over that period. Management attributed this productivity to a decade of investment in its proprietary AI platform.
- Geographic Expansion AcceleratedLemonade launched 25 new product-geography combinations during 2026. The company achieved nationwide availability for its renters product, the first product in its portfolio to reach all 50 states, and reported that its 2026 launch pace across the business was about 7x faster than in prior years.
- Expansion Opportunities in Renters PartnershipsNationwide renters availability is expected to broaden Lemonade's access to larger partners, including potential partners in property management and other verticals that require nationwide coverage. Management said the company expects this reach to improve and expand over time.
- Autonomous Car MomentumLemonade's autonomous car product expanded to 6 states after launching earlier in 2026. Early results from its autonomous pricing model showed conversion among Tesla owners at roughly 2.2x the level of the broader car product, and management said it has multiple active relationships with major carmakers beyond Tesla.
- Cross-Sales Becoming a Major Growth DriverYear-to-date cross-sales to existing Lemonade customers surpassed $100 million and were growing at twice the in-force premium growth rate. Bundled policies represented nearly 20% of total in-force premium at quarter-end, and management expects cross-sales to remain an increasingly significant growth driver.
- Efficient Customer AcquisitionDespite a 44% increase in sales and marketing expense driven by higher growth spending, Lemonade maintained strong lifetime-value-to-customer-acquisition-cost ratios above 3:1. Management also stated that cross-sales generally do not require much incremental customer acquisition cost.
- Raised Revenue Outlook and Positive Q4 EBITDA GuidanceThe company raised its full-year revenue guidance range by $16 million. Current guidance calls for roughly 52% Q4 revenue growth, 67% full-year 2026 revenue growth, 33% Q4 and full-year in-force premium growth at the high end of the guidance range, and positive Q4 adjusted EBITDA of $5 million to $9 million.
- Planned Personal AI Agent CapabilitiesLemonade plans to open Lemonade OS to external personal AI agents, allowing them to serve customers directly. Management said the upcoming update is intended to provide instant 24/7 service, reduce cost to serve and allow more savings to be passed back to customers. The company said it is not yet seeing volume from personal agents.
- Shelf Registration RenewalLemonade plans to renew its expiring S-3 shelf registration and stated that it has no immediate plans to utilize it.
DE:LE0 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 02, 2027 | 2026 (Q4) | -0.22- | -0.26 | ― | ― |
| Nov 05, 2026 | 2026 (Q3) | -0.52-0.51 | -0.46 | -9.80% (-0.05) | |
| Jul 29, 2026 | 2026 (Q2) | -0.51-0.51 | -0.54 | 6.67% (+0.04) | |
| Apr 29, 2026 | 2026 (Q1) | -0.51-0.42 | -0.78 | 45.35% (+0.35) | |
| Feb 19, 2026 | 2025 (Q4) | -0.36-0.26 | -0.38 | 30.95% (+0.12) | |
| Nov 05, 2025 | 2025 (Q3) | -0.63-0.46 | -0.86 | 46.32% (+0.40) | |
| Aug 05, 2025 | 2025 (Q2) | -0.71-0.54 | -0.73 | 25.93% (+0.19) | |
| May 06, 2025 | 2025 (Q1) | -0.85-0.78 | -0.61 | -28.36% (-0.17) | |
| Feb 25, 2025 | 2024 (Q4) | -0.54-0.38 | -0.55 | 31.15% (+0.17) | |
| Oct 30, 2024 | 2024 (Q3) | -0.92-0.86 | -0.8 | -7.95% (-0.06) |
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.
