Lemonade (0A91) AI Stock Analysis

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Lemonade

(LSE:0A91)

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Positive Factors

Accelerating GrowthPremium and revenue are expanding rapidly, while gross profit is also rising. This combination indicates stronger scale and customer adoption, giving Lemonade a larger base over which to spread technology and operating costs and supporting durable growth if underwriting remains controlled.

Negative Factors

Continuing LossesLemonade remains loss-making, with negative TTM operating profit and EBITDA and a -13.5% net margin. Until underwriting and operating scale convert growth into consistent profit, future expansion remains dependent on execution and may produce weak returns on its capital base.

Lemonade (0A91) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: $3.17B
Dividend Yield: ―
Average Volume (3M): 5,423
Price to Earnings (P/E): -21.2
Beta (1Y): 0.95
Revenue Growth: 89.43%
EPS Growth: 20.78%
Country: UK
Employees: 1,282
Sector: Financial
Sector Strength: 68
Industry: Insurance - Property & Casualty

Lemonade Business Overview & Revenue Model

Company Description

Lemonade, Inc. functions as an insurance provider operating across the United States and Europe, offering a diverse array of policies. Their core coverage options encompass protection against stolen or damaged personal property, as well as personal l...

Lemonade Earnings Call Summary

Earnings Call Date:Nov 05, 2026(Q3-2026)|% Change Since:-9.02%|Next Earnings Date:Mar 02, 2027

Earnings Call SentimentPositive

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.

Positive Updates

Accelerating Premium and Revenue Growth

In-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.

Negative Updates

Net Loss and Loss per Share Increased

Net loss was $44 million, or $0.56 per share, compared with a $38 million net loss, or $0.51 per share, in the prior-year quarter.

Company Guidance

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.

Lemonade Risk Analysis

Lemonade disclosed 68 risk factors in its most recent earnings report. Lemonade reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Lemonade Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

GB:0A91 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLDE	91Outperform	$3.09B	5.36	49.36%	0.27%	41.68%	-57.66%
HIPO	75Outperform	$966.10M	29.76	7.04%	―	20.55%	-67.82%
ROOT	73Outperform	$665.72M	8.86	20.24%	―	7.89%	39.83%
TRUP	70Outperform	$1.48B	56.33	6.71%	―	11.41%	70.52%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PRCH	64Neutral	$2.51B	253.32	-104.73%	―	19.82%	-68.81%

* Financial Sector Average

Performance Comparison

GB:0A91 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:0A91	Lemonade Inc	40.83	-28.85	-41.40%
TRUP	Trupanion Inc.	34.36	-5.03	-12.77%
PRCH	Porch Group, Inc.	22.14	11.94	117.06%
ROOT	Root, Inc.	43.97	-38.23	-46.51%
HIPO	Hippo Holdings Inc	36.61	4.17	12.85%
SLDE	Slide Insurance Holdings, Inc.	26.04	9.50	57.47%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Lemonade AI Stock Analysis