Lemonade Inc. (NYSE:LMND) reported first-quarter results highlighting strong revenue growth and improving profitability, although its shares declined 2.90% in premarket trading after the announcement.
Revenue for the quarter ended March 31, 2026, reached $258.0 million, a 71% increase from $151.2 million a year earlier.
The growth was driven by improved premium retention following a reinsurance transition and continued expansion in In Force Premium, which rose 32% year over year to $1.33 billion.
Lemonade reported an adjusted net loss of -$0.47 per share, narrowing from -$0.86 per share in the first quarter of 2025.
Adjusted EBITDA loss improved significantly to $17.1 million, compared with $47.0 million a year earlier—a 64% reduction.
Gross profit surged 159% to $100.1 million, with gross margin expanding to 39% from 26% in the prior-year period.
The improvement was supported by strong revenue growth and a 19-percentage-point reduction in the net loss ratio, reflecting better underwriting performance and the absence of prior-year impacts such as the California wildfires in early 2025.
“Our first quarter results were excellent, once again characterized by topline growth acceleration, healthy underwriting performance, and strong operating leverage,” the company said in its shareholder letter.
For the second quarter of 2026, Lemonade expects revenue in the range of $287 million to $290 million, with the midpoint of $288.5 million indicating continued sequential growth. The company forecasts an adjusted EBITDA loss of between $19 million and $23 million.
For the full year 2026, Lemonade raised its outlook, now guiding for revenue of $1.197 billion to $1.203 billion and an adjusted EBITDA loss of $47 million to $51 million. The company also reiterated its expectation of reaching positive adjusted EBITDA in the fourth quarter of 2026.