Lemonade beats Q3 revenue estimates on 73% growth and raises 2026 outlook

what happened

US digital insurer Lemonade reported third-quarter revenue of $336 million, up 73% from a year earlier and above the $322.74 million average of 10 analysts, according to Reuters. The company posted a net loss of $44 million. Its adjusted EBITDA loss of $20 million was slightly wider than the $19.09 million loss analysts had expected.

Growth was fueled by a 34% rise in in-force premium, which reached $1.55 billion. The customer base grew 23%, while premium per customer climbed 9%. Revenue also benefited from Lemonade keeping a larger share of premiums after reinsurance cession rates were reduced. Operating expenses jumped 36%, driven by spending on customer acquisition, stock-based pay and insurance-related costs.

For the fourth quarter, Lemonade expects revenue of $342 million to $346 million. It also lifted its full-year 2026 revenue forecast to a range of $1.231 billion to $1.235 billion.

why it matters

The mix of results is uneven: top-line strength and a higher revenue outlook stand against a wider EBITDA loss and sharply higher spending. Investors will likely watch whether cost growth slows as the customer base expands, since that determines when profitability can catch up with sales.

market impact

LMND shares: revenue beat and higher guidance offset by wider loss and higher spending

• ↔Lemonade shares (LMND) mixed — revenue beat and raised guidance pull against a wider EBITDA loss and higher costs

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