TLDR
- Lemonade reported Q3 loss of $0.51 per share, beating analyst estimates of $0.70 by $0.19 and improving from last year’s $0.95 loss.
- Revenue hit $194.5 million for the quarter, topping the $184.9 million consensus estimate by nearly 3%.
- The company raised its Q4 2025 revenue guidance to $217-$222 million, above the $212.7 million analyst consensus.
- Full year 2025 revenue guidance increased to $727-$732 million versus analyst expectations of $713.3 million.
- Lemonade stock surged 19.76% over three months and 100.27% over the past year, with shares up 59.9% year-to-date.
Lemonade posted a loss of $0.51 per share in the third quarter. That beat the analyst consensus estimate of $0.70 by $0.19.
The results mark a clear improvement from the same period last year. Back then, the company reported a loss of $0.95 per share.
Revenue for the quarter came in at $194.5 million. This topped the consensus estimate of $184.9 million by about 3%.
Year-ago revenue stood at $136.6 million. That puts the year-over-year growth rate at over 42%.
This marks the fourth consecutive quarter where Lemonade has beaten revenue expectations. The company also surpassed earnings estimates in all four of those quarters.
The previous quarter saw the company post a loss of $0.60 per share. Analysts had expected $0.81, making that a 25.93% surprise to the upside.
Looking ahead, management raised its guidance for the coming periods. The company now expects Q4 revenue between $217 million and $222 million.
Analyst consensus for the fourth quarter had been $212.7 million. That puts the new guidance range comfortably above expectations.
Full Year Outlook Gets a Boost
For the full year 2025, Lemonade updated its revenue projection. The company now sees annual revenue landing between $727 million and $732 million.
The previous analyst consensus stood at $713.3 million. This represents another guidance raise that exceeds what Wall Street anticipated.
The stock has performed well this year. Shares are up 59.9% since January, outpacing the S&P 500’s 15.1% gain over the same stretch.
Over the past three months, the stock climbed 19.76%. The 12-month return stands at an even more impressive 100.27%.
Shares closed at $58.66 before the earnings announcement. The stock’s performance reflects growing investor confidence in the company’s trajectory.
Analyst Expectations for Coming Quarters
For the next quarter, analysts currently expect a loss of $0.42 per share. Revenue estimates sit at $214.64 million.
For the current fiscal year, the consensus calls for a loss of $2.60 per share. Full year revenue estimates stand at $719.13 million.
The Zacks Rank system rates the stock at #3, which translates to a Hold rating. This suggests the shares should perform in line with the broader market in the near term.
The Insurance – Multi line industry ranks in the top 28% of all Zacks industries. Research shows that top-ranked industries tend to outperform lower-ranked ones by more than 2 to 1.
The coming earnings call will provide more color on the quarter. Management commentary often shapes how the market interprets these numbers going forward.
Lemonade has now beaten both earnings and revenue estimates for four straight quarters. The company raised its Q4 revenue guidance to $217-$222 million and full year guidance to $727-$732 million.
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