TLDR
- Lemonade (LMND) Q4 revenue hit $228.1M, up 53.3% year-on-year, beating estimates of $217.6M
- Adjusted EPS loss of -$0.29 beat analyst estimates of -$0.39 by $0.10
- Net premiums earned came in at $179.5M, up 77.4% year-on-year, beating estimates by 8.3%
- Q1 2026 revenue guidance midpoint of $248.5M tops analyst consensus of $241.6M
- Shares surged over 17% in pre-market trading following the results
Lemonade (LMND) shares surged more than 17% in pre-market trading Thursday after the company posted Q4 results that beat analyst expectations on every major metric.
Revenue for the quarter came in at $228.1 million, up 53.3% year-on-year and ahead of the Wall Street consensus of $217.6 million — a 4.8% beat.
The company reported an adjusted loss of $0.29 per share against estimates of -$0.39, coming in $0.10 better than expected.
Premium Growth Does the Heavy Lifting
Net premiums earned — the key metric for insurers — hit $179.5 million in Q4, beating estimates of $165.8 million by 8.3% and growing 77.4% compared to the same quarter last year.
Net premiums earned have grown at a 47.3% annualized rate over the last five years, well above the broader insurance industry.
Over the past two years, that rate has moderated to around 30% annually. Net premiums made up roughly 70.8% of total revenue over the last five years, making it the company’s core revenue driver.
Pre-tax loss for the quarter was $20.6 million, a -9% margin.
Lemonade held a market cap of $4.91 billion at the time of reporting.
Q1 2026 Guidance Comes in Above Estimates
Lemonade guided Q1 2026 revenue to between $246 million and $251 million. The midpoint of $248.5 million clears the analyst consensus of $241.6 million, giving investors another reason to push the stock higher.
The company’s five-year revenue CAGR sits at 50.9%, though the two-year annualized rate of 31% reflects some deceleration.
Lemonade operates across renters, homeowners, pet, car, and life insurance in the U.S. and EU through its AI-powered platform.
The company hosted a conference call Thursday at 8:00 am Eastern. Shares settled up 11.1% to $73.05 immediately after the report, with pre-market gains extending above 17%.
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