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Lemonade (LMND) Stock Jumps 17% After Q4 Earnings Beat
TLDR
- Lemonade (LMND) Q4 revenue hit $228.1 million, up 53.3% year-on-year, beating estimates of $217.6 million
- Adjusted EPS loss of -$0.29 beat analyst estimates of -$0.39 by $0.10
- Net premiums earned came in at $179.5 million, an 8.3% beat and 77.4% year-on-year growth
- Q1 2026 revenue guidance of $246–$251 million tops analyst consensus of $241.6 million
- Shares jumped over 17% in pre-market trading following the results
Lemonade (NYSE: LMND) shares surged more than 17% in pre-market trading on Thursday after the company posted Q4 results that beat analyst expectations across the board.
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. That’s a solid beat by any measure.
The company reported an adjusted loss of $0.29 per share, compared to analyst estimates of -$0.39. That’s a $0.10 beat, or roughly 26% better than expected.
Net premiums earned — the number analysts tend to watch most closely for insurers — came in at $179.5 million. That beat estimates of $165.8 million by 8.3% and grew 77.4% compared to the same quarter last year.
Pre-tax loss for the quarter was $20.6 million, representing a -9% margin.
Strong Premium Growth Drives the Beat
Net premiums earned have grown at a 47.3% annualized rate over the last five years, well above the broader insurance industry average.
Over the past two years, that growth rate has moderated to around 30% annually — still a healthy clip, and consistent with the company’s overall revenue trajectory.
Lemonade’s revenue has compounded at roughly 50.9% annually over the last five years. The most recent two-year annualized rate of 31% shows some deceleration but still points to strong underlying demand.
Net premiums earned made up about 70.8% of total revenue over the last five years, making it the company’s primary revenue driver.
Q1 2026 Guidance Tops Estimates
Looking ahead, Lemonade guided Q1 2026 revenue to between $246 million and $251 million. The midpoint of that range, $248.5 million, comes in above the analyst consensus of $241.6 million.
That forward guidance gave investors an additional reason to bid the stock higher on Thursday morning.
Lemonade operates across renters, homeowners, pet, car, and life insurance in both the U.S. and EU markets through its AI-powered digital platform.
The company’s Giveback program, which donates unused premiums to policyholder-selected charities, remains a differentiator in its positioning — though it’s the underlying growth numbers doing the heavy lifting right now.
Lemonade held a market capitalization of $4.91 billion at the time of reporting.
The company hosted a conference call Thursday at 8:00 am Eastern to discuss results.
Shares traded up 11.1% to $73.05 immediately after the report, with pre-market gains extending above 17% as the session progressed.
