Lemonade (NYSE:LMND) Announces Quarterly Earnings Results

Key Points

• Q1 beat: Lemonade reported EPS of ($0.47) versus a consensus loss of ($0.58) and revenue of $258.0M, up about 70.6% YoY, topping estimates.
• Profitability concerns persist: The company still posted a negative net margin (~-22.4%) and ROE (~-31.2%), and shares fell roughly 13% to $57.25 on the report.
• Guidance aligned with expectations: Management gave Q2 revenue guidance of about $287M–$290M and FY‑2026 revenue near $1.2B, while clarity on near‑term EPS/profitability remained limited.

Lemonade (NYSE:LMND - Get Free Report) issued its earnings results on Tuesday. The company reported ($0.47) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.58) by $0.11, FiscalAI reports. The business had revenue of $258.00 million during the quarter, compared to analyst estimates of $251.50 million. Lemonade had a negative return on equity of 31.19% and a negative net margin of 22.43%.Lemonade's revenue for the quarter was up 70.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.86) earnings per share.

Lemonade Trading Down 13.0%

Shares of NYSE:LMND traded down $8.52 during trading on Wednesday, reaching $57.25. 2,998,833 shares of the company traded hands, compared to its average volume of 2,349,877. The firm has a market capitalization of $4.40 billion, a price-to-earnings ratio of -25.35 and a beta of 2.04. Lemonade has a 52-week low of $27.63 and a 52-week high of $99.90. The business's fifty day moving average is $60.36 and its 200-day moving average is $68.49.

Trending Headlines about Lemonade

Here are the key news stories impacting Lemonade this week:

• Positive Sentiment: Q1 EPS beat and year‑over‑year improvement — Lemonade posted EPS of ($0.47) vs. a consensus loss of ($0.58), improving from ($0.86) a year ago, showing progress toward narrowing losses. Lemonade (LMND) Reports Q1 Loss, Tops Revenue Estimates
• Positive Sentiment: Revenue outpaced estimates and grew strongly — Q1 revenue was $258.0M vs. ~$251.5M consensus, up ~70.6% year‑over‑year, supporting the company’s growth story. Lemonade Announces First Quarter 2026 Financial Results
• Neutral Sentiment: Guidance roughly in line with expectations — Lemonade gave Q2 revenue guidance of about $287M–$290M and FY‑2026 revenue guidance near $1.2B, essentially matching Street revenue assumptions; EPS guidance was not provided/was unclear in the release. Lemonade Announces First Quarter 2026 Financial Results (Business Wire)
• Neutral Sentiment: Management filed the shareholder letter and slide deck and conducted a conference call — useful for details on loss trajectory, margins and product/geography performance; investors will look for cadence toward profitability. Q1 Slide Deck / Call Material
• Negative Sentiment: Profitability remains a concern — Lemonade still shows a negative net margin (~‑22.4%) and negative return on equity (~‑31.2%), meaning substantial losses persist despite revenue growth. Lemonade (LMND) Reports Q1 Earnings: What Key Metrics Have to Say
• Negative Sentiment: Valuation and execution risk — with sizable net losses, a high-growth multiple, and mixed signals on near‑term profitability, investors may have sold into the beat; the company’s path to sustained profits remains the primary driver of future upside or downside. Is Lemonade Poised to Outperform Q1 Earnings Estimates?

Insider Buying and Selling at Lemonade

In other news, insider John Sheldon Peters sold 3,571 shares of the stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $52.50, for a total transaction of $187,477.50. Following the completion of the sale, the insider owned 76,729 shares of the company's stock, valued at approximately $4,028,272.50. This represents a 4.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders sold a total of 5,567 shares of company stock worth $287,517 over the last ninety days. Corporate insiders own 14.70% of the company's stock.

Institutional Trading of Lemonade

A number of institutional investors have recently made changes to their positions in LMND. Caitong International Asset Management Co. Ltd boosted its stake in shares of Lemonade by 8,080.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 409 shares of the company's stock valued at $29,000 after purchasing an additional 404 shares during the period. Northwestern Mutual Wealth Management Co. purchased a new stake in shares of Lemonade during the fourth quarter valued at approximately $33,000. NewEdge Advisors LLC purchased a new stake in shares of Lemonade during the first quarter valued at approximately $35,000. Strive Financial Group LLC purchased a new stake in shares of Lemonade during the fourth quarter valued at approximately $38,000. Finally, Macquarie Group Ltd. bought a new position in shares of Lemonade during the fourth quarter valued at approximately $63,000. Hedge funds and other institutional investors own 80.30% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have issued reports on LMND shares. Truist Financial started coverage on Lemonade in a research note on Tuesday, January 6th. They issued a "buy" rating and a $98.00 target price for the company. Citigroup reaffirmed an "outperform" rating on shares of Lemonade in a research note on Friday, January 16th. Piper Sandler set a $65.00 target price on Lemonade in a research note on Thursday, February 19th. Wolfe Research set a $44.00 target price on Lemonade in a research note on Tuesday, February 24th. Finally, Cantor Fitzgerald upped their target price on Lemonade from $85.00 to $92.00 and gave the stock an "overweight" rating in a research note on Wednesday, January 14th. Five analysts have rated the stock with a Buy rating, one has given a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, Lemonade currently has a consensus rating of "Hold" and an average target price of $68.75.

About Lemonade

Lemonade, Inc NYSE: LMND is a New York–based technology-driven insurance carrier that leverages artificial intelligence and behavioral economics to streamline the purchase and management of policies. Founded in 2015, the company offers renters, homeowners, pet, term life and car insurance products tailored for digitally savvy consumers. By automating underwriting and claims processing through chatbots and machine learning, Lemonade aims to deliver a more transparent and user-friendly experience than traditional insurers.

The company's product suite includes standalone policies for renters and homeowners, customizable pet insurance plans, and term life coverage with simple online applications.

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