Lemonade stock jumps 7% as Q1 results beat expectations

Published 06/05/2025, 11:14
© Ben Kelmer, Lemonade PR

NEW YORK - Lemonade, Inc. (NYSE:LMND), the AI-powered insurance company, saw its shares surge 7% after reporting first quarter results that exceeded analyst estimates. The company’s revenue growth and narrower-than-expected loss propelled the stock higher in after-hours trading.

Lemonade reported Q1 adjusted earnings per share of -$0.86, beating the analyst consensus of -$0.92 by $0.06. Revenue for the quarter came in at $151.2 million, surpassing the expected $145.92 million and marking a 27% increase YoY. The company’s In Force Premium, a key metric, grew 27% YoY to $1,008 million, crossing the $1 billion mark in March.

Despite the impact of California wildfires, which contributed 16 points to the Q1 gross loss ratio of 78%, Lemonade’s trailing twelve-month gross loss ratio remained stable at 73%. Gross profit increased 11% YoY to $39 million, while adjusted gross profit rose 25% to $46 million.

"Our first quarter results were strong, headlined by accelerating growth alongside healthy loss ratios and stability in our expense base," said Daniel Schreiber, CEO and co-founder of Lemonade. "These trends propel the business towards profitability, with positive Adj. EBITDA expected prior to year-end 2026, consistent with prior guidance."

The company reported a net loss of $62 million for the quarter, with an adjusted EBITDA loss of $47 million, which was in line with its guidance and included the approximately $22 million unfavorable impact from the California wildfires.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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