Lemonade Misses Full-Year In-Force Premium Outlook Despite Strong Q2 Results
Lemonade (NYSE: LMND) reported strong second-quarter results, with revenue rising 79% year-over-year to $294 million and a narrowed net loss of $0.56 per share that matched expectations. However, its full-year in-force premium (IFP) guidance fell slightly short of Wall Street's estimates, leading to a stock price decline despite otherwise positive financials. The company has continued expanding through new insurance products like pet health and auto coverage following the 2022 acquisition of Metromile. Lemonade ended Q2 with 3.31 million customers — up 23% year-over-year — while metrics such as IFP, gross earned premium (GEP), and adjusted gross margin have steadily improved since its IPO in 2020. Despite the slight miss on guidance, Lemonade reiterated plans to achieve positive EBITDA by Q4 of this year. The company's enterprise value remains low at three times expected sales for 2026, suggesting it may still be undervalued despite recent volatility.
Tickers: $LMND