Lemonade (LMND) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 73% to $336.1M and IFP grew 34% to $1,550.8M; gross profit reached a record, while adjusted EBITDA loss narrowed to $20.4M.

• Car IFP grew 63% YoY; nationwide Renters availability, geographic expansion and cross-sales supported growth.

Financial highlights

• Revenue rose 73% to $336.1M; gross profit was $118M and adjusted gross profit was $120.5M, up 48% and 49%, respectively.

• Net loss was $43.7M, or $0.56 per share, versus $37.5M, or $0.51 per share; adjusted EBITDA loss improved to $20.4M from $25.6M.

• Adjusted free cash flow was positive for a sixth consecutive quarter at $27M; nine-month operating cash flow was positive at $3.3M versus $37.2M used a year earlier.

• Nine-month revenue rose 74% to $888.5M; net loss narrowed 15% to $122.9M from $143.8M, and adjusted EBITDA loss narrowed to $56.2M from $113.5M.

• Net earned premium rose 111% to $294.8M; gross written premium increased 35% to $450.7M.

Outlook and guidance

• Q4 2026 guidance: IFP growth of 33% at the high end of the range, revenue growth of ~52%, and positive adjusted EBITDA of $5M–$9M.

• FY 2026 revenue growth guidance was 67%; annual adjusted EBITDA profitability remains expected in FY 2027.

• Growth-spend growth is expected to slow significantly from Q4 2026, although absolute growth spend may rise in 2027; Car and bundling are expected to drive the next growth phase.

• Pet loss-ratio pressure is expected to moderate as rate increases earn through over several quarters; G&A growth is expected to moderate after Q2 2027.