Overview

* Lemonade Q3 revenue grows 42% yr/yr, beating analyst expectations

* Adjusted EBITDA loss improves, beating analyst expectations

* Gross profit more than doubles, driven by revenue growth and improved loss ratios

Outlook

* Lemonade raises FY 2025 IFP, GEP, revenue, and adj. EBITDA guidance

* Company expects 30% IFP growth in FY 2026

* Lemonade aims for positive adj. EBITDA in Q4 2026

Result Drivers

* IFP GROWTH - Lemonade's In Force Premium grew 30% YoY, marking the eighth consecutive quarter of accelerating growth

* GROSS PROFIT IMPROVEMENT - Gross profit increased 113% YoY to $80 mln, with gross profit margin improving by 14 percentage points to 41%

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $194.50 $184.51

Revenue mln mln (9

Analysts

)

Q3 Net -$38 mln

Income

Q3 Beat -$26 mln -$34.80

Adjusted mln (7

EBITDA Analysts

)

Q3 $80.90

Adjusted mln

Gross

Profit

Q3 Gross $80 mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and 4 "sell" or "strong sell"

* The average consensus recommendation for the property & casualty insurance peer group is "buy."

* Wall Street's median 12-month price target for Lemonade Inc ( LMND ) is $43.50, about 34.9% below its November 4 closing price of $58.66

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)