Lemonade has delivered first-quarter 2026 results that bring it closer to a profitability target it first set in 2022, with the AI-driven insurance carrier reiterating that adjusted EBITDA will turn positive in the fourth quarter.
In Force Premium climbed 32% year-on-year to $1.33 billion, a tenth straight quarter of accelerating IFP growth. Revenue jumped 71% to $258 million, lifted by stronger gross earned premium and improved retention after a reinsurance transition completed in the third quarter of 2025.
Customer count hit 3.14 million, up 23%, while premium per customer rose 7% to $424.
Net loss narrowed to $35.8 million, or $0.47 per share, a 43% improvement on the $62.4 million loss a year earlier, and ahead of the $0.57 loss per share that analyst tracker TipRanks had pencilled in. Adjusted EBITDA loss came in at $17.1 million, a 64% improvement the company tied to revenue growth and stronger underwriting.
Gross profit surged 159% to $100.1 million, with margins widening to 39% from 26%. The shift reflected a 19-point drop in net loss ratio, helped by underwriting gains and the absence of California wildfire losses that had bruised the prior-year quarter.
The numbers build on a record fourth quarter, when IFP reached $1.24 billion. Lemonade has consistently pointed to its 2022 EBITDA guidance as proof of disciplined execution, with leadership recently underscoring "the predictability of our model and a consistent record of execution."
Pet insurance, now Lemonade's largest line, crossed $500 million in IFP early in the second quarter, the first product in the portfolio to hit that mark. Pet IFP grew 55% in 2025, against an industry average of 17%, the company said.
The opportunity is sizeable. Industry body NAPHIA estimates more than 7 million pets in the US were insured as of 2024, with around 30 carriers competing for share.
Lemonade ranks fourth by written premium, behind names such as Pumpkin, ASPCA and Pets Best, while sitting among the most affordable options nationally. Research from MoneyGeek pegs Lemonade's premiums at roughly 17% below the national average.
Less than six years after launch, Lemonade is the most-searched pet brand in the US. It cited a loss adjustment expense ratio of around 4%, a proprietary AI pricing engine and a balanced distribution model as structural advantages.
Lemonade Car logged its fastest growth yet, with IFP up 60% from 9% a year earlier, alongside a 74% gross loss ratio. Colorado, launched in 2025, became the fourth-largest state by Car IFP share, and the autonomous Car product converted new customers at rates roughly 70% higher than the non-autonomous version.
Lemonade lifted full-year 2026 guidance, projecting IFP of $1.63 billion to $1.64 billion, revenue of $1.20 billion, and an adjusted EBITDA loss of $47 million to $51 million. Investor Day is set for New York on Nov. 17.
