LMND Lemonade (LMND) Q2 FY26 earnings call
Lemonade delivered another strong quarter, marked by accelerating in-force premium growth and significant improvements in profitability metrics, including a record-low LAE ratio. The company is on track for positive adjusted EBITDA by Q4 FY26, driven by sustained LTV to CAC ratios and operational efficiencies. Management is reiterating its full-year guidance for IFP and EBITDA while raising revenue and gross earned premium outlooks, signaling confidence in its growth and profitability trajectory.
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LMND operating KPIs by quarter
| KPI | Mar 2026 Q1 FY26 | This call Jun 2026 Q2 FY26 | Change vs prior quarter |
|---|---|---|---|
| In-force premium | $1.33BIn the first quarter, in-force premium reached $1.33 billion, growing 32% year-over-year.Source: earnings call transcript | $1.43BIn-force premium reached $1.43 billion, growing about 32.5% year-over-year and extending our streak of accelerating growth to 11 consecutive quarters.Source: earnings call transcript | +7.5% |
| Employees | 1,291Headcount increased slightly by about 2% to 1,291 in Q1 as compared to the prior year.Source: earnings call transcript | 1,339Headcount increased slightly by 65 or about 5% year-over-year to 1,339 in Q2.Source: earnings call transcript | +3.7% |
| LAE ratio | 6%I think one place in particular, you can really see the impact of AI-powered automation at scale is in the cost of adjudicating claims, and that's our LAE ratio, which is currently at 6%, which we consider levels that are roughly -- that are best-in-class today and materially improved over time.Source: earnings call transcript | 5%In the second quarter, we delivered our best ever LAE ratio result of 5%.Source: earnings call transcript | -1 pt |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.