Highlights

  • Second quarter 2026 revenue rose 79% to $294.4 million, while the $43.4 million net loss was little changed.
  • In force premium grew 32% to $1.43 billion, customers rose 23%, and the gross loss ratio fell to 60%.
  • Lemonade signed a June 22 agreement with Hannover Re providing up to $250 million to finance sales and marketing growth.
  • The company renewed its reinsurance program on July 1 with an effective cession rate of about 18% of premium.

Lemonade, Inc. (NYSE:LMND) shares were trading near their 52-week low at USD 45.61 on October 21, 2026, up 0.47%. The digital insurer reported second quarter 2026 results in its quarterly report filed August 4, signed a growth financing agreement on June 22 and renewed its reinsurance program effective July 1.

Based in New York, Lemonade is a public benefit corporation organized under Delaware law on June 17, 2015. It says it is rebuilding insurance on a digital platform and owns insurance carriers in the United States and Europe, including the United Kingdom, selling renters, homeowners, pet, car and life coverage. It operates one reportable segment, personal property and casualty insurance, and uses reinsurance and an annual Giveback of excess premium to nonprofits to temper volatility. Its fiscal year ends December 31.

Growth Continues, Losses Persist

Total revenue for the quarter ended June 30, 2026 was $294.4 million, up from $164.1 million a year earlier. Net earned premium more than doubled, rising 124% to $252.0 million, mainly because Lemonade earned more premium and ceded a smaller share to reinsurers. Gross written premium increased 34% to $380.0 million, which the company tied to 23% customer growth and an 8% rise in premium per customer.

Customers reached 3,308,666 at quarter end, and in force premium climbed to $1,434.3 million from $1,083.4 million. Gross loss ratio improved to 60% from 67%, helped by reserve releases on homeowners and car, and gross profit rose to $113.2 million from $64.3 million.

The company remains unprofitable. Net loss was $43.4 million, or $0.56 per share, versus $43.9 million, or $0.60, a year earlier. Adjusted EBITDA, a non-GAAP measure, was a loss of $18.7 million compared with a loss of $40.9 million. Costs rose alongside growth: net loss and loss adjustment expense nearly doubled to $154.0 million, sales and marketing increased 30% to $77.7 million, and general and administrative expense rose 85% to $47.8 million. For six months, the net loss narrowed to $79.2 million from $106.3 million.

Financing, Reinsurance and Balance Sheet

On June 22, 2026, Lemonade entered a New Business Financing Agreement with Hannover Re (Ireland) DAC. Hannover Re will fund up to 80% of growth spend, capped at $20 million per customer cohort, with total outstanding capital of up to $250 million. Repayment comes from a percentage of premiums collected for the funded cohorts, plus a return tied to the three-year Treasury bill rate plus 5.8%. The agreement carries financial covenants. A separate facility with General Catalyst had $206.4 million of outstanding borrowings at June 30.

The reinsurance program with Hannover Re and MAPFRE was renewed from July 1, 2026 to June 30, 2027 at an effective cession rate of about 18% of premium, lower than before, with a $40 million limit per occurrence and $100 million in aggregate. A property per-risk excess-of-loss contract was not renewed. Management notes that reinsurance does not remove its obligation to pay all claims.

At June 30, 2026, Lemonade held $367.6 million of cash and cash equivalents and $695.2 million of investments. Operating activities used $4.0 million of cash in the six months, versus $41.7 million a year earlier. Total adjusted capital of its U.S. insurers exceeded risk-based capital requirements.

What the Filing Says About the Road Ahead

The quarterly report does not include numeric financial guidance. It points to several items that shape coming periods: the lower cession rate in the renewed reinsurance program, the shift of new growth financing solely to the Hannover Re agreement from January 1, 2027, seasonal weather patterns that affect claims, tariff-related repair costs and operations in Israel.