Lemonade Inc. (NYSE:LMND) shares rose over 4% in premarket trading Wednesday after the AI-driven insurance platform reported third-quarter earnings and revenue that surpassed Wall Street expectations, while also raising its full-year guidance amid accelerating growth.

The company posted a loss of $0.51 per share, narrower than analysts’ forecasts for a $0.70 loss, and revenue surged 42% year over year to $194.5 million, beating the consensus estimate of $184.9 million. Lemonade’s in-force premium rose 30% YoY to $1.16 billion, marking its eighth straight quarter of accelerating growth.

Gross profit more than doubled from a year ago to $80 million, while gross profit margin improved by 14 percentage points to 41%. The gross loss ratio fell sharply by 11 percentage points to 62%, reaching its best-ever level.

“In Q3, we continued both our growth acceleration — crossing 30% IFP growth ahead of schedule — and our steady progress toward profitability,” said Daniel Schreiber, CEO and co-founder of Lemonade.

Lemonade generated $18 million in adjusted free cash flow and $5 million in operating cash flow for the quarter. Its customer base expanded 24% YoY to 2.87 million, with average premium per customer increasing 5% to $403.

Looking forward, the company raised its full-year 2025 revenue outlook to a range of $727–732 million, ahead of analyst expectations of $713.3 million. For the fourth quarter, revenue is projected between $217 million and $222 million, also topping the consensus forecast of $212.7 million.

Lemonade reaffirmed its goal of 30% in-force premium growth in fiscal 2026 and said it expects to deliver positive adjusted EBITDA for the full quarter in Q4 2026, underscoring continued progress toward sustainable profitability.

Lemonade stock price

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