Lemonade Posts $43M Loss for Q2 as it Continues to Grow Customer Base

Insurtech Lemonade reported a second quarter 2026 net loss of about $43 million compared with a loss of about $44 million during the same time in 2025.

Lemonade said its topline growth was positive, with 76% increase in year-over-year gross profit to a record of about $113 million.

Q2 in-force premium (IFP) increased 32% to about $1.4 billion. Customer count increased by 23% to about 3.3 million.

Revenue jumped 79% compared with Q2 2025 to $294.4 million.

In a letter to shareholders, Lemonade said it is on track to post its first adjusted EBITDA-positive quarter in the fourth quarter 2026.

The insurer of home, renters, auto and pets said its use of artificial intelligence has allowed it to “adsorb substantial growth with minimal incremental claims handling expense.” During the second quarter, Lemonade’s LAE ratio declined to a record low 5%.

Lemonade said industry-average LAE ratios are about 9%, meaning other insurers spend twice as much from premiums “on the bureaucracy of handling claims.”

“And the gap isn’t closing, it’s yawning,” Lemonade said.

Lemonade’s Q2 report included an update of its reinsurance position, which is “shifting from a broad-based quota share structure, primarily in the service of capital efficiency, toward a more targeted approach that prioritizes protection where it delivers the greatest risk-adjusted value, particularly against catastrophe volatility within our homeowners business.” The insurer’s 12-month program, effective July 1, reduced quota share cession rate from about 20% to about 18%.