Lemonade, Inc. (LMND)
NYSEFinancialsInsurance - Property & CasualtySnapshot 2026-09-04
$53.41-3.03%
Close 2026-09-04 · 1-day change
NYSEFinancialsInsurance - Property & CasualtySnapshot 2026-09-04
QuarterlyIQ Insights · LMND
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within financials on a research-validated quality screen. As of 2026-09-04.
The screen ranks LMND against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 3 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 3 of the last 3 quarter-over-quarter moves. Historically, Financials names rated weak grew net income 57% of the time over the next year (vs 60% for the rest of the cohort, n=7680).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Deliver the first quarter with positive Adjusted EBITDA, improving profitability and reducing losses by year end 2026.
Stated as a priority in 2 of last 2 quarters. Adjusted EBITDA loss improved from ($47.0) million in 2026-Q1 to ($18.7) million in 2026-Q2, showing significant progress. Management continues to expect positive Adjusted EBITDA in Q4 2026, with guidance implying approximately $8 million positive Adjusted EBITDA. The trajectory is delivering toward this milestone.
“We steadily progress towards our first Adj. EBITDA positive quarter, which we continue to expect in Q4 2026.”
“We steadily progress towards our first Adj. EBITDA positive quarter, which we continue to expect in Q4 2026.”
Sustain strong topline growth with accelerating In Force Premium and revenue expansion.
Stated as a priority in 2 of last 2 quarters. In Force Premium grew from $1.33 billion in 2026-Q1 to $1.43 billion in 2026-Q2, continuing an 11-quarter acceleration streak. Revenue increased from $258.0 million to $294.4 million over the same period. The trajectory is delivering sustained strong growth.
Maintain growth spend while achieving attractive and stable returns on customer acquisition costs.
Stated as a priority in 2 of last 2 quarters. Growth spend increased from $54.3 million in 2026-Q1 to $64.4 million in 2026-Q2 while management reports maintaining stable LTV/CAC ratios around 3x. The trajectory shows continued investment with efficient customer acquisition.
Leverage AI and automation to improve claims handling efficiency and scale operations without adding headcount.
Stated as a priority in 2 of last 2 quarters. The LAE ratio, a key efficiency metric, declined to a record low 5% in 2026-Q2 from 7% in 2025-Q3, reflecting effective AI-powered automation. The trajectory is delivering improved operational efficiency.
Enhance underwriting results to increase gross profit and adjusted gross profit margins, supported by AI-driven claims efficiency and reinsurance strategy.
Over the trailing year it converted 0.50x of net income into operating cash flow.
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
9 material management or governance events in the past 24 months, led by M&A activity. Historically, Financials names rated neutral grew net income 56% of the time over the next year (vs 58% for the rest of the cohort, n=3751).
Not investment advice. As of 2026-09-04.
“In Force Premium grew 32%, our 11th consecutive quarter of acceleration. Revenue grew 79%.”
“In Force Premium grew 32%, extending our streak of IFP growth rate acceleration to ten consecutive quarters. Revenue grew 71%.”
“We have increased growth spend while maintaining attractive and stable returns of ~3x LTV/CAC.”
“Growth spend was $54.3 million in Q1 2026, up from $38.1 million in Q1 2025, with LTV/CAC ratios at or above 3x.”
“Our LAE ratio declined to a record low 5% as IFP reached $1.43 billion, reflecting advances in AI and automation.”
“AI-powered automation drives LAE ratios of ~4%, providing a structural cost advantage versus peers.”