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Lemonade Set to Report Q3 Earnings: What's in the Cards?

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Key Takeaways

  • Lemonade's Q3 revenues are estimated at $189M, up 38.4% year over year.
  • The insurer's in-force premium is expected between $1.144B and $1.147B.
  • Growth in Europe and higher premiums per customer are likely to support results.

Lemonade Inc. (LMND - Free Report) is expected to witness an improvement in its top and bottom lines when it reports third-quarter 2025 results on Nov. 5.   
 
The Zacks Consensus Estimate for LMND’s third-quarter top line is pegged at $189 million, indicating a 38.4% increase from the year-ago reported figure.

The Zacks Consensus Estimate for LMND’s third-quarter bottom line is pegged at a loss of 72 cents. The consensus estimate witnessed no movement in the last 60 days.

LMND’s Solid Earnings Surprise History

LMND earnings beat the Zacks Consensus Estimates in each of the trailing four quarters, the average surprise being 17.83%.

What the Zacks Model Unveils for LMND

Our proven model does not conclusively predict a beat for Lemonade this time around. This is because the stock needs to have a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat. This is not the case, as you can see below.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: LMND has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 72 cents.

Lemonade, Inc. Price and EPS Surprise

Lemonade, Inc. Price and EPS Surprise

Lemonade, Inc. price-eps-surprise | Lemonade, Inc. Quote

Zacks Rank: LMND currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Shape LMND's Q3 Results

Lemonade’s in-force premium is likely to have improved on expanding customer base, higher premium per customer, product enhancement and geographic diversification. The Zacks Consensus Estimate is pegged at $1.1 billion. Management expects the in-force premium as of Sept. 30, 2025, to be between $1.144 billion and $1.147 billion.

Continued rate increase is likely to have favored an increase in premium per customer. The Zacks Consensus Estimate for premium per customer is pegged at $405 million.

Gross written premium is likely to have increased, given the success of digital advertising campaigns and partnerships, as well as geographic and product offering expansions. 

Improved performance across Europe is also likely to have been a tailwind for the insurer’s performance. The use of an AI platform, growth acceleration and prudent underwriting are likely to have favored continued improved results from Europe business.

Investment income is likely to have benefited from a diversified portfolio with higher returns. The Zacks Consensus Estimate is pegged at $10.7 million.

Revenues are likely to have improved due to an increase in gross earned premiums and an increase in investment income. Management estimates revenues between $183 million and $186 million.

Given increased brand and performance advertising, sales and marketing expense is expected to have increased. General and administrative expense is likely to have increased as well due to an increase in interest expense from the financing agreement

Stocks to Consider

Here are three insurance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

Essent Group (ESNT - Free Report) has an Earnings ESP of +4.20% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $1.75, indicating a year-over-year increase of 6.1%.

ESNT’s earnings beat estimates in two of the last four reported quarters, while missing in the remaining two.

HCI Group (HCI - Free Report) has an Earnings ESP of +87.40% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $2.35, indicating a year-over-year increase of 400%.

HCI’s earnings beat estimates in each of the last four reported quarters.

Assurant (AIZ - Free Report) has an Earnings ESP of +4.41% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $4.23, indicating a year-over-year increase of 41%.

AIZ’s earnings beat estimates in each of the last four reported quarters.


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