We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Lemonade Poised to Outperform Q1 Earnings Estimates?
Read MoreHide Full Article
Key Takeaways
LMND will report Q1 2026 earnings on April 29. Consensus calls for $252M revenues, up 67% year over year.
Lemonade is estimated to incur loss of 58 cents a share, better than an 86-cent loss a year ago.
LMND's growth is tied to Pet, Car and Europe momentum, rate hikes, digital ads and partnerships.
Lemonade Inc. (LMND - Free Report) is expected to witness an improvement in its top and bottom lines when it reports first-quarter 2026 results on April 29.
The Zacks Consensus Estimate for LMND’s first-quarter top line is pegged at $252 million, indicating a 67% increase from the year-ago reported figure.
The Zacks Consensus Estimate for LMND’s first-quarter bottom line is pegged at a loss of 58 cents per share, lower than the year-ago loss of 86 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 23.22%.
What the Zacks Model Unveils for LMND
Our proven model predicts a beat for Lemonade this time around. A stock needs to have the right 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. That is the case here, 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 +1.72%. This is because the Most Accurate Estimate is pegged at a loss of 57 cents, narrower than the Zacks Consensus Estimate of a loss of 58 cents.
First-quarter results are likely to be supported by strong performance in the Pet, Car, and Europe segments, each contributing meaningfully to overall growth.
Lemonade’s in-force premium is likely to have increased, driven by an expanding customer base, higher premiums per customer, product enhancements and broader geographic diversification. The Zacks Consensus Estimate stands at $1.3 billion, while management projects in-force premium, as of March 31, 2026, to be in the range of $1.321 billion to $1.326 billion.
Ongoing rate increases likely contributed to a rise in premium per customer, with the Zacks Consensus Estimate pegged at $421.81 million.
Gross written premium likely grew on the back of effective digital advertising campaigns, strategic partnerships, and continued expansion across products and geographies. A higher premium per customer is also expected to have supported growth in gross earned premium during the quarter.
Improved performance in Europe is expected to have acted as a key tailwind, supported by the use of AI-driven platforms, accelerated growth initiatives and disciplined underwriting practices.
Investment income is likely to have benefited from a well-diversified portfolio generating higher returns, with the Zacks Consensus Estimate at $9.1 million.
Overall, revenues are expected to have increased, driven by higher gross earned premiums and stronger investment income. Lemonade anticipates revenues in the range of $246 million to $251 million.
On the expense side, total sales and marketing costs are expected to have risen due to increased spending on growth initiatives. General and administrative expenses are also likely to have increased, partly reflecting higher interest expenses tied to the company’s financing agreement.
Other Stocks to Consider
Here are some insurance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:
Axis Capital Holdings Limited (AXS - Free Report) has an Earnings ESP of +1.34% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $3.23 per share, indicating a year-over-year increase of 1.8%.
AXS’s earnings beat estimates in each of the last four quarters.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $7.43, indicating a year-over-year increase of 110.4%.
ALL’s earnings beat estimates in each of the last four reported quarters.
Palomar Holdings, Inc. (PLMR - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $2.17, indicating a year-over-year increase of 16%.
PLMR’s earnings beat estimates in each of the last four reported quarters.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Zacks
Is Lemonade Poised to Outperform Q1 Earnings Estimates?
Key Takeaways
Lemonade Inc. (LMND - Free Report) is expected to witness an improvement in its top and bottom lines when it reports first-quarter 2026 results on April 29.
The Zacks Consensus Estimate for LMND’s first-quarter top line is pegged at $252 million, indicating a 67% increase from the year-ago reported figure.
The Zacks Consensus Estimate for LMND’s first-quarter bottom line is pegged at a loss of 58 cents per share, lower than the year-ago loss of 86 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 23.22%.
What the Zacks Model Unveils for LMND
Our proven model predicts a beat for Lemonade this time around. A stock needs to have the right 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. That is the case here, 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 +1.72%. This is because the Most Accurate Estimate is pegged at a loss of 57 cents, narrower than the Zacks Consensus Estimate of a loss of 58 cents.
Lemonade, Inc. Price and EPS Surprise
Lemonade, Inc. price-eps-surprise | Lemonade, Inc. Quote
Zacks Rank: LMND currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Shape Q1 Results of LMND
First-quarter results are likely to be supported by strong performance in the Pet, Car, and Europe segments, each contributing meaningfully to overall growth.
Lemonade’s in-force premium is likely to have increased, driven by an expanding customer base, higher premiums per customer, product enhancements and broader geographic diversification. The Zacks Consensus Estimate stands at $1.3 billion, while management projects in-force premium, as of March 31, 2026, to be in the range of $1.321 billion to $1.326 billion.
Ongoing rate increases likely contributed to a rise in premium per customer, with the Zacks Consensus Estimate pegged at $421.81 million.
Gross written premium likely grew on the back of effective digital advertising campaigns, strategic partnerships, and continued expansion across products and geographies. A higher premium per customer is also expected to have supported growth in gross earned premium during the quarter.
Improved performance in Europe is expected to have acted as a key tailwind, supported by the use of AI-driven platforms, accelerated growth initiatives and disciplined underwriting practices.
Investment income is likely to have benefited from a well-diversified portfolio generating higher returns, with the Zacks Consensus Estimate at $9.1 million.
Overall, revenues are expected to have increased, driven by higher gross earned premiums and stronger investment income. Lemonade anticipates revenues in the range of $246 million to $251 million.
On the expense side, total sales and marketing costs are expected to have risen due to increased spending on growth initiatives. General and administrative expenses are also likely to have increased, partly reflecting higher interest expenses tied to the company’s financing agreement.
Other Stocks to Consider
Here are some insurance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:
Axis Capital Holdings Limited (AXS - Free Report) has an Earnings ESP of +1.34% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $3.23 per share, indicating a year-over-year increase of 1.8%.
AXS’s earnings beat estimates in each of the last four quarters.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $7.43, indicating a year-over-year increase of 110.4%.
ALL’s earnings beat estimates in each of the last four reported quarters.
Palomar Holdings, Inc. (PLMR - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $2.17, indicating a year-over-year increase of 16%.
PLMR’s earnings beat estimates in each of the last four reported quarters.