Lemonade shares surge after “strongest quarter in company history”

Lemonade reported strong third-quarter results, continuing the positive momentum it has shown since the beginning of the year. The insurtech company significantly outperformed analysts’ expectations and is nearing the $200 million quarterly revenue mark. At the same time, it continues to improve profitability, cutting its net loss by almost half compared to the same quarter last year. Lemonade shares jumped by over 15% following the news.

Lemonade ended the third quarter with revenue of $194.5 million, a 42% increase compared to the corresponding quarter in 2024, alongside a net loss of $37.5 million, down from $68 million in the same period last year.

The company also reported several key operational milestones. Premiums jumped 30% to $1.16 billion, while the loss ratio, the percentage of claims paid relative to revenue, improved to 62%, down from 73% earlier this year and 88% two years ago. The improvement reflects the company’s growing efficiency in managing claims and risk exposure.

Shai Wininger, Lemonade’s co-founder and president, called it “the strongest quarter in the company’s history” and noted that it marked Lemonade’s eighth consecutive quarter of accelerated growth.

“The company is on track to become profitable,” said Wininger. “Over the past two years, our claims team has shrunk, while the number of new claims has grown 2.5 times.”

Following the strong results, Lemonade raised its guidance for the fourth quarter and for the full year. The company now expects Q4 revenue of $217–222 million and total premiums of around $1.2 billion.

For the full year, Lemonade forecasts revenue of $727–732 million, representing 38% year-over-year growth. The company also reiterated its target of 30% growth in 2026.

Lemonade operates primarily in the United States, offering property, contents, and auto insurance in select international markets.