Lemonade, Inc. (NYSE:LMND) shares fell Wednesday after the company reported first-quarter fiscal 2026 results.

Lemonade Earnings Snapshot

The company reported a loss of 47 cents per share, narrower than the analyst consensus estimate of a 58-cent loss.

Revenue of $258.0 million beat the consensus estimate of $251.5 million.

Revenue rose 71% year over year, driven by higher gross earned premiums and improved premium retention.

Adjusted gross profit increased 119% year over year to $100.8 million, reflecting higher revenue and an improved net loss ratio.

Adjusted EBITDA loss narrowed to $17.1 million from $47.0 million in the prior-year quarter, supported by revenue growth and improved underwriting results.

As of March 31, cash, cash equivalents, and investments totaled approximately $1.14 billion.

In-force premium rose 32% year over year to $1.33 billion, while premium per customer increased 7% to $424.

Gross earned premium increased 31% year over year to $306.2 million in the first quarter.

Outlook

For the second quarter, the company expects in-force premium of $1.428 billion to $1.433 billion and revenue of $287 million to $290 million, compared with the Street estimate of $288.1 million.

For fiscal 2026, Lemonade raised its revenue outlook to $1.197 billion to $1.203 billion, above the consensus estimate of $1.195 billion, up from prior guidance of $1.187 billion to $1.192 billion.

The company also raised its in-force premium outlook to $1.632 billion to $1.639 billion, from $1.625 billion to $1.630 billion previously.

Lemonade Price Action

LMND Price Action: Lemonade shares were down 10.07% at $59.15 at the time of publication on Wednesday, according to Benzinga Pro data.

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