$LMND 🚀

Lemonade GAAP EPS of -$0.29 beats by $0.10, revenue of $228.1M beats by $10.03M
Feb. 19, 2026
Q4 GAAP EPS of -$0.29 beats by $0.10.
Revenue of $228.1M (+53.3% Y/Y) beats by $10.03M.
Fourth quarter revenue of $228.1 million increased by $79.3 million or 53% ascompared to the fourth quarter of 2024, primarily due to the increase of grossearned premium, ceding commission income, and a reduced premium cession raterelated to quota share reinsurance following our recent renewal, as covered indetail in the second quarter's letter to shareholders.
IFP, defined as the aggregate annualized premium for customers as of the periodend date, increased by 31% to $1.24 billion as compared to the fourth quarter of2024.
Customer count increased by 23% to 2,984,513 as compared to the fourth quarterof 2024.
Premium per customer, defined as IFP divided by customers, was $414 at the endof the fourth quarter, up 7% from the fourth quarter of 2024.
ADR, defined as the percentage of IFP retained over a twelve month period,inclusive of changes in policy value, changes in number of policies, changes in policytype, and churn was 85%, a 1 percentage point decrease from the fourth quarter of2024, and flat from the third quarter of 2025. The decline is largely attributable tothe non-renewal of policies which failed to meet certain underwriting criteria, asdiscussed in prior letters.
Fourth quarter gross earned premium of $290.2 million increased by $63.8 millionor 28% as compared to the fourth quarter of 2024, primarily due to the increase ofIFP earned during the quarter.
Revenue Q1 guidance: $246 - $251 vs. $214.58M consensus
FY26 guidance: $1,187 - $1,192 vs. $1.16B consensusShares +4% PM.
Earnings Snapshot: Lemonade Q4 beats estimates as customer base grows 23%, issues mixed outlook