AI-driven insurance company Lemonade has reported a record quarterly gross profit of $118.1 million for Q3 2026, up 48% from $79.9 million a year earlier.
The insurtech said the result reflected a 73% jump in revenue to $336.1 million, helped by growth in gross earned premium and a higher premium retention rate following reduced quota share cession rates.
In force premium rose 34% year on year to $1.55 billion in Q3 2026, which the firm described as its 12th consecutive quarter of accelerating growth.
Meanwhile, customers reportedly increased 23% to 3,520,555, while premium per customer rose 9% to $440. Gross earned premium reached $364.1 million in Q3 2026, up 33%.
Lemonade’s ceded earned premium fell to $69.3 million from $134.7 million in Q3 2025, lifting net earned premium to $294.8 million from $140 million. Ceding commission income fell in step, to $17.4 million from $32.2 million.
Lemonade’s underwriting results were softer than a year ago, with the gross loss ratio at 65% against 62% in Q3 2025 and 60% in Q2 2026, while the net loss ratio was unchanged year on year at 64%.
Excluding catastrophe losses, the gross loss ratio rose to 63% from 56%. Gross profit margin narrowed to 35% from 41%, as revenue growth outpaced the rise in gross profit.
Lemonade’s net loss widened to $43.7 million in Q3 2026, from $37.5 million a year earlier, which the firm attributed mainly to higher stock-based compensation and interest expense.
