Lemonade, an AI-powered digital insurance company, has announced its financial results for the first quarter of 2026, reporting $258 million in revenue, a 71% increase compared to the same period last year.
The revenue increase was attributed to a rise in gross earned premium and higher premium retention rate due to reduced quota share cession rates which became effective in Q3 2025.
Lemonade also recorded a net loss improvement in Q1 2026, compared to Q1 2025, standing at $35.8 million, down from a $62.4 million loss in the same period last year.
At $100.1 million, gross profit significantly increased in the quarter, rising 159% compared to the first quarter of 2025. Adjusted gross profit was $100.8 million, a 119% increase compared to Q1 2025.
This improvement was primarily due to the increase in revenue and a 19 percentage points improvement in net loss ratio, due to improved underwriting results and the impact of the California wildfires in the first quarter of 2025.
Adjusted EBITDA loss was $17.1 million, down from the $47 million loss seen in Q1 2025. This year over year improvement is primarily attributable to revenue growth, and improved underwriting results, partially offset by the increase in growth spend.
In Force Premium (IFP), defined as the aggregate annualised premium for customers as of the period end date, increased by 32% to $1.33 billion. While customer count increased by 23% to 3,142,581 as compared to the first quarter of 2025.
Lemonade reported a 31% growth in earned premiums, to $306.2 million compared to the first quarter of 2025, primarily due to the increase of IFP earned during the quarter.
“Our first quarter results were excellent, once again characterized by topline growth acceleration, healthy underwriting performance, and strong operating leverage. We steadily progress towards our first Adj. EBITDA positive quarter, which we continue to expect in Q4 2026,” Lemonade stated.
