Lemonade, the AI-driven insurer, has reported second quarter 2026 revenue of $294.4 million, an increase of $130.3 million, or 79%, compared with Q2 2025.
The company said the revenue growth was primarily driven by higher gross earned premium and an improved premium retention rate following the reduction in quota share cession rates that took effect in Q3 2025.
Lemonade’s in-force premium (IFP), defined as the aggregate annualised premium for customers as of the period-end date, increased 32% in Q2 2026 to $1.43 billion.
Gross earned premium for Q2 2026 reached $332.4 million, up $80.1 million, or 32%, from Q2 2025, primarily reflecting the increase in IFP earned during the quarter.
Gross profit rose to $113.2 million in Q2 2026, an increase of $48.9 million, or 76%, compared with the same period last year, primarily driven by the aforementioned 79% increase in revenue.
Meanwhile, Lemonade’s net loss narrowed again in Q2 2026, improving slightly to $43.4 million from $43.9 million in Q2 2025.
In related news, as we recently reported, Lemonade reduced its quota share cession to approximately 18% from 20% at its July 1 reinsurance renewal, allowing the insurer to retain a greater share of its growing gross profit.
Alongside the lower quota share cession for the 2026–2027 reinsurance programme, Lemonade also secured additional protection for higher-volatility and catastrophe-exposed risks, including increased tail catastrophe reinsurance coverage.
The firm said the renewed programme offers more attractive economics than the expiring treaty, under which Lemonade had reduced the ceded portion of its quota share reinsurance from roughly 55% to 20%.
