For the quarter ended December 2025, Lemonade (LMND) reported revenue of $228.1 million, up 53.3% over the same period last year. EPS came in at -$0.29, compared to -$0.42 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $216.67 million, representing a surprise of +5.28%. The company delivered an EPS surprise of +28.97%, with the consensus EPS estimate being -$0.41.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Lemonade performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:- In force premium (end of period): $1.24 billion versus the four-analyst average estimate of $1.22 billion.
- Premium per Customer (end of period): $414.00 versus the four-analyst average estimate of $406.54.
- Customers (end of period): 2,984,513 versus 3,008,014 estimated by four analysts on average.
- Net loss ratio: 53% compared to the 62.1% average estimate based on four analysts.
- Gross loss ratio: 52% versus the four-analyst average estimate of 61.8%.
- Total Revenue- Net investment income: $9.2 million versus $10.4 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -2.1% change.
- Total Revenue- Ceding commission income: $33.2 million compared to the $30.64 million average estimate based on five analysts. The reported number represents a change of +12.2% year over year.
- Total Revenue- Commission and other income: $6.2 million versus $12.77 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -27.9% change.
- Total Revenue- Net earned premium: $179.5 million compared to the $162.87 million average estimate based on five analysts. The reported number represents a change of +77.4% year over year.
View all Key Company Metrics for Lemonade here>>>
Shares of Lemonade have returned -23% over the past month versus the Zacks S&P 500 composite's -0.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.Zacks' Research Chief Names "Stock Most Likely to Double"
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
