LMND

- Interested in Procter & Gamble Company (The)? Here are five stocks we like better. - Organic sales rose 4.0% in fiscal Q1 2027, driven mainly by a 2.4-point volume increase, with growth across all 10 product categories and six geographic regions. - Core EPS increased 1% to $2, but gross and operating margins declined as productivity gains were outweighed by commodity, freight and demand-creation costs. P&G returned $3.9 billion to shareholders through dividends and buybacks. - P&G maintained its full-year outlook while warning of approximately $1.9 billion in after-tax earnings headwinds from raw materials, energy, transportation, foreign exchange, interest expense and lower non-operating income; it expects more than $15 billion in total shareholder returns for fiscal 2027. - Does Lemonade's Growth Signal Profits Ahead? Procter & Gamble (NYSE:PG) reported a 4.0% increase in organic sales for the first quarter of fiscal 2027, led primarily by volume growth, while maintaining its full-year outlook despite rising commodity, energy and transportation costs. Chief Financial Officer Andre Schulten said organic sales growth reflected a 2.4-point contribution from volume, a 0.4-point contribution from pricing and more than one point from favorable mix. All 10 of the company's product categories and all six geographic regions posted organic sales growth during the quarter. → Aurora Rejects Curaleaf's Higher Bid, But the Takeover Fight Isn't Over - The September Scramble: Find Sanctuary in These 3 Defensive Dividend Stocks "We are pleased with the continued acceleration in top-line results," Schulten said, adding that productivity gains helped offset higher raw-material, energy and freight costs, particularly in North America. He cautioned that those cost headwinds are expected to increase over the next several quarters. Fabric Care, Home Care, Baby Care, Hair Care, Skin and Personal Care, and Grooming each recorded mid-single-digit organic sales growth. Family Care, Feminine Care, Oral Care and Personal Health Care grew at low-single-digit rates. → Could Quantinuum's Breakthrough Make Its Sell-Off a Bargain? - These 3 Stock Charts Just Flashed the Dreaded Death Cross Pattern In North America, organic sales increased 3%, including 3% growth in the U.S., where volume increased three points. Schulten said more than 70% of P&G's largest U.S. retail customers were holding or gaining share, compared with less than 10% in the first half of fiscal 2026. Europe organic sales rose 4%, led by high-single-digit growth in the United Kingdom. Greater China sales increased 8%, despite what Schulten described as a challenging consumer environment. Pampers and SK-II led China's growth, with SK-II sales up 12% and Pampers sales up nearly 50%, aided by near-term competitive dynamics. → IonQ's Bold Expansion Could Leave Shareholders Paying the Price Enterprise markets grew 5% in aggregate. Latin America rose 4%, driven by double-digit growth in Mexico and low-single-digit growth in Brazil. The company's India, Middle East, Turkey and Africa, or IMETA, region grew 8%, while APAC Enterprise increased 2% amid portfolio-restructuring effects. Global aggregate market share was flat from a year earlier. However, 29 of P&G's top 50 category-country combinations held or grew share during the fiscal year to date, up from 25 in the second half of fiscal 2026. Core earnings per share were $2, up 1% from the prior year. On a currency-neutral basis, core EPS was unchanged. Core gross margin declined 150 basis points and core operating margin fell 80 basis points, as 250 basis points of productivity improvement was offset by commodity and freight costs as well as demand-creation investments. Schulten said the company is seeing increased structural operating leverage from supply-chain automation and digitization, restructuring actions and more efficient brand-building spending. He said the quarter also benefited from only partial flow-through of higher commodity costs and from about $90 million related to the second part of an IEEPA tariff refund. Free cash flow productivity was 93% in the quarter. P&G returned $3.9 billion to shareholders, including $2.6 billion in dividends and $1.3 billion in share repurchases. The company highlighted several product initiatives, including Pantene Abundant & Strong in the U.S., Pampers Amore premium diapers and innovations in Tide, Gain and fabric enhancers. Schulten said Pampers Amore is expected to exceed $100 million in first-year sales. P&G maintained its fiscal 2027 guidance for organic sales growth of 1% to 3%, core EPS growth of 0% to 3%, and free cash flow productivity of 85% to 90%. Its core EPS outlook remains $6.89 to $7.11 per share. The company now expects approximately $1.4 billion in after-tax cost pressure from raw materials, energy, transportation and other premiums, primarily related to the conflict in the Middle East. The outlook assumes Brent crude oil at $100 per barrel. Schulten noted oil prices had recently risen above that level and said elevated costs are expected to weigh more heavily on the second quarter and the second half of the fiscal year. P&G also expects an approximately $50 million after-tax foreign-exchange headwind, roughly $300 million in higher after-tax net interest expense, including about $150 million tied to debt issued for recent mergers and acquisitions, and $150 million in lower non-operating income. Combined, those items represent an estimated $1.9 billion after-tax earnings headwind, or $0.79 per share. Schulten said the company plans to address inflation through productivity, pricing accompanied by innovation, and time. He declined to provide details on future pricing actions but said innovation is generally timed with retail modular resets. While P&G started the year above its full-year organic sales growth range, Schulten said it expects approximately 3% organic sales growth in the first half and modest acceleration in the second half. He cited fuel costs, consumer pressure, geopolitical volatility, shipment timing and promotional-event timing as potential sources of quarterly variability. "The strength is real, but it will not be a straight line," Schulten said. Globally, P&G sees category value growth of roughly 2.5% to 3%. The company said U.S. category growth has improved toward 3%, enterprise markets are growing in the mid-single digits or better, and Europe remains stable but muted at about 1% growth. P&G expects to pay more than $10 billion in dividends and repurchase about $5 billion in stock during fiscal 2027, for planned total cash returns of about $15 billion. Procter & Gamble Company (NYSE: PG) is a global consumer products company that develops, manufactures and markets branded products used in households and personal care. Its portfolio includes personal health and grooming products, beauty and skin care items, baby, feminine and family care products, fabric and home care products, and oral care products. The company's well-known brands include Pampers, Tide, Gillette, Crest, Oral-B, Head & Shoulders, Pantene, Olay, Old Spice, Dawn, Febreze and Mr. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Procter & Gamble Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

NEW YORK, Oct. 19, 2026 /PRNewswire/ -- Lemonade (NYSE: LMND) today announced it will release its third quarter 2026 financial results on Thursday, November 5, 2026 prior to market open, and will host a conference call that same day to discuss the results. Webcast and Conference Call details: - Date: Thursday, November 5, 2026 - Time: 8:00 am Eastern time (5:00 am Pacific time) - Participant Toll-Free Dial-In Number: +1 833 461 5787 - Participant Toll Dial-In Number: +1 585 542 9983 - Access Code: 540 569 867 - Conference call registration link - Webcast registration link Following the completion of the call, a replay will also be made available at lemonade.com/investor. In addition to the dial-in options, shareholders can participate by submitting questions prior to the earnings call. The Q&A platform will be open for question submission starting October 28, 2026 at 8:00 am ET. Shareholders will be able to submit and upvote questions until November 4, 2026 at 8:00 am ET. For any support inquiries please email [email protected]. About Lemonade Lemonade's mission is to become the most loved insurance company in the world. As a customer-centric tech company, we created an insurance experience across Renters, Home, Pet, Car, and Life that is smart, instant, and delightful. Our team of 1,200+ Lemonade Makers make it possible for over 3M customers throughout the US, UK and Europe to get coverage instantly, with nearly half of claims paid in a matter of seconds. Powered by AI and social impact, Lemonade is a purpose-built, technology-first insurance carrier. A Certified B-Corp, our commitment to social impact is embedded in every aspect of the company, and our Giveback program, which donates a percentage of leftover premiums to nonprofits selected by our community, has donated over $10M to organizations in need. Follow Lemonade on X and Instagram for updates. Cautionary Note Regarding Forward-Looking Statements This press release and our earnings release and call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this press release are forward-looking statements, including the date and time of the earnings call. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements expressed or implied to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to the following: our financial outlook and results, our financial metrics, including our key performance indicators, our ability to acquire new business, including growth of products in new states and Europe, the expected benefits, accuracy and growth of our predictive and generative AI models, and their effects on handling loss ratios, LAE and other metrics, our anticipated growth, profitability, our industry, business strategy, plans, goals and expectations concerning our market position, future operations, reinsurance coverage, capital efficiency ratio, and other financial and operating information, our history of losses and that we may not achieve or maintain profitability in the future; our success and ability to retain and expand our customer base; the "Lemonade" brand may not become as widely known as incumbents' brands or the brand may become tarnished; the denial of claims or our failure to accurately and timely pay claims; our ability to attain greater value from each user; availability of reinsurance at current levels and prices; our exposure to counterparty risks; our limited operating history; our ability to manage our growth effectively; our proprietary artificial intelligence algorithms may not operate properly or as expected; the intense competition in the segments of the insurance industry in which we operate; our ability to maintain our risk-based capital at the required levels; our ability to expand our product offerings; the novelty of our business model and its unpredictable efficacy and susceptibility to unintended consequences; the possibility that we could be forced to modify or eliminate our Giveback; regulatory risks, related to the operation, development, and implementation of our proprietary artificial intelligence algorithms and telematics based pricing model; legislation or legal requirements that may affect how we communicate with customers; the cyclical nature of the insurance industry; our reliance on artificial intelligence, telematics, mobile technology, and our digital platforms to collect data that we utilize in our business; our ability to obtain additional capital to the extent required to grow our business, which may not be available on terms acceptable to us or at all; our actual or perceived failure to protect customer information and other data as a result of security incidents or real or perceived errors, failures or bugs in our systems, website or app, respect customers' privacy, or comply with data privacy and security laws and regulations; periodic examinations by state insurance regulators; our ability to underwrite risks accurately and charge competitive yet profitable rates to our customers; potentially significant expenses incurred in connection with any new products before generating revenue from such products; risks associated with any costs incurred and other risks as we expand our business in the U.S. and internationally; our ability to comply with extensive insurance industry regulations; our ability to comply with insurance regulators and additional reporting requirements on insurance holding companies; our ability to predict the impacts of severe weather events and catastrophes, including the effects of climate change and global pandemics, on our business and the global economy generally; increasing scrutiny, actions, and changing expectations on environmental, social, and governance matters; our agreements with third parties as a synthetic agent may not function as expected; fluctuations of our results of operations on a quarterly and annual basis; our utilization of customer and third party data in underwriting our policies; limitations in the analytical models used to assess and predict our exposure to catastrophe losses; potential losses could be greater than our loss and loss adjustment expense reserves; the minimum capital and surplus requirements our insurance subsidiaries are required to have; assessments and other surcharges from state guaranty funds; our status and obligations as a public benefit corporation; our operations in Israel and the current political, economic, and military instability, including the evolving conflict in Israel and surrounding region. These and other important factors described under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed on February 25, 2026, and in our other subsequent filings with the SEC, could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management's beliefs as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. NEWS & INFORMATION DISCLOSURE Investors should note we may use our website (investor.lemonade.com), blog (lemonade.com/blog), X (@Lemonade_Inc), and LinkedIn as a means of disclosing information and for complying with our disclosure obligations under Regulation FD. The information we post through these channels may be deemed material. Investors should monitor these channels in addition to reviewing our press releases, SEC filings, and public conference calls. View original content to download multimedia:https://www.prnewswire.com/news-releases/lemonade-to-announce-third-quarter-2026-financial-results-302912804.html

Interested in Lemonade, Inc.? Here are five stocks we like better. Lemonade expects its first EBITDA-positive quarter in Q4, with GAAP breakeven projected roughly one year later. The company is targeting long-term growth of more than 30% while balancing expansion with insurance capital requirements. CFO Tim Bixby will join Lemonade’s board on Jan. 1 after about nine and a half years in the role, with SVP of Finance Nick Stead succeeding him. Bixby said the transition is not expected to materially change the company’s strategy. Lemonade is pursuing growth through its technology platform, geographic and product expansion, and increased cross-selling. Auto insurance and Tesla’s autonomous-driving product are expanding, while retention and multi-policy adoption remain important opportunities for improving profitability. 3 Stocks That Prove the AI Trade Isn't Over, It Moved Lemonade (NYSE:LMND) Chief Financial Officer Tim Bixby said the digital insurer expects to reach a significant profitability milestone in the fourth quarter, while continuing to prioritize growth, product expansion and technology-driven underwriting. Speaking at a company event, Bixby said he will transition from the CFO role to Lemonade’s board of directors effective Jan. 1. Nick Stead, currently the company’s senior vice president of finance, is set to succeed him as CFO. Bixby, Lemonade’s first CFO, has held the role for about nine and a half years. → IonQ and NVIDIA Just Cracked a Major Quantum Computing Bottleneck Can Trupanion Turn Pet Insurance Loyalty Into Real Earnings? Bixby said the leadership transition is not expected to bring a major change in the company’s strategic direction. He described Lemonade’s approach to technology, distribution and customer experience as largely consistent with the strategy established at its founding in 2015. Lemonade expects the fourth quarter to be its first EBITDA-positive quarter, according to Bixby. He noted that the company first outlined that target about four years ago and said it remains on track, while cautioning that the quarter had not yet concluded. → 2 Stocks Breaking Out Post-FOMC With One Thing in Common Lemonade’s Sweet Results Refresh Market Appetite: Rebound Ahead The company has publicly framed growth of more than 30% as a long-term objective. Bixby said Lemonade could potentially grow faster, but that its chosen growth rate reflects a balance between expansion and the capital requirements of operating an insurance business. Insurance companies must hold surplus capital to meet regulatory requirements and support claims obligations. Bixby said growth in the high-40% range would likely require Lemonade to raise additional capital to maintain sufficient surplus. At around 30% growth, he said the company expects to support its strategy while improving profitability. → Generac Plugs into Amazon for an $8B AI-Powered Deal Bixby said Lemonade expects customers acquired in a given quarter to be profitable over time, though the company remains unprofitable on a consolidated basis because it expenses growth spending upfront. He reiterated that GAAP breakeven is expected to follow roughly one year after EBITDA breakeven. The company currently has between $1 billion and $2 billion of premium on a run-rate basis, Bixby said. At its last investor day, Lemonade provided a path it believed could lead to $10 billion in premium, a level he characterized as large for the company but still relatively modest within the broader insurance industry. Bixby described Lemonade as an insurer built to use data, machine learning and artificial intelligence across customer acquisition, underwriting, claims and customer service. The company now offers renters, homeowners, pet, car and term life insurance. He said Lemonade can issue a policy in several minutes and that more than half of claims are paid in real time, often within seconds. The company’s Net Promoter Score has ranged from 50 to 70 depending on the measurement period, according to Bixby. A central element of Lemonade’s strategy is its internally developed technology platform. Bixby said the company built its core operating systems in-house rather than relying on third-party software for fundamental functions such as pricing, underwriting and customer experience. He argued that operating one core platform could give Lemonade more flexibility as AI models and regulatory expectations develop. Larger insurers often operate numerous systems following years of acquisitions and technology additions, he said. Lemonade does not yet offer every product in every state, partly because insurance is regulated state by state. Bixby said the company has life insurance available in all 50 states and is close to nationwide availability in pet and renters insurance. Homeowners and car insurance remain earlier in their rollout. The company has chosen not to offer homeowners insurance in Florida so far, reflecting its cautious approach to risk selection in areas affected by difficult-to-predict underwriting conditions. Bixby said Lemonade expects eventually to offer more products more broadly, but is selectively managing exposure today. In auto insurance, Lemonade has reached coverage representing close to 50% of the U.S. population because its current footprint includes larger-population states, Bixby said. Auto insurance has grown to the “teens” as a percentage of total premium and has been growing as fast as, or faster than, the company’s pet insurance business in some periods. Lemonade is also operating its autonomous Tesla partnership product in five states. Bixby said the product is priced 50% below insurance for human-driven miles, based on company data indicating at least a 50% lower claims frequency for software-driven miles. Bixby identified cross-selling and retention as important sources of future operating leverage. More than 5% of Lemonade customers currently hold multiple policies, he said, compared with a potential rate of 30% or more if the company were to reach best-in-class levels. Most customers currently have one policy, with renters representing the largest customer base by count and pet insurance representing the largest product by premium. Bixby said approximately two-thirds of Lemonade’s customers have pets but do not hold pet insurance through Lemonade, while about two-thirds also have cars. About half of Lemonade’s new auto business comes from existing customers, according to Bixby. He said selling additional products to existing customers generally costs less than acquiring new customers. The company’s annual dollar retention has been about 85%, though Bixby said the measure was affected by Lemonade’s decision to trim homeowners business that did not meet its profitability standards. He expects the metric to return to the high-80% range over time and said it should eventually reach the 90% range as customer retention and cross-selling improve. Bixby said Lemonade has maintained a lifetime-value-to-customer-acquisition-cost ratio around 3x while increasing spending on new customer acquisition over several years. He said the company has also delivered 24 consecutive quarters of results that were broadly consistent with its guidance and market expectations. Lemonade, Inc is a technology-driven insurance company that offers digital insurance products through its website and mobile applications. Its platform uses automation, artificial intelligence and behavioral economics to streamline policy applications, claims processing and customer service. The company provides renters, homeowners, pet, term life and automobile insurance. Product availability varies by location, and Lemonade distributes its offerings through regulated insurance entities and licensed partners. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Lemonade Targets First EBITDA-Positive Quarter as CFO Tim Bixby Transitions to Board" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how property & casualty insurance stocks fared in Q2, starting with Lemonade (NYSE:LMND). Property & Casualty (P&C) insurers protect individuals and businesses against financial loss from damage to property or from legal liability. This is a cyclical industry, and the sector benefits when there is 'hard market', characterized by strong premium rate increases that outpace loss and cost inflation, resulting in robust underwriting margins. The opposite is true in a 'soft market'. Interest rates also matter, as they determine the yields earned on fixed-income portfolios. On the other hand, P&C insurers face a major secular headwind from the increasing frequency and severity of catastrophe losses due to climate change. Furthermore, the liability side of the business is pressured by 'social inflation'—the trend of rising litigation costs and larger jury awards. The 32 property & casualty insurance stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 0.9% above. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. Built on the principle of giving back unused premiums to charitable causes selected by policyholders, Lemonade (NYSE:LMND) is a technology-driven insurance company that offers homeowners, renters, pet, car, and life insurance through an AI-powered digital platform. Lemonade reported revenues of $294.4 million, up 79.4% year on year. This print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates. The market seems disappointed with the results as the stock is down 11.3% since reporting and currently trades at $55.10. Read our full report on Lemonade here, it’s free. Serving as a crucial bridge between homebuyers and the American dream of homeownership, Essent Group (NYSE:ESNT) provides private mortgage insurance and title services that enable lenders to offer home loans with down payments of less than 20%. Essent Group reported revenues of $362.7 million, up 13.6% year on year, outperforming analysts’ expectations by 9.7%. The business had a stunning quarter with a beat of analysts’ EPS estimates. The market seems happy with the results as the stock is up 6.2% since reporting. It currently trades at $69.60. Is now the time to buy Essent Group? Access our full analysis of the earnings results here, it’s free. Founded during the housing boom of 1977 and weathering multiple real estate cycles since, Radian Group (NYSE:RDN) provides mortgage insurance and real estate services, helping lenders manage risk and homebuyers achieve affordable homeownership. Radian Group reported revenues of $580.7 million, up 95.7% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates. As expected, the stock is down 6% since the results and currently trades at $36.81. Read our full analysis of Radian Group’s results here. Founded in 1961 and maintaining a network of over 6,300 independent agents across the country, Mercury General (NYSE:MCY) is an insurance company that primarily sells automobile insurance policies through independent agents in 11 states, with a strong focus on California. Mercury General reported revenues of $1.68 billion, up 13.8% year on year. This number surpassed analysts’ expectations by 10.3%. Overall, it was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates. The stock is flat since reporting and currently trades at $106.02. Read our full, actionable report on Mercury General here, it’s free. Founded in 1950 by independent insurance agents seeking stable market options for their clients, Cincinnati Financial (NASDAQ:CINF) provides property casualty insurance, life insurance, and related financial services through independent agencies across 46 states. Cincinnati Financial reported revenues of $2.97 billion, up 6.9% year on year. This result came in 1.2% below analysts’ expectations. Overall, it was a slower quarter as it also recorded a significant miss of analysts’ EPS and net premiums earned estimates. The stock is down 5.2% since reporting and currently trades at $174.70. Read our full, actionable report on Cincinnati Financial here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Image source: The Motley Fool. Wednesday, July 29, 2026 at 8:00 a.m. ET Chief Executive Officer and Co-Founder - Daniel Schreiber President and Co-Founder - Shai Wininger Chief Financial Officer - Timothy Bixby Senior Vice President of Finance - Nicholas Stead Operator: Hello, everyone. Thank you for joining us, and welcome to the Lemonade Second Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to the Lemonade team. Please go ahead. Unknown Executive: Good morning, and welcome to Lemonade's Second Quarter 2026 Earnings Call. Joining us on our call today is Daniel Schreiber, CEO and Co-Founder; Shai Wininger, President and Co-Founder; Tim Bixby, Chief Financial Officer; and Nick Stead, SVP Finance. A letter to shareholders covering the company's second quarter 2026 financial results is available on our Investor Relations website at lemonade.com/investor. I would like to remind you that management's remarks made on this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Risk Factors section of our most recent Form 10-K filed with the SEC and our more recent filings with the SEC. Any forward-looking statements made on this call represent our views only as of today, and we undertake no obligation to update them. We will be referring to certain non-GAAP financial measures on today's call, including adjusted EBITDA, adjusted free cash flow and adjusted gross profit, which we believe may be important to investors to assess our operating performance. Reconciliations of our non-GAAP financial measures to the most directly comparable GAAP financial measures are included in our letter to shareholders. Our letter to shareholders also includes information about our key performance indicators, including number of customers, in-force premium, premium per customer, annual dollar retention, gross earned premium, gross loss ratio, gross loss ratio ex CAT, trailing 12-month loss ratio and net loss ratio and a definition of each metric, why each is useful to investors and how we use each to monitor and manage our business. With that, I'll turn the call over to Daniel for some opening remarks. Daniel Schreiber: Good morning. I'm happy to report on another excellent quarter, marked by accelerating growth, strong underwriting performance and continued progress towards profitability. In-force premium reached $1.43 billion, growing about 32.5% year-over-year and extending our streak of accelerating growth to 11 consecutive quarters. Revenue grew even faster, increasing 79% to $294 million, and gross profit increased 76% year-over-year to a record $113 million. As a result, adjusted EBITDA loss improved 54% to $19 million, and we remain on track to deliver our first positive adjusted EBITDA quarter in Q4 this year, followed by positive adjusted EBITDA full year 2027. Against that backdrop, we remain confident in our outlook and are reiterating our guidance across IFP and EBITDA while raising our guidance for both gross earned premium and revenue. During the quarter, we also completed our annual reinsurance renewal as well as the extension of our synthetic agents program with important upgrades to each. As it relates to reinsurance, the renewed program modestly increases the share of premiums that we retain while meaningfully strengthening catastrophe protection, including named storm coverage that was largely absent under the expiring structure. The agreement related to our synthetic agent extension provides $0.25 billion in growth financing at roughly 9.8% cost and applies to growth spend in '27 and '28. This amounts to more than 6 percentage points improvement in our cost of capital, materially lowering expected interest expense on a go-forward basis. With the financing of our growth investment improving, let me turn to that spend and its efficiency. Over the past several years, we've substantially increased our growth investments while holding the LTV to CAC ratio stable at roughly 3x, no mean feat. Some of you have noted that this growth spend outpaced the corresponding growth in-force premium. The concern that I understand it is that this gap signals declining efficiency that each incremental growth dollar is buying less premium than once it did. It doesn't, and I'd like to walk you through why. With our direct-to-consumer distribution and predictive LTV models allocating that spend, we ratchet spending up and down and shifted from one product to geography to another in real time in pursuit of those sterling 3x returns. In 2023, as inflationary pressures shrank the opportunities for profitable spend, those controls naturally reduced our growth investments to about $55 million. We implemented rate changes to counter inflation. And as those came online, we added about $15 million of incremental growth spend each year. Now a similar dollar addition to a growing base produces a lower growth rate. So spend growth decelerates by construction. On the premium side, the dynamic pushes the other way. Growth spend is a flow. It's expensed and reset each year. The premium it buys is a stock. Cohorts stay on the books, layered on top of every cohort before them. So while spend growth decelerates, the premium of those dollars created keeps compounding, boosted further by our accelerating cross-sell. The bottom line is this, the observation is accurate, but it doesn't point to any underlying degradation in our efficiency. It's a mathematical artifact of our spending slowdown in response to inflation and our subsequent catch-up spending. Beginning in 2027 and beyond, we expect IFP growth to outpace spend growth, a key driver of operating leverage and profitability. And before I hand over, [indiscernible] this morning's other announcement. At year-end, after more than 9 years as our CFO, Tim Bixby will pass that baton on to Nick Stead, our Senior Vice President of Finance, and Tim will step up to Lemonade's Board of Directors. This transition was years in the making, instigated and paced by Tim himself. And today, almost all of our financial functions already report to Nick. So expect this handover to look like everything else Tim has engineered here, the capital raises, the IPO, 6 years or beat and raise, which is to say planned, disciplined and seamless. Congratulations to both Nick and Tim. With that, I'll hand over to Shai, who will cover a couple of key insights across the business. Over to you, Shai. Shai Wininger: Thanks, Daniel. First, I wanted to update on our LAE ratio, that is the cost of handling claims. This is a key metric when looking at insurance carrier efficiency with an industry average of around 9%. In the second quarter, we delivered our best ever LAE ratio result of 5%. This improvement is a continuation of a multiyear trend made by the growing use of our Lemonade OS technology, which drives AI across the claims operation. It is notable that the gains have been broad-based with record low LAE ratios in the quarter across each of our product lines. Beyond boosting our profitability and pricing power, the LAE ratio is a way to compare our efficiency versus other insurers. And what these numbers show today is that our competitors spend almost twice as much as we do on handling claims, and we're not done here by any means. Next, I wanted to touch on our expansion efforts. In the past 100 days, we launched 14 additional state product combinations, which included both a meaningful push towards nationwide availability for renters product as well as the launch of our autonomous car product in Colorado and Indiana. That's made possible by continued investment in our proprietary technology platform, which reduces the effort required to launch new products and enter new markets. We believe that nationwide availability in renters will unlock a much broader partnership opportunity with potential partners for whom that is a key requirement. On the road map, we expect to see more geographical expansion, most notably with regards to our car product. We have several state launches expected in the near term. And before the end of 2027, I believe our car product will be available to the majority of drivers in the United States. And with that, I hand it off to Tim, who will cover our financial performance in a bit more detail. Tim? Timothy Bixby: Thanks, Shai. Let's start with Q2 results, which were excellent. In-force premium grew more than 32% year-on-year to $1.43 billion, driven by customer growth of 23% and premium per customer growth of 8%. We added about 166,000 new customers in Q2, more than 12% greater than the roughly 148,000 in the prior year quarter. Within our reported gross loss ratio of 60%, our favorable prior period development of 7% was driven primarily by our homeowners, multi-peril and car products. Total CAT impact in the quarter was 3%, excluding CAT prior period development. And on a net basis, we saw 5 points of favorable prior period development, of which 2 points were related to CAT. Prior year development, which we report on a net basis, was $12 million favorable in Q2 and $16 million favorable year-to-date. Gross profit increased 76% to $113 million, while adjusted gross profit increased 74% to $114 million for a gross margin and an adjusted gross margin of 38% and 39%, respectively. These metrics use revenue as their denominator. Our adjusted gross profit as compared to gross earned premium was 34% in Q2, up 8 points from 26% in the prior year. Revenue grew 79% to $294 million, while our adjusted EBITDA loss improved to a loss of just $19 million. Notably, revenue grew nearly 50 percentage points faster than IFP due to dynamics related to our sustained trend of increased premium retention at reinsurance renewals in recent years. Importantly, adjusted free cash flow was positive for the fifth consecutive quarter at $19 million and has been positive 8 of the last 9 quarters, while operating cash flow was negative $3 million, following a common seasonal pattern. We ended the quarter with roughly $1.2 billion in cash and investments, of which about $330 million is required to be held as regulatory surplus. Annual dollar retention, or ADR, remained stable sequentially at 85%, continuing to reflect the impact of our prior clean the book actions within our homeowners product line. And as a reminder, ADR is measured relative to prior year's IFP. So while those portfolio actions are now largely behind us, they will continue to impact the reported ADR metric for the next couple of quarters before rolling out of the comparison period. Operating expenses, excluding loss and loss adjustment expense, increased by $53 million or 41% to $182 million in Q2 as compared to the prior year. And now I'll hand it off to Nick, who will walk us down the P&L and break down those expense lines a bit. Nick? Nicholas Stead: Thanks, Tim. Let's do that. Other insurance expense increased year-over-year by $5 million or 25% in Q2 as compared to a 32% growth rate of gross earned premium. This includes certain expenses that are variable in nature, and so typically grows at rates not materially different to that of the top line. Total sales and marketing expense increased by $18 million or 30%, primarily due to increased growth spend as compared to the prior year. In Q2, growth spend was $64 million, up 30% or $15 million as compared to the prior year. Importantly, as we continued to ramp growth spend, marketing efficiency levels remained stable and strong in the second quarter with an LTV to CAC ratio above 3x, in line with prior year. Technology development expense was up by $8 million or 34% year-on-year to $30 million. The growth was driven in roughly equal parts by the SBC impact of recent equity awards to our executives, which were not reflected in the prior year quarter, growth in personnel-related expense and higher software costs supporting our expanding AI capabilities. G&A expense increased 85% as compared to the prior year to $48 million. The year-on-year increase in G&A was driven primarily by a onetime tax refund benefit in the prior year period, the SBC impact of recent multiyear executive equity awards in the current period and growth in interest expense. Excluding those items, the year-over-year growth rate of G&A expense was 2%. Headcount increased slightly by 65 or about 5% year-over-year to 1,339 in Q2. The increase is attributable to net hiring in our product and engineering teams, and we expect that most of the year's net hiring activity is behind us. Net loss was $43 million in Q2 or $0.56 per share as compared to a net loss of $44 million or $0.60 per share in the prior year. Excluding the onetime benefit related to the tax refund I had mentioned from the prior year, the current period net loss result represents a 22% year-over-year improvement. Adjusted EBITDA loss was $19 million in Q2, dramatically improved as compared to a $41 million result in the prior year. Our detailed guidance for Q3 and the updated full year of 2026 is included in our shareholder letter and represents 33% Q3 and full year ISP growth, roughly 9% Q3 revenue growth and 65% full year revenue growth and unchanged a positive full quarter of adjusted EBITDA in the fourth quarter. Based on our third quarter and full year guidance, implied fourth quarter adjusted EBITDA is approximately $8 million. With that, I would like to pass it over to Shai to answer some questions from our retail investors. Shai Wininger: Thanks, Nick. We now turn to our shareholders' questions. We received a question about our IFP growth rate acceleration streak, when it might end and what factors could extend it. 11 consecutive quarters of IFP growth rate acceleration is a remarkable run by any measure, but especially for us as it's roughly 1/4 of our life as a company. What is most notable about that streak though, is that it has never been at the expense of profitability. LTV to CAC ratios remain healthy and strong at roughly 3x and adjusted EBITDA breakeven is precisely on track as compared to prior expectations. Our third quarter and full year guide contemplates the next point of IFP growth up to 33%, but we haven't given precise expectations for 2027 just yet. We have many growth drivers, but perhaps it's helpful to think through the lens of LTV to CAC. When unit economics improve, we are able to invest more aggressively in growth. We see opportunities on both sides of the equation. We seek to increase LTV through sustained momentum in cross-sells, which can drive gains in retention. And we seek to improve CAC efficiency through more granular AI-driven pricing, which can provide a tailwind to conversion rates. We continue to focus on these key drivers that we believe can drive sustainable profitable growth. We received a question around our new car insurance business, specifically the share of customers acquired via marketing versus cross-selling. We continue to deliver excellent growth in our car business, 60% year-over-year in the second quarter. We're seeing strength across both of these channels. In the quarter, we saw both the highest ever period of new business to car and the highest ever period of car sales to existing Lemonade customers. In recent periods, car sales typically represent between 40% to 50% of new to Lemonade car sales. We also received an interesting question around our adapting to new AI models as they come out. One of our core advantages is that we're model agnostic. We're not tied to any one frontier model provider. We continuously benchmark the latest models against one another to identify the best combination of capability and cost for each specific use case. When a new model is released, our teams typically begin evaluating it immediately, where we see performance advantage, moving from evaluation to implementation can happen in a matter of hours. The benefit isn't usually 1 dramatic step change. It's the cumulative effect of incremental improvements. To name a few, those improvements increase automation rates, they reduce human intervention, improve customer experience and lower cost to serve. I believe our system's ability to run multiple models at the same time while constantly evaluating them in real life is an advantage that helps drive the improvements in efficiency and operating leverage you've seen over the past several years. With that, I'll pass it over to the moderator, and we will take some questions from the Street. Operator: Your first question comes from the line of Jason Helfstein from Oppenheimer. Jason Helfstein: I'll have kind of 2 separate questions. So first is, what's the team most excited about right now? Obviously, a number of things going on, product, geo, et cetera? So what are you most excited about? And then just second, as we're all trying to think about how the model spools forward and thinking about potential operating leverage in 2027, 2028 without giving specific guidance, I guess, do we think that gross margins and contribution margins can kind of continue to maintain the current path as you expand product and geo coverage? Just any kind of way, obviously, as we're all trying to think about what that bogey is for 2028 to support valuation. Daniel Schreiber: Jason, good to hear from you. These are exciting times. So there's a lot to be excited about. If I had to pick one, I think I would say car, where we're just seeing kind of all the pistons going, all the quips around car kind of right themselves. But we really are seeing a lot of acceleration, a lot of improvement. There are a lot of changes and implementations and launches being planned and worked on, and we'll elaborate on those during our Investor Day, but there's a lot of reason for ongoing optimism in the sense that in this huge market where we are really just absolutely tiny and have so much headroom, we have advantages that we can sustain and can compound. And vaguely related to that, I'd add a second one, which is a little bit more vague, but there is a strong sense in the team, and I think it's reflected in our results quarter after quarter now, which is that the wins at our back. The machine is doing what it's meant to be doing. These 10 years of hard work at building the technology that we've built is throwing off results, throwing off growth, throwing off gross profit, compounding on a regular basis, all the data infrastructures, the AI infrastructure, some of which Shai mentioned a couple of minutes ago, the brand work that we've built, the team that we've built that this machine is really functioning very, very well, and it's just a pleasure to -- from my vantage point to sit back to some extent and watch it compound and keep doing what it's doing, 11 quarters in a row of acceleration, and we think there's a lot more where that came from going forward. I'll touch on the gross margin question briefly and then see if Tim or Nick wants to add more. But my comment is less by way of a direct answer and more by way of kind of challenging the premise or kind of a little knit, which is to say we are not -- I am not -- we are not focused on gross margin per se. The metric that we focus on, and we do encourage our investors to focus on as well is gross profit because there will be times where we can increase our profitability through shrinking gross margins and times when we cannot. And we're just talking about car, and I've spoken about this repeatedly on prior calls, which is that you see some incredible elasticity of demand in core products like car and our ability to actually shrink gross margins over time. That is to say, to price more aggressively than our competitors because we have a structural advantage that manifests in an entirely different cost structure. (Have a look at what we just announced in terms of LAE, spending something in the ballpark of half as much of our customers' premiums in order to give a better experience in claims.) But that kind of structural advantage allows us to produce a pricing advantage that will allow us to continue to grow and take market share. It will not manifest necessarily as an advantaged play in gross margin, but it will manifest in growing gross profit, which is the more important of the 2 metrics, if you follow my line of thinking. And with that, let me just see if Tim or Nick want to come in as well. Nicholas Stead: Yes. Daniel has it exactly right. And I think from a -- if you kind of translate that to a modeling perspective, the growth drivers for gross profit are clearly the top line growth, the gross loss ratio, and that is really advantaged by the loss adjustment expense improvement that you've seen, and we had a nice deep dive in the materials today, and we've updated you from time to time on that, and that's something we expect to continue. In addition to that, the top line growth accelerating also puts upward pressure on that gross profit. So while we would not expect to see such dramatic loss ratio impact as we've seen historically, something like 30 points of gross loss ratio improvement over time as expected and as planned, but a result of lots of hard work over time, you'll now see the gross loss ratio move around as much more of an output than an input. But the gross profit, I would expect to grow materially in line with top line growth and even mix shift doesn't hurt us, mix shift tends to help us, again, with the loss ratio or the loss adjustment expense looking nice, not only in aggregate, but also if you isolate by product, we see that same dynamic. So even as mix shifts, we'll still see that nice benefit. So, I think we've given you enough breadcrumbs today, we'll continue to do so to kind of model out that gross profit. We'll certainly update in the next quarter and at Investor Day and give a little more detail, but all the trends are quite good there. Daniel Schreiber: And sorry, I'm told that -- I misspoke, Jason. I hope I was understood, nonetheless. But just looking at our LAE, we are at 5% industry is at around 9%. And I was saying that they spend about twice as much of their customers' premiums than we do of our customers' premiums on the bureaucracy of handling claims. And that we tend to believe is probably indicative of a broader trend beyond claims as well. But if I misspoke, I hope I've clarified that. Operator: Your next question comes from the line of Tommy McJoynt from KBW. Thomas Mcjoynt-Griffith: Do you envision the inputs of getting to 30-plus percent in-force premium growth shifting a bit where customer count growth decelerates in the low 20s and premium per customer growth accelerates from the current mid- high single digits? Are those inputs likely to change? Nicholas Stead: Thanks, Tommy. I would expect no material change in the near term as to those relative growth rates. I think customer growth will continue to be the primary driver of IFP growth, but I also would expect the year-over-year growth rates of premium per customer to gradually and modestly increase as has been the recent trend. Thomas Mcjoynt-Griffith: Okay. Got it. And there's been sort of a hot topic in the industry has been around the future of distribution, especially with some of the AI technology enforced today. Over time and what you guys are currently working on, has your approach to complementing your core direct-to-consumer form of marketing with using human independent agents changed at all over time? And has AI either changed your strategy around that? Daniel Schreiber: Tommy, no, not materially. It's much the same. Our focus is on direct-to-consumer. We do have an agent program as well, but that is relatively niche and the overwhelming majority of our sales are direct-to-consumer. We're fine with people using their agents to do their shopping on their behalf. We're actually overly weighted by agentic processes, basically the way the training data that Claude or Gemini or OpenAI's chatbots contain or the materials that they're trained on are materials that we're very proud of. It's the customer feedback, it's the pricing that we have, it's the response times that we offer our customers. So if you do what we have done multiple times, which is see how often those agentic bots or processes will recommend Lemonade or will end up choosing Lemonade, you'll see that we're comfortably overweighted. So from that point of view, we feel quite comfortable with the emerging technologies and see no need to adjust our strategy. Timothy Bixby: There's an interesting analog maybe worth mentioning when you think about our direct-to-consumer efforts and where that is some at times different in Europe, for example, a pretty significant amount of business goes or originates through price comparison websites. And so one of the key learnings in our early time as we built and grew that business was figuring that out. How do we bring our direct-to-consumer advantages to a process where there's a third party in the mix, even if just peripherally or just at the start. And so this is not entirely new to us. Obviously, AI and Agent is a different realm, but it's something with which we have some real experience. The ultimate goal, of course, is to get that consumer into a Lemonade feeling experience as quickly as possible and whether that's through a price comparison website through a small agent testing area where we have some work happening through AI agentic, those are all things with which we have some real experience. Operator: Your next question comes from the line of Ryan Tunis from Cantor Fitzgerald. Ryan Tunis: First of all, congrats to both Tim and Nick. So first question, I guess, just taking a step back, there's -- this seems like a really good quarter in terms of thinking about from a bottom line perspective, right? I mean this new metric in terms of the convergence of the IFP growth and the customer acquisition spend, there's more good commentary on the loss adjustment ratio. You're retaining more of your gross premium that should add operating leverage as well. All that's good. It doesn't sound like to me -- and correct me if I'm wrong, but it doesn't sound like to me that's coming at the expense of how you guys have been talking about growth. I guess that's the first part. And then second part is just the operating expense piece in terms of the relative growth there and how that could contribute to operating leverage in 2027 would be helpful as well. Daniel Schreiber: Ryan, thanks. I'll just comment on the first part and then hand over to Nick for the second part of your question. But yes, all of that, you highlighted a few things that we're proud of and that are, I think, quite an outlier in terms of the industry. So getting to an OAE of 5% across our book, 7% in our car business. Our car business is just a couple of hundred million dollars in size. The industry is several hundred billion dollars in size. So we're talking about something that is a pro of the industry, and yet we are lapping the industry at large in terms of the efficiency metrics. That's something that I think is indicative of a structural difference that we've been talking about for a while and that now is manifest in the P&L really almost on every line. So definitely, those kinds of metrics, and I'm glad, Ryan, that you're highlighting them, those kind of metrics are exactly the things that drive our growth. We speak about on multiple occasions how we have a bunch of machine learning algorithms, essentially AI, some 50 of them that work in concert in order to allocate our spend. And really, what they're doing is taking all of that information and figuring out what does our cost to serve, what kind of customers are we acquiring, how long will they stay for, what claims behaviors will they have? You throw all of that into the mix and outcomes a lifetime value of the customer. And the way we hunt for those threefold ratios of LTV to CAC is by scouring and competing campaigns, products, geographies against each other in almost an algo trading kind of structure in order to keep finding that growth. And you'll see in the comments in our letter and in our earlier comments that when inflation shrank that pool, our growth shrank down. And now that we're in a much better place, that is an enabler of growth. So the premise of your question is absolutely right. The better we get at each of those metrics that automation, that precision at new products launch in new territories, obviously, the more growth you can expect to see. Nicholas Stead: And Ryan, maybe I can jump in on the second piece of the question around forward expectations for expense growth. And I might take that by line item. I'll start with other insurance expense. That's the line item where we typically see less benefit from leverage. Those are certain line items that are somewhat more variable and so increase more or less in line with premium. Sales and marketing expense typically grows in line with the pace of growth spend. And you're right to mention that insight in the letter where we outlined that in 2027, we expect the growth rate of growth spend to continue to decline below the growth rate of IFT for the year and beyond. And so that's an increasing driver of leverage. And then for both G&A and tech development expense, we see more significant benefit from leverage. And so, I would expect the sequential growth rates for those line items to be quite low. I'd perhaps note the year-over-year growth rate of the upcoming couple of quarters may be somewhat noisy due to the impact of that recent multi-year equity award to our executives that we have mentioned. So perhaps it's helpful to model those growth rates sequentially from the Q2 baseline. Notwithstanding many of those drivers, I'd just mention that these are more or less in line with the way we have been thinking about expenses. And the way you can see that is in the reiteration of our adjusted EBITDA guide for the year and a positive fourth quarter. Ryan Tunis: Very helpful. And just a follow-up, definitely a lot more small ball, but a follow-up is just the pet insurance gross loss ratio looked like it picked up a little bit this quarter. Just curious if there's any notable color around that. Nicholas Stead: Yes, happy to take that one. We are impacted by an industry-wide vet cost inflationary trend. And from our view, that is the primary driver of the modest increase in our pet loss ratio, both sequentially and year-over-year. We are actively taking rate through the system to offset that impact. I'd say notwithstanding the significant rate that is being taken by both us and our competitors, the growth rate of the broader pet insurance market continues to outpace those of the other lines of business where we operate. Operator: Your next question comes from the line of Andrew Andersen from Jefferies. Andrew Andersen: And again, congratulations to you both. On the quarter, Tim, I think I heard you say car produced some favorable development. I don't think that's too different from what some of the larger peers are seeing. But can you maybe just talk about what you're seeing in reserves to release some this quarter even with the book still scaling rapidly here? Timothy Bixby: Yes, that's exactly right. So we've seen a trend in the quarter that was not too dissimilar from a few prior quarters, which is both the home business and the car business primarily had some favorable development, somewhat different causes, car growing significantly and a significantly improved loss ratio over time. It's not uncommon to be somewhat more conservative in reserving as your business changes rapidly, and our business in car has certainly changed absolutely for the better, but also in terms of its growth rate, in terms of its diversity across states and a lot of that has come together to enable us to reanalyze those prior reserves and continue to release. Home is a little different. Home, it's not so much the growth rate. We've actually just kind of edged past our clean the book efforts in home. And so, we've done a couple of things there. One is to really look at from a macro perspective, business that today, we wouldn't write, and that's really been 1.5 years or so in the making and really passed that point. That said, the remaining business was still somewhat conservatively reserved in light of new data and our current understanding of the book and that enabled us to release those reserves. By definition, our forward expectation is today's reserves are exactly right. And we'll kind of see how the subsequent quarters play out, but those were consistent trends. Andrew Andersen: Okay. And recognizing it's early, but you had mentioned at the top of the call, just the autonomous product, car products are live in a couple of states. What have you learned maybe about the frequency or severity of this product relative to the traditional auto book? Timothy Bixby: Awfully, early. And so that's not something we've put any real data out on. And so we'll kind of have to stick with what we've disclosed so far. The good news there is that the trends are positive. We've seen nice reception from those customers who qualify for that product. The end is quite small, but the trends are quite positive. And I think if you look out across the market as we do and see the data that's released not from Lemonade, but across the market, the frequency numbers without question, are significantly -- or not significantly are notably lower. The 50% number that we've quoted is really our number, data-driven through the data that we've analyzed as we put that product together. But the public numbers we're seeing are that amount of savings or greater. So we're quite optimistic about where that product will head. It's a multiyear adoption rate. We'll see how that plays out. And that's probably as much as we can say at this point. Operator: At this time, there are no further questions. This concludes today's call. Thank you all for attending. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Lemonade. The Motley Fool has a disclosure policy. Lemonade (LMND) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Trupanion Inc. TRUP posted decent second-quarter 2026 results, with the top and the bottom lines beating the Zacks Consensus Estimate. However, while the top line improved year over year, the bottom line declined. This pet insurer provides insurance for cats and dogs in the United States, Canada, Continental Europe and Australia. It operates in a large but underpenetrated market. Trupanion is well-poised to grow, courtesy of increased focus on pets’ health and well-being, product launches, extended operating boundaries and a solid capital position. Shares of TRUP have gained 14.4% in the past three months, outperforming its industry, sector and the Zacks S&P 500 composite, in the same time frame. Image Source: Zacks Investment Research Shares of Lemonade Inc. LMND, another seller of pet insurance, have lost 5.7% in the past three months while those of Root Inc. ROOT, a technology-oriented insurance company seeking growth through specialized underwriting and digital customer acquisition, have lost 10.4% in the same time frame. TRUP generated $393 million of revenues, up 11% year over year and beat the consensus estimate by 0.8%.Total enrolled pets (including pets from our other business segment) were 1.6 million as of June 30, 2026, a decrease of 2% year over year. Subscription enrolled pets were 1.1 million as of June 30, 2026, an increase of 5% year over year. Subscription business revenues were $276.7 million, up 14% year over year.Total expenses were $58.7 million, up 12% year over year.Adjusted EBITDA was $19.8 million, up from $16.6 million in the second quarter of 2025. The bottom line came in at 16 cents, beating the estimate by 45% but declining 27% year over year.Operating cash flow was $21 million and free cash flow was $19.2 million in the second quarter.In July 2026, the New York Department of Financial Services approved an extraordinary dividend of $44 million to be paid to Trupanion by its wholly-owned subsidiary, American Pet Insurance Company.  The board also approved a $100 million share buyback program. For 2026, TRUP expects total revenues in the range of $1.584 billion to $1.601 billion. Subscription revenues are now expected to be between $1.124 billion and $1.133 billion. The midpoint of the range has increased slightly and continues to represent approximately 14% year-over-year growth. The insurer also narrowed the total adjusted operating income range to be between $176 million and $184 million, or19% year-over-year growth at the midpoint.For the third quarter of 2026, total revenues are expected to be in the range of $399 million to $405 million. Subscription revenues are expected to be between $284 million and $287 million, representing approximately 13% year-over-year growth at the midpoint. Total adjusted operating income is expected to be in the range of $44 million to $47 million. This represents approximately 11% growth year over year at the midpoint. The stock is overvalued compared with its industry. It is currently trading at a price-to-book multiple of 3.11, higher than the industry average of 1.86 but lower than the median of 4.28 over the past three years. It has a Value Score of C. Image Source: Zacks Investment Research TRUP shares are more expensive than ROOT but cheaper than LMND. Trupanion has built a differentiated business model centered on high customer retention, recurring subscription revenues and a proprietary technology platform. A key competitive advantage is its direct-pay software, which allows participating veterinary hospitals to receive claim payments at checkout, enhancing the customer experience and strengthening veterinary relationships.The company continues to benefit from strong monthly retention, a growing base of enrolled pets, and higher average revenue per pet (ARPU), driving consistent mid-teens revenue growth. With veterinary care costs rising faster than consumer discretionary income, effective pricing remains critical to sustaining growth while ensuring pet owners can continue to access quality care.International expansion is another important growth driver. As part of its five-year strategy, Trupanion has expanded its presence in Europe, where pet insurance penetration remains relatively low, creating a significant long-term growth opportunity. A larger subscriber base should also improve operating leverage, supporting margin expansion and stronger free cash flow over time.To broaden its addressable market, the company is expanding its product portfolio with offerings such as Chewy and Aflac, which target lower- and mid-ARPU segments, alongside Firkin, Phi Direct, and products tailored for continental Europe. Trupanion has also introduced a branded offering built on its technology platform and partnered with automation providers in Germany and Switzerland to enhance operational efficiency.Supported by a strong capital position and solid operating performance, Trupanion is well positioned to invest in product innovation and international expansion, reinforcing its competitive moat and long-term growth prospects. The Zacks Consensus Estimate for 2026 revenues and earnings indicates year-over-year improvement of 9.9% and 22.2%, respectively. The consensus estimate for 2027 revenues and earnings indicates year-over-year improvement of 8.1% and 25.2%, respectively. TRUP has a Growth Score of B. Image Source: Zacks Investment Research The consensus estimate for 2026 earnings has moved up 1 cent while that for 2027 has moved down 3 cents in the last 30 days.The consensus estimates for LMND’s 2026 and 2027 earnings have witnessed southbound movement in the last 30 days. The consensus estimates for ROOT’s 2026 and 2027 earnings have witnessed no movement in the last 30 days. TRUP is poised to grow in the fast-growing pet insurance market as pet ownership continues to increase and veterinary care costs rise.  Its VGM Score of B instills confidence.Given its premium valuation, muted analyst sentiment and narrowed guidance by management, it is better to adopt a wait-and-see approach for this Zacks Rank #3 (Hold) stock now.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Trupanion, Inc. (TRUP) : Free Stock Analysis Report Lemonade, Inc. (LMND) : Free Stock Analysis Report Root, Inc. (ROOT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Root Inc. ROOT posted decent second-quarter 2026 results, with both the top and bottom lines improving year over year. The company witnessed improved in-force premiums and loss ratio.Root is a technology insurance company focusing on the United States personal auto insurance market. It offers automobile and renters insurance products primarily through websites, mobile applications and partnership channels.Shares of ROOT have gained 5.9% in the past three months, outperforming the Zacks S&P 500 composite but underperforming its industry and sector in the same time frame. Image Source: Zacks Investment Research Shares of Lemonade Inc. LMND, its peer, have lost 4.4% in the past three months while those of Hippo Holdings HIPO, another peer, have rallied 17.7% in the same time frame. Root generated $389 million of revenues, up 2% year over year and $44 million of adjusted EBITDA, up 16% year over year.It exited the quarter with 0.484 million policies in force, up 6% year over year. Gross written premium of $340 million declined 2% while gross earned premium of $368 million declined 1% year over year as the company managed growth with discipline in a competitive Direct market.Partnership and independent agent channels represented about 51% of new writings in the quarter, reflecting continued progress and diversifying growth beyond Direct. Net underwriting margin improved 310 basis points year over year to 7.9%, equivalent to a 92.1% net combined ratio, driven primarily by continued expense discipline. Net expense ratio improved 300 basis points year over year to 26.1%, while net loss and LAE ratio was 66%, broadly in line with the prior-year period. Root bought back $20 million of shares under its $75 million share repurchase authorization. The stock is overvalued compared with its industry. It is currently trading at a price-to-book multiple of 2.93, higher than the industry average of 1.52 but lower than the median of 4.44 over the past three years. It has a Value Score of A. Image Source: Zacks Investment Research ROOT shares are more expensive than HIPO but cheaper than LMND. Root represents a differentiated opportunity in the $350 billion U.S. auto insurance market. Its mobile-first platform combines telematics and artificial intelligence to assess actual driving behavior, enabling more accurate underwriting, stronger risk selection and potentially lower loss ratios.The company’s growth strategy centers on geographic expansion, broader distribution and deeper partnerships. Root aims to launch its products nationwide, increase policies in force, and make coverage accessible through direct, independent-agent, and embedded-insurance channels. To strengthen its agency presence, Root has integrated with leading comparative rating platforms, including EZLynx and PL Rating. Its partnership business is also expanding across the automotive and financial-services sectors, while targeted customer-acquisition investments continue to support direct-channel growth.Root’s financial performance has benefited from disciplined expense management, selective marketing and strong underwriting. Its gross loss ratio remains below the long-term target range of 60%–65%, giving the company flexibility to reduce prices selectively without sacrificing profitability. This margin improvement helped Root achieve its first full year of profitability in 2024.Root’s five-part strategy will offer customers the lowest possible prices. It will enable the company to expand into every state, grow the independent-agency channel, scale embedded-insurance partnerships, and apply its AI capabilities to build a more efficient, automated marketing engine. The Zacks Consensus Estimate for 2026 earnings indicates year-over-year improvement but that for 2027 indicates a year-over-year decline. ROOT has a Growth Score of A. Image Source: Zacks Investment Research The consensus estimate for 2026 and 2027 earnings has witnessed no movement in the last 30 days.The consensus estimates for LMND and HIPO’s 2026 and 2027 earnings have witnessed no movement in the last seven days. Improved underwriting via telematics, lower loss ratios, efficient customer acquisition, and scaling profitable policies through data-driven pricing and retention position ROOT for long-term growth. Its VGM Score of A instills confidence.Given its premium valuation and muted analyst sentiment, it is better to adopt a wait-and-see approach for this Zacks Rank #3 (Hold) stock now.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Root, Inc. (ROOT) : Free Stock Analysis Report Lemonade, Inc. (LMND) : Free Stock Analysis Report Hippo Holdings Inc. (HIPO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Lemonade Inc. LMND posted decent second-quarter 2026 results, with both the top and bottom lines improving year over year. Though the top line beat the Zacks Consensus Estimate, the bottom line matched the same. The company witnessed improved in-force premiums and loss ratio.Lemonade offers renters, homeowners, pet, car and life insurance, backed by artificial intelligence and behavioral economics. It operates through full-stack insurance carriers in the United States, the United Kingdom and Europe. Its primary competitive advantage lies in its fully digital operating model.Shares of Lemonade have lost 6.5% in the past three months, outperforming the industry, its sector, as well as the Zacks S&P 500 composite in the same time frame.  LMND shares are trading at a discount to their 52-week high. Image Source: Zacks Investment Research Shares of Root Inc. ROOT and Hippo Holdings HIPO, some other multiline insurers, have rallied 5.6% and 17.7% in the past three months, respectively. Revenues of $294.4 million increased 79% year over year, driven by growth in gross earned premium and higher premium retention rate. In-force premium (IFP) increased 32% year over year to $1.43 billion. Gross earned premium of $332.4 million increased 32% year over year primarily due to an increase in IFP.Total operating expense, excluding net loss and loss adjustment expense, of $182.2 million increased 41% year over year.Adjusted EBITDA loss was $18.7 million, narrower than a loss of $40.9 million in the second quarter of 2025. This improvement was primarily attributable to revenue growth and improved underwriting results, partially offset by the increase in growth spend. Net loss ratio improved 800 basis points to 61%.The bottom line came in at a loss of 56 cents per share, narrower than a loss of 60 cents per share incurred in the year-ago quarter. Adjusted free cash flow was $18.8 million, lower than $25 million in the year-ago quarter. Lemonade expects revenues to be $323-$326 million in the third quarter and $1.214-$1.220 billion in 2026. In-force premium is expected between $1,537 and $1,540 million in the third quarter and $1,632-$1,639 million in 2026.Adjusted EBITDA loss is estimated to be $20 to $23 million in the third quarter and $47 to $51 million in 2026. The stock is overvalued compared with its industry. It is currently trading at a price-to-book multiple of 7.87, higher than the industry average of 3.03 and the median of 4.13 over the past three years. It has a Value Score of F. Image Source: Zacks Investment Research LMND shares are more expensive than ROOT and HIPO. Lemonade is a technology-focused insurer that leverages artificial intelligence, data analytics and automation to improve efficiency and support a scalable, low-cost operating model. Initially concentrated on renters and homeowners insurance, the company has expanded into auto, pet and life coverage, aided by the Metromile acquisition. This broader product portfolio has diversified revenues and reduced dependence on any single insurance line.Its multi-product approach supports cross-selling, strengthens customer lifetime value and creates recurring revenues. Strong retention and customer engagement continue to drive growth, with management projecting revenue increases of 32% for the second quarter and 33% for full-year 2026. Auto insurance remains a key growth engine, supported by additional state launches and higher brand investment.In-force premium reached $1.43 billion in the second quarter, representing the 11th consecutive quarter of accelerating growth. Lemonade’s AI- and automation-led platform enables the company to scale efficiently, supporting management’s long-term target of $10 billion in IFP. From 2027 onward, IFP growth is expected to exceed spending growth, creating meaningful operating leverage.Geographic expansion, particularly for auto insurance, should broaden Lemonade’s addressable market. Following several planned state launches, management expects its auto product to be available to most U.S. drivers by the end of 2027.Lemonade’s reinsurance program transfers a significant share of claims exposure to partners, helping limit earnings volatility. Meanwhile, proprietary AI tools, including AI Maya and AI Jim, streamline underwriting and claims handling, improving efficiency and keeping loss-adjustment expenses relatively low.Profitability is challenged, but the outlook is improving. Margins are expanding, free cash flow has turned positive, and management expects to achieve adjusted EBITDA profitability in the fourth quarter of 2026 and in 2027. The Zacks Consensus Estimate for 2026 and 2027 earnings and revenues indicate year-over-year improvements. LMND has a Growth Score of A. Image Source: Zacks Investment Research However, the consensus estimate for 2026 and 2027 earnings has moved 5 cents and 8 cents south, respectively, in the last seven days. Image Source: Zacks Investment Research The consensus estimates for ROOT’s and HIPO’s 2026 and 2027 earnings witnessed no movement in the last seven days. Lemonade is poised for long-term growth, banking on a combination of technology, automation and expanding product offerings.However, given its premium valuation and muted analyst sentiment, it is better to hold on to this Zacks Rank #3 (Hold) stock now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lemonade, Inc. (LMND) : Free Stock Analysis Report Root, Inc. (ROOT) : Free Stock Analysis Report Hippo Holdings Inc. (HIPO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Lemonade, Inc. (NYSE:LMND) shares fell more than 7% in pre-market trading after the AI-powered insurance company released its second-quarter 2026 results, with investors reacting negatively despite revenue outperforming expectations. The sell-off reflected concerns that the company’s outlook failed to justify the high expectations already priced into the stock, following a strong rally earlier in the year. Ahead of the earnings release, analysts had expected Lemonade to report a quarterly loss of around $0.57 per share, while investors were looking for results capable of supporting the company’s ambitious growth outlook. Although revenue exceeded expectations, the market response suggested investors were disappointed that the company’s guidance did not provide a stronger catalyst for further gains. The negative reaction came after Lemonade had previously raised its full-year outlook and reaffirmed its expectation of achieving positive adjusted EBITDA during the fourth quarter of 2026. Investor sentiment had become increasingly mixed ahead of the earnings announcement. Earlier this month, Morgan Stanley analyst Bob Huang downgraded Lemonade to Equal Weight from Overweight and assigned a price target of $75 per share, arguing that while the company’s operating momentum remained solid, additional catalysts would be needed to justify its valuation. Keefe Bruyette maintained an Underperform rating with a $48 price target, while Piper Sandler reiterated its Neutral rating with a $75 target. Market participants had also noted recent insider selling activity, adding to the cautious tone before the quarterly results. Despite the market reaction, Lemonade has continued to improve its underwriting performance. The company’s gross loss ratio declined to 62% during the first quarter of 2026, compared with 83% two years earlier, reflecting improvements in its artificial intelligence models for pricing insurance policies and forecasting claims. These operational improvements have supported the company’s longer-term strategy of improving profitability while continuing to expand its customer base. Shares had already retreated significantly from their 52-week high of $99.90 before the earnings announcement, leaving investors particularly sensitive to any signs of slowing momentum. Combined with cautious analyst sentiment and the absence of a stronger-than-expected outlook, the latest results prompted a sharp decline in the stock despite revenue exceeding market forecasts. Investors are likely to remain focused on whether Lemonade can continue improving profitability while delivering the growth required to support its premium valuation. Lemonade stock price

For the quarter ended June 2026, Lemonade (LMND) reported revenue of $294.4 million, up 79.4% over the same period last year. EPS came in at -$0.56, compared to -$0.60 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $289 million, representing a surprise of +1.87%. The company has not delivered EPS surprise, with the consensus EPS estimate being -$0.56. 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. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. 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): $1.43 billion compared to the $1.43 billion average estimate based on five analysts. Customers (end of period): 3,308,666 versus 3,340,447 estimated by four analysts on average. Net loss ratio: 61% versus 69.8% estimated by four analysts on average. Premium per Customer (end of period): $433.00 compared to the $426.43 average estimate based on four analysts. Gross loss ratio: 60% versus 64.3% estimated by four analysts on average. Total Revenue- Net investment income: $9.7 million versus the five-analyst average estimate of $9.61 million. The reported number represents a year-over-year change of +3.2%. Total Revenue- Ceding commission income: $20.4 million compared to the $26.16 million average estimate based on five analysts. The reported number represents a change of -32.9% year over year. Total Revenue- Commission and other income: $12.3 million versus $11.75 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +4.2% change. Total Revenue- Net earned premium: $252 million compared to the $241.38 million average estimate based on five analysts. The reported number represents a change of +124% year over year. View all Key Company Metrics for Lemonade here>>> Shares of Lemonade have returned -4.5% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lemonade, Inc. (LMND) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. In Force Premium (IFP): $1.43 billion, up 32.5% year over year. Revenue: $294 million, increased 79% year over year. Gross Profit: $113 million, up 76% year over year. Adjusted EBITDA Loss: Improved 54% to $19 million. Gross Loss Ratio: 60% with favorable prior period development of 7%. Adjusted Gross Margin: 39%. Adjusted Free Cash Flow: Positive $19 million for the fifth consecutive quarter. Operating Expenses: $182 million, increased by 41% year over year. Net Loss: $43 million or $0.56 per share, improved 22% year over year. Customer Growth: 23% increase, adding about 166,000 new customers. Premium Per Customer Growth: 8% increase. LAE Ratio: Improved to 5%, below the industry average of 9%. Cash and Investments: Approximately $1.2 billion, with $330 million as regulatory surplus. Warning! GuruFocus has detected 2 Warning Sign with LMND. Is LMND fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Lemonade Inc (NYSE:LMND) reported a 32.5% year-over-year growth in in-force premium, reaching $1.43 billion, marking 11 consecutive quarters of accelerating growth. Revenue increased by 79% to $294 million, and gross profit rose by 76% year-over-year to a record $113 million. The company improved its adjusted EBITDA loss by 54% to $19 million and is on track to achieve its first positive adjusted EBITDA quarter in Q4 2026. Lemonade Inc (NYSE:LMND) achieved its best-ever LAE ratio of 5%, significantly below the industry average of 9%, indicating superior efficiency in handling claims. The company expanded its geographical reach by launching 14 additional state product combinations, including the introduction of its autonomous car product in Colorado and Indiana. Despite improvements, Lemonade Inc (NYSE:LMND) still reported a net loss of $43 million in Q2 2026, although this was a slight improvement from the previous year. Operating expenses, excluding loss and loss adjustment expense, increased by 41% to $182 million in Q2, which could impact future profitability. The company's Pet insurance segment experienced a modest increase in the gross loss ratio due to industry-wide vet cost inflation. There is concern over the efficiency of growth spending, as some investors noted that growth spend outpaced the corresponding growth in in-force premium. The transition of CFO responsibilities from Tim Bixby to Nick Stead, while planned, introduces potential uncertainty in financial leadership. Q: What factors could extend Lemonade's IFP growth rate acceleration streak, and when might it end? A: Shai Wininger, President and Co-Founder, explained that the 11 consecutive quarters of IFP growth rate acceleration have not come at the expense of profitability. The company maintains healthy LTV to CAC ratios and is on track for adjusted EBITDA breakeven. Growth is driven by improving unit economics, cross-sales momentum, and AI-driven pricing, which enhance conversion rates. Q: How is Lemonade adapting to new AI models, and what advantages does this provide? A: Shai Wininger highlighted that Lemonade is model agnostic, continuously benchmarking new AI models to optimize capability and cost. This approach allows for rapid implementation of performance improvements, enhancing automation, reducing human intervention, and lowering costs, which collectively improve efficiency and operating leverage. Q: What excites the Lemonade team most currently, and how do they view future operating leverage? A: Daniel Schreiber, CEO, expressed excitement about the Car product, noting significant improvements and growth potential in a vast market. He emphasized the company's structural advantages, such as a lower LAE ratio, which enable competitive pricing and market share growth. The focus is on gross profit rather than gross margin, leveraging structural advantages to drive growth. Q: How does Lemonade view the future of distribution with AI technology, and has their strategy changed? A: Daniel Schreiber stated that Lemonade's focus remains on direct-to-consumer sales, with a niche agent program. The company is comfortable with AI-driven agentic processes, as they often favor Lemonade due to its strong customer feedback and pricing. Lemonade's strategy remains unchanged, leveraging its direct consumer advantages. Q: How does Lemonade plan to achieve operating leverage in 2027, and what are the expectations for expense growth? A: Nick Stead, SVP Finance, explained that operating leverage will be driven by slower growth in growth spend compared to IFP growth. Sales and marketing expenses will align with growth spend, while G&A and tech development expenses will benefit from leverage. Sequential growth rates for these expenses are expected to be low, contributing to operating leverage. For the complete transcript of the earnings call, please refer to the full earnings call transcript.