Can Lemonade Keep its Beat Streak Alive in Q2 Earnings?

Core Insights - Lemonade Inc. (LMND) is anticipated to show revenue growth in Q2 2025, with expected revenues of $162.4 million, reflecting a 33.1% increase year-over-year [1][9] - The company's earnings are projected to remain flat, with a consensus estimate of a loss of 81 cents, which has widened by 2 cents in the past week [2] Revenue and Earnings Estimates - The Zacks Consensus Estimate for LMND's second-quarter revenues is $162.4 million, indicating a 33.1% increase from the previous year [1][9] - The expected loss per share is pegged at 81 cents, with a narrower estimate of 79 cents indicating a positive Earnings ESP of +2.40% [2][5] Earnings Surprise History - LMND has a strong earnings surprise history, having beaten the Zacks Consensus Estimate in the last four quarters with an average surprise of 12.52% [3] Factors Influencing Q2 Results - The in-force premium is expected to improve, projected between $1.061 billion and $1.064 billion, driven by customer growth and the Metromile acquisition [6][9] - Premium per customer is likely to increase to $402 million due to rate hikes, and gross written premium is expected to rise from successful digital advertising and partnerships [7] - Investment income is anticipated to benefit from a diversified portfolio, with a consensus estimate of $9.7 million [7] Expense Expectations - Sales and marketing expenses are expected to rise due to increased brand and performance advertising [8] - General and administrative expenses are likely to increase due to higher interest expenses from financing agreements [10]