Lemonade (LMND) Reports Q2 Loss, Tops Revenue Estimates

Company Performance - Lemonade reported a quarterly loss of $0.6 per share, better than the Zacks Consensus Estimate of a loss of $0.81, and improved from a loss of $0.81 per share a year ago, representing an earnings surprise of +25.93% [1] - The company posted revenues of $164.1 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.05%, and up from $122 million in the same quarter last year [2] - Over the last four quarters, Lemonade has exceeded consensus EPS estimates four times and has also topped consensus revenue estimates four times [2] Future Outlook - The sustainability of Lemonade's stock price movement will depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is -$0.74 on revenues of $180.86 million, and for the current fiscal year, it is -$2.77 on revenues of $694.36 million [7] - The estimate revisions trend for Lemonade was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Insurance - Multi line industry, to which Lemonade belongs, is currently in the top 38% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]