Lemonade (LMND) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - Lemonade (LMND) reported $164.1 million in revenue for Q2 2025, a year-over-year increase of 34.5% and a surprise of +1.05% over the Zacks Consensus Estimate of $162.39 million [1] - The company posted an EPS of -$0.60, improving from -$0.81 a year ago, resulting in an EPS surprise of +25.93% [1] Financial Performance Metrics - In force premium at the end of the period was $1.08 billion, slightly above the estimated $1.07 billion [4] - Premium per Customer was reported at $402.00, closely matching the estimate of $402.07 [4] - The number of customers reached 2,693,107, exceeding the estimate of 2,655,423 [4] - The net loss ratio was 69%, better than the estimated 76.4% [4] - The gross loss ratio was reported at 67%, compared to the estimate of 75.4% [4] - Net investment income was $9.4 million, slightly below the estimate of $9.69 million, but representing a year-over-year increase of +16.1% [4] - Ceding commission income was $30.4 million, significantly above the estimate of $25.26 million, reflecting a year-over-year change of +84.2% [4] - Commission and other income reached $11.8 million, surpassing the estimate of $11.3 million, with a year-over-year increase of +45.7% [4] - Net earned premium was reported at $112.5 million, below the estimate of $116.16 million, but still showing a year-over-year increase of +26% [4] Stock Performance - Lemonade's shares have returned -13.2% over the past month, contrasting with the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]