Lemonade shares crashed early in the US cash session after the technology-focused insurer reported fewer second-quarter customers than Wall Street expected and announced a transition of its chief financial officer.
The company, which provides renters, homeowners, auto, pet and life insurance in the US and parts of Europe, plunged 18%, marking its steepest intraday decline since July 31, 2024.
The shares are down 30% this year, rapidly reversing a rally that catapulted the stock from about $20 in late 2024 to nearly triple digits. Lemonade peaked at around $96 earlier this year.
What traders focused on was that customers in the second quarter increased 23% to 3.31 million, short of the Bloomberg Consensus estimate of 3.33 million. Revenues in the quarter surged 79% to $294.4 million, beating expectations, while the adjusted EBITDA loss narrowed to $18.7 million from $40.9 million a year earlier. The gross loss ratio improved to 60%, better than the 64.8% estimate.
2Q Earnings Snapshot (courtesy of Bloomberg):
Lemonade raised its full-year revenue forecast to $1.21 billion to $1.22 billion but maintained an adjusted EBITDA loss outlook wider than consensus.
Nick Stead, currently senior vice president of finance, will succeed Tim Bixby as CFO on Jan. 1, with Bixby transitioning to the board. The company provided no color on the rationale behind the leadership change.
Tyler Durden Wed, 07/29/2026 - 15:45