$LMND

Lemonade, Inc.

CIK:0001691421|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue
Net earned premium	$ 252.0	$ 112.5	$ 464.6	$ 216.8
Ceding commission income	20.4	30.4	44.0	57.3
Net investment income	9.7	9.4	19.5	18.9
Commission and other income	12.3	11.8	24.3	22.3
Total revenue	294.4	164.1	552.4	315.3
Expense
Loss and loss adjustment expense, net	154.0	77.5	287.3	162.9
Other insurance expense	26.7	21.4	50.8	47.5
Sales and marketing	77.7	59.6	143.8	102.8
Technology development	30.0	22.4	56.9	44.4
General and administrative	47.8	25.8	90.0	61.7
Total expense	336.2	206.7	628.8	419.3
Loss before income taxes	(41.8)	(42.6)	(76.4)	(104.0)
Income tax expense	1.6	1.3	2.8	2.3
Net loss	(43.4)	(43.9)	(79.2)	(106.3)
Other comprehensive loss, net of tax
Unrealized (loss) gain on investments in fixed maturities	(2.2)	0.4	(6.6)	1.6
Foreign currency translation adjustment	1.2	7.2	(0.1)	8.7
Comprehensive loss	$ (44.4)	$ (36.3)	$ (85.9)	$ (96.0)
Per share data:
Net loss per share attributable to common stockholders—basic (usd per share)	$ (0.56)	$ (0.60)	$ (1.03)	$ (1.45)
Net loss per share attributable to common stockholders—diluted (usd per share)	$ (0.56)	$ (0.60)	$ (1.03)	$ (1.45)
Weighted average common shares outstanding—basic (in shares)	76,983,877	73,433,379	76,647,656	73,178,708
Weighted average common shares outstanding—diluted (in shares)	76,983,877	73,433,379	76,647,656	73,178,708

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss	$ (79.2)	$ (106.3)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	5.1	9.2
Stock-based compensation	45.7	25.7
Amortization of premium on bonds	(2.4)	(3.0)
Provision for bad debt	12.2	8.9
Changes in operating assets and liabilities:
Premium receivable	(100.3)	(54.4)
Reinsurance recoverable	21.3	(7.4)
Prepaid reinsurance premium	22.6	(28.0)
Deferred acquisition costs	(4.0)	(0.4)
Other assets	3.2	2.2
Unpaid loss and loss adjustment expense	4.4	11.7
Unearned premium	84.7	54.5
Trade payables	1.9	(2.3)
Funds held for reinsurance treaties	(16.5)	20.5
Deferred ceding commission	(4.0)	2.8
Ceded premium payable	(3.3)	5.9
Other liabilities and accrued expenses	4.6	18.7
Net cash used in operating activities	(4.0)	(41.7)
Cash flows from investing activities:
Proceeds from short-term investments sold or matured	21.8	15.0
Proceeds from bonds sold or matured	349.5	164.1
Cost of short-term investments acquired	(16.5)	(8.7)
Cost of bonds acquired	(413.5)	(176.8)
Purchases of property and equipment	(8.1)	(4.4)
Net cash used in investing activities	(66.8)	(10.8)
Cash flows from financing activities:
Proceeds from borrowings under financing agreement	89.9	66.1
Payments on borrowings under financing agreement	(41.6)	(26.0)
Proceeds from stock exercises	6.1	4.0
Net cash provided by financing activities	54.4	44.1
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(0.1)	8.7
Net (decrease) increase in cash, cash equivalents and restricted cash	(16.5)	0.3
Cash, cash equivalents and restricted cash at beginning of period	396.8	385.7
Cash, cash equivalents and restricted cash at end of period	380.3	386.0
Supplemental disclosure of cash flow information:
Cash paid for income taxes	1.3	0.8
Cash paid for interest expense on borrowings under financing agreement	$ 12.5	$ 6.7

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Investments
Fixed maturities available-for-sale, at fair value (amortized cost: $772.4 million and $706.0 million as of June 30, 2026 and December 31, 2025, respectively)	$ 768.5	$ 708.8
Short-term investments (cost: $9.2 million and $14.1 million as of June 30, 2026 and December 31, 2025, respectively)	9.2	14.1
Total investments	777.7	722.9
Cash, cash equivalents and restricted cash	380.3	396.8
Premium receivable, net of allowance for credit losses of $5.0 million and $4.1 million as of June 30, 2026 and December 31, 2025, respectively	490.4	402.3
Reinsurance recoverable	132.1	153.4
Prepaid reinsurance premium	125.3	147.9
Deferred acquisition costs	16.1	12.1
Property and equipment, net	18.9	15.8
Intangible assets	8.1	8.1
Goodwill	19.0	19.0
Other assets	44.0	47.4
Total assets	2,011.9	1,925.7
Liabilities and Stockholders' Equity
Unpaid loss and loss adjustment expense	307.5	303.1
Unearned premium	661.7	577.0
Trade payables	2.4	0.5
Funds held for reinsurance treaties	153.0	169.5
Deferred ceding commission	34.2	38.2
Ceded premium payable	20.6	23.9
Borrowings under financing agreement	206.4	158.1
Other liabilities and accrued expenses	126.6	121.8
Total liabilities	1,512.4	1,392.1
Commitments and Contingencies (Note 15)
Stockholders' equity
Common stock, $0.00001 par value, 200,000,000 shares authorized; 77,326,718 and 75,907,215 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	0.0	0.0
Additional paid-in capital	2,043.3	1,991.5
Accumulated deficit	(1,543.5)	(1,464.3)
Accumulated other comprehensive (loss) income	(0.3)	6.4
Total stockholders' equity	499.5	533.6
Total liabilities and stockholders' equity	$ 2,011.9	$ 1,925.7