Lemonade Plunges 24% as Revenue Guidance Disappoints, Analysts Cut Estimates
LMND sits 35% above its 52-week low of $35.7 on elevated volume (4.3× avg).
Summary
Lemonade shares cratered 23.7% on Wednesday after Q2 results, as revenue guidance fell short of elevated investor expectations despite a 79% YoY revenue surge to $294M and a sharply narrower adjusted EBITDA loss of $19M. The sell-off reflects disappointment that full-year revenue guidance of $1.214B-$1.22B, while above consensus, wasn't higher, and that Q4 adjusted EBITDA profitability guidance was merely reaffirmed rather than accelerated. Piper Sandler cut its 2026 revenue estimate to $1.196B and widened its adjusted EBITDA loss forecast, while raising 2027 estimates on longer-term optimism. Analysts flagged rising pet loss ratios from vet cost inflation as a growing concern, though Lemonade Car showed promise with AI-driven efficiency gains. The CFO transition to Nick Stead is seen as having little impact. This follows the Q2 earnings release and prior-day news of the results, but the magnitude of the stock move and fresh analyst downgrades make this a material negative development.
At the time of this announcement, LMND was trading at $48.26 on NYSE in the Finance sector, with a market capitalization of approximately $3.6B. The 52-week trading range was $35.70 to $99.90. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.