Lemonade (LMND) Stock: What to Anticipate from Wednesday’s Earnings

TLDR

• Lemonade is scheduled to release its Q1 earnings on April 29, prior to the market opening.
• Analysts on Wall Street anticipate revenue of $254.03 million, representing a 68% increase compared to the same period last year.
• The expected earnings per share (EPS) loss is $0.58, which is an improvement of 32.6% year over year.
• Morgan Stanley has upgraded LMND to a “Buy” rating with a price target of $85, citing the company’s potential in the autonomous vehicle insurance market.
• Options traders are factoring in a potential price movement of approximately 14.66% in either direction following the earnings announcement.

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(SeaPRwire) –   Lemonade has experienced a challenging start to 2026, with its stock declining by about 8% year to date. This downturn has been attributed to concerns over inflation, instability in the property market, and questions surrounding its growth trajectory. However, the upcoming Q1 earnings report on Wednesday could significantly alter market sentiment.

Lemonade, Inc., LMND

For the first quarter, Wall Street projects revenue to reach $254.03 million, a substantial 68% increase from the corresponding quarter in the previous year. This figure represents an acceleration from the 53% growth Lemonade reported in Q4 2025.

The anticipated EPS loss stands at $0.58 per share. While still a loss, this figure indicates a 32.6% year-on-year improvement. Although Lemonade has not yet achieved profitability, the trend towards reduced losses is a key indicator.

The options market is reflecting a serious anticipation of the earnings report. Traders are pricing in a potential price fluctuation of around 14.66% in either direction after the results are released, signaling considerable uncertainty heading into Wednesday.

Lemonade has a history of surpassing analyst expectations, having exceeded revenue and EPS estimates in recent quarters, demonstrating its ability to meet and exceed established benchmarks.

Leading into this report, the company’s in-force premium reached $1.24 billion at the close of Q4, marking a 31% year-on-year increase. This extends a streak of nine consecutive quarters of accelerating growth, which is a positive indicator for the company’s outlook.

Customer acquisition is another strong point. Lemonade added approximately 550,000 new customers in 2025, a 35% increase from the previous year. This growth was distributed across its pet, car, and home insurance lines, indicating a diversified and robust business model.

Tesla Deal in Focus

A significant development influencing the earnings discussion is Lemonade’s insurance product tailored for Tesla Full Self-Driving (FSD) users. The company has committed to offering per-mile rates approximately 50% lower for FSD drivers, positioning itself as an early entrant in the autonomous vehicle insurance sector.

Bob Huang, an analyst at Morgan Stanley, recently upgraded LMND from “Hold” to “Buy,” increasing his price target from $80 to $85. This upgrade was largely driven by Lemonade’s early strategic move into autonomous vehicle coverage, which is seen as a potential long-term competitive advantage.

What Analysts Are Watching

Beyond the headline financial figures, analysts will be closely monitoring updates on bad debt trends and interest expenses, both of which impacted Q4 results. Heightened concerns regarding rising interest rates, potentially exacerbated by geopolitical tensions such as the ongoing conflict in Iran, will also be a focus of scrutiny.

Competitors in the property and casualty insurance sector have already released their earnings. Stewart Information Services surpassed estimates by 4.7% and saw its stock rise by 3.9%. First American Financial exceeded expectations by 2.4% and gained 3.5%. The broader insurance sector has seen a 6.7% increase over the past month.

Lemonade has outperformed this sector trend, with its stock up 12.3% in the same period, although it remains in negative territory for the year.

The current consensus analyst rating for LMND is “Hold,” with two “Buy” ratings, four “Hold” ratings, and two “Sell” ratings. The average price target is $54.40, suggesting a potential downside from the current trading price of $65.95. Morgan Stanley’s $85 target is the highest among analysts.

Lemonade is set to report its earnings before the market opens on April 29.