Lemonade Inc Financials
This page shows Lemonade Inc (LMND) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 8 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Revenue scale is catching up to a largely fixed expense base, turning heavy accounting losses into near-breakeven cash burn.
Revenue moved from$429.8M to$737.9M while SG&A plus R&D rose much more slowly, so the improving loss profile looks like fixed-cost absorption rather than a one-time spending pullback. That scaling pushed operating cash burn down to-$16.5M even with net income still at-$166.0M , showing cash conversion is improving faster than reported earnings.
The business is also light on reinvestment needs: capital spending stayed near
Liquidity has held up, but not purely from operations: cash finished at
Financial Health Signals
Scored against insurers for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Lemonade Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Lemonade Inc passes 3 of 6 computable financial strength tests (3 of the nine could not be computed from available data). 2 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), both operating efficiency signals pass.
For every $1 of reported earnings, Lemonade Inc generates $0.10 in operating cash flow (-$16.5M OCF vs -$166.0M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Key Financial Metrics
Earnings & Revenue
Lemonade Inc generated $737.9M in revenue in fiscal year 2025. This represents an increase of 40.2% from the prior year.
Lemonade Inc reported -$166.0M in net income in fiscal year 2025. This represents an increase of 17.9% from the prior year.
Lemonade Inc earned $-2.24 per diluted share (EPS) in fiscal year 2025. This represents an increase of 21.4% from the prior year.
Cash & Balance Sheet
Lemonade Inc generated -$25.9M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 24.5% from the prior year.
Lemonade Inc held $385.0M in cash against $0 in long-term debt as of fiscal year 2025.
Lemonade Inc had 76M shares outstanding in fiscal year 2025. This represents an increase of 4.4% from the prior year.
Margins & Returns
Lemonade Inc's net profit margin was -22.5% in fiscal year 2025, showing the share of revenue converted to profit. This is up 15.9 percentage points from the prior year.
Lemonade Inc's ROE was -31.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 3.0 percentage points from the prior year.
Capital Allocation
Lemonade Inc invested $93.9M in research and development in fiscal year 2025. This represents an increase of 9.4% from the prior year.
Lemonade Inc invested $9.4M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 0.0% from the prior year.
LMND Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $258.0M+13.1% | $228.1M+17.3% | $194.5M+18.5% | $164.1M+8.5% | $151.2M+1.6% | $148.8M+8.9% | $136.6M+12.0% | $122.0M |
| Cost of Revenue | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Gross Profit | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D Expenses | $26.9M+8.5% | $24.8M+0.4% | $24.7M+10.3% | $22.4M+1.8% | $22.0M+0.9% | $21.8M-0.5% | $21.9M+3.3% | $21.2M |
| SG&A Expenses | $42.2M-2.1% | $43.1M+23.1% | $35.0M+35.7% | $25.8M-28.1% | $35.9M+7.2% | $33.5M+6.7% | $31.4M+5.4% | $29.8M |
| Operating Income | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $1.2M+9.1% | $1.1M-8.3% | $1.2M-7.7% | $1.3M+30.0% | $1.0M+112.8% | -$7.8M-510.5% | $1.9M-9.5% | $2.1M |
| Net Income | -$35.8M-61.3% | -$22.2M+40.8% | -$37.5M+14.6% | -$43.9M+29.6% | -$62.4M-108.0% | -$30.0M+55.7% | -$67.7M-18.4% | -$57.2M |
| EPS (Diluted) | $-0.47 | N/A | $-0.51+15.0% | $-0.60+30.2% | $-0.86 | N/A | $-0.95-17.3% | $-0.81 |
LMND Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $2.0B+1.7% | $1.9B+0.4% | $1.9B-0.8% | $1.9B+4.2% | $1.9B+0.4% | $1.8B+1.4% | $1.8B+6.4% | $1.7B |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Cash & Equivalents | $374.3M-2.8% | $385.0M+11.3% | $345.9M-8.4% | $377.5M+22.1% | $309.2M-17.8% | $376.0M+14.0% | $329.8M-3.9% | $343.2M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Goodwill | $19.0M0.0% | $19.0M0.0% | $19.0M0.0% | $19.0M0.0% | $19.0M0.0% | $19.0M0.0% | $19.0M0.0% | $19.0M |
| Total Liabilities | $1.4B+3.4% | $1.4B-0.7% | $1.4B-0.3% | $1.4B+7.4% | $1.3B+4.4% | $1.3B+2.1% | $1.2B+14.0% | $1.1B |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $518.0M-2.9% | $533.6M+3.4% | $516.2M-2.1% | $527.1M-3.4% | $545.5M-8.1% | $593.4M+0.1% | $593.0M-6.6% | $635.2M |
| Retained Earnings | -$1.5B-2.4% | -$1.5B-1.5% | -$1.4B-2.7% | -$1.4B-3.2% | -$1.4B-4.8% | -$1.3B-2.4% | -$1.3B-5.6% | -$1.2B |
LMND Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$600K-102.9% | $20.7M+360.0% | $4.5M-18.2% | $5.5M+111.7% | -$47.2M-442.0% | $13.8M-15.3% | $16.3M+239.3% | -$11.7M |
| Capital Expenditures | $3.5M+12.9% | $3.1M+63.2% | $1.9M-9.5% | $2.1M-8.7% | $2.3M-28.1% | $3.2M+45.5% | $2.2M+46.7% | $1.5M |
| Free Cash Flow | -$4.1M-123.3% | $17.6M+576.9% | $2.6M-23.5% | $3.4M+106.9% | -$49.5M-567.0% | $10.6M-24.8% | $14.1M+206.8% | -$13.2M |
| Investing Cash Flow | -$34.6M-83.1% | -$18.9M+68.2% | -$59.4M-301.4% | $29.5M+173.2% | -$40.3M-1712.0% | $2.5M+104.6% | -$54.1M-188.3% | $61.3M |
| Financing Cash Flow | $26.2M-31.9% | $38.5M+60.4% | $24.0M-0.4% | $24.1M+20.5% | $20.0M-42.9% | $35.0M+48.3% | $23.6M+51.3% | $15.6M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
LMND Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Net Margin | -13.9%-4.2pp | -9.7%+9.6pp | -19.3%+7.5pp | -26.8%+14.5pp | -41.3%-21.1pp | -20.2%+29.4pp | -49.6%-2.7pp | -46.9% |
| Return on Equity | -6.9%-2.7pp | -4.2%+3.1pp | -7.3%+1.1pp | -8.3%+3.1pp | -11.4%-6.4pp | -5.1%+6.4pp | -11.4%-2.4pp | -9.0% |
| Return on Assets | -1.8%-0.7pp | -1.1%+0.8pp | -1.9%+0.3pp | -2.3%+1.1pp | -3.4%-1.7pp | -1.6%+2.1pp | -3.7%-0.4pp | -3.3% |
| Current Ratio | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt-to-Equity | 2.78+0.2 | 2.61-0.1 | 2.72+0.0 | 2.67+0.3 | 2.40+0.3 | 2.12+0.0 | 2.07+0.4 | 1.70 |
| FCF Margin | -1.6%-9.3pp | 7.7%+6.4pp | 1.3%-0.7pp | 2.1%+34.8pp | -32.7%-39.9pp | 7.1%-3.2pp | 10.3%+21.1pp | -10.8% |
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Frequently Asked Questions
What is Lemonade Inc's annual revenue?
Lemonade Inc (LMND) reported $737.9M in total revenue for fiscal year 2025. This represents a 40.2% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Lemonade Inc's revenue growing?
Lemonade Inc (LMND) revenue grew by 40.2% year-over-year, from $526.5M to $737.9M in fiscal year 2025.
Is Lemonade Inc profitable?
No, Lemonade Inc (LMND) reported a net income of -$166.0M in fiscal year 2025, with a net profit margin of -22.5%.
What is Lemonade Inc's net profit margin?
Lemonade Inc (LMND) had a net profit margin of -22.5% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Lemonade Inc's return on equity (ROE)?
Lemonade Inc (LMND) has a return on equity of -31.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Lemonade Inc's free cash flow?
Lemonade Inc (LMND) generated -$25.9M in free cash flow during fiscal year 2025. This represents a -24.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Lemonade Inc's operating cash flow?
Lemonade Inc (LMND) generated -$16.5M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Lemonade Inc's total assets?
Lemonade Inc (LMND) had $1.9B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Lemonade Inc's capital expenditures?
Lemonade Inc (LMND) invested $9.4M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Lemonade Inc spend on research and development?
Lemonade Inc (LMND) invested $93.9M in research and development during fiscal year 2025.
What is Lemonade Inc's debt-to-equity ratio?
Lemonade Inc (LMND) had a debt-to-equity ratio of 2.61 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Lemonade Inc's return on assets (ROA)?
Lemonade Inc (LMND) had a return on assets of -8.6% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Lemonade Inc's cash runway?
Based on fiscal year 2025 data, Lemonade Inc (LMND) had $385.0M in cash against an annual operating cash burn of $16.5M. This gives an estimated cash runway of approximately 280 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
What is Lemonade Inc's Piotroski F-Score?
Lemonade Inc (LMND) has a Piotroski F-Score of 3 out of 6 computable signals; 3 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Lemonade Inc's earnings high quality?
Lemonade Inc (LMND) has an earnings quality ratio of 0.10x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Lemonade Inc?
Lemonade Inc (LMND) scores 47 out of 100 on our Financial Health Score, indicating moderate standing within its insurers peer group. The score is a 0-100 composite of six dimensions (Loss Ratio, Premium Growth, Capital, Investment Yield, Combined Ratio, Stability), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.