Lemonade Inc. LMND is expected to witness an improvement in its top and bottom lines when it reports first-quarter 2026 results on April 29.
The Zacks Consensus Estimate for LMND’s first-quarter top line is pegged at $252 million, indicating a 67% increase from the year-ago reported figure.
The Zacks Consensus Estimate for LMND’s first-quarter bottom line is pegged at a loss of 58 cents per share, lower than the year-ago loss of 86 cents. The consensus estimate witnessed no movement in the last 60 days.
LMND’s Solid Earnings Surprise History
LMND earnings beat the Zacks Consensus Estimates in each of the trailing four quarters, the average surprise being 23.22%.
What the Zacks Model Unveils for LMND
Our proven model predicts a beat for Lemonade this time around. A stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat. That is the case here, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: LMND has an Earnings ESP of +1.72%. This is because the Most Accurate Estimate is pegged at a loss of 57 cents, narrower than the Zacks Consensus Estimate of a loss of 58 cents.
Lemonade, Inc. Price and EPS Surprise
Lemonade, Inc. price-eps-surprise | Lemonade, Inc. Quote
Zacks Rank: LMND currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Shape Q1 Results of LMND
First-quarter results are likely to be supported by strong performance in the Pet, Car, and Europe segments, each contributing meaningfully to overall growth.
Lemonade’s in-force premium is likely to have increased, driven by an expanding customer base, higher premiums per customer, product enhancements and broader geographic diversification. The Zacks Consensus Estimate stands at $1.3 billion, while management projects in-force premium, as of March 31, 2026, to be in the range of $1.321 billion to $1.326 billion.
Ongoing rate increases likely contributed to a rise in premium per customer, with the Zacks Consensus Estimate pegged at $421.81 million.
Gross written premium likely grew on the back of effective digital advertising campaigns, strategic partnerships, and continued expansion across products and geographies. A higher premium per customer is also expected to have supported growth in gross earned premium during the quarter.
Improved performance in Europe is expected to have acted as a key tailwind, supported by the use of AI-driven platforms, accelerated growth initiatives and disciplined underwriting practices.
Investment income is likely to have benefited from a well-diversified portfolio generating higher returns, with the Zacks Consensus Estimate at $9.1 million.
Overall, revenues are expected to have increased, driven by higher gross earned premiums and stronger investment income. Lemonade anticipates revenues in the range of $246 million to $251 million.
On the expense side, total sales and marketing costs are expected to have risen due to increased spending on growth initiatives. General and administrative expenses are also likely to have increased, partly reflecting higher interest expenses tied to the company’s financing agreement.
Other Stocks to Consider
Here are some insurance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:
Axis Capital Holdings Limited AXS has an Earnings ESP of +1.34% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $3.23 per share, indicating a year-over-year increase of 1.8%.
AXS’s earnings beat estimates in each of the last four quarters.
The Allstate Corporation ALL has an Earnings ESP of +0.04% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $7.43, indicating a year-over-year increase of 110.4%.
ALL’s earnings beat estimates in each of the last four reported quarters.
Palomar Holdings, Inc. PLMR has an Earnings ESP of +0.04% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $2.17, indicating a year-over-year increase of 16%.
PLMR’s earnings beat estimates in each of the last four reported quarters.
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The Allstate Corporation (ALL): Free Stock Analysis Report
Axis Capital Holdings Limited (AXS): Free Stock Analysis Report
Palomar Holdings, Inc. (PLMR): Free Stock Analysis Report
Lemonade, Inc. (LMND): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).