{
  "id": 19491938,
  "title": "This Fast-Growing Insurance Stock Is About to Do Something It's Never Done Before",
  "url": "https://urgent.news/2026/11/11/this-fast-growing-insurance-stock-is-about-to-do-something-its-never",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-11T12:12:01.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/11/11/this-fast-growing-insurance-stock-is-about-to-do-something-it-s-never-done-before/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "Lemonade, a rapidly expanding insurance firm, is set to achieve a significant milestone in its financial history. In its latest earnings report, the company announced its first expected quarter of positive adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). This marks a crucial turning point, and investors have been eagerly anticipating this development. Let's delve into Lemonade's financials, profitability outlook, and what investors need to consider as we approach 2027.\n\nLemonade's key growth indicator is in-force premium, which is the annualized value of all insurance policies they hold. The third quarter saw this figure surge by 34% year-over-year to $1.55 billion, a rapid acceleration from previous growth rates. The firm has also witnessed a substantial increase in customer base, now boasting 3.52 million customers, a 23% rise compared to the previous year. Revenue followed a similar upward trajectory, expanding 73% year-over-year to $336.1 million.\n\nHowever, it's essential to note that a significant portion of this growth can be attributed to Lemonade retaining more of its business instead of passing it on to reinsurers. This shift is crucial, as focusing on in-force premium provides a more accurate representation of the company's growth potential. The car insurance segment is a major driver of Lemonade's momentum, making up the bulk of its growth. Despite stiff competition in the auto insurance market, Lemonade's car insurance business has seen remarkable growth, with in-force premium reaching $265 million, up from $163 million a year ago, and now available in 14 states.\n\nLemonade's adjusted EBITDA for the third quarter was a disappointing $20.4 million loss. However, management remains optimistic, projecting positive adjusted EBITDA between $5 million and $9 million in the fourth quarter, and marking its first full year of positive adjusted EBITDA in 2027. This milestone is a testament to the company's potential for growth. The firm has also demonstrated its ability to generate cash, with adjusted free cash flow of $27 million in the third quarter and $63.2 million through the first nine months of the year.",
  "summary": "Lemonade expects its first quarter of positive adjusted EBITDA, and its growth is speeding up at the same time.",
  "key_points": [
    "Lemonade reports first positive adjusted EBITDA in latest earnings",
    "In-force premium surges 34% YoY to $1.55 billion in Q3",
    "Car insurance segment drives growth with $265M premium in Q3"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}