Lemonade, Inc. (NYSE:LMND) shares fell more than 7% in pre-market trading after the company released its second-quarter 2026 results. The decline came despite revenue outperforming expectations.
Lemonade shares fell more than 7% in pre-market trading after Q2 results.
Analysts had expected Lemonade to report a quarterly loss of around $0.57 per share. The company had previously raised its full-year outlook and reaffirmed its expectation of achieving positive adjusted EBITDA during the fourth quarter of 2026.
Morgan Stanley analyst Bob Huang downgraded Lemonade to Equal Weight from Overweight and assigned a price target of $75 per share. Keefe Bruyette maintained an Underperform rating with a $48 price target, while Piper Sandler reiterated its Neutral rating with a $75 target.
Recent insider selling activity was noted before the quarterly results. The company's gross loss ratio declined to 62% during the first quarter of 2026, compared with 83% two years earlier.
Shares had retreated from their 52-week high of $99.90 before the earnings announcement.