US Stock Market Move | Q3 financial report exceeds expectations and raises performance guidance, Lemonade (LMND.US) surges over 17%

On Wednesday, Lemonade (LMND.US) stock price surged, closing up more than 17% at $68.87 per share. This came after the company announced better-than-expected third-quarter financial results, and once again raised its full-year and 2025 financial guidance. In its earnings report, Lemonade increased its projected 2025 revenue from the previous range of $710 million to $716 million to a new range of $727 million to $732 million, with a midpoint of $730 million, significantly higher than the market's consensus estimate of $714 million. The company also expects its 2025 adjusted EBITDA loss to narrow to $127 million to $130 million, better than the previous guidance of a loss between $135 million and $140 million, as well as better than the market's estimate of $135 million. Lemonade also raised its 2025 gross written premium outlook from the previous range of $1.213 billion to $1.218 billion to a new range of $1.218 billion to $1.223 billion, indicating continued improvement in policy scale and retention capabilities. For the fourth quarter, Lemonade expects its adjusted EBITDA loss to be between $13 million to $16 million, in line with the market's expectations; revenue is expected to be between $217 million to $222 million, higher than analysts' estimate of $214 million. In the third quarter, the company reported a GAAP loss per share of $0.51, beating the market's expectation of a loss of $0.70 per share and significantly narrowing from $0.95 per share in the same period last year. Quarterly revenue reached $194.5 million, well above the market's expectation of $185.1 million, and a 42% increase from the same period last year. As of September 30th, the gross written premium reached $1.158 billion, higher than the market consensus of $1.150 billion and a significant increase from $889 million in the same period last year. The number of customers grew by 24% year-on-year to reach 2.869 million, consistent with the growth rate from the previous quarter; the average premium per customer was $403, continuing to rise from $384 in the same period last year. The net loss ratio also decreased from 69% in the previous quarter to 64%, significantly improving from 81% in the same period last year. The adjusted EBITDA loss for the third quarter was $26 million, significantly better than the market's expectation of a $34.6 million loss, and a substantial improvement from the $40.9 million loss in the second quarter. Adjusted free cash flow was $18 million, although lower than the same period last year, it still remained positive.