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Lemonade LMND Deferred policy acquisition costs

Deferred policy acquisition costs at other companies

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$2.21B+4.8%
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$6.14B+3.5%
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$10.38B+2.4%
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$8.5M+13.3%
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$28M+29.0%

Other financials

Income statement

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Revenue$258.0M+70.6%
Net income-$35.8M+42.6%
EPS (diluted)-$0.47+45.3%

Balance sheet

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Cash & equivalents$386.5M+20.9%
Total debt$20.8M-4.6%
Total equity$518.0M-5.0%
Total assets$2.0B+5.5%

Cash flow

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Operating cash flow-$600.0K+98.7%
CapEx$3.5M+52.2%
Free cash flow-$4.1M+91.7%

Valuation

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Market cap$4.01B+6.4%
Enterprise value$3.65B+7.1%
P/S4.8×-1.5×

Profitability

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Net margin-16.4%-6.0pp
FCF margin-15.4%-6.4pp

Returns & leverage

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Return on equity-26.1%-5.5pp
Debt / equity0.0×

Where this comes from

Reported directly by Lemonade in its filing.

Tagged under the XBRL concept us-gaap:DeferredPolicyAcquisitionCosts.

The source filing: Lemonade’s 10-Q, filed April 30, 2026.

Filed
Apr 30, 2026, 3:41 PM EDT
Fiscal quarter
Q1 FY2026
Calendar quarter
Q1 2026
Accession
0001691421-26-000034
Line itemAs of / March 31, 2026As of / December 31, 2025
Premium receivable, net of allowance for credit losses of $4.5 million and $4.1 million as of March 31, 2026 and December 31, 2025, respectively449.1402.3
Reinsurance recoverable145.5153.4
Prepaid reinsurance premium123.9147.9
Deferred acquisition costs14.212.1
Property and equipment, net16.715.8
Intangible assets8.18.1
Goodwill19.019.0
Other assets43.647.4

Item 1. Financial Statements.

FAQ

What is Lemonade's deferred policy acquisition costs?
Lemonade (LMND) reported deferred policy acquisition costs of $14.2M in Q1 2026.
How has Lemonade's deferred policy acquisition costs changed year-over-year?
Lemonade's deferred policy acquisition costs increased by 24.6% year-over-year, from $11.4M to $14.2M.
What is the long-term trend for Lemonade's deferred policy acquisition costs?
Over 5 years (2020 to 2025), Lemonade's deferred policy acquisition costs has grown at a 28.2% compound annual growth rate (CAGR), from $3.5M to $12.1M.
What does deferred policy acquisition costs mean?
These are the incremental costs directly associated with acquiring new insurance policies, such as commissions and underwriting expenses, which are capitalized and amortized over the life of the policy. This metric is critical for understanding the company's investment in growth and the timing of profitability recognition. It aligns expenses with the revenue generated over the policy term.

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