Lemonade added $130.3 million of revenue in three months.
That is the filing's central tension. Sales grew 79.4%, and the net margin improved from negative 26.8% to negative 14.7%, but the company still spent enough to keep the loss almost flat in dollars. Growth is getting larger. Spending is rising alongside it.
The biggest disclosed expense change was sales and marketing, which rose 30% to $77.7 million. Lemonade said brand and performance advertising drove the increase, making advertising the clearest disclosed operating cost alongside the sales surge.
Management's explanation is unusually direct:
"Sales and Marketing Sales and marketing expense increased $18.1 million, or 30%, to $77.7 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily due to brand and performance advertising, which is the largest component of our sales and marketing expenses."
Lemonade, 10-Q, Aug. 4, 2026
The plain-English version: Lemonade is spending more to sell more, and the revenue gain has not yet produced a smaller quarterly loss. Research and development also rose 33.9% to $30.0 million, while stock compensation reached 8.3% of revenue, another cost that sits outside the simple sales-growth headline.
Cash adds a second wrinkle. Cash fell 2.6% year over year to $367.6 million, although the six-month investing outflow was tied primarily to purchases of government obligations, corporate debt and other short-term securities rather than a disclosed operating charge.
The company described that activity this way:
"Investing Activities Cash used in investing activities was $66.8 million for the six months ended June 30, 2026, primarily due to purchases of U.S. government obligations, corporate debt securities, asset-backed securities including collateralized loan obligations, short term investments offset by proceeds from sales and maturities of U.S. government obligations, corporate debt securities, asset-backed securities, short term investments."
Lemonade, 10-Q, Aug. 4, 2026
That matters because the balance-sheet picture is not simply revenue up, cash down. Lemonade is moving money through its investment portfolio, and it also reported $54.4 million of financing cash provided during the six months, primarily from borrowings under its financing agreement, offset by principal payments. The latest period still ended with a loss, while diluted shares rose 4.8% to 77.0 million.
The annual record supplies some context without resolving the trade-off. Revenue reached $737.9 million in 2025, up 40.2%, while the net margin improved to negative 22.4%. The company has been scaling quickly and narrowing losses as a percentage of sales, but the latest three-month result shows how much spending can rise alongside that expansion.
Lemonade's next quarterly report will provide the next comparable three-month sales-and-marketing expense, net loss, and cash balance, making clear whether the latest spending-to-growth relationship is changing. For now, the numbers leave one question in plain view: fast growth, but a nearly unchanged loss.
Lemonade's latest 10-Q shows sharply higher revenue, continued net losses, and advertising as its largest sales-and-marketing expense.