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Lemonade names Nick Stead to succeed Tim Bixby as CFO
Lemonade reported Q2 results with in-force premium up 32% year over year to $1.43 billion and guided Q3 revenue of $323 million to $326 million.
Lemonade Inc. announced a CFO succession plan, with longtime CFO Tim Bixby set to move to the company board effective January 1, 2027. Nick Stead, currently SVP Finance, will succeed Bixby and Bixby will stay in his current role until the transition date to help ensure continuity, the company said.
In the second quarter, in-force premium rose 32% year over year to $1.43 billion, as customer count increased 23% to 3.31 million and premium per customer climbed 8% to $433. Revenue increased 79% to $294.4 million, aided by lower quota-share reinsurance cessions that took effect July 1, 2025, when Lemonade reduced the portion of premium ceded to reinsurers from 20% to 18%.
Lemonade said its gross loss ratio improved to 60% for the quarter, down from 67% a year earlier, continuing a decline from 88% in the third quarter of 2023. On the expense side, the company reported adjusted gross profit up 74% to $114.4 million, with the loss-adjustment expense ratio falling to a record 5%, which president Shai Wininger attributed to lower claims adjudication costs through automation.
For guidance, Lemonade projected third-quarter revenue of $323 million to $326 million and an adjusted EBITDA loss of $20 million to $23 million, with in-force premium expected around $1.54 billion. The company reiterated full-year 2026 guidance for 33% in-force premium growth and 65% revenue growth, and it expects first-quarter positive adjusted EBITDA in the fourth quarter of 2026, while targeting GAAP profitability for 2027.