Lemonade, Inc.

Hello, everyone. Thank you for joining us and welcome to Lemonade's Q1 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, please press star one again. I will now hand the conference over to Lemonade to begin the call. Please go ahead.

Good morning, and welcome to Lemonade's first quarter 2026 earnings call. Joining us on our call today, we have Daniel Schreiber, CEO and co-founder, Shai Winninger, President and co-founder, Tim Bixby, Chief Financial Officer, and Nick Stead, SVP Finance. A letter to shareholders covering the company's first quarter 2026 financial results is available on our investor relations website at Lemonade.com slash investor. I would like to remind you that management's remarks made on this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the risk factors section of our most recent Form 10-K filed with the SEC and our more recent filings with the SEC. Any forward-looking statements made on this call represent our views only as of today, and we undertake no obligation to update them. We will be referring to certain non-GAAP financial measures on today's call, including adjusted EBITDA, adjusted free cash flow, and adjusted gross profit, which we believe may be important to investors to assess our operating performance. Reconciliations of our non-GAAP financial measures to the most directly comparable GAAP financial measures are included in our letter to shareholders. Our letter to shareholders also includes information about our key performance indicators, including number of customers, enforced premium, premium per customer, annual dollar retention, gross earned premium, gross loss ratio, gross loss ratio XCAT, trailing 12-month loss ratio, and net loss ratio, and a definition of each metric, why each is useful to investors, and how we use each to monitor and manage our business. With that, I'll turn the call over to Daniel for some opening remarks.

Good morning, and thanks for joining us to review Lemonade's results for Q1 26. This was another excellent quarter, marked by continued acceleration in growth, strong underwriting performance, and clear operating leverage across the business. In the first quarter, Infor's premium reached $1.33 billion, growing 32% year over year. This extends our streak of accelerating growth to 10 consecutive quarters. Revenue grew even faster, up 71%, boosted by a recent reinsurance transition and the resultant higher premium retention. Underwriting performance continues to be very strong, and it is the combination of accelerating growth and strong underwriting results that led to 159% growth in our gross profit. We also saw solid cash flow from operations, generating $17 million in adjusted free cash flow, a $48 million improvement year over year. On the bottom line, adjusted EBITDA loss narrowed 64% year over year, reflecting continued progress towards profitability. And we reiterate our longstanding expectation that Q4 this year will be EBITDA positive, as will the fall year of 2027. We often note two specific drivers that power our financial performance, grow the business and scale the operation. I'll share a couple of comments on each of those. As it relates to growth acceleration, strength in marketing efficiency has been a consistent tailwind for us. Conventional wisdom suggests that increased growth spend comes at the expense of efficiency. Yet we continue to see the opposite. Since Q1 2023, we've grown our spend by roughly 200% while maintaining an LTV to CAC ratio of above 3%. This is enabled by our proprietary LTV AI that dynamically allocates capital to maximize returns and is supported by the diversity of channels, products, and geographies which we enjoy. At the same time, increased bundling activity is boosting customer lifetime value, which enables us to scale growth investments while preserving strong unit economics. The second notable driver of our performance is leverage across our expense base. In the first quarter, we surpassed $1 million of IFP per employee, representing a nearly 3x improvement over the past four years. This progress reflects the growing impact of our AI and automation tools, which are enabling us to scale efficiently. The impact of 10 years of investment in AI infused into our single proprietary and vertically integrated system is now visible throughout our business and on pretty much every line of our P&L. Against that backdrop, we expect recent trends to continue and are raising our full year guidance for both top and bottom lines and looking forward to continuing to deliver increased growth and increased profitability throughout 2026 and beyond. With that, let me hand over to Shai. Shai?