Lemonade, Inc.

Hello, everyone. Thank you for joining us and welcome to the Lemonade second quarter 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, press star one again. I will now hand the conference over to the Lemonade team. Please go ahead.

Good morning and welcome to Lemonade's second quarter 2026 earnings call. Joining us in our call today, we have Daniel Schreiber, CEO and co-founder, Shai Wininger, president and co-founder, Tim Bixby, chief financial officer, and Nick Stead, SVP finance. A letter to shareholders covering the company's second quarter 2026 financial results is available on our investor relations website at Lemonade.com slash investor. Thank you for joining us. and our more recent filings with the SEC. Our conciliations 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, in-force premium, premium per customer, annual dollar retention, gross earned premium, gross loss ratio, gross loss ratio ex-cat, 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. I'm happy to report on another excellent quarter marked by accelerating growth, strong underwriting performance and continued progress towards profitability. Infor's premium reached $1.43 billion, growing about 32.5% year-over-year and extending a streak of accelerating growth to 11 consecutive quarters. Revenue grew even faster, increasing 79% to $294 million, and gross profit increased 76% year-over-year to a record $113 million. As a result, adjusted EBITDA loss improved 54% to $19 million, and we remain on track to deliver our first positive adjusted EBITDA quarter in Q4 this year, followed by a positive adjusted EBITDA full year 2027. Against that backdrop, we remain confident in our outlook and are reiterating our guidance across IFP and EBITDA while raising our guidance for both gross and premium and revenue. During the quarter, we also completed our annual reinsurance renewal as well as the extension of our synthetic agents program with important upgrades to each. As it relates to reinsurance, the renewed program modestly increases the share of premiums that we retain while meaningfully strengthening catastrophe protection, including named storm coverage that was largely absent under the expiring structure. The agreement related to our synthetic agents extension provides a quarter of a billion dollars in growth financing at roughly 9.8% cost and applies to growth spend in 27 and 28. This amounts to more than six percentage points improvement in our cost of capital, materially lowering expected interest expense on a go-forward basis. With the financing of our growth investment improving, let me turn to that spend and its efficiency. Over the past several years, we've substantially increased our growth investments while holding the LTV to CAC ratio stable at roughly 3x, no mean feat. Some of you have noted that this growth spend outpaced the corresponding growth in in-force premium. The concern, as I understand it, is that this gap signals declining efficiency, that each incremental growth dollar is buying less premium than once it did. It doesn't, and I'd like to walk you through why. With our direct-to-consumer distribution and predictive LTV models allocating that spend, we ratchet spending up and down and shift it from one product or geography to another in real time in pursuit of those sterling 3x returns. In 2023, as inflationary pressures shrank the opportunities for profitable spend, those controls naturally reduced our growth investments to about $55 million. Thank you for joining us. Thank you very much. The bottom line is this. The observation is accurate, but it doesn't point to any underlying degradation in our efficiency. It's a mathematical artifact of our spending slowdown in response to inflation and our subsequent catch-up spending. Beginning in 2027 and beyond, we expect IFP growth to outpace spend growth, a key driver of operating leverage and profitability. And before I hand over a word on this morning's other announcement, At year end, after more than nine years as our CFO, Tim Bixby will pass that baton on to Nick Stead, our Senior Vice President of Finance, and Tim will step up to Lemonade's Board of Directors. This transition was years in the making, instigated and paced by Tim himself, and today almost all of our financial functions already report to Nick. So expect this handover to look like everything else Tim has engineered here. The capital raises, the IPO, six years of beat and raise, which is to say planned, disciplined, and seamless. Congratulations to both Nick and Tim. With that, I'll hand over to Shai, who will cover a couple of key insights across the business. Over to you, Shai.