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Alabama Renters Can Now Get Fast, Affordable Coverage Starting at $5 Per Month

, /PRNewswire/ -- Lemonade (NYSE: LMND), the tech-first insurance company, today announced the availability of its renters insurance in Alabama. The expansion gives renters across the state a simple, fast way to get coverage that fits their lives. Lemonade Renters provides flexible coverage options via an app where renters can get quotes, purchase policies, update existing policies, and file claims, all in one place. Over 50% of claims are handled instantly, helping renters receive assistance more quickly after a covered loss.

"We built Lemonade to cut through the complexity that makes traditional insurance painful. We offer simple quotes, instant claims, and rates that don't break the bank. Now we can deliver that to Alabama renters, too," said Dan Timsit, Head of Renters Insurance at Lemonade.

Coverage starts at just $5 per month and, based on company and industry data, Lemonade's renters insurance rates are approximately 30% lower than the national average. Customers may also be eligible for additional savings by bundling policies, installing qualifying home safety devices, or choosing annual billing.

Lemonade currently serves more than 3 million active customers and has earned recognition from organizations and publications including Forbes, CNBC, and U.S. News & World Report for its insurance products and customer experience.

For a full list of Renters state availability, visit Lemonade.com.

About Lemonade

Lemonade's mission is to become the most loved insurance company in the world. As a customer-centric tech company, we created an insurance experience across Renters, Home, Pet, Car, and Life that is smart, instant, and delightful. Our team of 1,200+ Lemonade Makers make it possible for over 3M customers throughout the US, UK and Europe to get coverage instantly, with nearly half of claims paid in a matter of seconds. Powered by AI and social impact, Lemonade is a purpose-built, technology-first insurance carrier. A Certified B-Corp, our commitment to social impact is embedded in every aspect of the company, and our Giveback program, which donates a percentage of leftover premiums to nonprofits selected by our community, has donated over $10M to organizations in need.

SOURCE Lemonade, Inc.

On October 16, 2026, Lemonade Inc LMND shares fell 3.6% to $44.20. This decline is part of a broader trend that has seen the stock decrease 37.9% year-to-date and 9.0% over the past month, despite a notable increase of 51.4% over the past three years. The shares have traded between a 52-week high of $99.90 and a low of $42.70.

GF Value™ verdict: Current price of $44.20 vs GF Value of $74.60, indicating a 40.8% upside. GF Score™ of 76/100, suggesting that the stock is above average in terms of overall quality and risk. Notable signal: Insider activity shows net selling of $37.2M over the past 12 months, indicating potential concerns among insiders. Is LMND Overvalued or Undervalued? Lemonade Inc is currently trading significantly below its GF Value™, which is estimated at $74.60. This represents a 40.8% margin of safety for investors looking for undervalued opportunities. The GF Value™ is GuruFocus' proprietary intrinsic value estimate based on historical trading multiples, past business growth, and future performance estimates. However, it is important to note that this reading can be unreliable for companies that are unprofitable or cash-flow negative, such as Lemonade, which has been struggling to generate consistent earnings.

The current valuation indicates that LMND may represent an attractive opportunity for investors, but caution is advised given the company's financial challenges and the volatility reflected in its stock performance. The GF Valuation label categorizes the stock as significantly undervalued, but potential investors must weigh this against the risks associated with Lemonade's current unprofitable status.

How Does LMND's Valuation Compare to Its History? Metric Current Historical P/E (TTM) N/A ~6.9x Since Lemonade Inc is currently unprofitable, a traditional P/E analysis is not applicable. This lack of earnings means the stock cannot be fairly valued using earnings multiples, which aligns with the GF Value™ assessment that also highlights the challenges in using earnings-based metrics for this company.

What Does LMND's GF Score™ Tell Us? The GF Score™ provides a comprehensive evaluation of a stock's quality and growth potential based on various factors. With a score of 76/100, Lemonade Inc is classified as above average, indicating it possesses several favorable attributes. The strongest sub-rank is in growth, which is rated at 10/10, reflecting the company's potential for future expansion. However, it struggles with profitability, holding a lower rank of 3/10.

Metric Rating GF Score™ 76/100 Financial Strength 5/10 Profitability 3/10 Growth 10/10 Valuation 4/10 Momentum 7/10 The overall GF Score™ suggests that while Lemonade Inc has strong growth potential, its profitability remains a significant concern. Investors may find the growth prospects appealing, but they should be cautious about the company's financial stability and profitability metrics.

What Are Gurus and Insiders Doing with LMND? Currently, three gurus hold positions in Lemonade Inc, with two increasing their stakes and four trimming their holdings in recent quarters. This indicates a mixed sentiment among professional investors regarding LMND. Additionally, insider activity reveals that over the past 12 months, insiders purchased $0.5 million worth of shares but sold $37.7 million, resulting in a net selling of $37.2 million. This trend of net selling by insiders could suggest a lack of confidence in the company’s near-term prospects, which is a notable signal for potential investors.

What This Means for Investors Based on the GF Value™ assessment, Lemonade Inc is currently undervalued with a significant margin of safety of 40.8%. However, the company's unprofitability and the concerning insider selling suggest that investors should proceed with caution. While the stock may appear attractive based on its GF Value™, the risks associated with its financial performance cannot be overlooked. For further details, visit the Lemonade Inc LMND stock page for an in-depth analysis.

Frequently Asked Questions What is LMND's GF Score™?

LMND's GF Score™ is 76/100, indicating that the stock is above average in quality and risk, reflecting its potential for growth and stability.

Is LMND overvalued or undervalued?

Lemonade Inc is considered undervalued according to the GF Value™, which estimates its fair value at $74.60, presenting a potential upside of 40.8% from the current price.

What is LMND's P/E ratio?

LMND does not have a current P/E ratio due to its unprofitability; hence, traditional earnings-based valuation methods are not applicable for this company.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures
I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Tesla drivers can now pay 30% less for miles driven with FSD (Supervised) v14 Lite engaged

, /PRNewswire/ -- Lemonade (NYSE: LMND) today announced that its Autonomous Car insurance now supports more Tesla vehicles. Drivers in Arizona, Colorado, and Tennessee with HW3 and the new FSD (Supervised) v14 Lite can now save 30% on miles driven with FSD engaged. Tesla drivers with HW4 and FSD v14.2 or newer continue to save 50% on those miles.

FSD Lite is Tesla's adaptation of its v14 software for vehicles equipped with HW3, Tesla's previous-generation onboard computer. According to Tesla, the build distills the driving behavior of Tesla's v14 software into the camera and configuration of AI3, addressing challenging driving scenarios with improved proactive and reactive responsiveness.

"Tesla has done something remarkable with v14 Lite by taking the intelligence from its newest hardware and making it available to owners of older Teslas," said Shai Wininger, President and Co-Founder of Lemonade. "We're excited to launch our support for the new FSD Lite with three states today, and more coming soon."

Lemonade Autonomous Car uses Tesla's Fleet API, which gives Lemonade access to vehicle data with a customer's permission, to distinguish between FSD (Supervised) engaged and human-driven miles and price each accordingly.

Tesla owners in Arizona, Colorado, and Tennessee can enroll in Autonomous Car pricing at tesla.lemonade.com/fsd. Additional savings are available when bundled with Lemonade Renters, Pet, or Home insurance.

*Full Self-Driving (Supervised) requires active driver supervision and does not make the vehicle autonomous.

About Lemonade

Lemonade's mission is to become the most loved insurance company in the world. As a customer-centric tech company, we created an insurance experience across Renters, Home, Pet, Car, and Life that is smart, instant, and delightful. Our team of 1,300+ Lemonade Makers make it possible for over 3M customers throughout the US, UK and Europe to get coverage instantly, with nearly half of claims paid in a matter of seconds. Powered by AI and social impact, Lemonade is a purpose-built, technology-first insurance carrier. A Certified B-Corp, our commitment to social impact is embedded in every aspect of the company, and our Giveback program, which donates a percentage of leftover premiums to nonprofits selected by our community, has donated over $12M to organizations in need.

SOURCE Lemonade, Inc.

Key Takeaways Lemonade's in-force premium rose 32.5% year over year to $1.43 billion, extending accelerating growth.LMND's AI model is improving underwriting, claims processing and operating efficiency as loss ratios decline.Lemonade expects EBITDA profitability by Q4 2026, with positive free cash flow & $1.2B in cash & investments. Lemonade Inc.’s (LMND - Free Report) robust premium growth, improving underwriting results and steady progress toward profitability position it well for sustained growth. Rising in-force premium, increasing multi-policy adoption and continued expansion of Lemonade Auto and its AI-powered platform are supporting revenue growth while enhancing operating efficiency.

The company surpassed earnings estimates in each of the last four quarters, with the average surprise being 19.35%.

Factors in Favor of LMNDLemonade’s AI-driven operating model continues to strengthen underwriting, pricing, claims processing and customer service while supporting a scalable and cost-efficient business model. Operating efficiency is improving, with in-force premium per customer rising 8% in the second quarter of 2026. Underwriting trends also remain favorable, as the gross loss ratio declined despite losses related to winter storms. Disciplined underwriting and favorable prior-year reserve development contributed to a 76% increase in second-quarter gross profit, supporting the company’s progress toward sustained profitability.

Pet Insurance and Lemonade Auto continue to deliver strong growth, while increasing multi-policy adoption enhances customer retention and lifetime value. The company’s multi-product strategy also creates cross-selling opportunities and supports recurring premium growth. Management forecasts 9% revenue growth for the second quarter and 65% growth for full-year 2026.

Lemonade’s in-force premium reached $1.43 billion, increasing about 32.5% year over year and marking the 11th consecutive quarter of accelerating growth. The momentum reflects customer expansion, higher premiums per customer and the scalability of its AI- and automation-driven platform. Management has set a long-term target of increasing in-force premium to $10 billion.

The company’s reinsurance strategy remains another key strength, transferring a significant portion of claims risk to partners and helping reduce earnings volatility. Strong premium growth, combined with a lower reinsurance ceding rate, allows Lemonade to retain a greater share of premiums and supports revenue growth.

Although profitability remains a work in progress, margins are improving and free cash flow has turned positive. Management expects EBITDA profitability by the fourth quarter of 2026. Lemonade ended the second quarter with approximately $1.2 billion in cash and investments, providing ample financial flexibility to support continued growth and investment.

Risks for LMNDLemonade’s results remain vulnerable to catastrophe-related losses. Although weather-related claims were manageable in the second quarter, severe storms, hurricanes, wildfires and other catastrophic events could significantly increase claims costs, pressure underwriting margins and contribute to earnings volatility.

The company also continues to invest heavily in customer acquisition, with sales and marketing expenses increasing more than 30% year over year in the second quarter of 2026. Elevated spending could weigh on margins if customer acquisition and retention do not generate sufficient returns. While marketing efficiency remains healthy, sustaining strong returns on acquisition spending will be crucial to Lemonade’s long-term profitability.

ConclusionLemonade is well-positioned for long-term growth, supported by strong premium expansion, an AI-driven operating model and improving profitability. Its diversified product portfolio, disciplined underwriting and reinsurance strategy strengthen its competitive position.

Yet, Lemonade remains exposed to catastrophe-related losses, which could raise claims costs, pressure underwriting margins and increase earnings volatility. In addition, elevated customer acquisition spending could weigh on profitability if acquisition and retention efforts fail to generate sufficient returns.

Other InsurersOther players from insurance industry include NMI Holdings Inc. (NMIH - Free Report) , Palomar Holdings, Inc. (PLMR - Free Report) and Arch Capital Group Ltd. (ACGL - Free Report) .

NMI Holdings’ earnings surpassed estimates in three of the last four quarters and matched in one, the average surprise being 3.82%.

NMI Holdings is well-poised for growth on new primary insurance written, direct primary insurance in force and a better risk-based capital ratio. Its mortgage insurance portfolio is expected to create a strong foundation for future earnings. The mortgage insurer should continue to gain from a strong mortgage origination market and increased private mortgage insurance penetration rates.

Palomar’s earnings surpassed estimates in each of the last four quarters, the average surprise being 13.04%.

Palomar is poised to gain from the increased volume of policies written across the lines of business, strong retention rates, strategic expansion of products’ geographic and distribution footprint and new partnerships. PLMR should benefit from its solid product portfolio as well as geographic expansion and rate increases. Net investment income is expected to grow on the back of a higher average balance of investments. PLMR increased the adjusted net income guidance from $262-$ 278 million to $270-$280 million.

Arch Capital’s earnings surpassed estimates in each of the last four quarters, the average surprise being 12.75%.

Arch Capital boasts a strong product portfolio and has a solid track record of premium growth. Premiums should benefit from new business opportunities, rate increases, growth in existing accounts and growth in Australian single-premium mortgage insurance. A solid capital position shields it from market volatility.

Ategrity Specialty (NYSE:ASIC – Get Free Report) and Lemonade (NYSE:LMND – Get Free Report) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Institutional & Insider Ownership 80.3% of Lemonade shares are owned by institutional investors. 84.7% of Ategrity Specialty shares are owned by insiders. Comparatively, 12.2% of Lemonade shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability This table compares Ategrity Specialty and Lemonade’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Ategrity Specialty 21.06% 17.12% 7.03% Lemonade -14.19% -26.78% -7.08% Analyst Ratings This is a summary of recent recommendations and price targets for Ategrity Specialty and Lemonade, as provided by MarketBeat. Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Ategrity Specialty 0 3 3 0 2.50 Lemonade 1 4 4 0 2.33 Ategrity Specialty presently has a consensus price target of $28.88, indicating a potential upside of 8.62%. Lemonade has a consensus price target of $64.50, indicating a potential upside of 42.64%. Given Lemonade’s higher possible upside, analysts plainly believe Lemonade is more favorable than Ategrity Specialty.

Earnings and Valuation This table compares Ategrity Specialty and Lemonade”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Ategrity Specialty $424.34 million 3.00 $74.00 million $2.14 12.42 Lemonade $737.90 million 4.74 -$165.50 million ($1.83) -24.71 Ategrity Specialty has higher earnings, but lower revenue than Lemonade. Lemonade is trading at a lower price-to-earnings ratio than Ategrity Specialty, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk Ategrity Specialty has a beta of -0.62, indicating that its share price is 162% less volatile than the S&P 500. Comparatively, Lemonade has a beta of 1.87, indicating that its share price is 87% more volatile than the S&P 500.

Summary Ategrity Specialty beats Lemonade on 8 of the 14 factors compared between the two stocks.

(Get Free Report)

We are a profitable and growing specialty insurance company dedicated to providing excess and surplus (“E&S”) products to small to medium-sized businesses (“SMBs”) across the United States. We have built a proprietary underwriting platform that combines sophisticated data analytics with automated and streamlined processes to efficiently serve our clients and deliver long-term value to our stockholders. The SMB market is characterized by large volumes of small-sized policies, and we believe our competitive edge lies in our ability to offer consistent, high-speed, and low-touch interactions that our distribution partners value. This advantage stems from our technology-driven method of standardizing, simplifying, and automating our transaction process, which we call productionized underwriting. We target industry verticals where we have deep expertise and develop data-driven insights to gain a competitive advantage. We leverage our expertise and our efficient underwriting platform to deliver tailored insurance products and customized services that meet the needs of our distribution partners. We believe the universe of distributors in the SMB segment of the E&S market is rapidly shifting toward agents and brokers who were raised in the digital age. These digital-native and tech-savvy distribution partners expect real-time, frictionless insurance transactions that mirror the seamless experiences they encounter in their daily lives. In an industry where insurance applications are often submitted via email with slow response times, we have designed a technology-driven underwriting process that addresses our distribution partners’ demands for rapid, high-quality interactions. Our strong value proposition has contributed to a growing network of 512 distribution partners as of March 31, 2025, which provides us with increased transaction opportunities and diversified sources of business. Our fully integrated claims management function is designed to enable us to resolve claims efficiently and effectively. We take an active approach to risk management through real-time performance analytics, rigorous risk aggregation monitoring, and robust reinsurance protection aimed at minimizing volatility and generating consistent underwriting results. We have grown our business substantially while generating attractive underwriting results. For the three months ended March 31, 2025, we wrote $116.1 million in gross written premiums, an increase of $34.5 million, or 42.3% compared to the three months ended March 31, 2024. Our combined ratio for the three months ended March 31, 2025, was 90.9%, a decrease of 3.3% from the three months ended March 31, 2024. Our members’ equity at March 31, 2025, was $426.8 million, an increase of $28.5 million (7.2%) from December 31, 2024. For the twelve months ended March 31, 2025, our return on members’ equity was 12.6%. For the year ended December 31, 2024, we wrote $437.0 million in gross written premiums, representing a compound annual growth rate of 28.4% over the last two years. Our combined ratio for the year ended December 31, 2024, was 93.9%, a decrease of 3.6% from the year ended December 31, 2023. Our members’ equity at December 31, 2024, was $398.3 million, an increase of $76.6 million (23.8%) from December 31, 2023. We believe that our productionized underwriting capabilities will continue to drive enhanced profitability as we continue to scale our business. Our company’s mission is to transform the E&S marketplace for SMBs through the power of productionized underwriting with precision, simplicity, and efficiency. When we entered the E&S industry, we found what we believe to be an under-served and inefficient marketplace that was hindered by inconsistent and antiquated processes of legacy insurance carriers. We also believe that many distribution partners and their end-clients were struggling with slow response times, unpredictable underwriting capacity, and subpar pricing, which we believe make the market ripe for technology and efficiency-driven disruption. To address these challenges, we developed a technology-enabled underwriting process that we believe sets us apart in the E&S market. Our productionized underwriting approach combines rigorous technical underwriting with a highly efficient and centralized operating platform powered by advanced technology. This process begins with a deep understanding of our end-clients, the insurance policyholders. We intensely study the industry and geographical micro-segments in which our end-clients operate using sophisticated data analytics. We leverage these analytics to build quantitative risk models that shape our risk appetite and client targeting. Furthermore, we aim to eliminate unnecessary complexity by standardizing our processes and automating key underwriting tasks, such as submission intake, risk classification, pricing, and documentation. This allows our underwriters to focus on high-value underwriting tasks and make timely and accurate decisions in a uniform manner. For each individual transaction opportunity, our underwriting models efficiently determine which components of the process can be automated. For simpler products with clearly identified risk characteristics, we can execute the entire underwriting process without human intervention. We believe our productionized underwriting approach generates consistent, efficient, and scalable processes that allow us to deliver differentiated value to our distribution partners without compromising accuracy and profitability. Our location is in New York NY.

About Lemonade (Get Free Report)

Lemonade, Inc. provides various insurance products through various channels in the United States, Europe, and the United Kingdom. Its insurance products include stolen or damaged property, and personal liability that protects its customers if they are responsible for an accident or damage to another person or their property. The company also offers renters, homeowners, car, pet, and life insurance products, as well as landlord insurance policies. In addition, it operates as an agent for other insurance companies. The company was formerly known as Lemonade Group, Inc. and changed its name to Lemonade, Inc. Lemonade, Inc. was incorporated in 2015 and is headquartered in New York, New York.

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3 Stocks That Prove the AI Trade Isn't Over, It MovedLemonade NYSE: LMND Chief Financial Officer Tim Bixby said the digital insurer expects to reach a significant profitability milestone in the fourth quarter, while continuing to prioritize growth, product expansion and technology-driven underwriting.

Speaking at a company event, Bixby said he will transition from the CFO role to Lemonade’s board of directors effective Jan. 1. Nick Stead, currently the company’s senior vice president of finance, is set to succeed him as CFO. Bixby, Lemonade’s first CFO, has held the role for about nine and a half years.

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Can Trupanion Turn Pet Insurance Loyalty Into Real Earnings?Bixby said the leadership transition is not expected to bring a major change in the company’s strategic direction. He described Lemonade’s approach to technology, distribution and customer experience as largely consistent with the strategy established at its founding in 2015.

Profitability and Growth Targets Lemonade expects the fourth quarter to be its first EBITDA-positive quarter, according to Bixby. He noted that the company first outlined that target about four years ago and said it remains on track, while cautioning that the quarter had not yet concluded.

Lemonade’s Sweet Results Refresh Market Appetite: Rebound AheadThe company has publicly framed growth of more than 30% as a long-term objective. Bixby said Lemonade could potentially grow faster, but that its chosen growth rate reflects a balance between expansion and the capital requirements of operating an insurance business.

Insurance companies must hold surplus capital to meet regulatory requirements and support claims obligations. Bixby said growth in the high-40% range would likely require Lemonade to raise additional capital to maintain sufficient surplus. At around 30% growth, he said the company expects to support its strategy while improving profitability.

Bixby said Lemonade expects customers acquired in a given quarter to be profitable over time, though the company remains unprofitable on a consolidated basis because it expenses growth spending upfront. He reiterated that GAAP breakeven is expected to follow roughly one year after EBITDA breakeven.

The company currently has between $1 billion and $2 billion of premium on a run-rate basis, Bixby said. At its last investor day, Lemonade provided a path it believed could lead to $10 billion in premium, a level he characterized as large for the company but still relatively modest within the broader insurance industry.

Technology-Centered Insurance Model Bixby described Lemonade as an insurer built to use data, machine learning and artificial intelligence across customer acquisition, underwriting, claims and customer service. The company now offers renters, homeowners, pet, car and term life insurance.

He said Lemonade can issue a policy in several minutes and that more than half of claims are paid in real time, often within seconds. The company’s Net Promoter Score has ranged from 50 to 70 depending on the measurement period, according to Bixby.

A central element of Lemonade’s strategy is its internally developed technology platform. Bixby said the company built its core operating systems in-house rather than relying on third-party software for fundamental functions such as pricing, underwriting and customer experience.

He argued that operating one core platform could give Lemonade more flexibility as AI models and regulatory expectations develop. Larger insurers often operate numerous systems following years of acquisitions and technology additions, he said.

Geographic Expansion and Risk Selection Lemonade does not yet offer every product in every state, partly because insurance is regulated state by state. Bixby said the company has life insurance available in all 50 states and is close to nationwide availability in pet and renters insurance. Homeowners and car insurance remain earlier in their rollout.

The company has chosen not to offer homeowners insurance in Florida so far, reflecting its cautious approach to risk selection in areas affected by difficult-to-predict underwriting conditions. Bixby said Lemonade expects eventually to offer more products more broadly, but is selectively managing exposure today.

In auto insurance, Lemonade has reached coverage representing close to 50% of the U.S. population because its current footprint includes larger-population states, Bixby said. Auto insurance has grown to the “teens” as a percentage of total premium and has been growing as fast as, or faster than, the company’s pet insurance business in some periods.

Lemonade is also operating its autonomous Tesla partnership product in five states. Bixby said the product is priced 50% below insurance for human-driven miles, based on company data indicating at least a 50% lower claims frequency for software-driven miles.

Cross-Selling and Customer Retention Bixby identified cross-selling and retention as important sources of future operating leverage. More than 5% of Lemonade customers currently hold multiple policies, he said, compared with a potential rate of 30% or more if the company were to reach best-in-class levels.

Most customers currently have one policy, with renters representing the largest customer base by count and pet insurance representing the largest product by premium. Bixby said approximately two-thirds of Lemonade’s customers have pets but do not hold pet insurance through Lemonade, while about two-thirds also have cars.

About half of Lemonade’s new auto business comes from existing customers, according to Bixby. He said selling additional products to existing customers generally costs less than acquiring new customers.

The company’s annual dollar retention has been about 85%, though Bixby said the measure was affected by Lemonade’s decision to trim homeowners business that did not meet its profitability standards. He expects the metric to return to the high-80% range over time and said it should eventually reach the 90% range as customer retention and cross-selling improve.

Bixby said Lemonade has maintained a lifetime-value-to-customer-acquisition-cost ratio around 3x while increasing spending on new customer acquisition over several years. He said the company has also delivered 24 consecutive quarters of results that were broadly consistent with its guidance and market expectations.

About Lemonade (NYSE:LMND)Lemonade, Inc is a technology-driven insurance company that offers digital insurance products through its website and mobile applications. Its platform uses automation, artificial intelligence and behavioral economics to streamline policy applications, claims processing and customer service.

The company provides renters, homeowners, pet, term life and automobile insurance. Product availability varies by location, and Lemonade distributes its offerings through regulated insurance entities and licensed partners.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Tidal Investments LLC lowered its stake in shares of Lemonade, Inc. (NYSE: LMND) by 25.5% during the undefined quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 35,502 shares of the company's stock after selling 12,140 shares during the quarter. Tidal Investments LLC's holdings

Lemonade (LMND -0.42%) is an insurance technology company that was using artificial intelligence (AI) to operate a better insurance model long before it became the trend it is today.

Customers are enjoying its digital platform, which makes signing up for a policy and filing claims easy. Lemonade is growing fast, and its loss ratio (the amount it pays out as claims) has been dramatically reduced. However, Lemonade stock is still 49% off its 52-week high. Is it time to buy?

Aid for your lemons Lemonade uses AI and machine learning to price policies and improve the user experience for insurance customers. Its chatbots handle onboarding and claims filing, reducing the need for human intervention.

Management says the company's advantage is its interconnected systems. Palantir Technologies and ServiceNow's Control Tower product provide such interconnectedness for other companies, but Lemonade built its business this way, which gives it an edge over other insurance companies.

Image source: Getty Images.

It also claims to have an edge over newer insurance companies that might be built with all the AI tools available today, essentially replicating what Lemonade does. That's because it already has more than a decade of data to underwrite its policies, and data is the currency of an insurance business. It also has that decade of marketing and developing its business, so it's already the leader in this niche.

The results have been strong. In-force premium (IFP), the insurance company's top-line metric, increased 32% year over year in the second quarter, the 11th straight quarter of acceleration. Total customers increased 23% to more than 3.3 million, and premium per customer increased 8%, indicating that the company's cross-selling and bundling strategy is working.

Loss ratios and losses One important metric for insurance companies is the loss ratio. The lower this metric is, the more of the policy premiums the company is keeping. Maintaining a low loss ratio requires efficient underwriting and lots of data, which is why it took Lemonade some time, as a young company, to bring it down. However, it's been reliably low for several quarters, so much so that management hasn't really called out the figure lately. It was 60% in the second quarter.

Premium Feature

Moneyball Superscore

76/100

Today's Change

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-0.42

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-0.21

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49.40

What's on investors' minds these days is the net loss, which also includes expenses. Lemonade isn't profitable, and it reported a $43 million loss in the second quarter, just a tad better than the $44 million of the year before. Management reaffirmed that it expects to become profitable on the basis of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the fourth quarter, and it has said in the past that it expects to report positive net income in 2027.

In the meantime, it's demonstrating a path toward profitability, and it noted its low loss adjustment expense ratio. This measures the cost of handling claims, and it has shrunk from 7% last year to 5% this year, ahead of schedule. The industry average is 9%.

Lemonade has a long growth runway, and it could become profitable soon. This does look like a good time to buy.

Lemonade, Inc. (LMND) KBW Insurance Conference 2026 September 10, 2026 3:50 PM EDT

Company Participants

Timothy Bixby - CFO, Principal Accounting Officer & Treasurer

Conference Call Participants

Thomas Mcjoynt-Griffith - Keefe, Bruyette, & Woods, Inc., Research Division

Presentation

Thomas Mcjoynt-Griffith
Keefe, Bruyette, & Woods, Inc., Research Division

All right. We're going to go ahead and get started here. This is our -- sadly our last session of the KBW Insurance Conference, but we go out with a bang with Lemonade here. So thank you to Tim for joining us.

Question-and-Answer Session

Thomas Mcjoynt-Griffith
Keefe, Bruyette, & Woods, Inc., Research Division

Tim, maybe I'll start off some news that came out from the recent quarter. You're going to be transitioning from CFO to a Board seat. So maybe talk about how did that transpire? Like why is this the right time for that move?

Timothy Bixby
CFO, Principal Accounting Officer & Treasurer

Sure. So we -- at Lemonade, we try and do everything pretty methodically, including succession planning. So this is not a sudden or new transition. It's been in the works for quite some time. I've been CFO with Lemonade 9-plus years. I've been a CFO in New York, various companies for about 25.

We have an extraordinary in-house candidate, Nick Stead, who will be taking over in January. I've been asked to join the Board of Directors, which is a little unique. But again, we try and do things a little differently at Lemonade. So I think that will be a great opportunity for the company and for me to have -- provide a little bit of continuity. And so we announced that and then January 1 will be the transition date, and Nick will take over full time at that point. He's been with the company 5 years, a real superstar, financial genius. I think he'll do great work.

Lemonade's CEO claims the way auto insurance has always worked quietly punishes the majority of drivers, and his company is betting a radical repricing model around telematics and Tesla's self-driving miles can finally flip that equation into a profit.

Daniel Schreiber, CEO of insurtech company Lemonade, has a message for the roughly 230 million licensed U.S. drivers: most of you are paying too much. On Bloomberg Businessweek, the co-founder of Lemonade (NYSE:LMND) argued that two-thirds of drivers cover less road than average, meaning they are quietly subsidizing the heaviest-driving third. He called mileage “the single most important metric for an insurance company to know,” and said most carriers cannot see it.

The pitch lands as Lemonade tries to convert that pricing thesis into its first-ever profitable quarter. Shares trade at $52.87, down 25.7% year to date, while the company guides to its first positive adjusted EBITDA quarter in Q4 2026.

Two-Thirds Subsidy Pitch, Decoded Schreiber’s argument starts with microdata legacy carriers cannot see. Gender, credit score, marital status and education serve as stand-ins for the driving behavior they cannot observe directly. Lemonade says telematics replaces some of that guesswork with mileage and driving-quality data. Across pricing and customer acquisition, roughly 50 machine-learning algorithms also process factors such as cost to serve, expected customer duration and claims behavior. Management’s target is about $3 in customer lifetime value for every $1 spent acquiring that customer.

The same efficiency shows up in claims handling. Lemonade posted a 5% loss-adjustment-expense ratio in Q2, compared with an industry average near 9%. Co-founder and co-CEO Shai Wininger noted, “Our competitors spend almost twice as much as we do on handling claims.” Schreiber added that the gap “allows us to produce a pricing advantage that will allow us to continue to grow and take market share.”

Tesla FSD Angle: A 50% Per-Mile Discount The sharpest expression of Lemonade’s segmentation is its autonomy-aware product for Tesla (NASDAQ:TSLA | TSLA Price Prediction) Full Self-Driving (Supervised) vehicles; it prices autonomous miles at about a 50% discount on a per-mile basis when FSD is engaged. Lemonade plugs into Tesla APIs, then adjusts pricing based on model, sensors, software version, and outcomes.

Tesla shares changed hands at $363.47 at last check and are up 10.6% over the past month. The autonomy footprint continues to widen: FSD subscription attach rates exceeded 55% of new North American deliveries in Q2, active FSD subscriptions reached 1.48 million, and Robotaxi operations have expanded to seven U.S. metros. Elon Musk described the ramp as “literally exponential while keeping an impeccable safety record.” Every FSD-enabled Tesla is a potential Lemonade customer paying by the autonomous mile.

Lemonade launched autonomous car coverage in Colorado and Indiana in Q2, adding Missouri in early September. Wininger tipped his hand on what’s to come, saying, “before the end of 2027, I believe our car product will be available to the majority of drivers in the United States.”

Profitability Reality Check The catch: Lemonade has yet to post a profitable quarter. Outside the bottom line, however, the business is firing on nearly all cylinders. Q2 2026 revenue rose 79.4% year over year to $294.4 million, in-force premium reached $1.43 billion (up 32.4%), and the gross loss ratio improved to 60% from 67%. Car IFP grew to $239 million from $150 million, and car itself grew 60% year over year. EPS was -$0.56, and net loss came in at -$43.4 million.

Management reaffirmed its $1.214 to $1.220 billion full-year revenue range, a Q4 adjusted EBITDA of roughly $8 million positive, and full-year positive adjusted EBITDA in 2027. Details on car strategy are expected at Lemonade’s Investor Day on November 17, 2026 in New York. The Q2 shareholder letter filed with the SEC lays out the underwriting detail.

What Investors Should Watch The investor’s tradeoff is straightforward. Low-mileage and FSD-heavy drivers may pocket real savings under Lemonade’s model. The cost is handing over continuous vehicle telemetry. For LMND shareholders, the question is whether granular pricing plus a structurally lower LAE ratio can convert a decade of losses into durable operating leverage before the growth spend catches up. Q4 will settle the first half of that issue. Tesla adoption will settle the second.

Contact [email protected] for any questions or corrections.

, /PRNewswire/ -- Lemonade (NYSE: LMND) today announced that Tim Bixby, Chief Financial Officer, will participate in the following upcoming investor conferences:

KBW Insurance Conference – Thursday, September 10, 2026. Participation will include one-on-one meetings and a fireside chat with Mr. Bixby at 3:50 pm ET. The fireside chat webcast can be accessed here.

FT Partners FinTech Conference – Tuesday, September 15, 2026. Participation will include one-on-one meetings and a fireside chat with Mr. Bixby at 1:20 pm ET. The fireside chat webcast can be accessed here.

Webcast replays will be available approximately two hours after each presentation ends and will remain accessible for three months. Additional information about Lemonade can be accessed at lemonade.com/investor.

About Lemonade

Lemonade offers renters, homeowners, car, pet, and life insurance. Powered by artificial intelligence and social impact, Lemonade's full stack insurance carriers in the US and the EU replace brokers and bureaucracy with bots and machine learning, aiming for zero paperwork and instant everything. A Certified B-Corp, Lemonade gives unused premiums to nonprofits selected by its community, during its annual Giveback. Lemonade is currently available in the United States, Germany, the Netherlands, France, and the UK, and continues to expand globally.

Follow Lemonade on X and Instagram for updates.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this press release are forward-looking statements, including the dates and times of the conference appearances described above.

These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements expressed or implied to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to the following: our financial outlook and results, our financial metrics, including our key performance indicators, our ability to acquire new business, including growth of products in new states and Europe, the expected benefits, accuracy and growth of our predictive and generative AI models, and their effects on handling loss ratios, LAE and other metrics, our anticipated growth, profitability, our industry, business strategy, plans, goals and expectations concerning our market position, future operations, reinsurance coverage, capital efficiency ratio, and other financial and operating information, our history of losses and that we may not achieve or maintain profitability in the future; our success and ability to retain and expand our customer base; the "Lemonade" brand may not become as widely known as incumbents' brands or the brand may become tarnished; the denial of claims or our failure to accurately and timely pay claims; our ability to attain greater value from each user; availability of reinsurance at current levels and prices; our exposure to counterparty risks; our limited operating history; our ability to manage our growth effectively; our proprietary artificial intelligence algorithms may not operate properly or as expected; the intense competition in the segments of the insurance industry in which we operate; our ability to maintain our risk-based capital at the required levels; our ability to expand our product offerings; the novelty of our business model and its unpredictable efficacy and susceptibility to unintended consequences; the possibility that we could be forced to modify or eliminate our Giveback; regulatory risks, related to the operation, development, and implementation of our proprietary artificial intelligence algorithms and telematics based pricing model; legislation or legal requirements that may affect how we communicate with customers; the cyclical nature of the insurance industry; our reliance on artificial intelligence, telematics, mobile technology, and our digital platforms to collect data that we utilize in our business; our ability to obtain additional capital to the extent required to grow our business, which may not be available on terms acceptable to us or at all; our actual or perceived failure to protect customer information and other data as a result of security incidents or real or perceived errors, failures or bugs in our systems, website or app, respect customers' privacy, or comply with data privacy and security laws and regulations; periodic examinations by state insurance regulators; our ability to underwrite risks accurately and charge competitive yet profitable rates to our customers; potentially significant expenses incurred in connection with any new products before generating revenue from such products; risks associated with any costs incurred and other risks as we expand our business in the U.S. and internationally; our ability to comply with extensive insurance industry regulations; our ability to comply with insurance regulators and additional reporting requirements on insurance holding companies; our ability to predict the impacts of severe weather events and catastrophes, including the effects of climate change and global pandemics, on our business and the global economy generally; increasing scrutiny, actions, and changing expectations on environmental, social, and governance matters; our agreements with third parties as a synthetic agent may not function as expected; fluctuations of our results of operations on a quarterly and annual basis; our utilization of customer and third party data in underwriting our policies; limitations in the analytical models used to assess and predict our exposure to catastrophe losses; potential losses could be greater than our loss and loss adjustment expense reserves; the minimum capital and surplus requirements our insurance subsidiaries are required to have; assessments and other surcharges from state guaranty funds; our status and obligations as a public benefit corporation; our operations in Israel and the current political, economic, and military instability, including the evolving conflict in Israel and surrounding region.

These and other important factors described under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed on February 25, 2026, and in our other subsequent filings with the SEC, could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management's beliefs as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

NEWS & INFORMATION DISCLOSURE

Investors should note we may use our website (investor.lemonade.com), blog (lemonade.com/blog), X (@Lemonade_Inc), and LinkedIn as a means of disclosing information and for complying with our disclosure obligations under Regulation FD. The information we post through these channels may be deemed material. Investors should monitor these channels in addition to reviewing our press releases, SEC filings, and public conference calls.

SOURCE Lemonade, Inc.

On September 03, 2026, Lemonade Inc LMND shares rose by 3.6% to a current price of $55.08, reflecting a significant movement within the broader context of its 52-week range of $46.16 to $99.90. The stock has demonstrated a year-to-date decline of 22.6%, yet shows a positive return of 10.5% over the past year and 57.5% over the past three years.

GF Value™ verdict: Current price at $55.08 is 13.0% below the estimated fair value of $63.31. GF Score™: 80/100 indicating a strong overall rating. Notable signal: Insider activity shows a net selling of $37.2M over the past 12 months. Is LMND Overvalued or Undervalued? According to GF Value™, which is GuruFocus' proprietary estimate of intrinsic value based on historical trading multiples, past business growth, and future performance estimates, Lemonade Inc is currently assessed as being 13.0% undervalued at its current price of $55.08 compared to a GF Value™ of $63.31. This suggests a potential margin of safety for investors considering the stock. However, it is essential to recognize that GF Value™ can be less reliable for companies that are unprofitable or cash-flow negative, such as Lemonade Inc. This valuation should be viewed as a directional warning rather than a precise target.

While the GF Valuation label indicates that the stock is modestly undervalued, investors must be cautious of the risks associated with investing in a company that has yet to achieve profitability. The current price offers an opportunity, but it is accompanied by inherent uncertainties related to future performance and financial health.

How Does LMND's Valuation Compare to Its History? Metric Current Historical P/E (TTM) N/A ~5.8x (historical median) Due to Lemonade Inc being unprofitable, a traditional P/E ratio analysis does not apply, and therefore, no current P/E is available for comparison. This lack of P/E data aligns with the GF Value™ verdict, reinforcing the idea that earnings-based valuations are not applicable in this instance. The historical median P/S ratio of approximately 5.8x provides a context for assessing Lemonade's current valuation through a Price-to-Sales (P/S) lens, indicating that the stock's valuation remains contextually relevant in comparison to its historical performance.

What Does LMND's GF Score™ Tell Us? The GF Score™ is a comprehensive measure that evaluates a company's financial strength, profitability, growth potential, valuation, and momentum. Lemonade Inc's GF Score™ of 80/100 reflects a strong overall performance, with its highest sub-rank in growth, scoring a perfect 10/10, suggesting robust growth potential. However, its profitability rank at 3/10 indicates significant challenges in generating consistent earnings.

Metric Rating GF Score™ 80/100 Financial Strength 5/10 Profitability 3/10 Growth 10/10 Valuation 8/10 Momentum 7/10 Overall, the scores indicate that while Lemonade Inc excels in growth potential, its financial health remains a concern given the moderate rating in financial strength and low profitability rank. This mixed performance suggests that while the company may have promising growth opportunities, it faces significant challenges in achieving sustainable profitability.

What Are Gurus and Insiders Doing with LMND? Currently, three gurus hold positions in Lemonade Inc, with two increasing their holdings while four have trimmed their positions in recent quarters. This activity hints at mixed sentiment among institutional investors regarding the stock. Over the past 12 months, insider trading has shown a pattern of net selling, with insiders selling $37.7M worth of shares while only purchasing $0.5M. This substantial net selling by insiders may suggest a lack of confidence in the company's short-term prospects or a strategic decision to realize gains.

This insider activity, combined with the guru ownership patterns, is a crucial signal for potential investors. The fact that insiders are selling significantly more than they are buying could raise concerns about the company's future performance and should be considered when evaluating the stock.

What This Means for Investors Based on the assessment of GF Value™, Lemonade Inc is currently viewed as modestly undervalued, offering a potential opportunity for investors. However, the lack of profitability and the concerning insider selling pattern warrant caution. Investors should be aware of the risks involved in investing in a cash-flow-negative company and weigh these factors when considering their investment strategy.

For more detailed information, visit the Lemonade Inc LMND stock page, as well as the GF Value™ page for further insights.

Frequently Asked Questions What is LMND's GF Score™?

Lemonade Inc's GF Score™ is 80/100, indicating a strong overall rating with significant growth potential but challenges in profitability.

Is LMND overvalued or undervalued?

Lemonade Inc is considered 13.0% undervalued according to the GF Value™, suggesting a potential opportunity for investors while noting the inherent risks.

What is LMND's P/E ratio?

Lemonade Inc does not have a P/E ratio available due to being unprofitable; thus, traditional earnings-based metrics are not applicable for valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Hsbc Holdings PLC bought a new stake in shares of Lemonade, Inc. (NYSE:LMND – Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 12,154 shares of the company’s stock, valued at approximately $775,000.

A number of other hedge funds have also added to or reduced their stakes in LMND. Caitong International Asset Management Co. Ltd lifted its stake in Lemonade by 8,080.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 409 shares of the company’s stock valued at $29,000 after buying an additional 404 shares during the period. Northwestern Mutual Wealth Management Co. bought a new position in Lemonade during the fourth quarter worth $33,000. Strive Financial Group LLC acquired a new stake in Lemonade in the fourth quarter worth $38,000. State of Wyoming acquired a new stake in shares of Lemonade in the 1st quarter valued at about $42,000. Finally, Macquarie Group Ltd. bought a new stake in Lemonade in the 4th quarter valued at about $63,000. 80.30% of the stock is currently owned by institutional investors.

Insiders Place Their Bets In other Lemonade news, insider John Sheldon Peters sold 11,000 shares of the firm’s stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $52.55, for a total value of $578,050.00. Following the completion of the sale, the insider directly owned 76,942 shares of the company’s stock, valued at $4,043,302.10. This trade represents a 12.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Insiders sold 18,052 shares of company stock worth $1,041,134 over the last three months. 12.20% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets LMND has been the topic of a number of research reports. Keefe, Bruyette & Woods raised Lemonade from an “underperform” rating to a “market perform” rating and set a $48.00 price target on the stock in a research note on Thursday, July 30th. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Lemonade in a research report on Tuesday, May 26th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Lemonade in a research report on Friday, July 17th. TD Cowen reiterated a “hold” rating on shares of Lemonade in a research note on Monday, June 8th. Finally, Piper Sandler decreased their price objective on Lemonade from $75.00 to $51.00 and set a “neutral” rating for the company in a report on Thursday, July 30th. Four analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $64.50. Get Our Latest Stock Report on Lemonade

Lemonade Price Performance Shares of NYSE:LMND opened at $51.22 on Wednesday. Lemonade, Inc. has a 1 year low of $46.16 and a 1 year high of $99.90. The company has a market capitalization of $3.96 billion, a PE ratio of -27.99 and a beta of 1.87. The business has a fifty day moving average price of $59.20 and a two-hundred day moving average price of $58.87.

Lemonade (NYSE:LMND – Get Free Report) last released its earnings results on Tuesday, July 28th. The company reported ($0.56) EPS for the quarter, hitting analysts’ consensus estimates of ($0.56). The company had revenue of $294.40 million for the quarter, compared to analysts’ expectations of $291.01 million. Lemonade had a negative return on equity of 26.78% and a negative net margin of 14.19%.The business’s revenue for the quarter was up 79.4% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.60) EPS. Sell-side analysts anticipate that Lemonade, Inc. will post -1.85 earnings per share for the current year.

Lemonade Company Profile (Free Report)

Lemonade, Inc (NYSE: LMND) is a New York–based technology-driven insurance carrier that leverages artificial intelligence and behavioral economics to streamline the purchase and management of policies. Founded in 2015, the company offers renters, homeowners, pet, term life and car insurance products tailored for digitally savvy consumers. By automating underwriting and claims processing through chatbots and machine learning, Lemonade aims to deliver a more transparent and user-friendly experience than traditional insurers.

The company’s product suite includes standalone policies for renters and homeowners, customizable pet insurance plans, and term life coverage with simple online applications.

Read More Five stocks we like better than Lemonade Dutch Bros Sell-Off Creates a Growth Opportunity NVIDIA’s MediaTek Bet Shows How It Plans to Defend Its AI Moat Is Abercrombie & Fitch’s Hot Streak Just Getting Started? Medtronic’s Stars Are Aligning for a Price Recovery Want to see what other hedge funds are holding LMND? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Lemonade, Inc. (NYSE:LMND – Free Report).

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Sunshine State drivers now have access to tech-powered coverage built for how people actually drive

, /PRNewswire/ -- Lemonade (NYSE: LMND), the tech-first insurance company, today announced the launch of Lemonade Car in Florida, one of the largest car insurance markets in the country. Florida drivers can now access Lemonade Car which is built for today's modern lifestyle to help consumers save.

"Florida is one of the largest and fastest-growing personal auto markets in the country, including millions of working-age, digital-native drivers concentrated in fast-growing metros like Miami, Tampa, Orlando, and Jacksonville. These drivers are the type of digital-first consumers who want insurance that's fast, mobile, and fair, based on how they drive, that gives discounts for cars like EVs, and more," said Shai Wininger, President and Co-Founder of Lemonade.

With this expansion, Lemonade Car is now available in states representing nearly 50% of the U.S. car insurance market, marking a particularly significant step in the company's accelerating national rollout.

Bundling is also available for Floridians who already use Lemonade for renters, homeowners, and pet insurance.

Drivers can explore coverage options or get a quote in minutes at lemonade.com/car.

About Lemonade

Lemonade's mission is to become the most loved insurance company in the world. As a customer-centric tech company, we created an insurance experience across Renters, Home, Pet, Car, and Life that is smart, instant, and delightful. Our team of 1,200+ Lemonade Makers makes it possible for over 3M customers throughout the US, UK and Europe to get coverage instantly, with nearly half of claims paid in a matter of seconds. Powered by AI and social impact, Lemonade is a purpose-built, technology-first insurance carrier. A Certified B-Corp, our commitment to social impact is embedded in every aspect of the company, and our Giveback program, which donates a percentage of leftover premiums to nonprofits selected by our community, has donated over $10M to organizations in need.

SOURCE Lemonade, Inc.

Lemonade, Inc. (LMND) Presents at Oppenheimer 29th Annual Technology, Internet & Communications Conference Transcript

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Lemonade (NYSE: LMND) today announced that Tim Bixby, Chief Financial Officer, is scheduled to present at the Oppenheimer 29th Annual Technology, Internet & Communications Conference on Wednesday, August 12, 2026 at 1:15 pm ET. The conference is being held virtually. Mr. Bixby will also hold one-on-one meetings with investors at the event.

The presentation will be live via webcast and can be accessed here. Additional information about Lemonade can be accessed at lemonade.com/investor.

About Lemonade
Lemonade offers renters, homeowners, car, pet, and life insurance. Powered by artificial intelligence and social impact, Lemonade's full stack insurance carriers in the US and the EU replace brokers and bureaucracy with bots and machine learning, aiming for zero paperwork and instant everything. A Certified B-Corp, Lemonade gives unused premiums to nonprofits selected by its community, during its annual Giveback. Lemonade is currently available in the United States, Germany, the Netherlands, France, and the UK, and continues to expand globally.

Follow Lemonade on X and Instagram for updates.

SOURCE Lemonade, Inc.

Also from this source

Lemonade's Q2 revenues surged 79% as premiums and loss ratio improved, but its rich valuation and softer estimates make the stock a hold.

Lemonade's (LMND -0.15%) stock slumped after it posted its second-quarter earnings report on July 29. The online insurance company's revenue surged 79% year over year to $294 million, beating analysts' estimates by $3 million, and it narrowed its net loss from $43.9 million to $43.4 million, or $0.56 per share, which matched the consensus forecast.

Those headline numbers looked healthy, but Lemonade's full-year in-force premium (IFP) outlook slightly missed analysts' estimates. Let's see if that miss means that its growth story is ending -- or if its valuations are simply cooling off after a big multi-year rally.

Image source: Getty Images.

How fast is Lemonade growing? Lemonade simplifies the Byzantine process of buying insurance through AI-powered chatbots and claims processing services. That digital-first approach made it a popular choice among younger and first-time insurance buyers.

Today's Change

(

-0.15

%) $

-0.08

Current Price

$

48.50

Lemonade initially only offered homeowners and renters insurance at the time of its 2020 IPO, but it subsequently launched pet health, term life, and auto insurance products. It significantly expanded its auto business by acquiring Metromile in 2022.

Lemonade ended the second quarter of 2026 with 3.31 million customers. That's up 23% from a year earlier and more than triple its 1.00 million customers at the end of 2021. Its IFP, gross earned premium (GEP), and gross margins have consistently risen since its public debut, while its gross loss ratio has steadily declined.

Metric

2020

2021

2022

2023

2024

2025

Customer Growth (YOY)

56%

43%

27%

12%

20%

23%

IFP Growth (YOY)

87%

78%

64%

20%

26%

31%

GEP Growth (YOY)

110%

84%

68%

37%

23%

28%

Gross Loss Ratio (TTM)

71%

90%

90%

85%

73%

64%

Adjusted Gross Margin

33%

36%

25%

23%

33%

41%

Data source: Lemonade. YOY = Year-over-year. TTM = Trailing 12 months.

Was Lemonade's guidance that bad? For 2026, Lemonade expects its IFP to rise 32%-33%, its GEP to grow 31%, and its revenue to increase 65%. That guidance was actually higher than its full-year guidance in the first quarter, which called for 32% IFP growth, 30%-31% GEP growth, and 62%-63% revenue growth. It also reiterated its prior outlook for achieving a positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by the fourth quarter of 2026.

The only issue was that the high end of Lemonade's IFP guidance (between $1.632 billion and $1.639 billion) fell short of Wall Street's target of more than $1.642 billion. Therefore, Lemonade's guidance wasn't bad at all -- it simply wasn't as aggressive as Wall Street's target.

With an enterprise value of $4.03 billion, Lemonade still looks like a bargain at three times this year's sales. It's still an undervalued growth stock, and its latest pullback is a great buying opportunity for long-term investors.

Lemonade (LMND -23.02%) stock is getting crushed in Wednesday's trading. As of 12:35 p.m. ET, the company's share price had fallen 22.3%. Meanwhile, the S&P 500 was down 1%, and the Nasdaq Composite had fallen 1.1%.

Before the market opened this morning, Lemonade published its second-quarter results. Despite reporting earnings that were in line with the average analyst estimate and sales that beat the average analyst target, the stock is getting hit with a huge pullback due to softer-than-expected guidance and pressures impacting the broader market.

Image source: Getty Images.

Lemonade served strong sales growth, but it wasn't enough In Q2, Lemonade posted a net loss of $0.56 per share on sales of $294.4 million. For comparison, the average analyst estimate had targeted a per-share loss of $0.56 on revenue of roughly $291 million. The company's revenue rose 79% compared to the prior-year quarter, and its gross earned premium rose 32% to reach approximately $332.4 million and beat the average analyst target by roughly $3 million. On the other hand, some key elements of guidance were disappointing.

Today's Change

(

-23.02

%) $

-14.30

Current Price

$

47.81

Investors aren't happy with Lemonade's outlook Lemonade's guidance for full-year revenue between $1.21 billion and $1.22 billion narrowly topped the average analyst target's call for sales of $1.21 billion, and its forecast for gross earned premium to be between $1.37 billion and $1.38 billion also topped the average target for gross earned premium of $1.37 billion. Unfortunately, the midpoint of the company's target for in-force premium to be between $1.632 billion and $1.639 billion fell significantly short of Wall Street's in-force premium target of more than $1.642 billion.

The company also reiterated its target for a non-GAAP (adjusted) operating loss of $50 million for the year, and many investors were seemingly hoping that the company would issue improved guidance. With the market on edge due to rising oil prices and policy announcements and commentary from the Federal Reserve's meeting today, Lemonade's Q2 report and forward guidance didn't deliver the big beat-and-raise quarter that investors saw as being necessary to support its growth-dependent valuation.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lemonade. The Motley Fool has a disclosure policy.

For the quarter ended June 2026, Lemonade (LMND - Free Report) reported revenue of $294.4 million, up 79.4% over the same period last year. EPS came in at -$0.56, compared to -$0.60 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $289 million, representing a surprise of +1.87%. The company has not delivered EPS surprise, with the consensus EPS estimate being -$0.56.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Lemonade performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

In force premium (end of period): $1.43 billion compared to the $1.43 billion average estimate based on five analysts.Customers (end of period): 3,308,666 versus 3,340,447 estimated by four analysts on average.Net loss ratio: 61% versus 69.8% estimated by four analysts on average.Premium per Customer (end of period): $433.00 compared to the $426.43 average estimate based on four analysts.Gross loss ratio: 60% versus 64.3% estimated by four analysts on average.Total Revenue- Net investment income: $9.7 million versus the five-analyst average estimate of $9.61 million. The reported number represents a year-over-year change of +3.2%.Total Revenue- Ceding commission income: $20.4 million compared to the $26.16 million average estimate based on five analysts. The reported number represents a change of -32.9% year over year.Total Revenue- Commission and other income: $12.3 million versus $11.75 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +4.2% change.Total Revenue- Net earned premium: $252 million compared to the $241.38 million average estimate based on five analysts. The reported number represents a change of +124% year over year.View all Key Company Metrics for Lemonade here>>>

Shares of Lemonade have returned -4.5% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Company Also Announces CFO Transition Plan; Tim Bixby, CFO, to Join Lemonade Board of Directors at Year End; Nick Stead, SVP Finance, to be Appointed Chief Financial Officer

, /PRNewswire/ -- Lemonade, Inc. (NYSE: LMND) today reported its second quarter 2026 financial results. You may view the financial results in Lemonade's Q2 2026 Letter to Shareholders, posted to its website.

Today, Lemonade will host a conference call at 8:00 am Eastern time (5:00 am Pacific time) to discuss the results. To join the call, please dial in, toll-free at +1 833-461-5787, or at +1 585-542-9983; access code: 869 766 992.

To join the live webcast, please visit the Lemonade Investor Relations website. Following the completion of the call, a replay will be made available on the website.

Separately, Lemonade announced a planned leadership succession in which Tim Bixby, Lemonade's CFO since 2017, will transition from his current role to a seat on Lemonade's Board of Directors, effective January 1, 2027. Nick Stead, SVP Finance, will then succeed him as Chief Financial Officer. Mr. Bixby will continue in his current role as CFO until then to ensure a smooth transition.

In his current role, Mr. Stead has been central to several Lemonade financial milestones, including a successful IPO and secondary offering, a strategic acquisition, and more recently, the establishment of two strategic growth financing partnerships. Prior to joining Lemonade, he held strategic finance roles in technology and financial services, graduated cum laude from Princeton University, and was a Fulbright Scholar.

About Lemonade

Lemonade offers renters, homeowners, car, pet, and life insurance. Powered by artificial intelligence and social impact, Lemonade's full stack insurance carriers in the US and the EU replace brokers and bureaucracy with bots and machine learning, aiming for zero paperwork and instant everything. A Certified B-Corp, Lemonade gives unused premiums to nonprofits selected by its community, during its annual Giveback. Lemonade is currently available in the United States, Germany, the Netherlands, France, and the UK, and continues to expand globally.

Follow Lemonade on X and Instagram for updates.

Cautionary Note Regarding Forward-Looking Statements

This press release and our earnings release and call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this press release are forward-looking statements, including the financial results and quarterly and annual outlook.

These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements expressed or implied to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to the following: our financial outlook for the third quarter and full year 2026, our financial outlook and results, our financial metrics, including our key performance indicators, our ability to acquire new business, including growth of our car and pet products, our marketing efficiency, the expected benefits, accuracy and growth of our predictive and generative AI models, and their effects on handling loss ratios, LAE and other metrics, our anticipated growth, profitability, our industry, business strategy, plans, goals and expectations concerning our market position, future operations, reinsurance coverage, capital efficiency ratio, and other financial and operating information, our history of losses and that we may not achieve or maintain profitability in the future; our success and ability to retain and expand our customer base; the "Lemonade" brand may not become as widely known as incumbents' brands or the brand may become tarnished; the denial of claims or our failure to accurately and timely pay claims; our ability to attain greater value from each user; availability of reinsurance at current levels and prices; our exposure to counterparty risks; our limited operating history; our ability to manage our growth effectively; our proprietary artificial intelligence algorithms may not operate properly or as expected; the intense competition in the segments of the insurance industry in which we operate; our ability to maintain our risk-based capital at the required levels; our ability to expand our product offerings; the novelty of our business model and its unpredictable efficacy and susceptibility to unintended consequences; the possibility that we could be forced to modify or eliminate our Giveback; regulatory risks, related to the operation, development, and implementation of our proprietary artificial intelligence algorithms and telematics based pricing model; legislation or legal requirements that may affect how we communicate with customers; the cyclical nature of the insurance industry; our reliance on artificial intelligence, telematics, mobile technology, and our digital platforms to collect data that we utilize in our business; our ability to obtain additional capital to the extent required to grow our business, which may not be available on terms acceptable to us or at all; our actual or perceived failure to protect customer information and other data as a result of security incidents or real or perceived errors, failures or bugs in our systems, website or app, respect customers' privacy, or comply with data privacy and security laws and regulations; periodic examinations by state insurance regulators; underwriting risks accurately and charging competitive yet profitable rates to customers; our ability to underwrite risks accurately and charge competitive yet profitable rates to our customers; potentially significant expenses incurred in connection with any new products before generating revenue from such products; risks associated with any costs incurred and other risks as we expand our business in the U.S. and internationally; our ability to comply with extensive insurance industry regulations; our ability to comply with insurance regulators and additional reporting requirements on insurance holding companies; our ability to predict the impacts of severe weather events and catastrophes, including the effects of climate change and global pandemics, on our business and the global economy generally; increasing scrutiny, actions, and changing expectations on environmental, social, and governance matters; our growth financing agreements with General Catalyst and Hannover Re may not function as expected; fluctuations of our results of operations on a quarterly and annual basis; our utilization of customer and third party data in underwriting our policies; limitations in the analytical models used to assess and predict our exposure to catastrophe losses; potential losses could be greater than our loss and loss adjustment expense reserves; the minimum capital and surplus requirements our insurance subsidiaries are required to have; assessments and other surcharges from state guaranty funds; our status and obligations as a public benefit corporation; our operations in Israel and the current political, economic, and military instability, including the evolving conflict in Israel and surrounding region.

These and other important factors described under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed on February 25, 2026, and in our other subsequent filings with the SEC, could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management's beliefs as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

NEWS & INFORMATION DISCLOSURE

Investors should note we may use our website (investor.lemonade.com), blog (lemonade.com/blog), X (@Lemonade_Inc), and LinkedIn as a means of disclosing information and for complying with our disclosure obligations under Regulation FD. The information we post through these channels may be deemed material. Investors should monitor these channels in addition to reviewing our press releases, SEC filings, and public conference calls.

SOURCE Lemonade, Inc.

Lemonade (LMND +4.35%) stock isn't having a great year. The insurance technology company's stock is down 7% year-to-date after skyrocketing 341% between 2024 and 2025.

But I think it could reach $100 next year, implying a 40% increase from today's price. Here's why.

A different kind of insurance company When Lemonade opened its virtual doors just about a decade ago, it set out to create a different kind of insurance company. The two main ways it differentiates itself are its digital foundation and its status as a certified B-Corp, which means it has a social mission. It allows customers to donate some of their funds to nonprofits through its "giveback" program.

Image source: The Motley Fool.

That attracts a certain kind of customer, but these days it's a tech-first, artificial intelligence-driven business attracting hundreds of thousands of new users who are just looking for a better insurance experience.

Growth has been phenomenal over the 10 years Lemonade has been in business, and it's recently been accelerating. The 2026 first quarter was the 10th consecutive quarter of accelerating in-force premium (IFP), which measures the amount of policy premium "in force" at a given time and is the standard top-line metric for insurance companies. It increased 32% year over year in the first quarter. Revenue is growing even faster, up 71% in the quarter.

Today's Change

(

4.35

%) $

2.81

Current Price

$

67.38

The company added almost 600,000 new customers over the trailing 12 months, a 23% increase, to 3.1 million in the first quarter, and premium per customer was up 7% to $424, implying that its cross-sell strategy is working.

What will change in 2027? Since Lemonade has gotten its loss ratio under control, the stock has soared. Its next big goal is to become profitable, and it's getting closer. Management is guiding to adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) turning positive by the end of this year and net income turning positive next year.

If it can reach those goals, the stock is likely to reflect that, and it can continue to rise without becoming more expensive. Right now, Lemonade stock trades at 6.8 times trailing-12-month sales. If sales continue to grow at current rates, Lemonade stock can gain 70% without becoming more expensive. If it becomes profitable while maintaining high growth rates, it should easily surpass $100 next year.

Long before artificial intelligence (AI) went mainstream with tools like OpenAI's ChatGPT, Lemonade (LMND 2.24%) harnessed AI to rethink insurance. From simplifying the process of purchasing coverage to streamlining claims processing, Lemonade made waves across the insurance industry when it went public in 2020.

It's been a bumpy ride for Lemonade investors, who saw the stock surge to $188 per share following its public debut, only to fall to around $10 per share in late 2023. Lately, the company has found its footing, seeing progress in its underwriting models, and has decided to trust them and transfer less risk to its reinsurer.

With Lemonade reducing its reinsurance coverage, investors may be wondering whether this signals confidence in its improving models or a warning that extra risk may not be worth the squeeze. Let's dive into the numbers to find out.

Image source: The Motley Fool.

Lemonade's AI-driven insurance business is making strides Lemonade has spent the past several years upending the insurance industry with its AI-centric business model. The company has taken many traditional insurance practices -- from pricing, claims, and customer service -- and incorporated AI into them to automate processes, lower operating costs, and improve underwriting capabilities.

The insurance industry is notoriously difficult to break into because legacy competitors have major competitive advantages through decades of accumulated risk data, established distribution networks, and recognized brand names. Because competition in the space is fierce, companies must navigate an environment in which they can price risk appropriately to build their customer base while maintaining prudent risk management.

In recent years, Lemonade has made tremendous progress in improving its gross loss ratio, which measures losses and loss adjustments (claims costs) relative to gross earned premiums. In the first quarter, Lemonade's 62% gross loss ratio was a drastic improvement from 83% in Q1 2024 and 73% in the first quarter of last year.

Today's Change

(

-2.24

%) $

-1.48

Current Price

$

64.57

Here's why Lemonade's recent move matters to investors As Lemonade's AI-driven underwriting improves, the company has reduced its quota-share reinsurance transfer (ceded premiums) from 20% of gross written premiums to 18%. Reinsurance is used by insurance companies to transfer a portion of risk to other insurers, and on July 1, the company renegotiated its reinsurance agreement to retain more risk.

Lemonade accomplished this while strengthening protection against the most severe catastrophe scenarios, suggesting management and its reinsurer are more confident in its underwriting and willing to assume more ordinary insurance risk without increasing exposure to extreme losses.

Data by YCharts.

For investors, the move exposes Lemonade to additional risks but also indicates that the company is growing into a more mature insurer, as it trusts its AI-driven underwriting to deliver more consistent results. The company still needs to improve its overall profitability, but with its improving loss ratio and higher retained premiums, Lemonade looks like a promising insurance growth stock with long-term upside potential.

Lemonade (LMND 8.65%) stock was nearly as sour as its favorite fruit on Wednesday, at least as far as its stock was concerned. Shares of the insurer dived by nearly 9% during that trading session after an analyst at an influential investment bank downgraded his recommendation on the stock.

Time for a downgrade Well before market open that day, Morgan Stanley's Bob Huang moved his Lemonade rating down one peg to equalweight (read: hold) from his preceding overweight (buy). He also set a price target of $75 per share.

Image source: Getty Images.

According to reports, while Huang feels that the company's momentum continues to be strong, the company requires a new catalyst to justify its current price levels. These have risen by around 50% over the past few weeks, the analyst pointed out.

For him, the development to watch will be how the next-generation insurer manages what he considers to be a "softening" auto insurance market. That's a challenge in and of itself, and will be something of a test to see how well it can cope.

Today's Change

(

-8.65

%) $

-6.71

Current Price

$

70.88

Look past the price I'd agree with Huang about Lemonade's positive momentum, particularly given the sweetened reinsurance program it recently announced. Yes, the shares look expensive, but the company has lately proved it can be quite the nimble and effective operator in an always-competitive field. I'm more positive on its potential for gains than the Morgan Stanley analyst; I'd even consider it a buy candidate.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lemonade. The Motley Fool has a disclosure policy.

Vermont Renters Can Now Get Fast, Affordable Coverage Starting at $5 Per Month

, /PRNewswire/ -- Lemonade (NYSE: LMND), the tech-first insurance company, today announced the availability of its renters insurance in Vermont. The expansion gives renters across the state a simple, fast way to get coverage that fits their lifestyles.

Lemonade Renters provides flexible coverage options via an app where renters can get quotes, purchase policies, update existing policies, and file claims, all in one place. About 40% of claims are handled instantly, helping renters receive assistance more quickly after a covered loss.

"Renters in Vermont deserve the same easy insurance experience as everyone else," said Dan Timsit, Head of Renters Insurance at Lemonade. "We built Lemonade to cut through the complexity that makes traditional insurance painful. We offer simple quotes, instant claims, and rates that don't break the bank. Now we can deliver that to Vermont too."

Coverage starts at just $5 per month, making it one of the more affordable renters insurance options available. Based on company and industry data, Lemonade's renters insurance rates are approximately 30% lower than the national average.

Customers may also be eligible for additional savings through policy bundling, having qualifying home safety devices, or choosing annual billing.

Lemonade currently serves more than 3 million active customers and has earned recognition from organizations and publications including Forbes, CNBC, and U.S. News & World Report for its insurance products and customer experience.

For a full list of Renters state availability, visit Lemonade.com.

About Lemonade

Lemonade's mission is to become the most loved insurance company in the world. As a customer-centric tech company, we created an insurance experience across Renters, Home, Pet, Car, and Life that is smart, instant, and delightful. Our team of 1,200+ Lemonade Makers make it possible for over 3M customers throughout the US, UK and Europe to get coverage instantly, with nearly half of claims paid in a matter of seconds. Powered by AI and social impact, Lemonade is a purpose-built, technology-first insurance carrier. A Certified B-Corp, our commitment to social impact is embedded in every aspect of the company, and our Giveback program, which donates a percentage of leftover premiums to nonprofits selected by our community, has donated over $10M to organizations in need.

SOURCE Lemonade, Inc.