Lemonade’s Q4 Earnings Report
Lemonade (NYSE: LMND) reported a 53% year-over-year revenue increase in Q4 2025, totaling $228 million, significantly surpassing analyst expectations of $216 million. The company’s in-force premium rose 31% to $1.24 billion, and gross profit increased by 73% to $111 million. Despite these gains, Lemonade posted a net loss of $0.29 per share, though this was an improvement from a loss of $0.42 per share in the same period last year.
Trading on Thursday, shares opened 13.9% higher before falling 6.8% within 90 minutes, ultimately settling down 5.5%. The company’s stock was priced at 8.9 times trailing sales prior to the earnings release, a substantial premium compared to its competitors, with Kinsale Capital Group at 4.7 times.
Management has provided optimistic guidance, projecting revenue for the next quarter to exceed current analyst estimates, with a goal of achieving breakeven by fiscal year 2027. The launch of a new insurance product for self-driving Teslas is expected to be a future growth driver, although it has yet to impact financials significantly.
