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Lemonade (LMND) Stock Tumbles Despite Record Quarterly Results

Lemonade (LMND) Stock Tumbles Despite Record Quarterly Results

Published:
2026-02-24 13:14:02
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Lemonade shares plunged 10-12% post-earnings, defying the company's strongest quarterly performance to date. The insurtech firm reported Q4 revenue of $228.1 million, a 53% year-over-year increase, with net losses narrowing to $0.29 per share. Full-year 2025 revenue reached $737.9 million, showcasing accelerating growth but persistent profitability challenges.

Wall Street's impatience manifested in Piper Sandler's price target cut from $85 to $65, despite Lemonade's 31% in-force premium growth and 73% gross profit surge. The company's AI-driven operating improvements and cash Flow gains failed to offset concerns about its 2026 guidance projecting continued EBITDA losses.

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