Highlights

  • LMND’s Q1 FY25 revenue rose 27.0% YoY, with cash and equivalents up 12.1% YoY.
  • The company’s IFP rose 27% YoY in Q1 FY25, surpassing USD 1 billion for the first time.
  • LMND reaffirmed FY25 guidance with 28% IFP growth and a positive adjusted free cash flow outlook.

Lemonade Inc. (NYSE: LMND) is a U.S.- and Europe-based insurer offering renters, homeowners, auto, pet, and life insurance through multiple sales channels.

In the first quarter of the financial year 2025 (Q1FY25), the company’s total revenue increased by 27.0% YoY to USD 151.20 million, primarily driven by higher gross earned premiums, ceding commission income, and investment returns. Cash and cash equivalents surged by 12.1% YoY to USD 319.70 million, supported by financing activities and investment inflow despite higher operational and capital expenditure during the period. However, the company recorded a net loss of USD 62.40 million, mainly due to higher growth spending and wildfire-related costs, partially offset by increased revenue. The company recorded a negative adjusted free cash flow of USD 31.00 million, largely impacted by the California wildfires and FAIR Plan assessment.

Recent Business Update

LMND reported decent Q1 FY25 results, with In Force Premium (IFP) surpassing USD 1 billion for the first time, up 27% YoY, marking its sixth consecutive quarter of accelerating growth. Despite a net loss of USD 62 million, largely driven by California wildfire impacts, the company maintained a stable trailing twelve-month gross loss ratio of 73%.

The company became the fastest-growing product in the portfolio, supported by AI-based pricing and telematics, while cross-selling more than doubled car policy sales YoY; the recent Colorado expansion lifted its car coverage to over 40% of the U.S. market.

Company Outlook

Lemonade reaffirmed its FY25 outlook, expecting 28% in-force premium growth and positive adjusted free cash flow despite wildfire-related impacts. The company raised its gross earned premium forecast to USD 1.028–1.031 billion and revenue to USD 661–663 million, while maintaining adjusted EBITDA loss guidance of USD 135–140 million.

Top 10 Shareholders

The top 10 shareholders of LMD collectively hold approximately 48.39% of the total shares, with the largest stakes held by SoftBank Group Corp at ~14.27% and The Vanguard Group, Inc at ~8.36%.

Stock Information

The stock has witnessed an upside of around 25.52% and 9.90% over the past month and the past six months, respectively. Moreover, it is trading above the average of its 52-week high price of USD 53.85 and 52-week low price of USD 14.9, with a closing price of USD 42.06 as of June 27, 2025.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is June 27 2025. The reference data in this report has been partly sourced from EODHD/Others.

 Technical Indicators Defined

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Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.