Lemonade, Inc. (LMND) AI Stock Analysis
LMND AI stock analysis summary
AI ResearchLemonade, Inc. (LMND) is an AI-driven digital insurance provider offering property, casualty, and life policies. The company grew revenue by 40.2% in FY2025 to $737.9M and delivered a 5-year revenue CAGR of 50.9%, but it remains unprofitable with a net loss of -$165.5M in FY2025 and trailing twelve-month net margin of -14.2%. Its balance sheet holds $353.5M in net cash as of June 30, 2026.
- Market cap
- $3.42B
- Revenue (TTM)
- $975.0M
- P/E
- —
- 1Y return
- -7.0% S&P 500 16.8%
- Avg. target
- $58.44 32.2% vs last close
Bull case
- Quarterly revenue grew 79.4% year-over-year in the quarter ended June 30, 2026, supporting a 5-year revenue CAGR of 50.9%.
- Gross margin expanded from 17.8% in FY2021 to 40.3% in FY2025 while operating margin improved from -181.9% to -21.8%.
- The company maintained a net cash balance of $353.5M with $559.9M in cash and short-term investments as of June 30, 2026.
Bear case
- Lemonade has not achieved annual profitability, reporting an annual net loss of -$165.5M in FY2025 and trailing twelve months EPS of -$1.82.
- Free cash flow remained negative at -$25.9M in FY2025, alongside an operating cash flow of -$16.5M.
- The current ratio stood at 0.68 as of June 30, 2026, and the 5-year share count increased by 24.8%.
What Lemonade does
Lemonade, Inc. provides a range of insurance products primarily in the United States and Europe. Established in 2015 and based in New York, the company applies artificial intelligence and behavioral economics to traditional insurance models. Its core offerings include coverage for stolen or damaged property, personal liability, and comprehensive policies for renters, homeowners, pet, car, and life insurance. Lemonade uses a proprietary AI-powered platform to facilitate faster claims processing and personalized policy management. In addition to direct insurance operations, Lemonade functions as an agent for other insurance companies.
Growth and profitability
Lemonade increased its revenue from $128.4M in FY2021 to $737.9M in FY2025, reflecting a 5-year revenue CAGR of 50.9%. Revenue rose 40.2% in FY2025, supported by gross margin expansion from 17.8% in FY2021 to 40.3% in FY2025. Operating margin improved from -181.9% in FY2021 to -21.8% in FY2025, while annual net losses narrowed from -$241.3M to -$165.5M over the same timeframe. For the trailing twelve months ended June 30, 2026, revenue totaled $975.0M with a net margin of -14.2% and EPS of -$1.82. In the latest quarter ended June 30, 2026, quarterly revenue grew 79.4% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Lemonade held $559.9M in cash and short-term investments against $206.4M in total debt, resulting in net cash of $353.5M. Total assets stood at $2.01B, shareholders' equity was $499.5M, and its debt-to-equity ratio was 0.41. The company reported a current ratio of 0.68. In FY2025, operating cash flow was -$16.5M, free cash flow was -$25.9M, and capital expenditures were $9.4M. Its share count increased 24.8% over five years.
Valuation and performance
Lemonade carries a market capitalization of $3.42B and an enterprise value of $3.29B. The stock trades at a price-to-sales multiple of 3.5x and an EV-to-revenue ratio of 3.4x, compared to a median price-to-sales multiple of 3.2x for its US-listed Financial Services peers. Its price-to-book ratio is 6.9x. Over the past year, Lemonade shares returned -7.0%, compared to a 16.8% return for the S&P 500 (SPY). Over five years, the stock returned -32.5% versus 83.0% for the S&P 500.
What analysts expect
Lemonade has a consensus breakdown of 2 Strong Buy, 1 Buy, 6 Hold, 0 Sell, and 2 Strong Sell ratings. The mean price target is $58.44, representing 32.2% upside from the October 16, 2026 close of $44.20. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.22B and an EPS of -$1.85. For the next fiscal year, 12 analysts project revenue of $1.64B and an EPS of -$1.10. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 4, 2026.
Key risks and what to watch
- Short interest is elevated, with short percent of float at 16.1%.
- The stock has a beta of 1.87 and trades 26.5% below its 200-day moving average.
- The company's current ratio of 0.68 indicates that short-term obligations exceed short-term liquid assets.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this LMND AI stock analysis
This page is an AI-written research summary of Lemonade, Inc. (LMND). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: LMND income statement, LMND balance sheet, LMND key metrics, LMND analyst forecast, LMND chart. See the LMND stock overview for the latest quote and news.
LMND AI stock analysis FAQ
Does Lemonade pay a dividend?
No, Lemonade does not pay a dividend.
What are analysts' price targets for LMND stock?
The mean analyst price target is $58.44, which is 32.2% above the last closing price of $44.20 on October 16, 2026.
When is Lemonade's next earnings report?
Lemonade's next earnings date is scheduled for November 4, 2026.
How much debt and cash does Lemonade have?
As of June 30, 2026, Lemonade held $559.9M in cash and short-term investments and $206.4M in total debt, leaving net cash of $353.5M.