Lemonade Inc. Common Stock (LMND)

FairStock Score: 39/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Lemonade is a fast-growing property-and-casualty insurer, but growth alone does not make an insurance franchise. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $294.4M and net income was -$43.4M, or -$0.56 per diluted share. Revenue rose from $164.1M in fiscal Q2 2025, the quarter ended 2025-06-30, a strong top-line advance, yet the company still posted a loss. For full FY2025, revenue was $737.9M and net income was -$165.5M; FY2024 revenue was $526.5M with net income of -$202.2M; FY2023 revenue was $429.8M with net income of -$236.9M. The loss is narrowing, but Lemonade has not demonstrated consistent underwriting profit. The Lynch category is none because it lost money in each of the last four years, and FairStock's Piotroski F-Score is 2/9. Financial health is weak: FairStock's ROE is -26.96% and ROCE is -3.27%, so capital is not compounding. The debt-to-equity ratio is 0.45, which is not alarming, but the FairStock P/B of 6.92 at the 2026-10-13 close is rich for a money-losing insurer. I cannot assess combined ratio, CET1, or net interest margin because they are not in the data; for an insurer, the combined ratio and reserve development matter enormously. Growth and customer acquisition are strengths, but I need evidence of durable underwriting profit and lower customer acquisition costs. Until then, the price looks speculative rather than Graham-cheap.

In plain English: Lemonade sells renters, home, pet, car and life insurance, mostly online. The company is growing sales quickly, but it still loses money and has done so for years, so the business does not yet look strong. At the 2026-10-13 close of $44.71, investors are paying a lot compared with its accounting net worth while profits are negative, so the price looks expensive rather than cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer