📊 LMND Key Takeaways
Is LMND a Good Investment? Thesis Analysis
Lemonade demonstrates strong top-line growth (40.2% YoY) but exhibits a fundamentally unsustainable business model with persistent negative operating cash flow (-$16.5M), negative free cash flow (-$25.9M), and a -22.4% net margin despite $737.9M in revenue. As an insurance company, profitability is non-negotiable for long-term viability, and the lack of clear trajectory toward breakeven despite scaling revenue indicates severe underlying unit economics or operational issues.
Why Buy LMND? Key Strengths
- Robust revenue growth at 40.2% YoY demonstrates market traction and customer acquisition
- Fortress balance sheet with $385M cash, no long-term debt, and 0.00x debt/equity provides substantial runway
- Improving loss trajectory with EPS loss improving 21.4% YoY shows some operational progress
LMND Investment Risks to Consider
- Negative operating cash flow (-$16.5M) and free cash flow (-$25.9M) indicate unsustainable cash burn despite revenue growth
- Deeply unprofitable with -22.4% net margin and negative ROE (-31.0%), ROA (-8.6%) destroying shareholder value
- No clear path to profitability in insurance sector where sustained losses are incompatible with long-term viability; cash runway at current burn rate is finite
Key Metrics to Watch
- Quarterly operating cash flow trend—must turn positive to validate business model sustainability
- Net loss progression—pace of loss reduction must accelerate toward breakeven within 12-18 months
- Loss ratio and expense ratios by segment—critical to confirm underlying insurance economics are improving
LMND Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
LMND Profitability Ratios
LMND vs Finance Sector
How Lemonade, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LMND Overvalued or Undervalued?
Based on fundamental analysis, Lemonade, Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
LMND Balance Sheet & Liquidity
LMND 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Lemonade, Inc.'s revenue has grown significantly by 475% over the 5-year period, indicating strong business expansion. The most recent EPS of $-3.40 indicates the company is currently unprofitable.
LMND Growth Metrics (YoY)
LMND Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $136.6M | -$37.5M | $-0.51 |
| Q2 2025 | $122.0M | -$43.9M | $-0.60 |
| Q1 2025 | $119.1M | -$47.3M | $-0.67 |
| Q3 2024 | $114.5M | -$47.3M | $-0.88 |
| Q2 2024 | $104.6M | -$47.3M | $-0.81 |
| Q1 2024 | $95.2M | -$47.3M | $-0.67 |
| Q3 2023 | $74.0M | -$61.5M | $-0.88 |
| Q2 2023 | $50.0M | -$65.8M | $-0.97 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LMND Capital Allocation
LMND SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Lemonade, Inc. (CIK: 0001691421)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 20, 2026 | 4 | xslF345X06/wk-form4_1774037131.xml | View → |
| Mar 20, 2026 | 4 | xslF345X06/wk-form4_1774037103.xml | View → |
| Mar 12, 2026 | 4 | xslF345X05/wk-form4_1773351298.xml | View → |
| Mar 10, 2026 | 4 | xslF345X05/wk-form4_1773175979.xml | View → |
| Mar 10, 2026 | 4 | xslF345X05/wk-form4_1773175851.xml | View → |
❓ Frequently Asked Questions about LMND
What is the AI rating for LMND?
Lemonade, Inc. (LMND) has an AI rating of SELL with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are LMND's key strengths?
Claude: Robust revenue growth at 40.2% YoY demonstrates market traction and customer acquisition. Fortress balance sheet with $385M cash, no long-term debt, and 0.00x debt/equity provides substantial runway.
What are the risks of investing in LMND?
Claude: Negative operating cash flow (-$16.5M) and free cash flow (-$25.9M) indicate unsustainable cash burn despite revenue growth. Deeply unprofitable with -22.4% net margin and negative ROE (-31.0%), ROA (-8.6%) destroying shareholder value.
What is LMND's revenue and growth?
Lemonade, Inc. reported revenue of $737.9M.
Does LMND pay dividends?
Lemonade, Inc. does not currently pay dividends.
Where can I find LMND SEC filings?
Official SEC filings for Lemonade, Inc. (CIK: 0001691421) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LMND's EPS?
Lemonade, Inc. has a diluted EPS of $-2.24.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LMND a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Lemonade, Inc. has a SELL rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LMND stock overvalued or undervalued?
Valuation metrics for LMND: ROE of -31.0% (sector avg: 12%), net margin of -22.4% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy LMND stock in 2026?
Our dual AI analysis gives Lemonade, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LMND's free cash flow?
Lemonade, Inc.'s operating cash flow is $-16.5M, with capital expenditures of $9.4M. FCF margin is -3.5%.
How does LMND compare to other Finance stocks?
Vs Finance sector averages: Net margin -22.4% (avg: 25%), ROE -31.0% (avg: 12%), current ratio N/A (avg: 1.2).