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Lemonade Sets Feb. 19 Q4 Earnings Update as Rally Meets Valuation Jitters

The update will test lofty expectations for a high‑priced, AI‑driven insurer pursuing adjusted‑EBITDA profitability this year.

Overview

  • Lemonade has scheduled its fourth‑quarter earnings release for Feb. 19, providing the next check‑in on its turnaround narrative.
  • Management guidance points to in‑force premium up 29% year over year, revenue up 48%, and an adjusted‑EBITDA loss of $14.5 million with a goal of adjusted‑EBITDA profitability by year‑end.
  • The company reports materially improving unit economics, including a trailing 12‑month loss ratio that fell roughly 10 percentage points by Q3 2025 versus the prior year.
  • Shares have roughly doubled over the past year but recently pulled back as insiders sold stock and investors questioned a roughly 9x price‑to‑sales valuation.
  • Lemonade continues to lean on its AI/ML model and a strategy of acquiring renters and homeowners at lower prices with plans to cross‑sell higher‑margin products over time.