8Mon·

Lemonade Q2'25 result highlights 🚀👌

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Revenue: $164.1M (Est. $161.4M) ✅; UP +46% YoY
EPS: -$0.60 (Est. -$0.80) ✅
In-Force Premium: $840M; UP +22% YoY

Customer & Premium Metrics

Premium per Customer: $394; UP +11% YoY
Total Customers: 2.1M; UP +10% YoY
Policies in Force: 2.13M
Annual Dollar Retention (ADR): 87%

Other Q2 Metrics:

Gross Profit: $41.3M; UP +91% YoY
Adj EBITDA: -$30.4M
Net Loss: $41.6M
Gross Loss Ratio: 77% (vs. 94% YoY)
Cash & Investments: $888M
Net Cash Used in Operating Activities: -$29.8M

CEO comment:

🟡 "We achieved record sales and margin improvements. This is the strongest second quarter in Lemonade's history."

🟡 "We are on track to achieve our target of adjusted EBITDA profitability by mid-2026."

$BRO (-3.68%)
$BRK.B (+0.49%)
$BRK.A (-0.16%)
$PGR (+0.34%)
$ALV (-1.3%)
$MUV2 (-0.6%)
$CS (-1.47%)
$HNR1 (-0.69%)
$UNH (-0.51%)
$ALL (-0.55%)
$601318
$CB (-0.18%)
$ZURN (-0.25%)
$TLX (-1.48%)
$HSX (-0.25%)

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53 Comments

BamBamInvest@BamBamInvest

8Mon

@Simpson the chart is improving 😉 earnings today 👌

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Tenbagger2024@Tenbagger2024

8Mon

@BamBamInvest
You had a good nose.

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BamBamInvest@BamBamInvest

8Mon

@Tenbagger2024 Only time will tell, I'm not looking for quick profits here, but since the reinsurance ratio alone has been reduced from 70% to 30%, I think it was already clear that things must be going well. Let's see if the rocket has now been sustainably ignited. ✌️

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Yasin21@Yasin21

8Mon

@BamBamInvest Wow, how do you get the idea to inform yourself about the quota? I wouldn't have dreamed of it😅

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BamBamInvest@BamBamInvest

8Mon

@Yasin21 well, you don't read up on it directly, you just read the company news in the respective forums. I simply read a lot and then form an opinion. If I like a company or business model, I keep a very close eye on it.

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8Mon

Wow

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BamBamInvest@BamBamInvest

8Mon

@Semos25 Let's see what happens when the Americans open, short rate also relatively high.

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Cai-pirinha@Cai-pirinha

8Mon

@BamBamInvest looks ok 😀

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BamBamInvest@BamBamInvest

8Mon

@Cai-pirinha yes is quite ok, hedged my $HIMS position today 😂

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Cai-pirinha@Cai-pirinha

8Mon

@BamBamInvest luckily i only went back in today 😀 and expanded lemonade by another 10 after your post. thanks!

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Cai-pirinha@Cai-pirinha

8Mon

@BamBamInvest now there's even more drive coming in... is running after all 😀

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8Mon

@BamBamInvest Guess who's late again with the entry. I read up on the company and read your article, but wanted to wait for the figures. 🤦‍♀️ And now the share is flying like there's no end. Congratulations, you had a good nose!

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Kai@Kai16081989

8Mon

Hims is also steep again 😂

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BamBamInvest@BamBamInvest

8Mon

@Semos25 That's why I buy when I really want to have a company in my portfolio and then add to it. (See $ELF at the time) I was aware that the share price would rise quickly when it picked up, so I wanted to increase the position before earnings. The reduction of the reinsurance from 70% to 30% was the decisive sign for me that things must be going well, the confidence is there and the AI-based training is working. But let's see how things continue.

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BamBamInvest@BamBamInvest

8Mon

@Kai16081989 I had somehow also suspected that the headwind without GLP 1 was clear 👍

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BamBamInvest@BamBamInvest

8Mon

@Cai-pirinha 🤣🚀 Let's see if it holds up, but I now expect prices to rise sustainably. 👌

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View all 11 further answers

Kai@Kai16081989

8Mon

Only Novo continues to go down 🥸

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BamBamInvest@BamBamInvest

8Mon

@Kai16081989 Patience, they'll be back

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HyperX@AxoWallStreet

8Mon

You really seem to have a golden touch 😁

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Chris@Multibagger

8Mon

@GGHyperX well, actually, my entry was the decisive point, just like at $IREN. 😉😎😂

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BamBamInvest@BamBamInvest

8Mon

@GGHyperX I'm at least trying 🤣

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BamBamInvest@BamBamInvest

8Mon

@Multibagger that's always the price acceleration, but I had stocked up strongly before the figures because I had fomo and didn't want to miss the train. 🤣

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Chris@Multibagger

8Mon

@BamBamInvest I also increased my position by 50%. From 2 to 3% of my portfolio volume.

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BamBamInvest@BamBamInvest

8Mon

@Multibagger That's the way 👍. If they can scale up properly and roll out the products further in areas that are not at risk of natural disasters (because that's where they're going in the home sector) then things will take off. In the pet market alone, which is growing strongly until 2030, if they only maintain their market share here, this would be roughly the current valuation. I am extremely bullish, especially if the gross loss ratio continues to fall. The leverage is mainly in AI, as the core of the company is built on AI and not trying to implement AI like other companies. 💪

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BamBamInvest@BamBamInvest

8Mon

@Multibagger A company with 80% growth (800,000 customers) with falling operating costs, a rare experience 👌🚀

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Chris@Multibagger

8Mon

@BamBamInvest yes, these pearls must be found!😂😎

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BamBamInvest@BamBamInvest

8Mon

@Multibagger Exactly, especially if Wall Street sees it differently, these are the opportunities you have to take advantage of. Let's see how sustainable it is now 👍

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Kai@Kai16081989

8Mon

Ok, that's wild today :)

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BamBamInvest@BamBamInvest

8Mon

@Kai16081989 seems so, some short positions are likely to be covered. 🤣

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Silas@DynasticGrind

8Mon

Wait a minute... This isn't a lemonade stand at all?!

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Bud@Pari_e_dispari

8Mon

@BamBamInvest Thank you for your analysis! I only came across Lemonade through you and I share your view on the company! I recently had a discussion with a friend who is an insurance broker about whether reinsurers are still necessary in the AI age. If not, primary insurers would benefit greatly from it

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BamBamInvest@BamBamInvest

8Mon

@equity_expert_599 I'm very happy to hear that! ☺️ Really an exciting company ✌️ Insurers could benefit greatly from digitization and those insurers that have been built digitally and with AI at their core could benefit even more from having a uniform system. Many insurers have to integrate so much different software from outside and do not want to move away from their old system, furthermore many do not want to become dependent on an outside company and then try to program their software themselves. That's what makes $LMND so exciting, you can't simply replicate it and it's almost impossible to switch to a large, entrenched company 👌

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Bud@Pari_e_dispari

8Mon

@BamBamInvest That's true, but I recently added an allianz to my portfolio so that I can use it for two purposes. I've read a few articles that AI is already deciding claims there too. Nevertheless, I agree that it is easier for a Lemonade with AI-focused processes to win new customers and improve margins than to completely change its old business processes.

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Cash B.@Lumimyrsky

8Mon

geil

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8Mon

@BamBamInvest Thank you also for your detailed analysis recently, which prompted me to look into the company in the first place. However, I see the share as a long-term investment in my portfolio.

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BamBamInvest@BamBamInvest

8Mon

@DanDoDan With pleasure, I'm delighted! I always find it exciting when you deal with companies and can then pass this added value on to other people. Above all, several people are then also informed about it and you may come to an exchange or current news are then also shared to stay on the ball should something change. That's why my portfolio tends to be smaller, so that I can follow the companies better. If you have 20 companies and more, it becomes increasingly difficult. ☺️

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8Mon

Not yet on the radar - what exactly do they do and why can't anyone else do it?

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BamBamInvest@BamBamInvest

8Mon

@PaulPK see here : https://getqu.in/39ZsXL/

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8Mon

@BamBamInvest very exciting - but easy to copy? I could build such a bot to handle insurance claims... everything else is pure math and reinsurance. Wouldn't be an investment case for me. Replicable var, catchable no own patented tech . Why are you in ?

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8Mon

@BamBamInvest but the sector is exciting

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BamBamInvest@BamBamInvest

8Mon

@PaulPK It's not that easy to copy, as you have to build the company itself from the ground up and an existing insurer cannot implement this transformation with x different systems. The system also needs to be trained, which takes years. You also cannot roll this out simultaneously for every line of business and for every federal state, as the quotation has to be made differently for each risk. First mover advantage etc. A traditional insurer has a number of different programs and systems and is usually so large and entrenched that it cannot implement this and does not want to take the risk that it will not work. The business model is also not so easy to copy and not every shareholder will like the fact that you donate part of your profits/income to charity. At least that's the superficial summary. If you're interested in the company, take a closer look and you'll see what I mean.

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BamBamInvest@BamBamInvest

8Mon

@PaulPK Take a look at the TAM, you can expand relatively quickly and don't really need staff in the various countries. An existing insurer will not simply start laying off 5,000 employees that it no longer needs.

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