Lemonade (LMND) Reports Record Gross Profit and 53% Revenue Growth in Q4 2025

Lemonade Inc. (NYSE:LMND) is one of the best fintech stocks to invest in. On February 19, Lemonade reported its Q4 2025 earnings report, with in-force premiums rising 31% to $1.24 billion and revenue surging 53% to $228 million. The company achieved a record gross profit of $111 million, a 73% year-over-year increase, while narrowing its adjusted EBITDA loss to just $5 million.

A major highlight was the launch of ‘Lemonade Autonomous Car,’ which is a telematics-based product initially for Teslas that prices risk in real time based on whether the vehicle is parked, human-driven, or AI-operated. By integrating with onboard computers, Lemonade prices AI-driven miles at ~50% of the cost of human-driven miles, reflecting the increased safety of autonomous technology. This AI-first approach extends to their internal operations, where the company is investing heavily in a pricing machine and a revenue machine to enhance underwriting precision and cross-selling capabilities.

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For 2026, management expects to maintain a 30% growth rate while targeting full EBITDA profitability by Q4 2026 and for the entire FY2027. Despite a net loss of $22 million for the quarter, Lemonade Inc. (NYSE:LMND) maintains a robust balance sheet with $1.1 billion in cash and investments.

Lemonade Inc. (NYSE:LMND) provides various insurance products in the US, Europe, and the UK. The company offers renters & homeowners, building, car, pet, and life insurance products, as well as landlord insurance products.

While we acknowledge the potential of LMND as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the

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