• Tesla for insurance
• Robinhood for insurance
• Warby Parker for insurance

• Renters Insurance: Protects renters' personal belongings and provides liability coverage.
• Homeowners Insurance: Covers a homeowner's dwelling, personal property, and offers liability protection.
• Car Insurance: Provides coverage for vehicle damage, property damage, and bodily injury liability.
• Pet Insurance: Helps cover veterinary expenses for accidents, illnesses, and preventative care for pets.
• Life Insurance: Offers a financial payout to beneficiaries upon the policyholder's passing.

Lemonade (LMND) primarily sells insurance directly to individuals rather than to other companies. Its major customers can be categorized as follows:

1. Individuals Seeking Property Insurance: This category includes renters and homeowners who are looking for insurance coverage for their residences and belongings. They are often attracted by Lemonade's digital-first approach, ease of use, and innovative technology for policy management and claims.
2. Pet Owners: These are individuals who purchase health insurance for their cats and dogs. Customers in this category typically value the convenience of managing pet insurance policies through an app and the simplicity of the claims process.
3. Individuals Seeking Life Insurance: This segment comprises people looking for term life insurance. They are often drawn to Lemonade's promise of a fast, digital, and hassle-free application process, contrasting with more traditional and often cumbersome life insurance purchasing experiences.

• Munich Re Group (MURGY)
• Amazon.com, Inc. (AMZN)

Daniel Schreiber, Chief Executive Officer

Daniel Schreiber is the Co-Founder and CEO of Lemonade, appointed in June 2015. Before co-founding Lemonade, he served as President of Powermat Technologies, a pioneer in wireless charging. He also held senior roles as SVP and General Manager at SanDisk, a global leader in flash memory chips. Schreiber's career began as a corporate-commercial attorney, and he also co-founded Alchemedia Inc. Lemonade itself was backed by venture capital firms such as Sequoia Capital, General Catalyst, and Google Ventures.

Tim Bixby, Chief Financial Officer

Tim Bixby has served as Lemonade's Chief Financial Officer since June 2017, playing a crucial role in managing the company's financial health and strategic planning. His extensive background includes serving as CFO of Shutterstock, Inc. from 2011 to 2015. Prior to that, he held multiple key positions at LivePerson, Inc. from 1999 to 2011, including CFO, President, and board member. Bixby has experience leading three IPOs on the NYSE and Nasdaq, and currently serves as Audit Chair and Board Director of Rent the Runway since 2021.

Shai Wininger, President and Director

Shai Wininger is a Co-Founder of Lemonade, established in June 2015, and currently serves as President and Director. He is a prolific tech entrepreneur, best known for co-founding Fiverr in 2009, a global online marketplace for freelance services, where he also served as Chief Product Officer and Chief Technology Officer. Wininger remains on the board of Fiverr. His entrepreneurial ventures also include co-founding Mobideo Aerospace and founding Handsmart Software and Trimus Inc.

John Peters, Chief Insurance Officer

John Peters serves as the Chief Insurance Officer at Lemonade, having joined the company in 2016. He is recognized for his expertise in commercial insurance, actuarial science, and his ability to drive innovation and efficiency within the insurance sector. Before his tenure at Lemonade, Peters held executive roles at Liberty Mutual Insurance and was a partner at McKinsey & Company.

Adina Eckstein, Chief Operating Officer

Adina Eckstein is the Chief Operating Officer at Lemonade, responsible for overseeing the company's day-to-day operations and ensuring operational efficiency. Her expertise lies in digital channels and mobile delivery. Prior to joining Lemonade, Eckstein held various leadership roles at HSBC and the BBC, and was involved in sales and product development at Tvinci and Ecoppia.

The most significant risk to Lemonade is its **history of unprofitability and the ongoing challenge to achieve sustained profitability**. Since its inception in 2015, Lemonade has consistently reported losses, with an accumulated deficit of $1,298.8 million as of December 31, 2024. While the company has shown improvements in reducing net losses and aims for adjusted EBITDA profitability by Q4 2026 and GAAP profitability by Q4 2027, the journey to sustained profitability remains uncertain. This persistent net loss and cash burn rate are major concerns for investors.

Secondly, Lemonade faces **increased exposure to claims volatility due to a strategic shift in its reinsurance strategy**. Effective July 1, 2025, the company reduced its quota share cession rate, the portion of premiums ceded to reinsurers, from approximately 55% to 20%. While this move is intended to boost GAAP revenue growth and reflects management's confidence in its underwriting performance, it also means Lemonade retains significantly more risk internally. This increased retention exposes the company to higher volatility from major catastrophe events and large claims, which could adversely affect its financial results and delay its path to profitability.

Finally, **regulatory challenges and intense competition** pose a notable risk to Lemonade's business model. As an insurance provider, Lemonade is subject to extensive and varying regulations across different jurisdictions. Changes in these regulatory requirements, or a failure to comply, could impact its operations, financial condition, and reputation. Furthermore, the insurance industry is highly competitive, with established traditional insurers and other tech-driven startups vying for market share. This competition, coupled with challenges in some states where regulators are reluctant to allow insurers to raise prices in line with inflationary pressures, can squeeze Lemonade's profit margins and hinder its growth.

One clear emerging threat for Lemonade is the **hardening global reinsurance market**. Lemonade’s business model relies heavily on reinsurance to manage risk and capital, often ceding a significant portion of its premiums. Due to increasing global catastrophe losses, inflation, and higher capital costs for reinsurers, the reinsurance market has seen substantial rate increases and tighter terms. This trend directly impacts Lemonade’s cost of doing business, its profitability, and its capital efficiency, potentially undermining its strategy for scaling and growth by making risk transfer more expensive or less available.

Another clear emerging threat is the **increasing regulatory scrutiny and potential restrictions on the use of Artificial Intelligence (AI) and Machine Learning (ML) in insurance underwriting and claims processing**. Regulatory bodies around the world are actively developing guidelines and potential legislation concerning AI ethics, transparency, explainability, and bias in financial services. Given that Lemonade’s core competitive advantage and operational efficiency are built upon its proprietary AI models, any significant regulatory mandates that require substantial modifications to its AI systems could lead to costly operational overhauls, increased compliance burdens, and potentially diminish the speed and efficiency that differentiate its product offerings.

Lemonade (LMND) offers several insurance products primarily in the United States, with a growing presence in Europe. The addressable markets for their main products are as follows:

• Pet Insurance (U.S.): The U.S. pet insurance market was estimated at USD 5.11 billion in 2024 and is projected to reach USD 25.21 billion by 2033, growing at a compound annual growth rate (CAGR) of 19.14% from 2025 to 2033.
• Car Insurance (U.S.): The auto insurance market in the United States is approximately $300 billion. Lemonade Car is available in states that represent about 42% of the U.S. car insurance market. For specific states where Lemonade operates, Coloradans spend around $7 billion annually on car insurance, and Indiana residents spend an estimated $5 billion annually.
• Renters Insurance (U.S.): While a precise overall market size was not explicitly found in a singular figure, the auto insurance market is noted to be 70 times the size of the renters or pet insurance markets. Additionally, renters insurance is less than 10% of the broader homeowners market.
• Homeowners Insurance (U.S.): A specific total market size for U.S. homeowners insurance was not directly stated; however, renters insurance is indicated to be less than 10% of the broader homeowners' market.
• Life Insurance (U.S.): null

Lemonade (LMND) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Expansion of Lemonade Car Insurance: The Lemonade Car segment is a significant growth engine, demonstrating approximately 40% year-over-year in-force premium (IFP) growth in Q3 2025. Over half of new car insurance policies were sold to existing Lemonade customers, which leads to efficient customer acquisition without significant additional costs. The company continues to expand its car insurance offerings into new states.
2. Geographic Expansion, particularly in Europe: Lemonade is actively expanding its presence beyond the United States into European markets, including the UK. The European segment showed robust growth, with IFP increasing over 200% year-over-year in Q2 2025, and it is noted for delivering a higher volume of new business per dollar of growth expenditure compared to the US market.
3. Customer Growth and Cross-selling of Multiple Products: Lemonade continues to grow its customer base, with a 24% increase in customer count reported in Q3 2025. A key strategy involves increasing premium per customer by cross-selling additional insurance products, such as pet, renters, homeowners, and life insurance, to existing policyholders. This approach enhances customer lifetime value and reduces customer acquisition costs for new policies.
4. Leveraging AI and Technology for Product Innovation and Operational Efficiency: Artificial intelligence (AI) is central to Lemonade's growth strategy, optimizing gross profit, refining pricing, and improving risk selection models. AI-driven automation contributes to operational efficiency by reducing the loss adjustment expense ratio and enabling scalable, cost-effective claims handling. Furthermore, the "Local platform," a no-code product builder, is expected to accelerate the launch of new insurance products and improve operational leverage.

Share Repurchases

Share Issuance

• Lemonade completed its initial public offering (IPO) on July 7, 2020, issuing and selling 12,650,000 shares of common stock at $29.00 per share, which generated net proceeds of $335.6 million.
• In January 2021, Lemonade announced a second public offering of an additional 3 million common shares.
• In 2020, Lemonade contributed 500,000 issued shares of common stock to the Lemonade Foundation.

Outbound Investments

• Lemonade acquired Metromile, an all-stock transaction initially valued at approximately $500 million when announced in November 2021. The deal closed in July 2022, with Metromile shareholders receiving 7.3 million LMND shares. This acquisition was primarily aimed at accelerating Lemonade's entry into the car insurance market and gaining Metromile's 49 state licenses.

Capital Expenditures

• Lemonade reported capital expenditures of approximately $3 million for the full year 2023.
• The company anticipates capital expenditures of approximately $10 million for the full year 2024.
• For the last 12 months, capital expenditures were -$9.50 million.