From Yahoo Finance: 2025-03-24 12:23:00

Lemonade (NYSE: LMND) stock has been volatile, down 81% from its 2021 highs. The insurance tech company saw significant growth in 2024, with a 26% increase in in-force premium and positive free cash flow. It aims to capture younger customers and expand its product offerings.

Despite progress, Lemonade’s profitability remains a concern due to a high loss ratio. Management believes in its models but acknowledges the learning curve for a young company. The fourth quarter showed improvement with a 63% loss ratio, but high marketing expenses led to a net loss.

Lemonade anticipates positive EBITDA in the future, aiming for $10 billion in in-force premium. Investors should weigh the potential for profitability against the current risk. The company’s growth strategy and digital infrastructure could lead to long-term success.

If you’re willing to take on risk and have patience, now could be a good time to consider investing in Lemonade stock. The company’s growth trajectory and commitment to refining its algorithm make it an intriguing opportunity for investors seeking long-term potential.

Read more: Time to Buy the Dip on Lemonade Stock?