Why Lemonade Stock Jumped and Crashed Today
Shares of Lemonade (NYSE: LMND) started Thursday's trading on a sweet note, opening the day 13.9% above Wednesday's closing price. But the buzz didn't last long. 90 minutes later, Lemonade was down 6.8% instead. As of this writing at 12:35 p.m. ET, the stock had settled at a 5.5% price drop. The chief reason for this drama was a spectacular earnings report paired with lofty valuation multiples.
In Q4 2025, Lemonade's in-force premium rose 31% year over year to $1.24 billion. Revenues rose faster with a 53% leap to $228 million. Gross profit soared 73% to $111 million.
The bottom line was still printed in red ink, but the net loss shrank from $0.42 to $0.29 per share. The company generated $37 million of free cash flow, up from $27 million in the year-ago period.
Source Fool.com
