Lemonade Shares Jump 29.54% on $620M Trading Surge, Rank 177th in Market Activity as Q2 Revenue Beats Estimates by 2.4%

On August 5, 2025, Lemonade (LMND) surged 29.54% with a trading volume of $620 million, marking a 560.25% increase from the previous day and ranking 177th in market activity. The digital insurer reported Q2 revenue of $164.1 million, a 34.5% year-over-year rise that exceeded analyst expectations by 2.4%. GAAP earnings per share of -$0.60 beat consensus estimates by 24.9%, driven by improved underwriting performance and cost management. Lemonade also raised its full-year revenue guidance to $710–$716 million, reflecting confidence in its growth trajectory.

Key drivers of the stock’s performance included a 26% year-on-year increase in net premiums earned to $112.5 million and a 29% rise in in-force premium to $1.08 billion. The company’s strategic shift in reinsurance—reducing cession from 55% to 20%—positioned it to retain more risk and revenue. European operations highlighted robust expansion, with in-force premium surging over 200% year-on-year to $43 million. Despite a -26% pre-tax profit margin, the company’s adjusted gross profit nearly doubled to $65.6 million, signaling progress in profitability.

While net premiums earned fell short of estimates by 2.6%, the stock’s sharp rally underscored investor optimism about its long-term potential. Lemonade’s AI-driven model and disciplined expense control have supported its growth, though challenges remain in customer retention and market saturation. The company’s focus on car insurance expansion and European markets remains critical to sustaining momentum.

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