Lemonade today
As of 12.06.2025, 2:59
- 52-week range
- $ 14.03
▼
$ 53.85
- Value is valuable
- $ 28.17
After a long period of intensive volatility Lemonade, Inc. NYSE: LMND He returned in the spotlight. A Insurance technology The company’s shares brought a powerful profit to shareholders, increased by about 170% over the past 12 months and only by 40% over the past month over the past month. This impressive rally forced investors to view a market noise and overestimate the company Long -term potentialThe revival of fundamental debate.
At its core, the issue related to lemonade is simple: is its original technology created by technology, focused on technological intelligence (AI), the insurance model is a sustainable competitive advantage that violates the industry in several trillion? Or is it just an expensive experiment that has yet to prove that he can get a consistent profit? While real arguments exist on both sides, a more attentive view of the developing foundations of the company reveals attraction to strengthen investment.
Car insurance with lemonade takes the steering wheel
Despite the impressive Lemonade mileage over the past 12 months, analysts are still skeptical of the company. Retail trade also remains a bear, which is obviously in an extremely high short percentage, and more than 29% of lemonade shares are sold.
Counteracting the skepticism of the market is undeniable and Acceleration of growthThe company’s premium company (IFP), a key metric, representing the total annual value of all its active politicians, has recently surpassed a milestone of $ 1 billion. This rapid expansion is increasingly working in lemonade, which is now the largest and most fast -growing segment of the company’s products.
The strategic significance of this expansion in car insurance cannot be exaggerated. Lemonade has built its brand and the initial client base on the insurance of tenants and homeowners, but the car market is much larger and offers a richer source of repeated income. Critically, the company demonstrates The ability to use The existing base is about 2.5 million customers for the effective use of this growth.
According to the company’s reports, about half of all new authorities are sold to existing clients with lemonade. For investors, this is a powerful signal. The acquisition of a new client is a significant expense for any insurer; Successfully sold to its base, lemonade sharply reduces this cost, creating a more effective and financially viable way to scale its most important business line.
Lemonade develops a clearer view of profitability
The most significant argument against lemonade was always the lack of profitability. The company consistently reports on net losses in its profit and loss report, the fact that investors cannot ignore. Nevertheless, focusing attention exclusively on income on a line per share (EPS) can hide a significant progress achieved in the main business. To see this, investors must consider the coefficient of gross loss. This indicator, which shows the percentage of bonuses paid in accordance with claims, is the main indicator of the health of the insurer.
In the first quarter of 2025, the total Lemonade loss coefficient was 78%. Although this is still higher than him The purpose of profitabilityThe figure includes the unpredictable influence of the main events, such as forest fires and storms. When these main disasters (CAT) are excluded, the loss factor per quarter was only 59%. This is a vital part of the data for evaluating business. Company Long -term goal In relation to its coefficient, losses are less than 75%.
The fact that its main business, devoid of weather phenomena, is already working much lower than this goal, is convincing evidence that its underwriting models are studying and becoming more and more effective for the risk of pricing. This tangible progress gives the significant reliability of the declared goal of the leadership to achieve the adjusted profitability of EBITDA by 2026.
Lemonade, Inc. prices diagram (LMND) on Friday, June 13, 2025.
Technological moat and security network
The entire Lemonade infrastructure is designed to create long -term structural advantages that inherited players can try their best to reproduce. Using the chat -bots of artificial intelligence for sales and maintenance, and using data from smartphones for informing about pricing by car policies, the company strives for significant work with lower overhead costs than traditional insurers who are burdened with manual processes and large agent networks. This creates a scalable model created for efficiency.
This technological approach is protected Healthy financial networkIn the form of reinsurance, which is essentially insurance for insurers. This is a common practice, but Lemonade uses it strategically to manage its growth. The company claims to be 55% of its awards and the corresponding 55% of its complaints to its reinsurance partners. For investors, this strategy offers two key advantages: it protects the company’s finances from the influence of one large -scale event on losses, and reduces the amount of capital, which the company must hold on the balance sheet, releasing Cash for investing in further growth And the acquisition of customers.
High risk rate in insurance
Significant risks and widespread market skepticism, of course, remain for lemonade, and shares are not for the faint of heart. The path forward will probably remain unstable. However, evidence Acceleration of growth In products with high cost, a clear improvement in the main profitability indicators and the effective operating model becomes too convincing for investors focused on growth to ignore.
For those who have a long -term horizon and appetite to support the potential violation of the industry, Lemonade represents a powerful one, High risk, high -ranking invest in the future of insurance.
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