Billing itself as “As an insurance company built for the 21st century“, Lemonade (NYSE:LMND) shares are up 3.9% over the past week and 39% over the past month, yet Reddit sentiment has climbed from a quarter average of 63.46 to a weekly average of 68.75. Unsurprisingly, retail investors are growing more bullish even as the stock retreats, and the reason is a genuine shift in the underlying business.
Retail investors closely watched Lemonade’s Q4 2025 earnings, which were reported on February 18-19, and saw the company deliver $228.1M in revenue, up 53% year-over-year, and $17.6M in GAAP free cash flow. For a company that has burned cash since its 2020 IPO, that number matters in a meaningful way. The gross loss ratio dropped to 52%, down 11 percentage points year-over-year, and gross profit expanded 73% to $110.6M. CEO Daniel Schreiber explained the mechanics:
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