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Lemonade Posted Its First Positive Cash Flow Quarter And Reddit Is Getting Bullish

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Quick Read

  • Lemonade (LMND) posted $17.6M in GAAP free cash flow for Q4, its first positive quarter since the 2020 IPO.

  • Lemonade launched autonomous car insurance pricing Tesla FSD miles at 50% below human-driven rates.

  • Lemonade’s revenue grew 53% while headcount declined 6% since Q3 2022.

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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:

The post Lemonade Posted Its First Positive Cash Flow Quarter and Reddit Is Getting Bullish appeared first on 24/7 Wall St..