Lemonade's Customer Growth and Profitability Outlook Drive Stock Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 21 Jan 26
Source: Benzinga
Lemonade Inc (LMND) saw its stock rise by 6.75% as it crossed above the 5-day SMA, reflecting positive investor sentiment.
The company's customer base has nearly tripled from 1 million at the end of 2020 to 2.87 million by Q3 2025, with projected revenue and adjusted EBITDA growth at a CAGR of 44% from 2025 to 2027. This growth, combined with management's guidance for positive adjusted EBITDA in 2026, has instilled confidence among investors regarding future profitability.
As Lemonade continues to innovate its digital insurance platform and improve its loss ratio, the outlook for the company remains strong, positioning it as a compelling long-term investment.
Analyst Views on LMND
Wall Street analysts forecast LMND stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LMND is 77.60 USD with a low forecast of 40.00 USD and a high forecast of 98.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
2 Buy
3 Hold
1 Sell
Hold
Current: 91.280
Low
40.00
Averages
77.60
High
98.00
Current: 91.280
Low
40.00
Averages
77.60
High
98.00
About LMND
Lemonade, Inc. offers renters, homeowners, car, pet, and life insurance. The Company operates through the United States, Europe, including the United Kingdom, providing insurance products to customers through various sales channels. The Company's digital substrate enables it to integrate marketing and onboarding with underwriting and claims processing, collecting, and deploying data. Its technology includes Data Advantage, AI Maya, AI Jim, CX.AI, Forensic Graph, Blender, and Cooper. AI Maya, its onboarding and customer experience bot, uses natural language to guide customers in joining the Company. AI Jim, its claims bot, takes the first notice of loss from its customer without human intervention. It offers pet insurance that covers diagnostics, procedures, medication, accidents or illness. Even its basic pet insurance offering covers blood tests, urinalysis, lab work, and computed tomography scans.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
