Lemonade

LMND · NYSE · Financials · Financials, fiscal 2018 to 2025

LMND · Last close · October 26, 2026

$45.08

Lemonade's revenue rose 40.1% to $738 million in fiscal 2025. Its net margin was −22.4%, up from −38.4% a year earlier. Free cash flow was −$26 million. The diluted share count rose 4.1%.

Lemonade, Inc. Latest fiscal year ended December 31, 2025 10-K filed February 25, 2026 · 0001691421-26-000016 Updated October 24, 2026

Revenue

$738M

40.1%

Net margin

−22.4%

16.0 pts

Net income

−$166M

Free cash flow

−$26M

Return on equity

−29.4%

1.7 pts

Market cap

$3.5B

Oct 26 close

P/E

—

Loss: no P/E

Net margin is net income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on equity is net income as a share of shareholders' equity. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

Lemonade lost money in fiscal 2025: a net loss of $166 million.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Lemonade yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Lemonade's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

The example scenarios need a positive starting cash flow. Lemonade's free cash flow was negative in fiscal 2025 and over the last three years, and so is cash from operations minus depreciation. You can still enter your own figures in the calculator.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Lemonade's own revenue growth, as above. Cautious: growth of 10% then 6% a year, 2% after year 10, a 10% discount rate. Base: growth of 20% then 11% a year, 2.5% after year 10, a 9% discount rate. Optimistic: growth of 25% then 14% a year, 3% after year 10, a 8% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $45.08
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

The P/E method needs positive earnings, and Lemonade's latest diluted earnings per share were negative or zero.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	381	382	310	404	399
Debt incl. finance leases	—	—	—	—	—
Net debt (negative means net cash)	—	—	—	—	—
Net debt to EBITDA	—	—	—	—	—
Debt to equity	—	—	—	—	—
Interest coverage	—	—	−765.0x	−39.8x	−8.9x
Current ratio	—	—	—	—	—
Quick ratio	—	—	—	—	—

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Lemonade shares on the open market, and 6 insiders sold $37.7 million, $33.6 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Sep 4, 2026	John Sheldon PetersChief Insurance Officer	Sold plan	2,249	$54.45	$122,458	Form 4
Sep 3, 2026	Timothy E BixbyChief Financial Officer	Sold	1,893	$54.63	$103,415	Form 4
Sep 3, 2026	Maya ProsorChief Business Officer	Sold	1,040	$54.63	$56,815	Form 4
Sep 3, 2026	John Sheldon PetersChief Insurance Officer	Sold plan	859	$54.63	$46,927	Form 4
Aug 13, 2026	John Sheldon PetersChief Insurance Officer	Sold	11,000	$52.55	$578,050	Form 4
Jul 7, 2026	Timothy E BixbyChief Financial Officer	Sold plan	73,000	$79.18	$5.8 million	Form 4
Jul 6, 2026	John Sheldon PetersChief Insurance Officer	Sold plan	3,444	$79.00	$272,076	Form 4
Jun 4, 2026	John Sheldon PetersChief Insurance Officer	Sold plan	3,608	$52.94	$191,008	Form 4
Jun 3, 2026	Timothy E BixbyChief Financial Officer	Sold	2,227	$53.17	$118,410	Form 4
Jun 3, 2026	John Sheldon PetersChief Insurance Officer	Sold plan	1,735	$53.17	$92,250	Form 4
Jun 3, 2026	Maya ProsorChief Business Officer	Sold	1,220	$53.17	$64,867	Form 4
Mar 4, 2026	John Sheldon PetersChief Insurance Officer	Sold plan	3,571	$52.50	$187,478	Form 4

The latest 12 of 34 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Fail	Fail	Fail
Cash from operations is positive	Fail	Fail	Fail
Return on assets rose	Pass	Pass	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	—	—	—
Current ratio rose	—	—	—
Share count didn't rise	Fail	Fail	Fail
Gross margin rose	—	—	—
Revenue rose relative to assets	Pass	Pass	Pass
F-score	—	—	—
Accruals ratio	−7.1%	−11.0%	−7.9%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Lemonade side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Lemonade	FY25	40.1%	—	−3.5%	—	—	—
Kinsale Capital Group	FY25	18.0%	—	52.8%	28.7%	0.1x	—	Compare
RLI	FY25	6.3%	—	32.3%	—	—	—	Compare
Selective Insurance Group	FY25	9.8%	—	22.4%	14.6%	0.3x	—	Compare
Hanover Insurance	FY25	5.7%	14.2%	17.8%	21.3%	0.1x	—	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

8 years of figures

Fiscal year	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	22	67	94	128	257	430	526	738
Revenue growth	—	199.1%	40.3%	36.0%	99.9%	67.4%	22.5%	40.1%
Gross profit	—	—	—	—	—	—	—	—
Research and development	5	10	19	52	80	89	86	94
Operating income	—	—	—	—	—	—	—	—
Net income	−53	−108	−122	−241	−298	−237	−202	−166
Diluted EPS (US$)	−4.84	−9.75	−3.63	−3.94	−4.59	−3.40	−2.85	−2.24
Diluted shares (millions)	11	11	34	61	65	70	71	74
Cash flow
Cash from operations	−41	−78	−92	−145	−163	−119	−11	−16
Capital expenditure	1	3	4	9	10	9	9	9
Free cash flow	−42	−81	−96	−154	−173	−128	−21	−26
Dividends paid	0	0	0	0	0	0	0	0
Share buybacks	0	0	0	0	0	0	0	0
Acquisitions	0	0	0	0	99	0	0	0
Stock-based compensation	2	4	11	44	59	60	64	61
Balance sheet at fiscal year end
Cash and short-term investments	102	325	571	381	382	310	404	399
Debt incl. finance leases	—	—	—	—	—	—	—	—
Total assets	—	414	829	1,510	1,691	1,633	1,849	1,926
Total liabilities	—	117	288	522	824	924	1,256	1,392
Shareholders' equity	−79	−182	541	988	867	709	593	534
Margins and ratios
Gross margin	—	—	—	—	—	—	—	—
Operating margin	—	—	—	—	—	—	—	—
Net margin	−235.1%	−161.2%	−129.6%	−187.9%	−116.0%	−55.1%	−38.4%	−22.4%
Free cash flow margin	−184.4%	−120.1%	−101.8%	−119.9%	−67.4%	−29.9%	−4.0%	−3.5%
Return on capital	—	—	—	—	—	—	—	—
Return on equity	—	—	−68.2%	−31.6%	−32.1%	−30.1%	−31.1%	−29.4%
Return on assets	—	—	−19.7%	−20.6%	−18.6%	−14.2%	−11.6%	−8.8%
Net debt to EBITDA	—	—	—	—	—	—	—	—

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Lemonade's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Lemonade.