Is It Too Late to Buy Lemonade Stock?

Core Viewpoint - Lemonade has shown signs of improvement in its business performance, particularly in loss ratios and claims handling efficiency, despite a history of weak share price performance since its IPO in 2020 [2][3][7]. Company Performance - Lemonade went public in 2020 with a mission to create a more appealing insurance experience through a digital-first model utilizing AI [1]. - The stock has experienced significant volatility, losing 80% of its value from February 2021 to February 2025, but has recently seen a recovery, trading around $60 after nearly doubling in the past year [2][3]. - The company reported a trailing-12-month gross loss ratio of 77% in Q3 2024, which improved to an all-time low of 62% by Q3 2025, indicating better pricing accuracy and claims predictability [7]. Industry Context - The industry loss ratio for property and casualty insurance was reported at 68.4% as of September 2025, providing a benchmark for evaluating Lemonade's performance improvements [8]. - The upcoming Q4 2025 earnings report, scheduled for February 19, will provide further insights into Lemonade's business momentum [9].