Core Insights - Lemonade has transformed from a struggling auto insurance stock to a leader in AI-driven insurance solutions, particularly in renters, pet, car, and homeowners insurance [1] - The company has shown a remarkable recovery, with stock prices increasing by 110% in 2025 after a significant decline of 90% between 2020 and 2021 due to high interest rates [2] Company Performance - Lemonade's current market capitalization stands at $5.6 billion, with a current stock price of $75.17, reflecting a day's change of -3.44% [3] - The stock has a 52-week range of $24.31 to $84.52, indicating substantial volatility and growth potential [3] Auto Insurance Segment - Lemonade entered the auto insurance market in November 2021 and currently offers coverage in 10 U.S. states, with plans for future expansion [3] - The company utilizes a usage-based pricing model for its auto insurance, often resulting in lower premiums compared to competitors, enhancing customer appeal [4] Demand and Growth Potential - As of March 2025, Lemonade reported a waitlist of 700,000 individuals for its auto insurance, indicating strong demand [6] - The company surpassed $1 billion in in-force premiums within 8.5 years of launch, a milestone achieved much faster than traditional competitors [6] - Analysts project a 45% compound annual growth rate (CAGR) in revenue for Lemonade from 2024 to 2027, driven by high demand for its auto insurance products [7]