- About 90% of Lemonade customers are first-time insurance buyers, highlighting expansion into underserved segments.
- The stock has nearly doubled over the past year, outperforming broader markets during recent volatility.
- Lemonade launched autonomous car insurance for Tesla in January, offering roughly 50% discounts on FSD-driven miles.
Shares of Lemonade, Inc. (LMND) are headed for a fourth straight weekly gain after CEO Daniel Schreiber said the company’s AI-driven insurance platform is “on a tear” and expects to turn profitable this year.
LMND stock fell nearly 2% on Thursday, but shares have gained nearly 26% over the past four weeks.
Lemonade CEO Flags Profitability Path
Speaking on Thursday’s Mad Money show, Schreiber said Lemonade has operated as an AI company since its founding in 2015, with most claims now handled automatically in seconds and renters-insurance policies typically purchased in about a minute and a half.
He also said 90% of Lemonade’s customers are first-time insurance buyers, underscoring the company’s expansion into segments historically underserved by traditional insurers. Schreiber added that Lemonade expects to become profitable this year, boosting optimism around the company’s automation-led operating model.
LMND stock stands out in a volatile market, nearly doubling over the past year, even as the S&P 500 dropped over 5% in March amid U.S.-Iran tensions, with UBS seeing the index either rebounding toward 7,150 or falling toward 6,000 depending on how the conflict evolves.
Tesla FSD Tie-Up Gives Lemonade First-Mover Edge
In January, Lemonade launched autonomous car insurance tied to Tesla’s Full Self-Driving (FSD) tech, offering discounts of about 50% on miles driven with FSD engaged. The product rollout began in Arizona in January, with expansion to Oregon a month later.
Morgan Stanley said the Tesla deal “represents an important first step” and gives Lemonade a first-mover advantage in data analysis and on-the-ground experience, supporting long-term earnings expansion through autonomous-insurance exposure.
The firm later upgraded Lemonade to ‘Overweight’ with an $85 price target, saying expanding autonomous-insurance exposure could help “meaningfully improve” the company’s long-term earnings profile. Morgan Stanley also noted Lemonade’s pricing structure for FSD-enabled driving reflects reduced risk during autonomous operation and supports continued innovation in insurance segmentation.
Strong Q4 Results Push LMND Rally
The stock’s momentum followed strong fourth-quarter (Q4) results reported last month, when Lemonade posted revenue of $228 million, beating consensus estimates, while losses narrowed. In-force premium hit $1.24 billion, rising 31% from a year ago.
The company said revenue grew 53% from the previous year, supported by improvements in underwriting performance and automation efficiency. For 2026, Lemonade expects revenue of about $1.19 billion, above consensus expectations.
What Is The Retail Mood On Stocktwits?
On Stocktwits, retail sentiment for LMND was ‘bearish’ amid ‘extremely low’ message volume.
LMND stock has declined 7% so far this year.
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