Lemonade Posted Its First Positive Cash Flow Quarter and Reddit Is Getting Bullish
Briefly

Lemonade Posted Its First Positive Cash Flow Quarter and Reddit Is Getting Bullish
"Lemonade's Q4 2025 earnings revealed the company delivered $228.1M in revenue, up 53% year-over-year, and $17.6M in GAAP free cash flow. For a company that has burned cash since its 2020 IPO, that number matters in a meaningful way. The gross loss ratio dropped to 52%, down 11 percentage points year-over-year, and gross profit expanded 73% to $110.6M."
Lemonade, positioned as a 21st-century insurance company, shows strong financial performance in Q4 2025 with $228.1M revenue, representing 53% year-over-year growth. The company achieved $17.6M in GAAP free cash flow, a significant milestone for a business that burned cash since its 2020 IPO. The gross loss ratio improved substantially to 52%, down 11 percentage points year-over-year, while gross profit expanded 73% to $110.6M. Stock performance reflects this momentum, with shares up 3.9% weekly and 39% monthly. Reddit sentiment increased from quarterly average of 63.46 to weekly average of 68.75, indicating growing retail investor optimism driven by genuine underlying business improvements.
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