Lemonade's customer growth surges, but profitability suffers from high loss ratios.

Lemonade, an AI-driven insurance company, has seen impressive customer growth (2.2M in Q2, 14% up YoY) and revenue projections (expected to hit $514M this year, $654M by 2025). However, it struggles with profitability due to high loss ratios (79% in Q2). Despite the potential for higher-risk investors, more conservative ones should wait for improved loss ratios and net losses.

August 10, 2024
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