New York, Feb 24, 2026, 05:12 EST — Premarket
Lemonade, Inc. tumbled 11.9% on Monday, finishing the session at $50.51. The stock opened at $56.98, sliding hard and setting up a rocky entry into Tuesday. 1
Investors are now chewing over Lemonade’s 2026 guidance: management projects $1.187 billion to $1.192 billion in revenue, alongside an adjusted EBITDA loss between $48 million and $52 million for the year. Adjusted EBITDA, a frequent profit metric, excludes interest, taxes, and brings back depreciation and amortization—though firms tend to make additional tweaks. 2
Lemonade reported that operating revenue for the fourth quarter jumped 53% to $228.1 million. In-force premium reached $1.2365 billion, up 31%. CEO Daniel Schreiber called it the firm’s “strongest ever” quarter, though growth spend increased to $53.4 million, compared with $36.0 million in the same period last year. 3
Revenue for the quarter landed at $228 million, beating the $215.8 million IBES consensus, Reuters reported, citing Refinitiv-tracked expectations. 4
Short sellers have piled into Lemonade, setting the stage for sharper moves if the stock shifts direction. As of Jan. 30, 11.96 million shares were sold short—18.3% of the float, according to MarketBeat data. 5
Lemonade, on the business front, has been focusing on auto insurance—most notably, it announced back in January a plan to slash insurance costs for Tesla owners by 50% for any miles driven with Full Self-Driving software at the wheel. That’s according to the company. 6
Lemonade is still posting losses and has cautioned investors it might not turn a profit. Tougher competition, tight reinsurance markets, and extreme weather events all threaten to drive up claims and pressure margins. The company also pointed to potential pitfalls from heavy dependence on AI, telematics, and digital platforms. 7
Eyes will be on Lemonade to see if Monday’s drop carries over when regular trading kicks in, or if shares find some footing as investors weigh the company’s spending moves and how its underwriting is shaping up. Lemonade hasn’t locked in a date for its next earnings report, though market calendars are pointing to something around May 12. 8
