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Stock impact report

Lemonade's Cost Curve Experiment [Seeking Alpha]

Lemonade, Inc. (LMND) 
Company Research Source: Seeking Alpha
Gross profit rose over 260% in two years while operating expenses grew single digits and headcount remained flat. In-force premium expanded by approximately $439 million without increasing staffing, demonstrating strong operating leverage as scale improves. More than 50% of new auto insurance customers come from existing users, significantly lowering blended customer acquisition costs. Despite progress, LMND trades at about 11.7x forward book value with negative 26% net margins and ongoing cash burn. J Studios/DigitalVision via Getty Images Investment Thesis Lemonade Inc. ( LMND ) presents a compelling but fragile investment case. Its AI-driven platform is clearly reshaping the insurance cost structure, with tangible progress in lowering Loss Adjustment Expense (LAE), flattening OpEx, and compressing CAC as premiums scale, all pointing to meaningful operating leverage This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative po Show less Read more
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