Should You Buy Lemonade Stock Before Feb. 19?

Lemonade (NYSE: LMND) is yet getting immoderate marketplace love, and its banal has doubled implicit the past year. The artificial quality (AI) and instrumentality learning-driven security level is gaining caller customers and demonstrating accelerating growth, and it's getting person to nett profitability.

It's scheduled to supply its fourth-quarter net update connected Feb. 19. Is present the clip to buy?

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Lemonade is conscionable implicit a decennary old, and it's already becoming a large subordinate successful insurance, facing disconnected against centuries-old competition. It has an borderline successful its integer level with interconnected parts, and the ample bequest security giants are trying to support up.

It's attracting customers astatine a accelerated pace, hooking them into lower-priced products arsenic they commencement retired with rentals and location ownership, with the strategy to cross-sell products arsenic this clientele ages. That puts it astatine a disadvantage successful the abbreviated term, but sets it up for semipermanent success, and the strategy is already working.

Another constituent of that exemplary that has been a sore constituent is that arsenic a young institution with little data, the company's algorithms person been successful a grooming stage. The company's nonaccomplishment ratio, which measures however overmuch it pays retired arsenic claims, has been precocious for an security company. However, the instrumentality learning borderline is kicking successful arsenic Lemonade adds much information to the system, and the nonaccomplishment ratio has started a superior decline. It was 67% successful the 2025 3rd 4th for the trailing 12 months, a afloat 10 percent points little than the erstwhile year.

Management is guiding for in-force premium, its favored top-line metric, to summation 29% twelvemonth implicit twelvemonth successful the 4th quarter, with a 48% summation successful revenue. It's besides expecting adjusted net earlier interest, taxes, depreciation, and amortization (EBITDA) to beryllium a $14.5 cardinal loss, an betterment from a $24 cardinal nonaccomplishment the erstwhile year, and it's expecting to go profitable connected an adjusted EBITDA ground by the extremity of this year.

At the existent price, Lemonade banal has started to go costly again. It trades astatine a price-to-sales ratio of 9. That premium could beryllium justified considering Lemonade's precocious maturation and semipermanent opportunity, but it doesn't springiness the institution a batch of country for error.

Lemonade banal has started to descent implicit the past fewer weeks arsenic insiders person been selling and the marketplace is recognizing the hefty terms tag heading person to earnings. That gives it immoderate country to bounce backmost if each goes close successful the report. However, it could descent a batch much if the institution misses connected expert expectations, guidance for 2026, oregon thing other the marketplace doesn't like.