Should I Buy Lemonade Stock in 2025? Expert Advice for NZ

What is lemonade?

What is the price of Lemonade stock?

The price of Lemonade stock is falling this week. As of 29 May 2025, Lemonade (LMND) is trading at $32.29 USD, down 0.74% over the past 24 hours and declining by 4.46% in the last week, bringing its market capitalisation to $2.38 billion USD. The average trading volume over the past three months sits at 1.85 million shares. Lemonade currently reports no P/E ratio as it remains unprofitable, and there is no dividend yield. With a beta of 2.14, the stock exhibits high volatility compared to the broader market—a crucial factor for NZ investors seeking opportunities in growth sectors with a higher risk appetite.

Our full analysis on the Lemonade stock

Having reviewed Lemonade’s latest quarterly results alongside its stock performance over the past three years, our analysis leverages a blend of financial metrics, technical indicators, and sector benchmarks, enhanced via proprietary algorithms. In the context of robust top-line growth, accelerating digital transformation, and emerging bullish technical structures, Lemonade appears to be regaining strategic appeal among technology-driven insurance stocks. So, why might Lemonade stock once again become a strategic entry point into the disruptive insurtech sector in 2025?

Recent Performance and Market Context

Lemonade (NYSE: LMND) has staged a remarkable turnaround over the past year, outpacing most peers in the insurtech space. As of 29 May 2025, LMND trades at $32.29 USD per share. Notably, the stock has surged +94.75% over the trailing twelve months, despite a tactical pullback of -37.68% from its six-month highs and a recent weekly dip of -4.46%. This volatility, indicated by a beta of 2.14, is characteristic of emerging tech plays following strong rallies, and often signals consolidation ahead of renewed momentum.

The surge in Q1 2025 was triggered by Lemonade’s exceptional quarterly performance, beating analyst expectations with a revenue climb of 27% year-on-year to $151.2 million and a net loss per share (-$0.86) that was materially better than street forecasts. The company’s active premium base crossed $1 billion for the first time in March 2025—its sixth consecutive quarter of accelerating in-force premium growth—underscoring the scalability of its digital-first insurance platform.

From a sector perspective, the global insurance market’s digital transformation continues to gather pace, with incumbent players under pressure to modernize. Lemonade’s model, centered on artificial intelligence and next-generation customer acquisition, resonates especially well with digital-native demographics (under 35), a fast-growing segment in both the US and select international markets. In this context, Lemonade’s disruptive approach positions it favourably, particularly as insurtech firms see renewed investor interest amid rising digital penetration and user demand for transparent, frictionless services.

Technical Analysis

Current technical signals for LMND point towards the beginnings of a constructive base following recent volatility. The Relative Strength Index (RSI, 14 days) stands at 51.13—squarely in neutral territory—suggesting that recent profit-taking has largely reset overbought conditions from earlier this quarter. The Moving Average Convergence Divergence (MACD) registers at 0.31, indicative of a transition phase and building positive momentum.

Price action has found strong support at $31.60, as evidenced by its intraday low, while resistance is identified at $33.26 (recent high). Notably, the 52-week trading range spans $14.03 (absolute low) to $53.85 (cycle high), reflecting the substantial potential volatility that can reward disciplined investors. The stock’s ability to maintain levels above key support, even amid broader market hesitations, reinforces the technical view that LMND is constructing a higher floor ahead of its next directional move. For those seeking oversold entry points or awaiting confirmatory bullish reversals, the current structure appears advantageous for medium-term positioning.

Fundamental Analysis

Lemonade’s fundamental trajectory has been deeply impressive. Revenue for Q1 2025 surged 27% to $151.2 million, extending the company’s streak of double-digit top-line growth. Full-year 2024 results also highlighted a robust 22.5% rise in sales ($526.5 million), while net losses narrowed by 14.65%—a clear signal of improving operating leverage as the company scales. Importantly, Lemonade’s in-force premiums (IFP) now exceed $1.008 billion, a milestone that reflects sustained customer acquisition and retention.

While Lemonade is not yet profitable (EPS: -$3.02), its loss per share beat expectations, and the improvement rate suggests a path towards break-even is materializing faster than many sector rivals. The absence of a dividend yield is typical for high-growth disruptors, enabling capital to be reinvested in technology and expansion. With consensus analyst price targets at $34.56 (a 7% upside from current levels) and a price-to-sales ratio well below historical industry norms for high-growth tech companies, LMND’s valuation appears increasingly compelling for growth-oriented investors.

Structurally, Lemonade’s differentiation is anchored by its advanced AI-powered claims automation, seamless digital onboarding, and a brand that strongly resonates with its youthful core market. Its well-documented reputation for transparency, low friction, and rapid claims processes further elevate its market share prospects vis-à-vis legacy insurers—particularly as digital financial services adoption accelerates both in North America and EMEA.

Volume and Liquidity

Trading volume remains robust, averaging 1.85 million shares daily—a clear testament to ongoing institutional and retail interest. With a public float of approximately 58.26 million shares and a total outstanding share count of 73.27 million, LMND’s liquidity profile is highly conducive to both active trading and longer-term positioning. Sustained volume is often a leading indicator of market confidence and predisposes the stock to dynamic multiples expansion should further catalysts unfold. For investors in markets such as New Zealand, such liquidity equates to comparatively tighter bid-ask spreads and greater entry flexibility.

Catalysts and Positive Outlook

Looking ahead, several powerful catalysts underpin LMND’s bullish outlook:

• Product expansion and cross-selling: Q1 2025 saw Lemonade’s auto insurance cross-selling leap over 100% year-on-year, demonstrating escalating platform stickiness and potential for wallet-share growth across existing customers.
• AI-driven risk management: As a first-mover in AI-based underwriting and claims, Lemonade is rapidly scaling efficiencies. Its continued advancements enhance loss ratios and customer experience—a key differentiator as machine learning adoption deepens in insurance.
• Geographic growth: With operations now spanning the US, UK, and continental Europe, Lemonade’s addressable market is rapidly expanding, offering significant runways for policyholder growth.
• Favourable sector tailwinds: The broader insurtech scene is benefiting from increased regulatory support for digital financial products, especially as remote onboarding becomes mainstream post-pandemic.
• ESG leadership: Lemonade’s socially conscious business model, which returns unused premiums to charitable causes, increasingly resonates with ESG-focused capital—an important vector as sustainability continues to drive institutional allocations.
• Projected 22% annual revenue growth: Street consensus expects this high double-digit trajectory to persist over the next three years, supporting a narrative of durable, compounding expansion.

Collectively, these factors justify a structurally optimistic stance and position LMND for renewed reratings in the eyes of growth-focused global investors.

Investment Strategies

Current conditions favour a spectrum of investment strategies tailored to various risk tolerances and time horizons:

• Short-term: The proximity to technical support ($31.60) and ongoing high liquidity may provide attractive tactical entry opportunities for traders seeking quick bounces, especially given recent oversold readings.
• Medium-term: Investors can capitalise on Lemonade’s consolidation phase, positioning ahead of anticipated catalysts such as upcoming earnings releases, continued geographic rollouts, or additional AI-driven service launches. Positive developments or upside earnings surprises could drive accelerated mean reversion or retests of resistance levels ($33.26 and beyond).
• Long-term: Lemonade’s combination of rapid revenue expansion, improving scale economies, market leadership in digital insurance, and a disruptive technology platform presents a compelling thesis for growth portfolios. Its corporate vision and demographic focus offer robust alignment with secular digital transformation and ESG megatrends, making current valuation zones appear attractive relative to normalized future earnings power.

Ideal positioning may involve systematic scaling into exposure at or near technical lows, using pullbacks as strategic entry points, and incrementally increasing stakes ahead of forecasted growth triggers.

Is it the Right Time to Buy Lemonade?

Synthesizing the key drivers—accelerating top-line growth, unique AI-centric operating model, strengthening financial performance, robust liquidity, and a pipeline of potent catalysts—it becomes evident that Lemonade stands at the forefront of insurtech innovation. While mindful of the inherent volatility and current lack of bottom-line profitability, the impressive revenue trajectory, improving operational losses, and undeniable structural strengths appear to justify a renewed and serious consideration of the stock.

In our view, Lemonade’s fundamentals and technicals are aligned for a potentially rewarding new bullish cycle. For investors seeking exposure to high-growth, disruptive technology stocks with a genuine edge in customer acquisition and scalable digital infrastructure, the timing and entry point for Lemonade seem unusually well configured for 2025 and beyond.

Lemonade is once again asserting its leadership among digital-first insurers—a positioning that seemingly represents an excellent opportunity for forward-looking investors eager to capture the next phase of sectoral outperformance.

How to buy Lemonade stock in New Zealand?

Buying Lemonade (LMND) stock online is secure and straightforward for NZ investors when using a reputable, regulated broker. Today, investors can choose between two main approaches: purchasing the shares directly (spot buying) for long-term ownership, or trading contracts for difference (CFDs) to speculate on price movement with leverage. Each method comes with its own risks and benefits. Below, we'll clarify both options so you can find the right fit—and a comparison of popular brokers is available further down the page for easy reference.

Spot Buying

A cash purchase, also called spot buying, means you buy Lemonade shares outright through a brokerage platform. You become a shareholder with full ownership rights, including voting at AGMs. Most NZ-friendly brokers will charge a fixed commission per trade—typically between NZ$3 and NZ$10, often around NZ$5.

Example

Suppose the current Lemonade share price is US$32.29 (approx. NZ$51.70*). With a NZ$1,000 stake, after paying a NZ$5 brokerage fee, you could buy about 19 shares.
✔️ Gain scenario:
If Lemonade’s share price rises by 10%, your shares are now worth NZ$1,100.
Result: That’s a +NZ$100 gross gain, or +10% on your investment.

*Exchange rate: 1 USD ≈ 1.6 NZD (approx., check with your broker for real-time rates).

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on Lemonade’s share price without owning the actual stock. Instead, you can take long or short positions and use leverage—meaning a smaller deposit controls a larger position. Common fees include the spread (difference between buy/sell price) and overnight financing charges for trades held open after hours.

Example

With NZ$1,000 and 5x leverage, you could open a Lemonade CFD position worth NZ$5,000.
✔️ Gain scenario:
If Lemonade shares rise by 8%, your position gains 8% x 5 = 40%.
Result: That’s a +NZ$400 gain on your NZ$1,000 stake (before fees).

CFDs offer flexibility and potential gains, but they also amplify risk—losses can exceed your initial investment.

Final Advice

Before committing funds, it’s essential to compare brokers’ fees, foreign exchange rates, execution quality, and regulatory protections to get the best deal for your needs. Ultimately, the most suitable method—stocks for steady, long-term holding, or CFDs for short-term, leveraged trading—depends on your goals and risk appetite. For a detailed broker comparison tailored to NZ investors, see the dedicated section further down the page.

Our 7 tips for buying Lemonade stock

The latest news about Lemonade

Lemonade reported Q1 2025 revenues of $151.2 million, up 27% year-on-year, significantly exceeding analysts’ expectations. This strong revenue performance was also accompanied by improvement in net loss per share, with EPS at -$0.86 versus anticipated lows, which led to a 9.8% jump in the share price post-results. The company’s premium in force surpassed $1 billion for the first time, marking the sixth consecutive quarter of accelerating growth, and demonstrating robust demand for Lemonade’s insurtech model. This sustained momentum is encouraging for New Zealand analysts monitoring digital insurance disruptors in global equity markets.

Lemonade’s cross-selling of auto insurance products more than doubled in Q1 2025, reinforcing the company’s diversification strategy. This rapid expansion in product uptake not only strengthens recurring revenue streams but signals an efficient customer acquisition engine and strong platform engagement, points that are of particular interest to New Zealand institutions gauging the global migration to fully digital insurance services. Lemonade’s focus on the under-35 demographic, with its clear resonance in other developed markets, continues to position it favourably for prospective long-term growth in similar geographies, including Australasia.

Consensus analyst sentiment has shifted positively, with a consensus price target of $34.56, 7% above the current share price. Despite the stock seeing a correction of -4.5% over the past week—mirroring broader tech market volatility following recent earnings season—the 1-year return remains impressive at +94.75%. This demonstrates sustained institutional interest and a moderate-optimistic outlook. With no dividend, Lemonade is regarded as a growth stock, a profile often sought by New Zealand investors looking for differentiated exposure in the global financial technology sector.

Lemonade continues to solidify its leadership in AI-driven insurance technology, bolstering its position as a disruptive force in the industry. The advanced application of artificial intelligence for risk evaluation and claims handling is pivotal to the company’s efficiency, scalability, and customer satisfaction. These innovations, which are regularly cited in industry press and company filings, align closely with trends in New Zealand’s own insurance sector, where digital transformation and operational automation are highly prized. Lemonade’s ongoing advances serve as a potential benchmark for local providers and as a case study for portfolio managers focused on disruptive business models.

Lemonade remains geographically focused on the US, Europe, and the UK, but maintains a global brand presence accessible to New Zealand investors via NYSE. While Lemonade currently has no direct operations or regulatory filings in New Zealand, its NYSE listing and eligibility across major global brokerage platforms mean Kiwi investors have full access. Furthermore, global fintech and insurtech developments are increasingly relevant to New Zealand’s investment community, both for strategic benchmarking and as part of a diversified international equity allocation. The company’s pursuit of high-velocity digital growth remains a compelling narrative for New Zealand analysts monitoring innovative global opportunities.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.