Finding its Identity

Research evidence excerpt

Finding its Identity

Insurance

Lemonade Inc. (LMND)

EQUITY RESEARCH Company Update

May 26, 2026

Finding its Identity Price: $56.52

Price Target: $92.00 We hosted Lemonade management (CFO, Tim Bixby) for meetings in New

Rating: Overweight York last week. We came away more confident that the weak stock price

Key Statistics: performance this year masks what has actually been a very solid and

Symbol NYSE: LMND consistent story of operating momentum. Lemonade remains one of our

52-Week Range 28.71 - 99.90 best long ideas, with catalysts that include an investor day later this year

Market Cap 4,341.9 and an inflection to positive EBITDA in the fourth quarter of this year. ADV (3 mo) 2,005,970

Perhaps more importantly, we think the shift in the company’s ownership Shares Out (M) 76.8

base from retail and tech-focused to more insurance-focused is leading

a fuller embrace from management around the company’s core identity Research Analysts:

as a successful insurance company, which we think resonates against the Ryan Tunis

917-746-8827 market’s concerns regarding AI disruption.

Ryan.Tunis@cantor.com

Luc Nelson Balancing Underwriting and Growth: With growth acceleration in

929-717-3880 2025-2026 taking the spotlight, it’s easy to forget the fact that risk results

Luc.Nelson@cantor.com have been consistently strong over the past five quarters. Moreover,

we think the mid-60% loss ratios that the company has been reporting One-Year Price History

have been written off as temporary given the fact that management

120 anchored to 70-75% loss ratio targets several years ago. We came away

80 from our discussion with the view that 1) the old loss ratio targets are

60 no longer relevant, and 2) management has a good feel for the trade-off