Shares of Lemonade, Inc. (LMND) are soaring 21% in Wednesday's intraday trading following the company's impressive third-quarter earnings report that surpassed analyst expectations. The insurance technology company demonstrated robust financial performance and provided an optimistic outlook, igniting investor enthusiasm.
Lemonade reported earnings per share (EPS) of -$0.51 for the third quarter, significantly outperforming the analyst estimate of -$0.70 by $0.19. The company's revenue also beat expectations, coming in at $194.5 million compared to the consensus estimate of $184.9 million. This strong performance indicates Lemonade's ability to grow its business and improve its financial metrics in a challenging market environment.
Adding to the positive sentiment, Lemonade provided upbeat guidance for both the fourth quarter and full year 2025. The company expects Q4 2025 revenue to be between $217.00 million and $222.00 million, surpassing the analyst consensus of $212.70 million. For the full year 2025, Lemonade projects revenue in the range of $727.00 million to $732.00 million, also ahead of the analyst consensus of $713.30 million. This raised guidance suggests confidence in the company's growth trajectory and operational execution, further fueling the stock rally.
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