Does Lemonade Have Enough Cash to Survive?

By Jason Hall and Jeff Santoro – Mar 26, 2023 at 5:08AM

NYSE: LMND

Lemonade

Market Cap

$1B

Today's Change

(-0.46%) -$0.08

Current Price

$17.41

Price as of April 24, 2024, 4:00 p.m. ET

It has $1 billion in cash, but continues to lose money and has yet to prove it can write profitable insurance policies.

Lemonade (LMND -0.46%) has proven an increasingly popular company, with great AI-powered customer service tools. But it continues to burn through its cash reserve, and its AI-powered insurance underwriting model hasn't proven successful. In this video, Motley Fool contributors Jeff Santoro and Jason Hall discuss whether the money on its balance sheet is enough, and why there's potentially a bigger concern.

*Stock prices used were from the afternoon of March 23, 2023. The video was published on March 26, 2023.

Jason Hall has positions in Lemonade. Jeff Santoro has positions in Lemonade. The Motley Fool has positions in and recommends Lemonade. The Motley Fool has a disclosure policy. Jason Hall is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.