Operating cash flow remains volatile, reaching a low of -$600.0K in 2026Q1, as the firm balances $133.3 million in claims payments against ongoing liquidity management needs.
| Cash from Operations | 30.1M | -16.5M | -11.4M | -119.1M | -163M | -144.6M | -91.7M | -78.1M | -40.8M | -19.1M |
| Operating CF Growth % | 223.34% | -44.74% | 90.43% | 26.93% | -12.72% | -57.69% | -17.41% | -91.42% | -113.61% | - |
| Operating CF / Revenue % | 3.67% | -2.24% | -2.17% | -27.71% | -63.5% | -112.62% | -97.14% | -116.05% | -181.33% | -795.83% |
| Net Income | -138.9M | -165.5M | -202.2M | -236.9M | -297.8M | -241.3M | -122.3M | -108.5M | -52.9M | -28.1M |
| Depreciation & Amortization | 22.3M | 15.2M | 20M | 20M | 12.2M | 3.7M | 1.7M | 600K | 100K | 0 |
| Stock-Based Compensation | 51M | 0 | 64.5M | 59.9M | 59.3M | 44.1M | 10.6M | 4.3M | 2.1M | 8.4M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -4.2M | -300K | 0 | 0 | 0 |
| Other Non-Cash Items | 27.9M | 75.3M | 5.2M | 9.2M | 15.4M | 6.2M | 14.4M | 400K | 200K | 8.4M |
| Working Capital Changes | 67.8M | 58.5M | 101.1M | 28.7M | 47.9M | 46.9M | 4.2M | 25.1M | 9.7M | 600K |
| Cash from Investing | -83.4M | -89.1M | 40.6M | 88.7M | 181.1M | -804.8M | 50.1M | -54M | 6.4M | -12.7M |
| Capital Expenditures | -10.6M | -9.4M | -9.4M | -9.2M | -10.1M | -9.4M | -4.4M | -2.7M | -700K | -300K |
| Acquisitions | 0 | 0 | 0 | 0 | 98.8M | 795.4M | -54.5M | 0 | 0 | 0 |
| Purchase of Investments | -738.2M | -504.4M | -363.8M | -395.2M | -270.1M | -842.8M | -17.8M | -72.7M | -13.8M | -28M |
| Sale/Maturity of Investments | 636.8M | 424.7M | 413.8M | 493.1M | 362.5M | 47.4M | 72.3M | 22M | 20.9M | 15.6M |
| Other Investing | 28.6M | 0 | 0 | 0 | 0 | -795.4M | 54.5M | -600K | 7.1M | -12.4M |
| Cash from Financing | 112.8M | 106.6M | 87.7M | 15.4M | 3.6M | 649.6M | 341.1M | 300.1M | 119.9M | 800K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 26.6M | 31.9M | 19.3M | 0 | 0 | 640.3M | 339.3M | 0 | 119.9M | 800K |
| Debt Issuance (Net) | 4M | 1000K | 1000K | 1000K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 8.5M | 0 | 0 | 500K | 3.6M | 9.3M | 1.8M | 700K | 100K | 800K |
| Net Change in Cash | 66.8M | 11.1M | 114.2M | -15M | 15.9M | -300.8M | 301.1M | 167.9M | 85.5M | -31M |
| Exchange Rate Effect | 7.3M | 10.1M | -2.7M | 0 | -5.8M | -1M | 1.6M | -100K | 0 | 0 |
| Cash at Beginning | 396.8M | 385.7M | 271.5M | 286.5M | 270.6M | 571.4M | 270.3M | 102.4M | 16.9M | 47.9M |
| Cash at End | 386.5M | 396.8M | 385.7M | 271.5M | 286.5M | 270.6M | 571.4M | 270.3M | 102.4M | 16.9M |
| Free Cash Flow | 19.5M | -25.9M | -20.8M | -128.3M | -173.1M | -154M | -96.1M | -81.4M | -41.5M | -19.4M |
| FCF Growth % | 151.32% | -24.52% | 83.79% | 25.88% | -12.4% | -60.25% | -18.06% | -96.14% | -113.92% | - |
| FCF Margin % | 2.37% | -3.51% | -3.95% | -29.85% | -67.43% | -119.94% | -101.8% | -120.95% | -184.44% | -808.33% |
| FCF per Share | 0.26 | -0.36 | -0.29 | -1.84 | -2.67 | -2.52 | -1.74 | -1.87 | -0.95 | -1.78 |
Underwriting volatility and liquidity
As reported in recent financial statements, Lemonade's operating cash flow fluctuated significantly, reaching a low of -$600.0K in 2026Q1, which underscores the persistent challenge of achieving consistent positive cash generation while scaling the company's multi-line insurance product suite across diverse US geographic markets.
The erratic nature of operating cash flow suggests that the company's underwriting cycle is not yet self-sustaining. Investors should monitor whether the recent expansion into auto insurance continues to create lumpy cash outflows that offset the more predictable premium inflows from the renters segment.
Based on the company's quarterly filings, Lemonade actively manages its investment portfolio, with 2026Q1 showing $161.2M in purchases against $130.1M in sales, indicating a tactical approach to maintaining liquidity while navigating the interest rate environment to support the company's broader capital requirements.
The frequent turnover of the investment portfolio suggests that management is prioritizing liquidity over long-term yield capture. This behavior may indicate a need to keep assets readily available to cover potential spikes in claims or to fund operational deficits without resorting to dilutive external financing.
According to historical data, claims and loss payments reached $133.3M in 2026Q1, a significant figure that highlights the ongoing cash burden of settling policyholder obligations while the company simultaneously attempts to refine its AI-driven underwriting models to improve long-term loss ratio performance.
The magnitude of these payments relative to operating cash flow suggests that claims volatility remains a primary driver of liquidity risk. If the company's AI-driven pricing fails to keep pace with inflationary pressures in auto and home repair costs, the resulting cash drain could necessitate further capital preservation measures.
As evidenced by the 2026Q1 OCF/NI ratio of 0.02, there is a notable disconnect between reported net losses and actual cash flow, suggesting that non-cash accruals and reserve adjustments play a substantial role in the company's financial presentation compared to its underlying cash reality.
This divergence warrants further investigation into how much of the reported net loss is driven by non-cash items versus actual cash burn. The reliance on accounting adjustments to bridge the gap between net income and cash flow may obscure the true speed at which the company is consuming its capital base.
Quick answers to the most common questions about buying LMND stock.
Lemonade, Inc. (LMND) generated $-16.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Lemonade, Inc. (LMND) reported negative free cash flow of $25.9M in 2025, indicating capital requirements exceeded cash from operations.
Lemonade, Inc. (LMND) spent $9.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.