Lemonade’s AI Push Drives 140% Stock Surge and a Fresh $7 Million Fund Investment

On February 2, Privium Fund Management B.V. disclosed buying 103,259 shares of Lemonade (NYSE:LMND), an estimated $6.94 million transaction based on quarterly average pricing.

What happened

According to a SEC filing dated February 2, Privium Fund Management B.V. increased its position in Lemonade by 103,259 shares during the fourth quarter of 2025. The estimated value of this trade was $6.94 million, calculated using the average closing price for the quarter. As a result, the fund’s stake at quarter-end totaled 248,259 shares with a reported value of $17.67 million. The position’s value increased by $9.91 million from the previous quarter, reflecting both additional purchases and share price movement.

What else to know

The fund’s Lemonade position rose to 3.25% of 13F AUM after the buy.

Top holdings after the filing:

• NASDAQ: TSLA: $102.76 million (18.9% of AUM)
• NASDAQ: SHOP: $66.00 million (12.2% of AUM)
• NYSE: SPOT: $39.49 million (7.3% of AUM)
• NASDAQ: PLTR: $35.55 million (6.5% of AUM)
• NASDAQ: AMZN: $27.93 million (5.1% of AUM)

As of February 2, Lemonade shares were priced at $80.57, up 142.9% over the past year and significantly outperforming the S&P 500’s roughly 15% gain in the same period.

Company overview

Company snapshot

• Lemonade offers renters, homeowners, pet, car, life, and landlord insurance products, generating revenue primarily through insurance premiums and agent commissions.
• The company operates a digital-first, direct-to-consumer insurance platform, leveraging technology and artificial intelligence to streamline policy issuance and claims processing.
• It serves individuals and property owners in the United States and Europe, targeting digitally engaged consumers seeking transparent and user-friendly insurance solutions.

Lemonade is a technology-driven insurance company focused on property and casualty coverage, with a growing presence in both the U.S. and European markets. The company differentiates itself through a fully digital platform, aiming to deliver fast, efficient, and customer-centric insurance experiences. Its strategy centers on leveraging artificial intelligence and automation to reduce costs, improve underwriting accuracy, and enhance customer satisfaction.

What this transaction means for investors

Lemonade is pairing growth with discipline, and the latest earnings made that hard to ignore. In the third quarter, in-force premiums climbed 30% year over year to $1.16 billion, while gross profit more than doubled to $80 million and margins expanded to 41%, up from 27% a year earlier. That combination explains why shares have surged nearly 40% since the report.

Loss ratios continued to improve across the book, with the gross loss ratio falling to 62% and adjusted EBITDA narrowing to a $26 million loss from $49 million last year. Just as important, Lemonade generated $18 million in adjusted free cash flow, reinforcing management’s claim that scale and AI-driven automation are starting to bend the cost curve in a structurally meaningful way.

Seen in context, this position fits a portfolio already heavy in growth-oriented, volatility-tolerant names like Tesla, Shopify, and Palantir. Lemonade now represents just over 3% of assets, sizable enough to matter but not dominant. Ultimately, Lemonade is still risky, but the business is proving it can grow premiums fast while steadily shrinking losses, and that is the kind of setup that can justify paying attention even after a sharp rally.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Lemonade, Palantir Technologies, Shopify, Spotify Technology, and Tesla. The Motley Fool has a disclosure policy.