Lemonade Inc. reported strong financial results for the second quarter of 2025, surpassing Wall Street estimates and raising its full-year guidance. The digital insurer posted revenue of $164.1 million, representing a 35% year-over-year increase, and an in-force premium of $1.083 billion, up 29% from the previous year. The company reported a gross loss ratio improvement to 67%, a 12-point year-over-year decrease, and gross profit more than doubled to $64.3 million with a gross margin of 39%, a 14-point increase. Adjusted EBITDA loss narrowed to $40.9 million, and the net loss improved to $43.9 million. Customer count rose 24% year-over-year to 2.63 million, driven by strong growth in car insurance and European markets. Earnings per share were reported at a loss of $0.60, better than the estimated loss of $0.81. Following the earnings release, Lemonade's shares surged approximately 28%, reaching highs near $52.83, reflecting investor optimism about the company’s performance and outlook despite ongoing profitability challenges and some insider selling. The CEO highlighted excellent performance across key metrics during the quarter. Separately, LegalZoom received an upgrade from Bank of America to a Buy rating with a price target raised to $12, based on its successful transition to subscription revenue and strategic AI collaborations.