Matt Frankel

I love the idea of 50% lower insurance rates when your car is in full self-driving mode.

That's just one example.

I'd love to see them get their stock-based comp under control.

$75 million expected in 2026 is high.

That's up from $60 million a year ago.

There's at least a little bit more justification for it now than when the company was really losing money hand over fist, but it's still a problem.

There you go, using terms like GAAP profitability.

Lemonade doesn't like to mention that too much in its earnings report.

You're right, it hasn't really talked about GAAP profitability yet.

Where I would push back a little bit is what you said about acquisition costs.

Right now, Lemonade has clearly shifted its focus to Lemonade Car, the auto insurance, which is a much higher-priced form of insurance than what it's traditionally pushed, which is renter's insurance.

So, higher acquisition costs are natural.

The average auto insurance policy is roughly 10X what the average renter's insurance policy is.

If you're going to acquire a customer that's 10X more valuable to you, it makes sense that you would spend a little bit of money.

But yes, if you wanted to have a consistently profitable insurance company, Lemonade could get there in two to three years.

It could happen.

But for the time being, a company like Progressive might be a better fit if that's what you're looking for.

Yeah.

The short version is that the market hates higher risk, and there's higher perceived risk with Klarna than there was before.

But there were a few concerning items, just to name a couple.