Shares of Lemonade, Inc. surged 8.3% in pre-market trading on Tuesday following the release of the company's impressive first-quarter 2025 financial results. The AI-powered insurance provider outperformed analyst expectations, showcasing robust growth and improved financial performance.

Lemonade reported a quarterly loss of $(0.86) per share, beating the analyst consensus estimate of $(0.92) by 6.52%. While this represents a 28.36% increase in losses compared to the same period last year, the narrower-than-expected loss has been well-received by investors. More notably, the company's quarterly sales reached $151.20 million, surpassing the analyst consensus estimate of $145.21 million by 4.13%. This marks a significant 26.95% increase in revenue compared to the same quarter in the previous year.

The strong performance was further emphasized by Lemonade's gross profit, which stood at $39 million for the quarter. Additionally, the company reported an adjusted gross profit of $46 million, indicating effective cost management and improved operational efficiency. These results demonstrate Lemonade's continued growth trajectory and its ability to scale its AI-driven insurance model across various product lines, including renters, homeowners, car, pet, and life insurance.