Lemonade, Inc.LMND

Lemonade, Inc. Earnings Per Share Disclosure

10-KFiled Feb 25, 20262 min read
Net Loss per Share
Basic and diluted net loss per share attributable to common stockholders was calculated as follows:
Year Ended December 31,
2025 20242023
Numerator:
Net loss attributable to common stockholders (in millions) $(165.5)$(202.2)$(236.9)
Denominator:
Weighted average common shares outstanding —
basic and diluted
73,943,632 71,023,115 69,658,912 
Net loss per share attributable to common stockholders —
basic and diluted
$(2.24)$(2.85)$(3.40)
The Company's potentially dilutive securities, which include stock options, unvested RSUs and warrants for common stock, have been excluded from the computation of diluted net loss per share as the effect would be to anti-dilutive. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect.
December 31,
202520242023
Options to purchase common stock7,253,851 9,376,193 9,595,257 
Unvested restricted stock3,196,072 4,278,383 3,568,735 
Warrants for common stock (1)
412,969 412,969 412,969 
10,862,892 14,067,545 13,576,961 
(1) Each outstanding warrant of Metromile assumed by the Company are converted automatically into warrants denominated in the Company’s common stock with the number of warrants and exercise price adjusted based on the exchange ratio of 0.05263. These warrants expired on February 9, 2026.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 26, 2025
2023Feb 28, 2024
2022Mar 3, 2023
2021Mar 1, 2022

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsNEO Compensation Adjustments