Shares of Lemonade, Inc. (NYSE: LMND) surged 6.77% in pre-market trading on Tuesday following the release of the company's impressive first-quarter 2025 financial results. The insurtech company, known for its AI-powered insurance offerings, outperformed analyst expectations on both revenue and earnings per share.

Lemonade reported quarterly revenue of $151.20 million, surpassing the analyst consensus estimate of $145.21 million by 4.13%. This represents a substantial 26.95% increase compared to sales of $119.10 million in the same period last year, showcasing the company's continued growth trajectory. On the earnings front, Lemonade posted a loss of $(0.86) per share, which was better than the expected loss of $(0.92) per share, beating estimates by 6.52%.

While the company still operates at a loss, the narrowing gap between actual and expected losses suggests improving operational efficiency. Lemonade's adjusted gross profit for the quarter stood at $46 million, with a reported gross profit of $39 million. These figures indicate the company's progress in scaling its business model and potentially moving closer to profitability. As Lemonade continues to expand its product offerings and leverage its AI and machine learning capabilities, investors appear optimistic about the company's future prospects in the competitive insurance industry.