Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

<div><ul><li>4Q25 beat. 4Q25 revenue of $228MM topped FactSet consensus of $218MM, while EPS of ($0.29) handily beat the Street's ($0.39).</li><li>In Force Premium (IFP) grew 31% Y/Y to ~$1.24B, extending LMND’s streak of accelerating IFP growth to nine consecutive quarters.</li><li>Revenue growth of 53% outpaced IFP by more than 20 points—a dynamic management expects to continue as the mix shifts toward retained underwriting economics.</li></ul></div><div><p style="list-style-type: square;"></p></div>

4Q25 beat. 4Q25 revenue of $228MM topped FactSet consensus of $218MM, while EPS of ($0.29) handily beat the Street's ($0.39).In Force Premium (IFP) grew 31% Y/Y to ~$1.24B, extending LMND’s streak of accelerating IFP growth to nine consecutive quarters.Revenue growth of 53% outpaced IFP by more than 20 points—a dynamic management expects to continue as the mix shifts toward retained underwriting economics.

LMND: 4Q25 Report; AI-Driven "Flywheel" Keeps Turning

Lemonade Inc

LMND: 4Q25 Report; AI-Driven "Flywheel" Keeps Turning