12 Most Shorted Stocks in 2025

7. Lemonade, Inc. (NYSE:LMND)

Number of Hedge Fund Holders: 25

Short % of Shares Outstanding (as of February 28): ~22.3%

Lemonade, Inc. (NYSE:LMND) provides renters, homeowners, car, pet, and life insurance. The company’s innovative use of AI remains critical to its business model and potential for long-term success. Its proprietary AI technology platform is leveraged throughout various operations, such as customer acquisition and service, underwriting, and claims processing. Lemonade, Inc. (NYSE:LMND)’s AI-powered chatbots remain critical to customer interactions. The company’s AI-driven systems allow it to settle claims quickly.

Lemonade, Inc. (NYSE:LMND) uses advanced telematics, mainly for its car insurance product, in a bid to collect data and allow precision pricing and underwriting. Therefore, the combination of behavioral economics and AI is implemented to improve risk assessment, and reduce fraudulent claims. The impact of technology-driven approach can continue to support Lemonade, Inc. (NYSE:LMND)’s operational efficiency. During 2024, the company more than doubled its growth investment, from $55 million in 2023 to $122 million in 2024. It remains focused on marketing efficiency. While its channel diversification and brand investment managed to expand its reach, Lemonade, Inc. (NYSE:LMND)’s LTV AI model, which predicts lifetime value for each potential customer, enables it to allocate each dollar of investment with pinpoint precision.