seb_ra/iStock via Getty Images Lemonade's ( LMND ) competitive advantage of its AI-based platform has begun to show signs of structural operating leverage, leading to a long-term investment opportunity as margins continue to improve. The company has somewhat decoupled premium increases from operating expenses, leading to a doubling of in-force premium volume to $1.24 billion from ~$609 million whi...
seb_ra/iStock via Getty Images Lemonade's ( LMND ) competitive advantage of its AI-based platform has begun to show signs of structural operating leverage, leading to a long-term investment opportunity as margins continue to improve. The company has somewhat decoupled premium increases from operating expenses, leading to a doubling of in-force premium volume to $1.24 billion from ~$609 million while maintaining a near-flat cost base. This is far from common in traditional insurers, and this difference is beginning to show up meaningfully on the firm's financials. Gross profits grew 73% YoY, while the gross loss ratio decreased to ~52% (~61% adjusted) in Q4 2025, indicating that underwriting improvements are fundamental rather than cyclical. This is due to the increased amount of data being processed through its flywheel across all of its products. In addition to Lemonade's core operating areas, the firm has found two significant opportunities for growth in the form of pet insurance and autonomous vehicles (AV) insurance. Pet insurance offers longer customer lifetime values and higher premiums, and the opportunity for growth remains strong with the company's current market share of ~12%, providing confidence that it will remain a strong long-term opportunity. On the other hand, Lemonade's AV insurance offering provides a unique pricing model, giving it an early mover advantage in a fast-growing market. Given Lemonade's current liquidity position ($1+ billion available) along with improved LTV/CAC dynamics, the company appears ready for the next stage of profitable growth, which is why I'm rating the stock a Strong Buy. Business Overview Lemonade had over 3 million customers in January 2026, up from 1 million customers in 2024, which took them 4 years to reach. In-force premiums were $1.24 billion, representing an increase of 31% YoY, while total revenue for 2025 was reported at $737.9 million, up 40% YoY. Although these numbers are great, the most exciting part of th...
Investors should be using any geopolitically-induced weakness as buying opportunities, says JPMorgan. Rate expectations are likely to come lower in the second half while earnings growth forecasts are rising.
Investors should be using any geopolitically-induced weakness as buying opportunities, says JPMorgan. Rate expectations are likely to come lower in the second half while earnings growth forecasts are rising.
designer491/iStock via Getty Images By Mark Paris, Chief Investment Officer, Invesco Fixed Income, Municipals and Tim Spitz, Senior Client Portfolio Manager, Team Lead Overview Municipal credit conditions appeared resilient, with year-to-date defaults down roughly 70% year over year. Defaults are expected to remain limited in 2026 and concentrated in sectors facing specific challenges. 1 The ongoi...
designer491/iStock via Getty Images By Mark Paris, Chief Investment Officer, Invesco Fixed Income, Municipals and Tim Spitz, Senior Client Portfolio Manager, Team Lead Overview Municipal credit conditions appeared resilient, with year-to-date defaults down roughly 70% year over year. Defaults are expected to remain limited in 2026 and concentrated in sectors facing specific challenges. 1 The ongoing conflict in the Middle East has increased inflation expectations and interest rate volatility, even as broader liquidity conditions remain stable at present. Recent investment outflows are largely tax-driven and may offer potential entry points for investors seeking tax-efficient and short-duration municipal exposure. Tim: Defaults are down thus far in 2026. Doesn't that support our view that credit fundamentals continue to be resilient? Mark: I think so! When you look at the numbers, the story is really encouraging. First-time payment defaults in March totaled just $49.5 million, which shows a sharp 79% year-over-year decline. 1 And those defaults were concentrated in a single borrower. 1 The March number also means that year-to-date defaults are rather low at $257.2 million – a 70% drop year over year. 1 Looking ahead, I expect defaults to remain low and mostly limited to sectors experiencing unique challenges. These are areas such as nursing homes and senior living, hospitals, industrial development, and some education sectors. 1 That said, even within these sectors there are many healthy credits, which is why thorough, bottom-up research is so important. The fact that there have been no Chapter 9 bankruptcy filings so far this year 1 further supports our view that overall credit conditions remain solid, even though there may be occasional problem spots. On balance, I think munis continue to offer a very compelling credit picture heading into the second half of the year. Tim: What are the implications for interest rates and inflation if we see a prolonged conflict the...
Freezman/iStock via Getty Images Thesis I think the bull case for Rocket Lab ( RKLB ) will ultimately come down to execution meeting the narrative. If we do see Rocket Lab sustain 40% to 50% plus revenue growth, continue scaling their higher-margin space systems segment, and also show some clear operating leverage toward profitability by 2027, the current premium valuation should start to compress...
Freezman/iStock via Getty Images Thesis I think the bull case for Rocket Lab ( RKLB ) will ultimately come down to execution meeting the narrative. If we do see Rocket Lab sustain 40% to 50% plus revenue growth, continue scaling their higher-margin space systems segment, and also show some clear operating leverage toward profitability by 2027, the current premium valuation should start to compress quite naturally rather than collapse. The first earnings of the year are just a little under two weeks away, and the big narrative there will be updates on the Neutron. In the sense that if management delivers a clean development cycle and sticks close to the late-2026 launch window, it should help confidence. Management now knows just how important Neutron updates are and should be careful when it comes to phrasing on the call. However, beyond just launches, we 're also seeing a growing portfolio of high-margin, repeatable component revenue start to pick up, as is the case with things like their new star trackers, as I 'll explain. Once you consider the overall integrated portfolio they can offer customers, you get a scenario in which Rocket Lab evolves into a fully integrated space infrastructure company with multiple revenue streams and expanding margins. In that case, I would think today 's valuation isn 't cheap, but it becomes somewhat defensible and potentially still early relative to a multi-billion-revenue business with some strong long-term positioning in the space economy. My previous coverage went into detail about a near-term catalyst in a potential SpaceX IPO and the impact that could have on the stock. And now with earnings coming up, I think it 's worth giving sentiment on what to expect going into the release. I think for Rocket Lab, a reasonable way here to align my thesis is with a scenario-based revenue multiple approach. If we do see the company deliver on that 40% to 50% growth and maintain momentum going into 2027, that forward EV to sales in the 20x...
The Philippines is telling crewing agencies to stop sending its nationals to the Persian Gulf, according to people familiar with the matter, making it more difficult for shipowners to rotate the thousands of seamen stuck on vessels behind the Strait of Hormuz. The Southeast Asian nation has issued advisories in recent days via the Department of Migrant Workers telling agencies not to send Filipino...
The Philippines is telling crewing agencies to stop sending its nationals to the Persian Gulf, according to people familiar with the matter, making it more difficult for shipowners to rotate the thousands of seamen stuck on vessels behind the Strait of Hormuz. The Southeast Asian nation has issued advisories in recent days via the Department of Migrant Workers telling agencies not to send Filipino crew to war zones such as the gulf to replace other seafarers there, said the people, who asked not to be named discussing sensitive information. Manila’s move follows a directive by major international labor groups to designate the areas around the Persian Gulf, Strait of Hormuz and the Gulf of Oman as a warlike operations area. That gives crew additional rights, including receiving more pay, the power to refuse transit through the strait, and higher compensation for death and disability. The war-zone designation implies that the country’s seafarers must be replaced by non-Filipinos, and agencies that disregard this may lose their license to recruit from the nation in the future, said the people. Some crewing agencies have already told shipowners that they won’t be recruiting Filipinos for rotations, they said. The DMW did not immediately respond to an email and text messages seeking comment. With nearly 590,000 seafarers globally , the Philippines is the biggest source of mariners in the world. The nation had around 6,400 seamen in the Middle East in the early days of the war, the DMW estimates, out of what the International Maritime Organization says is a total of more than 20,000 . Some of those may have since been repatriated. The Philippines advisories will make it a lot tougher to replace seafarers that want to leave. Some mariners have requested to end their contracts early, while others are asking not to renew them when they run out, the people said. A small number of workers whose contracts have expired have already left ships. Read More: Iran’s Hormuz Blockade L...