SCHEDULE: SoftBank Reduces Lemonade Stake Below 5%

SoftBank Group Capital Ltd has reported a reduction in its beneficial ownership of Lemonade, Inc. common stock to 4.8%, falling below the 5% threshold.

Summary

• SoftBank Group Capital Ltd now beneficially owns 3,563,924 shares of Lemonade, Inc. common stock.
• This represents 4.8% of Lemonade's outstanding common stock.
• The ownership percentage is based on 74,731,027 shares outstanding as of November 4, 2025, as disclosed in Lemonade's Quarterly Report on Form 10-Q.
• The event requiring this Amendment No. 4 filing occurred on September 30, 2025.
• The joint investment committee, to which SoftBank had delegated voting and dispositive power over its shares, was dissolved on March 31, 2023, resulting in SoftBank holding sole voting and dispositive power over these securities.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to SoftBank Group Capital Ltd reducing its stake in Lemonade, Inc. to below 5%. While not a complete divestment, a reduction by a major institutional investor can signal decreased confidence or a strategic shift, which is generally viewed unfavorably by the market.

Positives

• SoftBank Group Capital Ltd now has sole voting and dispositive power over its 3,563,924 shares, following the dissolution of the joint investment committee.

Negatives

• SoftBank Group Capital Ltd has reduced its beneficial ownership in Lemonade, Inc. to 4.8%, indicating a decreased stake in the company and falling below the 5% reporting threshold.

Future Outlook

NA

Industry Context

This filing reflects a change in a significant institutional investor's position in Lemonade, an insurtech company. A reduction in stake by a major early investor like SoftBank could be interpreted by the market as a signal regarding the company's future prospects or SoftBank's portfolio rebalancing strategy, potentially impacting investor sentiment towards insurtech firms.

Corporate Governance

Stakeholder Impact

• Shareholders: May interpret SoftBank's reduced stake as a negative signal, potentially leading to decreased investor confidence or share price volatility.
• Company (Lemonade, Inc.): A major investor reducing its stake could affect market perception and potentially future capital-raising efforts, though SoftBank remains a shareholder.

Key Dates

Recommendation

SoftBank Group Capital Ltd, a prominent institutional investor, has reduced its beneficial ownership in Lemonade, Inc. to 4.8%, falling below the 5% threshold. This reduction, particularly by a major early backer, can be interpreted as a signal of decreased confidence in the company's future prospects or a strategic portfolio rebalancing. While not a complete divestment, such a move by a sophisticated investor often precedes further selling pressure or indicates a less favorable outlook, suggesting a 'sell' recommendation for other investors to consider reducing their exposure.

Keywords

Lemonade Inc, SoftBank Group Capital Ltd, LMND, Schedule 13G, beneficial ownership, stock ownership, institutional investor, insurance technology, fintech