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ROOT

Root, Inc.

ROOT

Root, Inc. • NASDAQ
$80.89 ▼ -0.75% (-0.61)
Market Cap $1.11 B
52w High $181.14
52w Low $68.08
Dividend Yield 0%
P/E 24.07
Volume 80.79K
Outstanding Shares 13.70M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $387.8M ▲ $86.4M ▲ $-5.4M ▼ -1.392% ▼ $-0.35 ▼ $5M ▼
Q2-2025 $382.9M ▲ $79.7M ▼ $22M ▲ 5.746% ▲ $1.36 ▲ $29.3M ▲
Q1-2025 $349.4M ▲ $88.7M ▲ $18.4M ▼ 5.266% ▼ $1.15 ▼ $25.7M ▼
Q4-2024 $326.7M ▲ $81.5M ▲ $22.1M ▼ 6.765% ▼ $1.38 ▼ $32.3M ▼
Q3-2024 $305.7M $76M $22.8M 7.458% $1.45 $39.6M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $1.011B ▲ $1.642B ▲ $1.377B ▲ $265M ▲
Q2-2025 $964.1M ▲ $1.588B ▲ $1.343B ▼ $244.5M ▲
Q1-2025 $930.2M ▲ $1.585B ▲ $1.357B ▲ $228.7M ▲
Q4-2024 $906.1M ▼ $1.496B ▼ $1.292B ▼ $203.7M ▲
Q3-2024 $949.6M $1.562B $1.38B $181.9M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-5.4M ▼ $57.6M ▲ $-41.6M ▼ $-4.1M ▲ $11.9M ▼ $53.7M ▲
Q2-2025 $22M ▲ $52M ▲ $-3.8M ▲ $-16.2M ▼ $32M ▲ $52M ▲
Q1-2025 $18.4M ▼ $26.8M ▼ $-13.8M ▲ $-2.8M ▲ $10.2M ▲ $24.8M ▼
Q4-2024 $22.1M ▼ $69.2M ▲ $-40.3M ▼ $-104.4M ▼ $-75.5M ▼ $64.8M ▲
Q3-2024 $22.8M $49.4M $-39.8M $-2M $7.6M $47M

Five-Year Company Overview

Income Statement

Income Statement Root’s income statement shows a company that has shifted from heavy, consistent losses to its first meaningful year of profitability. Revenue has grown steadily, with a sharp step up most recently, suggesting the business is gaining traction and scale. Historically, operating and net results were deeply negative, reflecting high customer acquisition costs, technology spending, and the challenges of building an insurance book from scratch. More recently, those losses have narrowed and flipped to a modest profit, indicating better underwriting discipline, improved pricing, and tighter cost control. That said, the turnaround is still young, and insurance results can be volatile, so the durability of this profitability remains an important open question.

Balance Sheet

Balance Sheet The balance sheet has gradually slimmed down since the early post‑IPO period, with total assets and cash balances shrinking from initial levels but still representing a substantial cushion for current operations. Debt is present but not overwhelming, and overall leverage appears manageable. The more concerning shift is the steady erosion of shareholder equity over time, a direct result of prior years’ losses. Although equity remains positive, the capital base is thinner than it once was, leaving less room for error if underwriting results weaken. On the positive side, the balance sheet still looks relatively liquid and straightforward, with a large share of assets in cash and equivalents, which is typical for an insurer but will need to be carefully preserved.

Cash Flow

Cash Flow Cash flow has moved from persistently negative to clearly improving. For several years, the core business consumed cash, a sign that growth and operating costs were outpacing the cash coming in from policies. More recently, operating cash flow has turned positive, and free cash flow has followed, helped by low capital spending needs. This indicates that Root is edging closer to a self‑funding model rather than relying on external capital to support operations. However, because the company’s positive cash flow history is short, there is still uncertainty about how well cash generation will hold up through different growth phases and insurance cycles.

Competitive Edge

Competitive Edge Root competes in a very crowded property and casualty insurance market dominated by large, well‑funded incumbents with strong brands and long track records. Its edge comes from a technology‑driven approach: mobile‑first distribution, telematics‑based risk scoring, and heavy use of data science. The large dataset of driving behavior it has accumulated may give it a pricing and underwriting advantage in certain customer segments. Partnerships for embedded insurance and relationships with independent agents also help it reach customers more efficiently. Still, Root remains a relatively small player facing intense price competition, regulatory scrutiny, and high advertising noise from bigger carriers, so its emerging advantages will need to keep strengthening to translate into lasting market share gains.

Innovation and R&D

Innovation and R&D Innovation sits at the center of Root’s strategy. The company has built its own technology stack, using its mobile app to collect driving data and feed machine‑learning models that price risk based on actual behavior rather than traditional demographic proxies. This behavior‑based approach, along with a fully digital customer experience, differentiates Root from legacy carriers that often rely on older systems and more manual processes. Root is also investing in APIs and integration tools that let partners embed its insurance into their own sales journeys, which can lower acquisition costs and deepen data access. Looking ahead, continued investment in artificial intelligence, telematics, and product expansion will be crucial, but it will also need to balance experimentation with strict control over underwriting risk and costs.

Summary

Root, Inc. has evolved from an early‑stage, loss‑making insurtech into a company that has recently demonstrated both accounting profitability and positive cash flow. The business is built around a clear technological thesis: use telematics, data science, and a mobile‑first interface to price risk more fairly and operate more efficiently than traditional insurers. Financially, the trend lines are encouraging—revenue growth, improving margins, and a move toward self‑funding operations—but these gains come after years of heavy losses that have thinned the equity cushion. Competitively, Root holds promising data and technology advantages and is building distribution through embedded partnerships and agents, yet it remains a relatively small player in a tough, price‑sensitive, and regulated market. Overall, Root looks like a company in the middle of a transition: early evidence of a viable model is emerging, but the consistency and resilience of that model through different conditions are still to be proven.

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