Root, Inc.
- Open
- 54.32
- Day high
- 54.71
- Day low
- 54.03
- Prev close
- 55.49
- Volume
- 5K
- Mkt cap
- $842M
- P/E (TTM)
- 14.7
- EPS (TTM)
- $3.71
- P/B
- 2.6
- P/S
- 0.5
- Yield
- —
- Per share
- —
Root, Inc. (ROOT) is a Financial Services company listed on NASDAQ. The stock is down 37% over the past year.
Root, Inc. (ROOT) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ROOT earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 5, 2026 | $0.83 | $1.49 | +80.0% | $389M | -1.5% |
| Jun 12, 2026 | $0.84 | $2.09 | +148.8% | $394M | -1.2% |
| Feb 25, 2026 | $0.03 | $0.13 | +326.3% | $397M | +4.0% |
| Nov 5, 2025 | $-0.43 | $-0.35 | +18.6% | $388M | +1.6% |
| Aug 6, 2025 | $1.06 | $1.29 | +21.7% | $383M | +12.9% |
| Feb 26, 2025 | $-0.63 | $1.30 | +306.3% | $327M | +13.5% |
| Apr 30, 2024 | $-2.51 | $-0.42 | +83.3% | $255M | +24.8% |
| Feb 21, 2024 | $-2.49 | $-1.64 | +34.1% | $195M | +53.4% |
| Nov 1, 2023 | $-3.29 | $-3.16 | +4.0% | $115M | +50.9% |
| Aug 2, 2023 | $-3.00 | $-2.55 | +15.0% | $75M | +12.8% |
| May 3, 2023 | $-3.59 | $-2.88 | +19.8% | $70M | +9.2% |
| Feb 22, 2023 | $-4.29 | $-4.13 | +3.7% | $71M | -46.9% |
ROOT insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 24, 2026 | Forish Ryanofficer: Chief Accounting Officer | Tax | 88 | $55.79 |
| Jun 23, 2026 | Forish Ryanofficer: Chief Accounting Officer | Tax | 294 | $51.07 |
| Jun 16, 2026 | Forish Ryanofficer: Chief Accounting Officer | Tax | 490 | $54.86 |
| Jun 4, 2026 | Szudarek Juliedirector | Grant | 2,864 | — |
| Jun 4, 2026 | KRAMER NANCY Jdirector | Grant | 2,864 | — |
| Jun 4, 2026 | Hilsheimer Lawrence A.director | Grant | 2,864 | — |
| Jun 4, 2026 | Ulman Dougdirector | Grant | 2,864 | — |
| Jun 4, 2026 | Dorsey Donnadirector | Grant | 2,864 | — |
| Jun 4, 2026 | DEVARD JERRIdirector | Grant | 2,864 | — |
| Jun 4, 2026 | Birnbaum Beth Adirector | Grant | 2,864 | — |
| May 22, 2026 | Forish Ryanofficer: Chief Accounting Officer | Tax | 351 | $57.85 |
| May 18, 2026 | Allison Jonathanofficer: Chief Administrative Officer | Sell | 1,606 | $55.96 |
| May 13, 2026 | Allison Jonathanofficer: Chief Administrative Officer | Sell | 1,706 | $55.74 |
| May 4, 2026 | Forish Ryanofficer: Chief Accounting Officer | Tax | 82 | $55.05 |
| Apr 8, 2026 | Allison Jonathanofficer: Chief Administrative Officer | Sell | 1,706 | $44.35 |
Source: ROOT SEC Form 4 filings, latest Aug 24, 2026. For informational purposes only — not investment advice.
See the full ROOT insider & 13F page →Root, Inc. company profile
Overview
Root, Inc. (NASDAQ:ROOT) is a technology-driven insurance company founded in 2015 and headquartered in Columbus, Ohio. The company went public in October 2020 and has positioned itself as a disruptor in the traditional auto insurance industry by leveraging mobile technology, telematics data, and advanced data science to price policies based on actual driving behavior rather than traditional demographic factors. After years of losses while building its technology platform and customer base, Root achieved its first full year of profitability in 2024, marking a significant milestone in its transformation from a growth-focused startup to a profitable insurance operation.
Business
Root operates in the property and casualty insurance industry, specifically focusing on personal lines insurance products. The company's core business revolves around three main insurance products: automobile insurance, homeowners insurance, and renters insurance, with auto insurance representing the vast majority of its revenue. The company's primary innovation lies in its telematics-based pricing model for auto insurance. Traditional insurers price policies based on demographic factors like age, gender, location, and credit score. Root instead uses smartphone telematics technology to track actual driving behavior including speed, braking patterns, acceleration, phone usage while driving, and time of day when driving occurs. This data is collected through Root's mobile application, which customers download and use during a test drive period before receiving their insurance quote. Root operates through two main distribution channels. The Direct Channel involves customers coming directly to Root through digital marketing, downloading the app, completing the telematics test drive, and purchasing insurance directly from the company. The Partnership Channel (also called Embedded Channel) involves partnerships with automotive manufacturers, financial services companies, and independent agents who offer Root's insurance products to their customers. As of recent quarters, the partnership channel represents approximately one-third of new business, with this percentage growing as Root expands its partner network to over 20 partners including companies like Hyundai Capital America and Experian. The company currently operates in 35 states, covering approximately 76% of the U.S. population, and continues expanding its geographic footprint. Root's technology platform allows for rapid deployment in new states and quick integration with partners, giving it operational flexibility that traditional insurers often lack.
Competitive moat
Root's competitive moat centers on its proprietary telematics technology platform and data science capabilities, though this moat faces meaningful challenges from established competitors. The company's primary advantage lies in its mobile-first approach to insurance, collecting real-time driving data through smartphone apps rather than requiring separate telematics devices. This creates a more seamless customer experience and potentially more accurate risk assessment than traditional demographic-based pricing models. The company has built significant intellectual property around its machine learning algorithms and actuarial models that process telematics data to predict accident risk. Root's ability to deploy new pricing models quickly and adjust rates in real-time provides operational flexibility that traditional insurers struggle to match. The company's technology stack also enables rapid geographic expansion and partner integration, as demonstrated by its ability to launch in new states and onboard partners faster than incumbents. However, Root's moat faces substantial competitive pressure. Large established insurers like Progressive, State Farm, and Geico have significantly more resources, brand recognition, and customer relationships. Many of these competitors have launched their own telematics programs and mobile apps, eroding Root's technological differentiation. The insurance industry benefits from strong network effects and customer switching costs, but these advantages typically favor large incumbents rather than newer entrants. Root's scale disadvantage is particularly challenging in insurance, where larger companies benefit from better risk diversification, lower per-unit costs, and stronger reinsurance relationships. The company's current 414,000 policies in force remains small compared to major competitors who serve millions of customers. Additionally, insurance is a heavily regulated industry where relationships with state regulators and established distribution networks provide significant advantages to incumbents. The partnership channel strategy helps address some competitive disadvantages by leveraging partners' customer relationships and distribution capabilities, but these partnerships are not exclusive and competitors can potentially replicate similar arrangements. Overall, while Root has built meaningful technology capabilities, its competitive moat appears moderate and faces ongoing pressure from well-resourced incumbents adapting to digital trends.
Risks & safety
Root demonstrates a strong financial safety profile with substantial liquidity and manageable debt levels, though profitability remains relatively new and modest. • Liquidity position: $609 million in cash and short-term investments with minimal debt, providing significant runway for operations and growth investments • Debt management: Successfully refinanced term loan with BlackRock, reducing debt facility from $300 million to $200 million and cutting interest expense by over 50%; debt-to-equity ratio of 0.87 is reasonable for the industry • Profitability trends: Achieved first full year of net income profitability in 2024 with $31 million in net income; quarterly results show consistent positive operating cash flow • Valuation metrics: Trading at 27.6x trailing earnings and 8.9x book value, reflecting premium valuation for growth and technology positioning; EV/EBITDA of 19.8x appears elevated • Operational cash generation: Positive free cash flow of $184 million in 2024 demonstrates improving operational efficiency and cash generation capabilities • Capital requirements: Current ratio of 17.6x indicates very strong short-term liquidity position; unencumbered capital of $347 million provides additional safety cushion for regulatory requirements and unexpected losses
Recent development
Root has undergone a significant strategic transformation over the past few years, evolving from a growth-focused startup burning substantial cash to a profitable insurance operation. The company's three-step strategic plan focused on achieving healthy margins, reducing fixed expenses, and enabling efficient growth has largely been executed successfully. The most significant development has been Root's achievement of sustained profitability, with 2024 marking the first full year of net income profitability at $31 million. This represents a dramatic turnaround from the $147 million net loss in 2023 and $298 million loss in 2022. The company improved its gross combined ratio from over 100% to 95% through better underwriting discipline and enhanced pricing models. Root has aggressively expanded its partnership channel strategy, which now represents approximately one-third of new business compared to minimal contribution in prior years. The partnership channel has grown to over 20 partners including automotive manufacturers like Hyundai Capital America and financial services companies like Experian. This channel provides lower customer acquisition costs and higher retention rates compared to direct marketing. Geographic expansion has been another key focus, with Root now operating in 35 states covering 76% of the U.S. population, up from a much smaller footprint in previous years. The company has demonstrated ability to launch in new states relatively quickly due to its technology platform's flexibility. The company has made substantial technology investments in its data science capabilities, deploying new loss cost models with 17% improvement in predictive power and continuously enhancing its telematics algorithms. Root has also improved its pricing agility, enabling real-time rate adjustments based on market conditions and loss experience. Financial management improvements include refinancing debt facilities with better terms, reducing interest expense by over 50%, and maintaining strict discipline around marketing spend and customer acquisition costs. The company has shifted from aggressive growth spending to profitable growth strategies, focusing on lifetime customer value rather than rapid scale.
ROOT company profile · for informational purposes only — not investment advice.
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