The earnings call reflects a strong quarter with record revenue and significant advancements in pricing and partnerships. However, competitive pressures in the direct channel and potential near-term profitability challenges due to strategic investments and warrant expenses present some concerns.

Company Guidance

During the second quarter of 2025, Root Inc. achieved notable financial performance, setting a record with $371 million in gross earned premiums and generating a net income of $22 million, marking a $30 million year-over-year improvement. The company delivered an operating income of $27 million and an adjusted EBITDA of $38 million. Root's gross accident period loss ratio stood at 60%, while the net combined ratio improved by 8 points year-over-year to 95%. The quarter also saw policies in force, gross written premium, and gross earned premium increase compared to the previous year. Root's strategy included advancing its AI-driven pricing model, which enhanced risk selection and increased customer lifetime values by 20%. The company expanded its partnership channel, with new writings tripling year-over-year, and maintained a below-target loss ratio of 60%-65%. Despite facing competitive pressures in the direct channel, Root strategically managed marketing spend and continued to invest in growth opportunities, expecting potential near-term profitability pressures due to seasonal loss ratios and R&D investments. The company ended the quarter with $314 million in unencumbered capital, emphasizing a long-term growth focus.

Record Revenue and Net Income

Root achieved a record revenue with $371 million in gross earned premiums and generated a net income of $22 million, marking a $30 million improvement year-over-year.

Advancement in Pricing Model

The new pricing model improved risk selection and increased customer lifetime values by 20% on average, allowing for faster growth and better predictive models.

Partnership Channel Growth

The partnership channel saw new writing nearly triple year-over-year, with strong engagement from independent agents and availability through major comparative raters, expanding Root's reach.

Financial Flexibility and Capital Position

Root reported $314 million in unencumbered capital, maintaining excess capital across subsidiaries, enabling dynamic growth capital deployment.

Improvement in Net Combined Ratio

Achieved a net combined ratio of 95%, an 8-point improvement year-over-year, demonstrating disciplined business management.

Root (ROOT) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

ROOT Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 05, 2025	2025 (Q3)	-0.50 / -	1.35	―	―	―
Aug 06, 2025	2025 (Q2)	0.56 / 1.29	-0.52	348.08% (+1.81)	―
May 07, 2025	2025 (Q1)	0.34 / 1.07	-0.42	354.76% (+1.49)	―
Feb 26, 2025	2024 (Q4)	-0.45 / 1.42	-1.65	186.06% (+3.07)	―
Oct 30, 2024	2024 (Q3)	-0.93 / 1.35	-3.16	142.72% (+4.51)	―
Aug 07, 2024	2024 (Q2)	-1.40 / -0.52	-2.55	79.61% (+2.03)	―
Apr 30, 2024	2024 (Q1)	-2.44 / -0.42	-2.88	85.42% (+2.46)	―
Feb 21, 2024	2023 (Q4)	-2.84 / -1.65	-4.13	60.05% (+2.48)	―
Nov 01, 2023	2023 (Q3)	-2.73 / -3.16	-4.54	30.40% (+1.38)	―
Aug 02, 2023	2023 (Q2)	-3.03 / -2.55	-6.48	60.65% (+3.93)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

ROOT Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 06, 2025	$122.55	$90.23	-26.37%
May 07, 2025	$139.93	$141.49	+1.11%
Feb 26, 2025	$98.71	$123.95	+25.57%
Oct 30, 2024	$40.49	$68.39	+68.91%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

FAQ

When does Root (ROOT) report earnings?

Root (ROOT) is schdueled to report earning on Nov 05, 2025, After Close (Confirmed).

What is Root (ROOT) earnings time?

Root (ROOT) earnings time is at Nov 05, 2025, After Close (Confirmed).

Where can I see when companies are reporting earnings?

You can see which companies are reporting today on our designated earnings calendar.

What companies are reporting earnings today?

You can see a list of the companies which are reporting today on TipRanks earnings calendar.

What is ROOT EPS forecast?

ROOT EPS forecast for the fiscal quarter 2025 (Q3) is -0.5.

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