Root Inc.'s second quarter results demonstrated strong financial performance and strategic progress, particularly in expanding their partnership channel and leveraging AI in pricing models. However, challenges such as increased competition in the direct channel and expected near-term profitability pressures due to strategic investments and warrant expenses were noted. Despite these challenges, the company's advancements and financial improvements suggest an overall positive trajectory.

Company Guidance -

Q3 2025

During the 2025 second quarter earnings call for Root Inc., the company provided several key metrics and guidance for the future. Root achieved a record $371 million in gross earned premiums and reported a net income of $22 million, marking a $30 million improvement year-over-year. The company also generated $27 million in operating income and $38 million in adjusted EBITDA, reflecting year-over-year improvements of $24 million and $26 million, respectively. Root highlighted a gross accident period loss ratio of 60% and a net combined ratio of 95%, showcasing disciplined management and capital deployment. The company is focusing on expanding its national footprint and enhancing its product suite, with strategic investments expected to impact near-term profitability. Additionally, an anticipated $16 million to $18 million noncash expense related to Carvana warrants is expected in Q3, which will result in a net loss for the quarter but maintain positive adjusted EBITDA. Root's long-term strategy includes leveraging AI and machine learning for pricing, with a new model improving customer lifetime values by 20% on average. While competition increased in the direct channel, Root plans to continue investing in partnerships, which have seen nearly triple the quarterly new writing year-over-year.

Record Revenue and Net Income

Root Inc. reported record revenue with $371 million in gross earned premiums and generated a net income of $22 million for the second quarter of 2025.

Partnership Channel Expansion

The partnership channel saw new writing nearly triple year-over-year, with Root available through the industry's two largest comparative raters, EZLynx and PL Rating, now live in more than 20 states.

AI-driven Pricing Model Success

Root's next-gen pricing model increased customer lifetime values by 20% on average, demonstrating the effectiveness of AI and machine learning in improving risk selection.

Improved Financial Metrics

The company reported a $30 million improvement in net income year-over-year, with operating income of $27 million and adjusted EBITDA of $38 million, showing significant year-over-year improvements.

Strong Loss Ratio and Combined Ratio

Root achieved a gross accident period loss ratio of 60% and a net combined ratio of 95%, reflecting strong underwriting discipline and capital 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)	-0.16 / -	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 -0.16.

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