Root (ROOT) Q1 2025 Earnings Call May 07, 2025 05:00 PM ET Company Participants Matthew LaMalva - Head of IR & Corporate DevelopmentAlex Timm - Co-Founder and Chief Executive OfficerMegan Binkley - Chief Financial OfficerTommy McJoynt-Griffith - DirectorElyse Greenspan - Managing DirectorCharlie Rodgers - Equity Research Associate Operator Greetings, and welcome to the Root, Inc. First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A brief ques ...

COLUMBUS, Ohio, May 07, 2025 (GLOBE NEWSWIRE) -- Root, Inc. (NASDAQ: ROOT), the parent company of Root Insurance, today announced financial results for the first quarter. Root’s first quarter financial results and management commentary can be found by accessing the shareholder letter posted to the company’s investor relations website. An updated version of the company’s investor presentation will also be available. Both can be found on ir.joinroot.com. Root will host a conference call and earnings webcast t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from____________to____________ Commission File Number: 001-39658 ROOT, INC. (Exact name of Registrant as specified in its charter) Delaware 84-2717903 (State or ot ...

Q1 2025 Shareholder Letter Letter to Shareholders: Q1 2025 Key quarterly metrics Dear Shareholders The first quarter of 2025 was another great quarter for Root. We accelerated our policies-in-force growth while once again achieving profitability. This is a direct result of our strong product offering, underwriting technology, fixed expense discipline, and capitalization. In the first quarter, we: As we mentioned in our last letter and earnings call, we have started to accelerate investment in our business a ...

Root, Inc. (ROOT) is expected to register an improvement in its top and bottom lines when it reports first-quarter 2025 results on May 7, after the closing bell.The Zacks Consensus Estimate for ROOT’s first-quarter revenues is pegged at $305 million, indicating 19.6% growth from the year-ago reported figure.The consensus estimate for earnings is pegged at 45 cents per share. The Zacks Consensus Estimate for ROOT’s first-quarter earnings has moved up 36.4% in the past 30 days. The estimate suggests a year-ov ...

Portland, Oregon named most focused city; New Orleans, Louisiana ranks as most distracted city in Root’s 2025 Focused Driving ReportCOLUMBUS, Ohio, April 30, 2025 (GLOBE NEWSWIRE) -- Root Insurance, a technology-driven personal car insurance carrier and subsidiary of Root, Inc. (NASDAQ: ROOT), today released its 2025 Focused Driving Report in recognition of National Distracted Driving Awareness Month. Using real-world driving data, the report sheds light on one of the most dangerous behaviors behind the whe ...

Company Performance - ROOT Inc. shares have increased by 109.1% year to date, significantly outperforming the industry growth of 14%, the Finance sector's rise of 0.4%, and the S&P 500's decline of 6.4% [1] - Despite this growth, ROOT's stock is currently trading 16% lower than its 52-week high of $181.14 [1] - The company aims to become the largest and most profitable in the automobile and renters insurance industry [1] Competitive Landscape - Lemonade's shares have decreased by 19.5% year to date, while EverQuote's shares have increased by 16.2% [4] - Lemonade is focusing on acquiring profitable businesses and enhancing its car insurance segment, which it sees as a key growth driver [4][5] - EverQuote is positioned to benefit from the recovery of auto insurance demand and is expanding into new verticals [5][6] Financial Metrics - ROOT's return on equity (ROE) for the trailing 12 months is 16.3%, outperforming the industry average of 8.3% [18] - The return on invested capital (ROIC) for ROOT is 10.6%, also higher than the industry average of 6.4% [19] - ROOT's net margin has improved significantly, expanding by 15,350 basis points over the last three years [12] Growth Strategy - ROOT's growth strategy includes geographic expansion, diversification of distribution channels, and targeted investments in high-return opportunities [11] - The company has maintained a gross loss ratio below the long-term target range of 60-65%, allowing for selective rate reductions [14] - ROOT plans to refinance its debt facility with BlackRock in October 2024, which is expected to reduce interest expenses by 50% in 2025 [12] Analyst Sentiment - The consensus estimate for ROOT's earnings for 2025 and 2026 has increased by 63.1% and 35.4% respectively in the past 30 days, indicating positive investor sentiment [22] - The Zacks average price target for ROOT is $117.20 per share, suggesting a potential downside of 21.4% from the last closing price [9] Technological Focus - ROOT is enhancing operational efficiency through investments in pricing and underwriting technology, which has been a significant contributor to its growth [24] - The company is leveraging telematics and data-driven pricing models to accelerate growth in a technologically advancing industry [14]

Core Viewpoint - Root Insurance has experienced a significant share price increase of nearly 26% over the past week, driven by a substantial analyst price target raise [1] Group 1: Analyst Recommendations - Keefe, Bruyette & Woods' analyst Tommy McJoynt raised the fair value assessment for Root to $150 per share from a previous target of $90, maintaining an outperform recommendation [2] - The adjustment in price target was made ahead of Root's first-quarter earnings release, indicating strong confidence in the company's performance [3] Group 2: Growth Potential - The analyst views Root as a top pick in the insurance tech sector, anticipating that it could exceed consensus estimates for 2025 to 2027 [3] - There is optimism regarding Root's ability to grow its policies-in-force, with partnerships in the auto industry, such as with Carvana, identified as key growth drivers [4] Group 3: Historical Performance - Root has a history of surpassing analyst estimates, having posted a surprise net profit in 2024, which adds to its appeal as a potential buy [5]

InsurTechs — technology-led insurers — are trying hard to be game changers, leveraging technologies like AI, telematics, data-driven underwriting and machine learning, among others. Yet, ROOT Inc. (ROOT) and Lemonade (LMND) — two U.S.-based insurTech companies — continue to face challenges due to lowered interest rate, increased competition, inflation, higher cost of repair and increased pressure to achieve and sustain profitability. Given heightened regulatory scrutiny with respect to data and pricing mode ...

COLUMBUS, Ohio, April 10, 2025 (GLOBE NEWSWIRE) -- Root, Inc. (NASDAQ: ROOT), the parent company of Root Insurance Company, today announced its plans to host a conference call on Wednesday, May 7, 2025 at 5:00 p.m. Eastern Time to discuss financial results for the first quarter 2025 and provide an update on company operations. The company plans to release its first quarter results in the Investor Relations section of its website at ir.joinroot.com following the close of the financial markets on Wednesday, M ...