Summary of Root (NasdaqGS:ROOT) FY Conference Call - January 12, 2026 Company Overview - **Company Name**: Root - **Founded**: 2015 - **Public Listing**: 2020 - **Industry**: Insurtech (Insurance Technology) - **Core Business**: Car insurance based on driver behaviors using mobile technology and data science - **Market Position**: Largest insurtech in the U.S. with strong underwriting records [1] Key Points and Arguments Business Model and Growth - Root leverages mobile technology and data science to offer personalized insurance rates based on driver behavior rather than demographics [1][5] - 50% of Root's business comes from direct sales, with additional revenue from embedded products (e.g., Carvana Insurance) and independent agents [6][7] - The company has reached profitability and emphasizes creating better customer experiences through technology [7] Distribution Channels - **Direct Channel**: Grew by 100% in 2023 due to competitors pulling back on advertising; Root uses advanced bidding algorithms to target customers effectively [10][11] - **Embedded Channel**: Experiencing rapid growth, with a partnership with Hyundai to integrate insurance into vehicle purchase processes [11][34] - **Independent Agents**: Fastest-growing segment, tripling year-over-year; Root's technology simplifies the insurance quoting process for agents [12][18] Competitive Advantages - Root's technology allows for real-time pricing adjustments and efficient data processing, significantly reducing the time agents spend on quotes [20][18] - The company can update pricing models more frequently than competitors, enhancing its ability to respond to market changes [23][36] - Root's closed-loop system and modern API infrastructure provide a significant edge over traditional insurers still using outdated systems [24][25] Market Opportunities - The U.S. auto insurance market is valued at $300 billion, with Root currently holding less than 1% market share, indicating substantial growth potential [41] - Root plans to expand its partnerships with OEMs and financial services companies to further penetrate the market [40][41] Strategic Focus - Root prioritizes disciplined growth over short-term earnings targets, ensuring that new business ventures meet internal return thresholds [15][39] - The company aims to enhance its technology for daily pricing updates and expand its national footprint, having recently gained approval in New Jersey [36][41] Future Outlook - Continued investment in technology and partnerships is expected to drive growth, with a focus on improving customer experience and operational efficiency [34][41] - Root anticipates further market share gains as it scales its operations and enhances its product offerings [41][42] Additional Important Insights - Root's approach to AI is not limited to chatbots; it utilizes advanced predictive algorithms for underwriting and risk assessment [30][32] - The company is exploring new marketing channels, including connected TV and social media, to enhance brand visibility and customer acquisition [35] This summary encapsulates the key insights from the conference call, highlighting Root's innovative approach to the insurance market, its growth strategies, and the competitive advantages it holds in the insurtech space.

Core Insights - Root, Inc. will participate in the 28th Annual ICR Conference from January 12 to 14, 2026, in Orlando, Florida [1] - CEO Alex Timm will engage in a fireside chat on January 12, 2026, at 3:30 p.m. ET, with a live webcast available on the company's Investor Relations website [2] - The ICR Conference serves as a platform for public and private company leaders, institutional investors, analysts, and media to discuss consumer trends and assess public company performance [3] Company Overview - Root, Inc., founded in 2015 and headquartered in Columbus, Ohio, is the parent company of Root Insurance Company, focusing on revolutionizing insurance through data science and technology [4] - The Root app has achieved over 16 million downloads and has collected more than 34 billion miles of driving data to enhance its insurance offerings [4]

Core Insights - The article emphasizes the importance of understanding market dynamics and the potential impact of macroeconomic factors on investment decisions [2] Group 1: Market Analysis - The current market environment is characterized by volatility, influenced by geopolitical tensions and economic indicators [2] - Analysts suggest that investors should closely monitor interest rate changes and inflation trends as they can significantly affect stock performance [2] Group 2: Company Performance - Recent earnings reports from key companies indicate mixed results, with some sectors showing resilience while others struggle [2] - Companies that have adapted to changing consumer behaviors and technological advancements are likely to outperform their peers [2]

Core Insights - Gilbarco Veeder-Root, a Vontier company, has launched the Konect 400 kW All-in-One EV Charger, designed specifically for fuel and convenience retail, offering an integrated payment and operations solution for a seamless customer experience [1][2]. Product Features - The Konect 400 kW EV Charger is positioned as a game changer, providing ultra-fast charging while integrating payment and software management systems, simplifying the electrification process for both drivers and operators [2][4]. - The platform addresses the complexities of current EV charging systems, which often require retailers to manage multiple applications and vendors, leading to inconsistent driver experiences [2][3]. - Konect's platform enhances customer satisfaction and operational efficiency, allowing retailers to benefit from electrification without overhauling their existing business models [3][4]. Customer Experience - The integration of Invenco's FlexPay 6 payment platform ensures a consistent customer experience and prepares retailers for a multi-energy future [4][7]. - A survey indicated that nearly one-third of EV drivers avoid locations with unreliable or confusing chargers, highlighting the importance of system reliability and simplicity in driving customer behavior [4][7]. Availability and Deployment - The Konect 400 kW All-in-One EV Charger is currently available for pilot deployments and commercial orders, with retailers and energy partners encouraged to reach out for demonstrations and technical briefings [5]. Company Background - Gilbarco Veeder-Root has been a leader in retail and commercial fueling operations for over 150 years, providing a wide range of integrated solutions from the forecourt to convenience stores [6]. - Vontier, the parent company, focuses on productivity, automation, and multi-energy technologies to support a rapidly evolving mobility ecosystem [8].

Core Insights - HUB Cyber Security is transitioning from being viewed solely as a cybersecurity vendor to being recognized as a foundational layer in the regulated economy, emphasizing the importance of compliance in various sectors [2][12] - The introduction of HUB Compliance™ is positioned as a comprehensive compliance infrastructure that integrates confidential computing, automated policy enforcement, and verifiable logging, addressing the needs of institutions in high-risk environments [3][8] Product and Market Positioning - HUB Compliance™ is designed to be more valuable as regulatory demands increase, contrasting with other firms that attempt to evade compliance [4][12] - The product is not merely an add-on but a critical infrastructure stack for institutions operating under stringent regulations, which is gaining traction among customers [8][12] Recent Developments - HUB secured a multi-year deal with a major aerospace and defense manufacturer, indicating strong market validation and trust in its architecture [5][6] - The defense sector's approval of HUB's system enhances its credibility, attracting attention from financial institutions and regulators [7][12] Industry Trends - There is a tightening of regulations across industries handling sensitive data, with traditional tools failing to meet the demands for real-time compliance and audit readiness [9][10] - The market is increasingly in need of systems that provide verifiable evidence of compliance as transactions occur, which HUB aims to fulfill [10][11] Strategic Vision - HUB is positioning itself as an architect of the new compliance economy, focusing on building a platform based on confidential computing and verifiable governance [12] - The company is not competing in the traditional cybersecurity market but is instead stepping into a role that aligns with its foundational capabilities [12]

Core Insights - Root, Inc. is participating in Citi's 2025 Insurance Access Day on December 8, 2025, in New York [1] - The company will not have a formal presentation but will conduct one-on-one and group meetings with institutional investors [2] - Root, Inc. aims to revolutionize insurance through data science and technology, providing a personalized experience [3] Company Overview - Root, Inc. was founded in 2015 and is based in Columbus, Ohio [3] - The company is the parent of Root Insurance Company and has over 16 million app downloads [3] - Root has collected more than 33 billion miles of driving data to inform its insurance offerings [3]

Core Insights - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article suggests that users may face blocks if they have ad-blockers enabled [1]

Core Insights - The manufacture sales increased by 13%, indicating a slowdown in momentum attributed to delays in the German government's procurement decisions [1] Group 1 - The increase in manufacture sales is quantified at 13% [1] - The slowdown in momentum is linked to procurement delays from the German government [1]

Financial Data and Key Metrics Changes - For Q3 2025, the company recorded a net loss of $5 million, operating income of $300,000, and adjusted EBITDA of $34 million, with a year-to-date net income of $35 million [10][11] - The company achieved a 59% gross accident period loss ratio, indicating strong underwriting performance [10][11] Business Line Data and Key Metrics Changes - The company experienced double-digit percentage increases in policies in force, written premium, and earned premium year-over-year [10] - New writings in the partnership channel more than doubled, with independent agents now representing 50% of partnership distribution [8][10] Market Data and Key Metrics Changes - The company is currently active in less than 10% of independent agents, representing a significant growth opportunity as this channel accounts for over $100 billion in premium nationally [8][12] - The average premium per policy decreased quarter-over-quarter due to a proactive rate decrease in Florida, a significant market [30] Company Strategy and Development Direction - The company aims to build the largest, most profitable personal lines insurance carrier in the U.S., focusing on technology-driven growth and innovation [9] - Continued investment in direct R&D marketing is planned, with an increase of approximately $5 million in Q4 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth despite an increasingly competitive environment, attributing success to superior technology and pricing models [12] - The company anticipates a seasonal headwind to the loss ratio in Q4, driven by factors such as animal collisions and bad weather [12] Other Important Information - The company maintains a strong capital position with unencumbered capital of $309 million at the end of Q3 [11] - The deployment of a new pricing algorithm improved customer lifetime values by 20% on average [5][6] Q&A Session Summary Question: Opportunities in the direct channel and competitiveness - Management noted continued acceleration of new writings and growth in all channels, driven by improved pricing [16] Question: Change in severity number and rate adjustments - Management indicated no major changes to rates are anticipated, with the increase in severity being within normal variation [18] Question: Independent agents penetration and growth trajectory - Management highlighted that independent agents represent a significant growth opportunity, with a tripling of new writings year-over-year [23] Question: Partnership as a percentage of earned premium - Management stated that partnership growth is expected to continue and become a larger proportion of the overall book over time [25] Question: Average premium per policy decrease and pricing flexibility - Management explained the decrease was due to a proactive rate decrease in Florida, positioning the company well for future growth [30] Question: Changes in the competitive landscape - Management confirmed that competitive pressures remain high, but the company continues to grow through its technology and pricing models [32] Question: Impact of tariffs on data and expectations - Management reported no significant changes in expectations regarding tariffs, maintaining that loss ratios may increase seasonally in Q4 [34]

Financial Data and Key Metrics Changes - For Q3 2025, the company recorded a net loss of $5 million, operating income of $300,000, and adjusted EBITDA of $34 million, with a year-to-date net income of $35 million [10][11] - The company achieved a 59% gross accident period loss ratio, with double-digit percentage increases in policies in force, written premium, and earned premium year over year [10][11] Business Line Data and Key Metrics Changes - New writings in the partnership channel more than doubled, with independent agents now representing 50% of partnership distribution, and this channel alone is over $100 billion in premium nationally [6][7] - In the direct channel, new writings increased sequentially by high single digits despite increased competition [8][10] Market Data and Key Metrics Changes - The company is currently active in less than 10% of independent agents, having grown from less than 4% last quarter, indicating significant growth potential in this channel [21][22] - The partnership channel is expected to continue growing as a percentage of the overall book over time, with higher average premiums due to larger policies in this channel [23][24] Company Strategy and Development Direction - The company aims to build the largest, most profitable personal lines insurance carrier in the United States, focusing on accelerating growth through technology and innovation [9][12] - The company plans to increase investment in direct R&D marketing by approximately $5 million in Q4 to support growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth driven by superior technology, despite an increasingly competitive environment [12] - The company anticipates a headwind to its loss ratio from typical seasonality in Q4, expecting a similar impact as last year [12] Other Important Information - The company maintains a strong capital position with unencumbered capital of $309 million at the end of Q3 [11] - The recent pricing algorithm has improved customer lifetime values (LTVs) by 20% on average, contributing to growth [5][15] Q&A Session Summary Question: Opportunities in the direct channel and competitiveness - Management noted continued acceleration of new writings and growth in all channels, driven by improved pricing [14][15] Question: Change in severity number and rate adjustments - Management indicated no major changes to rates are anticipated, with the increase in severity being within normal variation [17][18] Question: Independent agents penetration and growth trajectory - Management highlighted independent agents as a key growth lever, with significant growth observed and plans to onboard more agents [21][22] Question: Partnership as a percentage of earned premium - Management stated that partnership percentage remains flat in new writings but expects it to grow over time [23][24] Question: Average premium per policy and pricing flexibility - Management explained that a recent rate decrease in Florida contributed to lower average premiums, but they are not in a position to broadly lower rates [27][28] Question: Changes in competitive landscape and October PIF trends - Management confirmed that October PIF growth has accelerated, with a competitive environment remaining intense [30][31] Question: Impact of tariffs on data and expectations - Management reported no significant changes in expectations regarding tariffs, maintaining that loss ratios may increase in Q4 due to seasonality [32][33]