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Root, Inc.

ROOT

NASDAQFinancial ServicesInsurance - Property & Casualty

Open in GoAI

Previous close

$55.79

−$1.62 · -2.82%

Aug 21, 4:00 PM ET

ROOT company overview

Regular session · ET · Market data may be delayed.

GoAI snapshot

AI-powered factor overview

Jul 10, 2026

GoAI score

Hold

Wait — insufficient conviction to act

Valuation

80

Undervalued

Momentum

47

Neutral

Sentiment

59

Mixed

Risk resilience

18

Extreme Risk

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AI-generated, informational only, and not investment advice.

Company profile

Company website

Root, Inc. operates within the United States, concentrating on delivering a range of insurance solutions, including policies for automobiles, residential properties, and rental occupancy. The company employs a direct-to-consumer business model, primarily connecting with its customers via user-friendly mobile applications and its official website. Its comprehensive distribution network also incorporates various other digital platforms, media campaigns, referral initiatives, and collaborations with external partners and independent agencies. Established in 2015, the firm's corporate headquarters are situated in Columbus, Ohio.

Industry
Insurance - Property & Casualty
Sector
Financial Services
Headquarters
US
CEO
Alexander Edward Timm
Listed since
Oct 28, 2020
Employees
1,256

Market position

Day range

Current $55.79

52-week range

Current $55.79

Open
$58.31
Previous close
$57.41
Volume
316.4K
1.12× average
Average volume
282.64K
Average daily volume
Market cap
782.18M USD
Beta
2.93
Market reference 1
50-day average
$56.6202
-1.47% below average
200-day average
$60.7668
-8.19% below average

Financials

Financial snapshot

Latest / TTM

Valuation & yield

Enterprise value
630.97M USD
P/E (TTM)
15.04×
P/B (TTM)
2.67×
P/S (TTM)
0.5×
EV / EBITDA
8.57×
Earnings yield
3.60%
Free cash flow yield
17.19%
Dividend yield
0.00%

Profitability & efficiency

Gross margin
31.54%
Operating margin
3.96%
Net margin
3.90%
Return on equity
10.17%
Return on assets
2.62%
Return on invested capital
3.54%

Financial health

Debt / equity
0.95×
Current ratio
2.62×
Altman Z-score
0.5
Piotroski F-score
6 of 9

Financial statements

Margin trends

Profitability as a percentage of reported revenue.

Gross marginOperating marginNet margin
Gross, operating, and net margin trends47%-25%-97%-169%Gross margin, FY2021: -15.03%Gross margin, FY2022: -10.36%Gross margin, FY2023: 16.73%Gross margin, FY2024: 28.65%Gross margin, FY2025: 25.48%Operating margin, FY2021: -150.87%Operating margin, FY2022: -95.79%Operating margin, FY2023: -32.40%Operating margin, FY2024: 2.63%Operating margin, FY2025: 2.69%Net margin, FY2021: -150.87%Net margin, FY2022: -95.79%Net margin, FY2023: -32.40%Net margin, FY2024: 2.63%Net margin, FY2025: 2.66%FY2021FY2022FY2023FY2024FY2025
Gross margin FY2021 -15.03%. Gross margin FY2022 -10.36%. Gross margin FY2023 16.73%. Gross margin FY2024 28.65%. Gross margin FY2025 25.48%. Operating margin FY2021 -150.87%. Operating margin FY2022 -95.79%. Operating margin FY2023 -32.40%. Operating margin FY2024 2.63%. Operating margin FY2025 2.69%. Net margin FY2021 -150.87%. Net margin FY2022 -95.79%. Net margin FY2023 -32.40%. Net margin FY2024 2.63%. Net margin FY2025 2.66%.

Income trends

Revenue

1.52B USD+28.95%

Operating income

40.8M USD+32.04%

Net income

40.3M USD+30.42%
Income trends across reported periods1.72B USD905.64M USD90.36M USD−724.92M USDRevenue, FY2021: 345.4M USDRevenue, FY2022: 310.8M USDRevenue, FY2023: 455M USDRevenue, FY2024: 1.18B USDRevenue, FY2025: 1.52B USDOperating income, FY2021: −521.1M USDOperating income, FY2022: −297.7M USDOperating income, FY2023: −147.4M USDOperating income, FY2024: 30.9M USDOperating income, FY2025: 40.8M USDNet income, FY2021: −521.1M USDNet income, FY2022: −297.7M USDNet income, FY2023: −147.4M USDNet income, FY2024: 30.9M USDNet income, FY2025: 40.3M USDFY2021FY2022FY2023FY2024FY2025
Revenue FY2021 345.4M USD. Revenue FY2022 310.8M USD. Revenue FY2023 455M USD. Revenue FY2024 1.18B USD. Revenue FY2025 1.52B USD. Operating income FY2021 −521.1M USD. Operating income FY2022 −297.7M USD. Operating income FY2023 −147.4M USD. Operating income FY2024 30.9M USD. Operating income FY2025 40.8M USD. Net income FY2021 −521.1M USD. Net income FY2022 −297.7M USD. Net income FY2023 −147.4M USD. Net income FY2024 30.9M USD. Net income FY2025 40.3M USD.
Metric (USD)FY2025FY2024FY2023FY2022FY2021
Revenue1.52B USD1.18B USD455M USD310.8M USD345.4M USD
Cost of goods sold1.13B USD839.4M USD378.9M USD343M USD397.3M USD
Gross profit386.6M USD337.1M USD76.1M USD−32.2M USD−51.9M USD
Selling, general, and administrative271.7M USD205.3M USD132.6M USD175.4M USD367.8M USD
Operating expenses345.8M USD306.2M USD223.5M USD265.5M USD469.2M USD
Interest income40.1M USD41.5M USD32.8M USD8.1M USD3.5M USD
Interest expense21M USD42.2M USD46.1M USD34.6M USD20M USD
Depreciation and amortization11.8M USD14.9M USD12.6M USD13.8M USD16.6M USD
Operating income40.8M USD30.9M USD−147.4M USD−297.7M USD−521.1M USD
Net income40.3M USD30.9M USD−147.4M USD−297.7M USD−521.1M USD

Company facts updated Aug 24, 2026.

Earnings

EPS beat rate
100%
11 beats, 0 misses, 0 met estimates
Average EPS surprise
+188.35%
11 comparable reports
Latest EPS result
1.49
Estimate 0.83 · Beat by 79.95%

EPS: actual versus estimate

Recent quarterly results

ActualEstimate
Quarterly EPS actual values compared with estimates2.311.260.2-0.85Q1 '25BeatQ2 '25BeatQ3 '25BeatQ4 '25BeatQ1 '26BeatQ2 '26BeatQ3 '26BeatQ4 '26Estimate
Q1 2025, reported Feb 26, 2025: actual 1.3, estimate -0.63, surprise +306.35%, Beat. Q2 2025, reported May 7, 2025: actual 1.07, estimate 0.45, surprise +137.78%, Beat. Q3 2025, reported Aug 6, 2025: actual 1.29, estimate 1.06, surprise +21.70%, Beat. Q4 2025, reported Nov 5, 2025: actual -0.35, estimate -0.43, surprise +18.60%, Beat. Q1 2026, reported Feb 25, 2026: actual 0.31, estimate 0.03, surprise +933.33%, Beat. Q2 2026, reported May 6, 2026: actual 2.09, estimate 0.84, surprise +148.81%, Beat. Q3 2026, reported Aug 5, 2026: actual 1.49, estimate 0.828, surprise +79.95%, Beat. Q4 2026, reported Nov 4, 2026: actual —, estimate 0.45, surprise —, Comparison unavailable.

Revenue: actual versus estimate

Recent quarterly results

ActualEstimate
Quarterly Revenue actual values compared with estimates429.26M288.84M148.41M7.99MQ1 '25BeatQ2 '25MissQ3 '25BeatQ4 '25BeatQ1 '26BeatQ2 '26MissQ3 '26MissQ4 '26Estimate
Q1 2025, reported Feb 26, 2025: actual 326.7M USD, estimate 287.79M USD, surprise +13.52%, Beat. Q2 2025, reported May 7, 2025: actual 9.4M USD, estimate 306.79M USD, surprise -96.94%, Miss. Q3 2025, reported Aug 6, 2025: actual 382.9M USD, estimate 339.07M USD, surprise +12.93%, Beat. Q4 2025, reported Nov 5, 2025: actual 387.8M USD, estimate 381.57M USD, surprise +1.63%, Beat. Q1 2026, reported Feb 25, 2026: actual 397M USD, estimate 383.25M USD, surprise +3.59%, Beat. Q2 2026, reported May 6, 2026: actual 393.5M USD, estimate 398.16M USD, surprise -1.17%, Miss. Q3 2026, reported Aug 5, 2026: actual 389.2M USD, estimate 395.14M USD, surprise -1.50%, Miss. Q4 2026, reported Nov 4, 2026: actual —, estimate 381.64M USD, surprise —, Comparison unavailable.

Analyst ratings

Third-party consensus; not a GoAI recommendation.

Analyst price target

Average target

$54.00

3.21% downside
Past 12 months12-month forecastHigh $58.00Average $54.00Low $50.00

Rating distribution

14 ratings
Strong buy00%
Buy214%
Hold1071%
Sell214%
Strong sell00%

Recent analyst actions

8 institutions
CitigroupmaintainNeutral
Cantor FitzgeraldupgradeNeutralOverweight

ROOT news

gurufocus.com

Is Root Inc (ROOT) a Bargain After 6.4% Drop? GF Value Says Undervalued

On August 12, 2026, Root Inc (ROOT) shares fell 6.4% to a current price of $48.21, reflecting a dramatic decline over the past year, where shares are down 46.4%

Read source
globenewswire.com

Root and TheZebra.com Partner to Expand Access to Personalized Insurance Options for Consumers and Independent Agents

New digital integration brings real-time quotes to shoppers on The Zebra's insurance marketplace while creating a faster, more streamlined workflow for independent agents New digital integration brings real-time quotes…

Read source
fool.com

Root's 2026 Outlook: AI-Driven Telematics Model Gains Scale Through Embedded Growth Partnerships

This under-the-radar insurance stock boasts a Superscore of 74 from our Hidden Gems Primary database, part of The Motley Fool's Moneyball Database system. Here's why.

Read source
zacks.com

Should You Buy, Sell or Hold ROOT Stock Post Q2 Earnings?

Root's Q2 revenues and EBITDA rise as underwriting margins improve, but its premium valuation and muted analyst sentiment call for a wait-and-see approach.

Read source
seekingalpha.com

Root, Inc. (ROOT) Q2 2026 Earnings Call Transcript

Root, Inc. (ROOT) Q2 2026 Earnings Call Transcript

Read source
marketbeat.com

Root Q2 Earnings Call Highlights

Root NASDAQ: ROOT reported second-quarter 2026 net income of $25 million, up 15% from a year earlier, as the auto insurer emphasized underwriting discipline and continued investment in technology, distribution and…

Read source

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ETFs holding ROOT

Funds reporting this stock among their holdings, ordered by reported position size.

iShares Russell 2000 ETF logoiShares Russell 2000 ETFIWM
Market value
19.31M
Weight
0.02%
AUM
81.62B USD
Expense ratio
0.19%
Price / 1D
$299.96+0.77%
Vanguard Morningstar Total Stock Market ETF logoVanguard Morningstar Total Stock Market ETFVTI
Market value
19.24M
Weight
0.00%
AUM
2.3T USD
Expense ratio
0.03%
Price / 1D
$378.24+0.44%
Vanguard Extended Market ETF logoVanguard Extended Market ETFVXF
Market value
8.75M
Weight
0.01%
AUM
93.7B USD
Expense ratio
0.05%
Price / 1D
$245.53+0.82%
iShares Russell 2000 Growth ETF logoiShares Russell 2000 Growth ETFIWO
Market value
6.95M
Weight
0.05%
AUM
15.16B USD
Expense ratio
0.24%
Price / 1D
$387.37+1.24%
Vanguard Russell 2000 ETF logoVanguard Russell 2000 ETFVTWO
Market value
3.92M
Weight
0.02%
AUM
17.4B USD
Expense ratio
0.06%
Price / 1D
$121.25+0.74%
Schwab U.S. Small-Cap ETF logoSchwab U.S. Small-Cap ETFSCHA
Market value
3.82M
Weight
0.02%
AUM
23.1B USD
Expense ratio
0.03%
Price / 1D
$34.83+0.52%
iShares U.S. Small-Cap Equity Factor ETF logoiShares U.S. Small-Cap Equity Factor ETFSMLF
Market value
1.99M
Weight
0.05%
AUM
4.3B USD
Expense ratio
0.15%
Price / 1D
$89.29+0.80%
Dimensional - US Small Cap ETF logoDimensional - US Small Cap ETFDFAS
Market value
1.71M
Weight
0.01%
AUM
15.92B USD
Expense ratio
0.26%
Price / 1D
$83.02+0.73%

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