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Root (ROOT)
NASDAQ:ROOT
Earnings Data
Report Date
Apr 30, 2025TBA Not Confirmed
Period Ending
2025 (Q1)Consensus EPS Forecast
0.17Last Year’s EPS
-0.42Same Quarter Last Year
Moderate Buy
Based on 5 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Feb 26, 2025
|% Change Since: 29.25%
|Next Earnings Date:Apr 30, 2025
Earnings Call Sentiment|Positive
The earnings call highlighted Root's strong financial performance and strategic advancements, such as achieving profitability, growth in policies, and expansion in partnership channels. While competition and macroeconomic uncertainties present challenges, the company's proactive measures and technological capabilities position it well for future growth.Company Guidance
In the fourth quarter of 2024, Root Inc. achieved significant milestones, reporting a gross combined ratio of 95 on $1.3 billion in gross premiums written, alongside a GAAP net income of $31 million and an adjusted EBITDA of $112 million. Notably, the company reduced its gross loss ratio to 59% and increased its policies in force by 21% year-over-year to over 414,000. Root's financial strategy allowed them to reduce run rate interest expenses by over 50% and lower reinsurance costs, while maintaining strong reinsurance protection for tail risk events. The fourth quarter alone saw a net income of $22 million and an operating income of $35 million, with a gross accident period loss ratio of 61% and a gross combined ratio of 91%, marking a 19-point improvement year-over-year. These results underscore Root's successful implementation of advanced pricing and underwriting models, expansion within its partnership channels, and disciplined capital management, all contributing to its robust performance and positive outlook for 2025.Net Income Profitability Achieved
Root achieved its first full year of net income profitability in 2024, generating GAAP net income of $31 million and adjusted EBITDA of $112 million.
Improved Combined and Loss Ratios
Root achieved a gross combined ratio of 95 and a gross loss ratio of 59%, indicating strong underwriting performance and operational efficiency.
Significant Policy Growth
Policies in force grew by 21% year-over-year to more than 414,000, demonstrating strong customer acquisition and retention.
Partnership Channel Expansion
Root more than doubled new writings in 2024 through its partnership channel, which now represents roughly a third of overall new business.
Reduction in Reinsurance Costs
Root reduced its reinsurance costs significantly, with 9% of gross earned premium ceded in Q4, reflecting improved underwriting results.
Debt Refinancing and Interest Expense Reduction
Root refinanced its debt facility with Blackrock, reducing run rate interest expense by approximately 50% in 2025.
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ROOT Earnings History
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
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ROOT Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Feb 26, 2025 | $98.71 | $123.95 | +25.57% |
| Oct 30, 2024 | $40.49 | $68.39 | +68.91% |
| Aug 07, 2024 | $53.50 | $42.99 | -19.64% |
| Apr 30, 2024 | $69.65 | $69.91 | +0.37% |
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.
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FAQ
When does Root (ROOT) report earnings?
Root (ROOT) is schdueled to report earning on Apr 30, 2025, TBA Not Confirmed.
What is Root (ROOT) earnings time?
Root (ROOT) earnings time is at Apr 30, 2025, TBA Not 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 (Q1) is 0.17.
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