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Earnings transcript
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ROOT
Root, Inc.
$50.47
-0.06
(-0.12%)
| Exchange: | NASDAQ |
| Market Cap: | 690.784M |
| Shares Outstanding: | 11.372M |
Delayed data
About The Company
| Sector: | Financial ServicesView sector performance | |||||
| Industry: | Insurance – Property & CasualtyView industry performance | |||||
| CEO: | Alexander Edward Timm | |||||
| Full Time Employees: | 1256 | |||||
| Address: |
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| Website: | https://joinroot.com |
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.
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Revenue Segmentation
ROOT full analysis
Welcome to MARKETSNAP’s SWOT analysis for Root Inc.! If you’re a long-term investor looking to dig into a unique player in the insurance space, you’re in the right place. Today, we’re breaking down Root Inc., a company that’s been making waves with its tech-driven approach to car insurance. We’ll cover a quick overview, recent news, performance trends, and then dive deep into the strengths, weaknesses, opportunities, and threats that could shape its future. Let’s get started and see if Root…
Industry Peers
| TICKER | COMPANY | MKT CAP | P/E | FWD P/E | ROIC |
|---|---|---|---|---|---|
| ROOT | Root, Inc. | 690.8M | 13.2 | 11.0 | 9.4% |
 DGICA | Donegal Group Inc. | 693.4M | 9.3 | 10.4 | 10.0% |
 DGICB | Donegal Group Inc. | 648.3M | 7.1 | 8.8 | 62.3% |
 MHLA | Maiden Holdings, Ltd. 6.625 NT 2046 | 773.5M | — | — | 1.6% |
 AII | American Integrity Insurance Group, Inc. | 538.9M | 5.9 | 6.4 | 19.4% |
 ACIC | American Coastal Insurance Corporation | 538.0M | 4.7 | 8.4 | 19.8% |
EPS
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Earnings Call
AI summary
Key takeaways
Short, structured highlights from the call so you can focus on what matters.
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Login — it's freeIncome Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 455,000 | 1,176,500 | 1,517,100 |
| Gross Profit | 76,100 | 337,100 | 386,600 |
| EBITDA | -88,700 | 88,000 | 73,600 |
| Operating Income | -147,400 | 30,900 | 40,800 |
| Net Income | -147,400 | 30,900 | 40,300 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Total Assets | 1,347,700 | 1,495,700 | 615,600 |
| Total Liabilities | 1,070,000 | 1,292,000 | 219,300 |
| Total Stockholders Equity | 277,700 | 203,700 | 284,300 |
| Total Debt | 299,000 | 200,100 | 200,300 |
| Cash and Cash Equivalents | 678,700 | 599,300 | 262,800 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash Flow | -33,600 | -43,200 | 206,500 |
| Capital Expenditure | -9,400 | -400 | 0 |
| Free Cash Flow | -43,000 | -43,600 | 206,500 |
| Net Income | -147,400 | 0 | 40,300 |
| Net Change in Cash | -83,400 | -174,000 | 89,600 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2028 | Research Access | Research Access | Research Access | Research Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 1,546,584.622 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (High) | 1,722,708.869 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (Avg) | 1,646,446.927 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Low) | 43,347.460 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (High) | 107,091.534 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Avg) | 75,219.497 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Low) | 16,622.424 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (High) | 66,980.243 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Avg) | 41,801.334 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Low) | 703,455.758 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (High) | 783,564.932 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Avg) | 748,877.594 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Avg) | 2.460 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (High) | 3.890 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Low) | 0.970 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated Revenue) | 4 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated EPS) | 4 | Research Access | Research Access | Research Access | Research Access |
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Current Key Metrics
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Login — it's freeSWOT Analysis
Strengths (preview)
- Strong Financial Performance in Q2 2025: Root Inc. reported robust financial results in the latest earnings call, with significant improvements in revenue and operating income, reflecting effective cost management and operational efficiency as highlighted in the Q2 2025 earnings call summary.
- Technological Advantage: The company’s focus on leveraging technology in the insurance market, as emphasized in the earnings call, positions Root Inc. as an innovator, potentially driving customer acquisition and retention through data-driven personalization.
- Positive Earnings Growth: Analysis of income statements indicates consistent growth in revenue and net income over recent periods, supported by strategic investments that align with industry trends toward digital transformation.
- Healthy Liquidity Position: Balance sheet data shows a solid level of cash and cash equivalents relative to total current liabilities, with a favorable current ratio (TTM), indicating the ability to meet short-term obligations effectively.
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At what price to buy it? -
Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MarketSnap estimates ROOT intrinsic value between $28.67 – $35.50 per share. This depends on revenue growth, margins, and discount rate.
This is an automatic estimate. The most reliable way to know fair value for your own assumptions is to run the calculator below.
Common questions about ROOT valuation
Is Root, Inc. (ROOT) overvalued or undervalued right now?
MarketSnap estimates intrinsic value for Root, Inc. (ROOT) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is ROOT a buy, hold, or sell for long-term investors?
MarketSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether ROOT trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is ROOT’s P/E ratio?
You can see ROOT’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for ROOT?
MarketSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MarketSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is ROOT a good long-term investment?
Whether ROOT fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MarketSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
ROOT
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Daily snapshot
-0.12
Trading Metrics:
| Open: | 50.7 | Previous Close: | 50.53 | |
| Day Low: | 49.87 | Day High: | 51.28 | |
| Year Low: | 40.91 | Year High: | 91 | |
| Price Avg 50: | 51.44 | Price Avg 200: | 55.43 | |
| Volume: | 139644 | Average Volume: | 237257 |
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