Root, Inc.
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Range $50 – $58
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About the company
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.
- CEO
- Alexander Edward Timm
- IPO
- 2020
- Employees
- 1,256
- HQ
- Columbus, OH, US
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Similar companies
Peers in the same neighborhood.
- Market Cap
- $804.89M
- P/E
- 15.47
- Fwd P/E
- 13.53
- PEG
- -0.51
- P/S
- 0.51
- P/B
- 2.75
- EV/EBITDA
- 6.38
- Div Yield
- 0.00%
- Gross Margin
- 31.54%
- Op Margin
- 3.96%
- Net Margin
- 3.90%
- ROE
- 15.91%
- ROIC
- 9.41%
Latest fiscal year · YoY change
- Revenue
- $1.52B+29.0%
- Gross Profit
- $386.60M+14.7%
- Op Income
- $40.80M
- Net Income
- $40.30M+30.4%
- EPS
- $2.49+27.0%
- OCF Growth
- +5.5%
- FCF Growth
- +4.6%
- 52W High
- $104.47
- 52W Low
- $40.91
- 50D MA
- $56.51
- 200D MA
- $61.01
- Beta
- 2.93
- RSI (14)
- 54
- Avg Volume
- 269.51K
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Root posted another profitable quarter, with net income up 15% year over year and underwriting margins improving, but management signaled direct-channel competition is likely to keep PIF growth roughly flat near term.· August 5, 2026
- Net income rose 15% year over year to $25 million, with revenue up 2% to $389 million and policies in force up 6% to 484,000.
- Net combined ratio improved to 92.1% from 95.1% a year ago, driven by a better expense ratio.
- Gross written premium fell 2% year over year to $340 million and gross earned premium fell 1% to $368 million as direct-market competition intensified.
- Partnership and independent agent channels made up about 51% of new writings, up from about 44% a year ago.
- Management expects 2026 PIF growth to be relatively flat year over year if the competitive environment persists, while continuing national expansion and channel diversification.
Reported second-quarter 2026 results included revenue of $389 million, up 2% year over year; net income of $25 million, up 15%; and policies in force of 484,000, up 6%. Gross written premium was $340 million, down 2% year over year, and gross earned premium was $368 million, down 1%. The net combined ratio improved to 92.1% (described elsewhere as 92%), from 95.1% a year ago; the net expense ratio improved to 26%, while the net loss and LAE ratio was 66%. Management said it expects to invest about $10 million in R&D initiatives in the second half, and if current competitive conditions persist, 2026 PIF growth is expected to be relatively flat year over year. They also said the next pricing model is expected to launch later in Q4 and that it should be more of a driver in 2027 than in 2026.
Alex Timm framed Root as a technology-and-data company built for an AI-driven insurance market, arguing that proprietary data, automation, and modern infrastructure create a durable moat. He said the company is expanding across channels and geographies, pointing to New Jersey as the latest state launch and a goal of a near-national footprint by the end of 2027. His tone was confident and strategic, but disciplined: Root will pursue growth only when it meets target returns, even if that constrains near-term volume.
Megan Binkley emphasized that Root delivered strong profitability while continuing to invest for long-term growth. She cited revenue of $389 million, gross written premium of $340 million, gross earned premium of $368 million, and a 92% net combined ratio, with the improvement driven primarily by a 26% net expense ratio while the net loss and LAE ratio stayed at 66%. She also highlighted a refinancing of the existing $200 million debt facility into a new term loan, more than $20 million of share repurchases under the $75 million authorization, about $10 million in underlying investment income from cash and fixed income, and explained that the reported $5 million in NII reflected a $4.4 million impairment on a small private equity position. She said share-based comp should be about $8 million to $9 million per quarter going forward and that fixed expense is expected to run at 10% to 11% of gross earned premium in the back half.
Analysts focused on the trade-off between growth and profitability, asking whether Root’s PIF weakness was only a direct-channel issue and whether partner/agent channels could offset it. Management said PIF is currently relatively flat versus Q2 and that, if competition remains at current levels, 2026 PIF would likely be relatively flat year over year; they still see state expansion, partnerships, and independent agents as long-term growth drivers. On pricing, management said average premiums were down somewhat year over year, but current national rates still look modestly positive and Root may have room for low-single-digit rate decreases. On expenses, management said Q2’s 26% expense ratio should not be annualized because it benefited from lower performance-based equity compensation and some one-time items, and they pointed to Q1/Q4 as more normalized.
The bull case from this call is that Root is showing it can stay profitable even in a competitive market, with net income up 15% and the combined ratio improving to 92.1%. Management sees multiple growth levers beyond direct distribution, including state expansion, partnerships, independent agents, and new AI-enabled pricing and marketing channels, with early results described as encouraging.
The main risk is that direct-channel competition is still pressuring growth, and management now expects 2026 PIF to be roughly flat year over year if that environment persists. Gross written premium fell 2% and gross earned premium fell 1%, and management said they are willing to reduce rates further in low single digits, which could limit near-term premium growth even as they protect profitability.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 90.2%
- Shares Outstanding
- 14.02M
- Float Shares
- 12.65M
of shares held by institutions
157 13F filers
Buy/sell ratio 0.50. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Ribbit Management Company, LLC | 1.23M | 0 |
| T. Rowe Price Investment Management, Inc. | 1.22M | ▲ 35.84K |
| Blackrock, Inc. | 1.15M | ▲ 98.94K |
| Vanguard Group Inc | 723.12K | ▼ 1.42K |
| Vanguard Capital Management LLC | 528.32K | ▲ 11.69K |
| Findell Capital Management LLC | 460.00K | ▲ 85.00K |
| Geode Capital Management, LLC | 345.38K | ▲ 25.85K |
| State Street Corp | 290.77K | ▲ 24.83K |
| Galileo (Ptc) Ltd | 252.67K | 0 |
| Renaissance Technologies LLC | 245.28K | ▲ 6.50K |
| Boothbay Fund Management, LLC | 203.23K | ▲ 64.24K |
| Quinn Opportunity Partners LLC | 171.18K | ▲ 100.84K |
Held by 171 ETFs
Biggest fund positions in ROOT by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Jun 22, 26 | Forish Ryan | other | 294 |
| Jun 15, 26 | Forish Ryan | other | 490 |
| Jun 3, 26 | Hilsheimer Lawrence A. | other | 2,864 |
| Jun 3, 26 | KRAMER NANCY J | other | 2,864 |
| Jun 3, 26 | Ulman Doug | other | 2,864 |
| Jun 3, 26 | DEVARD JERRI | other | 2,864 |
| Jun 3, 26 | Birnbaum Beth A | other | 2,864 |
| Jun 3, 26 | Szudarek Julie | other | 2,864 |
| Jun 3, 26 | Dorsey Donna | other | 2,864 |
| May 21, 26 | Forish Ryan | other | 351 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our ROOT coverage
Recent articles, reports, and earnings notes.
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