Root, Inc.

Listed Company

ROOTCIK 0001788882NasdaqLarge AcceleratedFire, Marine & Casualty InsuranceDelawareFY ends Dec 31

Period

FY 2025

Revenue

$1.52B

Net Income

$40.30M

Total Assets

$1.67B

Equity

$284.30M

Shares Out

42.50M

Op. Cash Flow

$206.50M

Business

Root, Inc. is a technology-driven insurance company that underwrites and services auto insurance policies using mobile telematics and data science to price policies based on individual driving behavior. It offers personalized auto insurance products and end-to-end policy services including quoting, underwriting (including a test-drive telematics process), policy management, claims handling, and reinsurance arrangements. The company operates as a full‑stack carrier with insurance subsidiaries, a reinsurance captive, and insurance producer agencies supporting direct and partnership distribution. Root primarily targets the U.S. personal auto insurance market through direct digital channels, referrals, and embedded and agency partnerships.

Summary from filing dated 2025-02-26

Financials

Consolidated Statement of Income

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Net premiums earned	1,402	1,071	400	286	310
Net investment income	34	36	30	6	5
Fee income	78	66	23	17	21
Other income	3	4	2	2	7
Total revenues	1,517	1,177	455	311	345
Loss and loss adjustment expenses	924	733	331	351	392
Sales and marketing	175	136	49	48	270
Other insurance expense	206	106	48	−8	5
Technology and development	53	53	45	56	66
General and administrative	97	70	83	127	98
Total operating expenses	1,455	1,098	556	574	831
Operating income (loss)	62	79	−101	−263	−485
Interest expense	21	42	46	−35	—
Loss on extinguishment of debt	0	5	0	0	−16
Income (loss) before income tax expense	41	31	−147	−298	−521
Income tax expense	500,000	0	0	0	0
Net income (loss)	40	31	−147	−298	−521
Net income attributable to participating securities	2	2	0	0	—
Net income (loss) attributable to common shareholders	38	29	−147	−298	—
Changes in net unrealized gains on investments	6	200,000	3	−6	−5
Comprehensive income (loss)	47	31	−144	−304	−526
Basic (in dollars per share)	2.49	1.96	−10.24	−21.11	−37.76
Diluted (in dollars per share)	2.36	1.83	−10.24	−21.11	−37.76
Basic (in shares)	15	15	14	14	14
Diluted (in shares)	17	17	14	14	14

Consolidated Balance Sheet

As of · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2022 2022-09-30
Fixed maturities available-for-sale, at fair value (amortized cost: $383.1 and $294.3 at December 31, 2025 and December 31, 2024, respectively)	387	292	166	—	—
Short-term investments (amortized cost: zero and $14.8 at December 31, 2025 and December 31, 2024, respectively)	0	15	900,000	—	—
Other investments	4	4	4	4	—
Total investments	391	311	171	133	—
Cash and cash equivalents	669	599	679	762	—
Restricted cash and cash equivalents	21	1	—	—	—
Premiums receivable, net of allowance of $8.9 and $9.8 at December 31, 2025 and December 31, 2024, respectively	333	305	247	112	—
Reinsurance recoverable and receivable, net of allowance of $0.1 at December 31, 2025 and December 31, 2024	130	151	125	149	—
Prepaid reinsurance premiums	6	25	48	74	—
Other assets	124	103	76	82	—
Total assets	1,675	1,496	1,348	1,313	—
Loss and loss adjustment expense reserves	484	413	284	287	—
Unearned premiums	394	354	284	137	—
Long-term debt	200	200	299	295	—
Reinsurance premiums payable	2	33	54	120	—
Accounts payable and accrued expenses	74	71	66	40	—
Other liabilities	124	109	83	45	—
Total liabilities	1,278	1,180	1,070	924	—
Commitments and Contingencies (Note 13)	—	—	—	—	—
Redeemable convertible preferred stock, $0.0001 par value, 14.1 shares issued and outstanding at December 31, 2025 and December 31, 2024 (redemption value of $126.5) (Note 11)	112	112	112	112	—
Additional paid-in capital	1,922	1,888	1,883	1,851	—
Accumulated other comprehensive income (loss)	4	−2	−3	−6	—
Accumulated loss	−1,642	−1,682	−1,715	−1,568	—
Total stockholders equity	284	204	166	277	322
Total liabilities, redeemable convertible preferred stock and stockholders equity	1,675	1,496	1,348	1,313	—

Consolidated Statement of Cash Flows

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Share-based compensation	40	19	17	31	19
Warrant compensation expense	19	4	17	15	9
Depreciation and amortization	12	15	13	14	17
Bad debt expense	37	34	14	17	21
Gain on lease modification	0	0	−300,000	−900,000	0
Premiums receivable	−64	−92	−148	19	−40
Reinsurance recoverable and receivable	21	−25	22	6	−30
Prepaid reinsurance premiums	19	23	26	27	12
Other assets	−15	−25	5	−8	800,000
Losses and loss adjustment expenses reserves	70	129	−3	−33	83
Unearned premiums	40	70	147	−44	23
Reinsurance premiums payable	−30	−22	−65	18	13
Accounts payable and accrued expenses	3	1	28	18	−19
Other liabilities	15	29	41	9	10
Net cash provided by (used in) operating activities	207	196	−34	−211	−403
Purchases of investments	−147	−198	−76	−48	−17
Proceeds from maturities, call and pay downs of investments	68	55	38	34	35
Sales of investments	2	600,000	2	7	70
Capitalization of internally developed software	−14	−11	−9	−9	−7
Purchases of fixed assets	0	−400,000	−200,000	0	−5
Net cash used in investing activities	−92	−154	−46	−17	77
Proceeds from exercise of stock options and restricted stock units	300,000	100,000	0	1	3
Taxes paid related to net share settlement of equity awards	−26	−15	−1	−1	—
Payment of preferred stock and related warrants issuance costs	0	−3	−3	−3	−11
Proceeds from issuance of debt and related warrants, net of issuance costs	0	134	0	286	0
Repayments of long-term debt	0	−237	0	0	−200
Net cash used in financing activities	−25	−121	−4	283	−80
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents	90	−79	−83	56	−407

Filings

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