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- NasdaqGS:ROOT
Root Second Quarter 2025 Earnings: Beats Expectations
Root (NASDAQ:ROOT) Second Quarter 2025 Results
Key Financial Results
- Revenue: US$382.9m (up 32% from 2Q 2024).
- Net income: US$20.9m (up from US$7.80m loss in 2Q 2024).
- Profit margin: 5.5% (up from net loss in 2Q 2024). The move to profitability was driven by higher revenue.
- EPS: US$1.36 (up from US$0.52 loss in 2Q 2024).
All figures shown in the chart above are for the trailing 12 month (TTM) period
Root Revenues and Earnings Beat Expectations
Revenue exceeded analyst estimates by 13%. Earnings per share (EPS) also surpassed analyst estimates by 89%.
Looking ahead, revenue is forecast to grow 8.3% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Insurance industry in the US.
Performance of the American Insurance industry.
The company's shares are down 25% from a week ago.
Risk Analysis
Before you take the next step you should know about the 2 warning signs for Root that we have uncovered.
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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
About NasdaqGS:ROOT
Root
Provides insurance products and services in the United States.
Flawless balance sheet with acceptable track record.
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