Root(NASDAQ) ROOT

Root helps good drivers pay less by tracking how they drive. The company uses a mobile app to measure driving habits. It sells insurance directly and through partners like car dealers.

Insurance Driven by Data

• Auto Insurance: Policies priced using driving data like braking and turning; the company’s core product.
• Property Insurance: Coverage for homeowners and renters; serves as a way to expand customer relationships.
• Embedded Insurance: Policies integrated directly into the platforms of car dealers and financial service providers.

Expanding the Network

• Launched Root Florida Insurance Company in early 2025 to expand operations into the Florida market.
• Built a strategic partnership with Carvana to offer insurance to customers buying cars online.
• Partnered with Hyundai Capital America, Toyota, and Experian to grow distribution across new platforms.
• Developed an independent agent platform to integrate with the systems professional agents already use.

What Makes Root Different?

Root uses telematics, which is technology that monitors driving habits like braking and speed to set prices. The company operates as a full-stack insurer, meaning it handles everything from building products to paying claims.

Tracking Recent Performance

• Net income hit $5.3 million in Q4 2025, which improved from a $24 million loss in Q4 2023.
• Revenue grew to $397 million in Q4 2025, representing a 21.5% increase year-over-year.
• Full-year net profit reached $40.3 million in 2025, compared to $30.9 million in 2024.
• Free cash flow hit $65.9 million in Q4 2025, up 1.7% from the previous year.

Bottom Line

Root has transitioned from a high-growth startup into a profitable insurance carrier. Its focus on using behavioral data to price risk continues to define its position in the market.