Root (ROOT) Q4 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy ROOT?
Source: NASDAQ.COM
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Analyst Views on ROOT
Wall Street analysts forecast ROOT stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 57.810
Low
127.00
Averages
138.50
High
150.00
Current: 57.810
Low
127.00
Averages
138.50
High
150.00
About ROOT
Root, Inc. is a technology insurance company. It provides direct-to-consumer insurance products to customers. It offers auto and renters insurance products underwritten by Root Insurance Company and Root Property & Casualty. It primarily reaches customers through two channels: direct and partnership. The direct channel drives volume for high-intent customers, meeting customers on platforms that they use, such as search engines or select marketplace platforms, while actively shopping for insurance. The partnership channel provides differentiated access to high-intent customers, primarily in the automotive, financial services, and independent agent sectors. It provides automobile and renters insurance products primarily through its websites, mobile app, and partnership channel, including its embedded insurance product and its independent agent platform. It utilizes its platform to gather customer data in order to determine whether or not to write and how to price its insurance products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Root (ROOT) Q4 2025 Earnings Call Transcript
See More
Root, Inc. Reports Decline in Q4 Profit
- Profit Decline: Root, Inc. reported a fourth-quarter profit of $5.1 million, or $0.31 per share, which represents a significant drop from last year's $20.9 million and $1.30 per share, indicating a notable weakening in the company's profitability.
- Revenue Growth: Despite the profit decline, the company's revenue increased by 21.5% year-over-year to $397.0 million, up from $326.7 million last year, suggesting that there is still some growth potential in market demand.
- Market Reaction: The substantial drop in profit may negatively impact investor confidence, particularly as the company failed to maintain last year's profit levels, potentially leading to stock price volatility.
- Future Outlook: The company needs to implement effective measures to improve profitability in order to address market competition and investor expectations, ensuring sustainable growth moving forward.
See More
Root Reports Q4 Earnings Exceeding Expectations
- Earnings Beat: Root's Q4 GAAP EPS of $0.31 surpassed expectations by $0.79, indicating a significant improvement in profitability that could bolster investor confidence.
- Strong Revenue Growth: The company reported Q4 revenue of $397 million, a 21.5% year-over-year increase, exceeding analyst expectations by $15.43 million, demonstrating the effectiveness and appeal of its business model in the market.
- Strategic Market Positioning: Root is transitioning to become Carvana's auto insurance business, a strategic shift that may provide new revenue streams and enhance its competitiveness in the auto insurance sector.
- Positive Future Outlook: With ongoing optimization of its products and services, the company is expected to further drive revenue growth and increase market share, reflecting management's confidence in future business development.
See More
Earnings Reports Week for Major Companies
- Earnings Reporting Schedule: This week features earnings reports from the world's largest publicly traded companies across energy, retail, and tech sectors, with investors keenly observing performance and market reactions.
- JOBY Stock Movement: JOBY stock is experiencing volatility, and investor sentiment remains cautious ahead of upcoming earnings, particularly given the broader market context.
- Lucid Group Expectations: Lucid Group is set to report after Tuesday's close, with analysts forecasting a quarterly loss of $2.64 per share on revenue of approximately $473 million, focusing on gross margin and cash runway.
- AI Infrastructure Spending: Analysts anticipate a tech company's fourth-quarter revenue of around $65.6 billion and adjusted EPS of $1.52, with the market keenly awaiting Q1 guidance and CEO insights on AI infrastructure spending.
See More
Oversold Stocks in Financial Sector Present Buying Opportunities
- Oversold Stocks Overview: Stocks in the financial sector with an RSI below 30 are considered oversold, indicating potential undervaluation and presenting buying opportunities for investors seeking gains.
- FactSet Research Systems: The company's stock has fallen approximately 11% over the past five days, currently holding an RSI of 29.4 and a 52-week low of $249.68, while Friday's closing price of $254.36 suggests some rebound potential.
- Analyst Rating Changes: Wells Fargo analyst Jason Haas maintained an Underweight rating on FactSet while raising the price target from $260 to $265, reflecting cautious optimism regarding the company's future performance.
- Market Trends: Edge Stock Ratings indicate a momentum score of 3.27 and a value score of 27.45 for FactSet, suggesting that despite facing short-term pressures, the stock still holds some investment appeal.
See More
Root Inc. to Host Q4 2025 Financial Results Conference Call
- Conference Call Announcement: Root Inc. plans to host a conference call on February 25, 2026, at 5:00 p.m. ET to discuss its Q4 and full-year 2025 financial results, aiming to provide investors with updates on company operations.
- Financial Results Release: The company will release its Q4 and full-year 2025 financial results on its Investor Relations website after market close on February 25, 2026, ensuring timely access to critical information for investors.
- Webcast Details: The conference call will feature a webcast, with participants able to dial in at 1 (877) 269-7751 (toll-free) or 1 (201) 389-0908 (toll), facilitating broad investor participation and interaction.
- App Download Metrics: Since its founding in 2015, Root has achieved over 16 million app downloads and collected more than 34 billion miles of driving data to inform its personalized insurance offerings, showcasing the company's innovative capabilities in the insurtech sector.
See More
Root (ROOT) Q4 2025 Earnings Call Transcript
See More
Root, Inc. Reports Decline in Q4 Profit
- Profit Decline: Root, Inc. reported a fourth-quarter profit of $5.1 million, or $0.31 per share, which represents a significant drop from last year's $20.9 million and $1.30 per share, indicating a notable weakening in the company's profitability.
- Revenue Growth: Despite the profit decline, the company's revenue increased by 21.5% year-over-year to $397.0 million, up from $326.7 million last year, suggesting that there is still some growth potential in market demand.
- Market Reaction: The substantial drop in profit may negatively impact investor confidence, particularly as the company failed to maintain last year's profit levels, potentially leading to stock price volatility.
- Future Outlook: The company needs to implement effective measures to improve profitability in order to address market competition and investor expectations, ensuring sustainable growth moving forward.
See More
Root Reports Q4 Earnings Exceeding Expectations
- Earnings Beat: Root's Q4 GAAP EPS of $0.31 surpassed expectations by $0.79, indicating a significant improvement in profitability that could bolster investor confidence.
- Strong Revenue Growth: The company reported Q4 revenue of $397 million, a 21.5% year-over-year increase, exceeding analyst expectations by $15.43 million, demonstrating the effectiveness and appeal of its business model in the market.
- Strategic Market Positioning: Root is transitioning to become Carvana's auto insurance business, a strategic shift that may provide new revenue streams and enhance its competitiveness in the auto insurance sector.
- Positive Future Outlook: With ongoing optimization of its products and services, the company is expected to further drive revenue growth and increase market share, reflecting management's confidence in future business development.
See More
Earnings Reports Week for Major Companies
- Earnings Reporting Schedule: This week features earnings reports from the world's largest publicly traded companies across energy, retail, and tech sectors, with investors keenly observing performance and market reactions.
- JOBY Stock Movement: JOBY stock is experiencing volatility, and investor sentiment remains cautious ahead of upcoming earnings, particularly given the broader market context.
- Lucid Group Expectations: Lucid Group is set to report after Tuesday's close, with analysts forecasting a quarterly loss of $2.64 per share on revenue of approximately $473 million, focusing on gross margin and cash runway.
- AI Infrastructure Spending: Analysts anticipate a tech company's fourth-quarter revenue of around $65.6 billion and adjusted EPS of $1.52, with the market keenly awaiting Q1 guidance and CEO insights on AI infrastructure spending.
See More
Oversold Stocks in Financial Sector Present Buying Opportunities
- Oversold Stocks Overview: Stocks in the financial sector with an RSI below 30 are considered oversold, indicating potential undervaluation and presenting buying opportunities for investors seeking gains.
- FactSet Research Systems: The company's stock has fallen approximately 11% over the past five days, currently holding an RSI of 29.4 and a 52-week low of $249.68, while Friday's closing price of $254.36 suggests some rebound potential.
- Analyst Rating Changes: Wells Fargo analyst Jason Haas maintained an Underweight rating on FactSet while raising the price target from $260 to $265, reflecting cautious optimism regarding the company's future performance.
- Market Trends: Edge Stock Ratings indicate a momentum score of 3.27 and a value score of 27.45 for FactSet, suggesting that despite facing short-term pressures, the stock still holds some investment appeal.
See More
Root Inc. to Host Q4 2025 Financial Results Conference Call
- Conference Call Announcement: Root Inc. plans to host a conference call on February 25, 2026, at 5:00 p.m. ET to discuss its Q4 and full-year 2025 financial results, aiming to provide investors with updates on company operations.
- Financial Results Release: The company will release its Q4 and full-year 2025 financial results on its Investor Relations website after market close on February 25, 2026, ensuring timely access to critical information for investors.
- Webcast Details: The conference call will feature a webcast, with participants able to dial in at 1 (877) 269-7751 (toll-free) or 1 (201) 389-0908 (toll), facilitating broad investor participation and interaction.
- App Download Metrics: Since its founding in 2015, Root has achieved over 16 million app downloads and collected more than 34 billion miles of driving data to inform its personalized insurance offerings, showcasing the company's innovative capabilities in the insurtech sector.
See More
