Root
Prices auto policies from smartphone driving data instead of traditional demographic risk factors.
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Profile
Underwrites and sells personal auto insurance — plus renters coverage in a handful of states — priced from mobile-app-collected driving behavior rather than demographic proxies. Revenue runs through direct and partnership channels: a direct-to-consumer app, and a fast-growing network of embedded auto-dealer and marketplace integrations alongside a traditional independent-agent platform.
Prices and underwrites personal auto insurance directly, carrying the underwriting risk itself rather than brokering for other carriers. Renters coverage runs alongside auto in a smaller set of states; homeowners is only a bundling discount, not a standalone line.
Distribution splits between a direct mobile app pricing drivers from a telematics test-drive, and a partnership network anchored by an exclusive embedded deal with Carvana alongside connected-vehicle and marketplace tie-ups with Toyota, Hyundai Capital America, Freeway, and Hugo. A separate independent-agent channel sells policies without telematics.
Auto coverage now spans 36 states; the business was founded in Columbus, Ohio in 2015 and went public in 2020. Underwriting losses after listing forced layoffs and emergency financing before pricing discipline restored profitability. The partnership channel depends on maintaining exclusivity agreements such as the Carvana deal.
Company facts
Categories
Key statistics
Year to date −20.3% · Average volume (30d) 256.8K
Analysts
Ratings
Target range
Latest analyst notes
| Date | Firm | Action | Prior rating | Rating | Target |
|---|---|---|---|---|---|
| Aug 11, 2026 | Jefferies | Downgrade | Buy | Hold | $58 |
| May 11, 2026 | UBS | Reiterate | Neutral | $50 | |
| Jan 13, 2026 | Wells Fargo | Reiterate | Equal Weight | $75 | |
| Nov 22, 2024 | JMP Securities | Downgrade | Market Outperform | Market Perform |
Earnings
EPS
Revenue
History
| Report date | EPS est | EPS | Surprise | Revenue est | Revenue | Surprise | Next session |
|---|---|---|---|---|---|---|---|
| Aug 5, 2026Q2 FY26 | $0.83 | $1.49 | +80.0% | $395.1M | $389.2M | −1.5% | −16.21% |
| May 6, 2026Q1 FY26 | $0.84 | $2.09 | +148.8% | $398.2M | $393.5M | −1.2% | +3.38% |
| Feb 25, 2026Q4 FY25 | $0.03 | $0.31 | +933.3% | $383.3M | $397.0M | +3.6% | −5.52% |
| Nov 5, 2025Q3 FY25 | −$0.43 | −$0.35 | +18.6% | $381.6M | $387.8M | +1.6% | −8.79% |
Financial highlights
| 12 quarters | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | |
|---|---|---|---|---|---|---|---|
| Revenue | $349.4M | $382.9M | $387.8M | $397.0M | $393.5M | $389.2M | |
| Gross profit | $107.1M | $101.7M | $81.4M | $96.4M | $167.3M | $149.3M | |
| Operating income | $18.4M | $22.0M | −$5.0M | $5.4M | $36.1M | $25.6M | |
| Net income | $18.4M | $22.0M | −$5.4M | $5.3M | $35.9M | $25.4M | |
| Diluted EPS | $1.07 | $1.29 | −$0.35 | $0.31 | $1.99 | $1.42 | |
| Gross margin | 30.7% | 26.6% | 21.0% | 24.3% | 42.5% | 38.4% | |
| Operating margin | 5.3% | 5.7% | -1.3% | 1.4% | 9.2% | 6.6% |
Fiscal years (4-quarter sums)FY21 $345.4M · FY22 $310.8M · FY23 $455.0M · FY24 $1.18B · FY25 $1.52B
Balance sheet, Jun 30, 2026Cash & short-term investments $1.03B · Total debt $310.8M · Total assets $1.67B · Shareholders' equity $327.9M
Dividends
No dividends on record.
Ownership
Institutions and insiders are filed separately and overlap, so together they can pass the whole company. No split is drawn from them.
Shares outstanding 14.02M · Float 12.65M · 90.2% free float
Top shareholders13F · 13D/G · Form 4
| Holder | Shares | % outstanding | Form | Filed |
|---|---|---|---|---|
| Carvana Co. Sub LLC | 3.71M | 21.20% | 13D | Mar 3, 2026 |
| Ribbit Management Company, LLC | 1.23M | 8.79% | 13F | Aug 14, 2026 |
| Malka Meyer · 10 percent owner | 1.23M | 8.79% | Form 4 | Apr 30, 2025 |
| T. Rowe Price Investment Management, Inc. | 1.22M | 8.71% | 13F | Aug 14, 2026 |
| BlackRock, Inc. | 1.15M | 8.20% | 13F | Aug 7, 2026 |
Insider tradesForm 4
| Date | Insider | Role | Shares | Avg price |
|---|---|---|---|---|
| May 15, 2026 | Jonathan Allison | officer: Chief Administrative Officer | −1,606 | $55.96 |
| May 12, 2026 | Jonathan Allison | officer: Chief Administrative Officer | −1,706 | $55.74 |
| Apr 7, 2026 | Jonathan Allison | officer: Chief Administrative Officer | −1,706 | $44.35 |
| Apr 2, 2026 | Jonathan Allison | officer: Chief Administrative Officer | −4,112 | $42.33 |
| Mar 20, 2026 | Jonathan Allison | officer: Chief Administrative Officer | −3,990 | $44.78 |
Peers
- Progressive
Head-to-head in usage-based auto insurance telematics and mass-market scale
- Allstate
Head-to-head in usage-based auto insurance via Drivewise telematics
- Lemonade
Head-to-head in app-first, telematics-based auto insurance
- Kemper
Head-to-head in nonstandard-tier personal auto insurance and telematics
CompareAfter-hours close
| Company | Price | Change | |||||
|---|---|---|---|---|---|---|---|
| Root | $57.00 | +0.81% | $791.2M | 16.7 | 22.4 | 0.5 | +1.7% |
| Progressive | $217.33 | −0.61% | $127.12B | 11.0 | 13.3 | 1.4 | −4.2% |
| Allstate | $260.58 | −0.03% | $67.08B | 5.2 | 9.2 | 1.0 | −7.2% |
| Lemonade | $53.10 | +0.23% | $4.07B | — | — | 4.4 | +79.4% |
| Kemper | $27.93 | 0.00% | $1.64B | — | 8.9 | 0.4 | −11.0% |
| Median | 8.1 | 9.2 | 1.2 | −5.7% |