Root Inc. Reports First Profitable Year, Shares Surge 30%

The insurtech company exceeded earnings and revenue expectations for Q4 2024, highlighting strong growth in policies and premiums.

Root Inc. reported Q4 2024 earnings of $1.30 per share, significantly beating the consensus estimate of a $0.45 loss per share.
Revenue for the quarter grew 67.7% year-over-year to $326.7 million, surpassing the forecast of $291 million.
The company ended 2024 with a net income of $31 million, marking its first profitable year and a $178 million improvement from the previous year.
Policies in force increased 21% year-over-year to approximately 415,000, while gross premiums written rose 18% to $331 million in Q4.
Root's shares climbed nearly 30% following the earnings announcement, reflecting investor confidence in its technology-driven insurance model.