Root Inc. posts strong second quarter profitability with $1.49 EPS, beating expectations, while revenue of $389M misses slightly.

Root reported second quarter revenue of $389.2 million, up 2% year-over-year, and diluted EPS of $1.49. While revenue slightly missed analyst expectations, earnings per share significantly beat estimates, driven by continued underwriting profitability.

Key Highlights

• Net income increased 15% year-over-year to $25.4 million, with Adjusted EBITDA growing 16% to $44 million.
• The net combined ratio was 92.1%, a slight increase from 91.4% in the prior quarter, indicating sustained underwriting discipline.
• Policies in force grew 6% year-over-year to approximately 484,000, though gross written premium declined 2% to $340 million as the company managed growth in a competitive market.