Root, Inc. Financials
This page shows Root, Inc. (ROOT) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 8 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
Root, Inc. has an operating margin of 4.1%, meaning the company retains $4 of operating profit per $100 of revenue. This results in a moderate score of 31/100, indicating healthy but not exceptional operating efficiency. This is down from 6.7% the prior year.
Root, Inc.'s revenue surged 29.0% year-over-year to $1.5B, reflecting rapid business expansion. This strong growth earns a score of 82/100.
Root, Inc. carries a low D/E ratio of 0.70, meaning only $0.70 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 88/100, indicating a strong balance sheet with room for future borrowing.
Root, Inc. has a free cash flow margin of 13.6%, earning a moderate score of 59/100. The company generates positive cash flow after capital investments, but with room for improvement.
Root, Inc.'s ROE of 14.2% shows moderate profitability relative to equity, earning a score of 43/100. This is down from 15.2% the prior year.
Root, Inc. passes 6 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), all 1 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Root, Inc. generates $5.12 in operating cash flow ($206.5M OCF vs $40.3M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Root, Inc. earns $2.9 in operating income for every $1 of interest expense ($61.8M vs $21.0M). This adequate coverage means the company can meet its interest obligations, but has limited cushion if earnings fall.
Key Financial Metrics
Earnings & Revenue
Root, Inc. generated $1.5B in revenue in fiscal year 2025. This represents an increase of 29.0% from the prior year.
Root, Inc.'s EBITDA was $73.6M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 21.2% from the prior year.
Root, Inc. reported $40.3M in net income in fiscal year 2025. This represents an increase of 30.4% from the prior year.
Root, Inc. earned $2.36 per diluted share (EPS) in fiscal year 2025. This represents an increase of 29.0% from the prior year.
Cash & Balance Sheet
Root, Inc. generated $206.5M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 5.7% from the prior year.
Root, Inc. held $669.3M in cash against $200.3M in long-term debt as of fiscal year 2025.
Margins & Returns
Root, Inc.'s operating margin was 4.1% in fiscal year 2025, reflecting core business profitability. This is down 2.6 percentage points from the prior year.
Root, Inc.'s net profit margin was 2.7% in fiscal year 2025, showing the share of revenue converted to profit. This is up 0.0 percentage points from the prior year.
Root, Inc.'s ROE was 14.2% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 1.0 percentage points from the prior year.
Capital Allocation
Root, Inc. invested $0 in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 100.0% from the prior year.
ROOT Income Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $397.0M+2.4% | $387.8M+1.3% | $382.9M+9.6% | $349.4M+6.9% | $326.7M+6.9% | $305.7M+5.7% | $289.2M+13.5% | $254.9M |
| Cost of Revenue | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Gross Profit | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $27.0M+4.7% | $25.8M+9.3% | $23.6M+15.1% | $20.5M+22.0% | $16.8M-4.0% | $17.5M-3.3% | $18.1M+5.8% | $17.1M |
| Operating Income | $10.5M+3400.0% | $300K-98.9% | $27.3M+15.2% | $23.7M-32.1% | $34.9M+1.5% | $34.4M+805.3% | $3.8M-29.6% | $5.4M |
| Interest Expense | $5.1M-3.8% | $5.3M0.0% | $5.3M0.0% | $5.3M-28.4% | $7.4M-36.2% | $11.6M0.0% | $11.6M0.0% | $11.6M |
| Income Tax | $100K-75.0% | $400K | $0 | $0 | $0 | $0 | $0 | $0 |
| Net Income | $5.3M+198.1% | -$5.4M-124.5% | $22.0M+19.6% | $18.4M-16.7% | $22.1M-3.1% | $22.8M+392.3% | -$7.8M-25.8% | -$6.2M |
| EPS (Diluted) | N/A | $-0.35-127.1% | $1.29+20.6% | $1.07 | N/A | $1.35+359.6% | $-0.52-23.8% | $-0.42 |
ROOT Balance Sheet
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $1.7B+2.0% | $1.6B+3.4% | $1.6B+0.1% | $1.6B+6.0% | $1.5B-4.2% | $1.6B+4.4% | $1.5B+4.4% | $1.4B |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Cash & Equivalents | $669.3M+2.4% | $653.3M+1.9% | $641.4M+5.3% | $609.4M+1.7% | $599.3M-11.2% | $674.8M+1.1% | $667.2M+4.2% | $640.5M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Goodwill | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Liabilities | $1.3B+1.0% | $1.3B+2.8% | $1.2B-1.1% | $1.2B+5.5% | $1.2B-6.9% | $1.3B+2.9% | $1.2B+6.7% | $1.2B |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Long-Term Debt | $200.3M0.0% | $200.4M+0.1% | $200.1M+0.1% | $200.0M0.0% | $200.1M-33.5% | $300.9M+0.3% | $300.1M+0.3% | $299.3M |
| Total Equity | $284.3M+7.3% | $265.0M+8.4% | $244.5M+6.9% | $228.7M+12.3% | $203.7M+12.0% | $181.9M+20.2% | $151.3M-8.7% | $165.7M |
| Retained Earnings | -$1.6B+0.3% | -$1.6B-0.3% | -$1.6B+1.3% | -$1.7B+1.1% | -$1.7B+1.3% | -$1.7B+1.3% | -$1.7B-0.3% | -$1.7B |
ROOT Cash Flow Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $70.1M+21.7% | $57.6M+10.8% | $52.0M+94.0% | $26.8M-61.3% | $69.2M+40.1% | $49.4M-21.1% | $62.6M+331.7% | $14.5M |
| Capital Expenditures | $0 | $0 | $0 | $0 | $0 | $0-100.0% | $200K0.0% | $200K |
| Free Cash Flow | $70.1M+21.7% | $57.6M+10.8% | $52.0M+94.0% | $26.8M-61.3% | $69.2M+40.1% | $49.4M-20.8% | $62.4M+336.4% | $14.3M |
| Investing Cash Flow | -$32.5M+21.9% | -$41.6M-994.7% | -$3.8M+72.5% | -$13.8M+65.8% | -$40.3M-1.3% | -$39.8M-80.9% | -$22.0M+57.9% | -$52.3M |
| Financing Cash Flow | -$2.1M+48.8% | -$4.1M+74.7% | -$16.2M-478.6% | -$2.8M+97.3% | -$104.4M-5120.0% | -$2.0M+85.6% | -$13.9M-3375.0% | -$400K |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
ROOT Financial Ratios
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Margin | 2.6%+2.6pp | 0.1%-7.1pp | 7.1%+0.4pp | 6.8%-3.9pp | 10.7%-0.6pp | 11.3%+9.9pp | 1.3%-0.8pp | 2.1% |
| Net Margin | 1.3%+2.7pp | -1.4%-7.1pp | 5.8%+0.5pp | 5.3%-1.5pp | 6.8%-0.7pp | 7.5%+10.2pp | -2.7%-0.3pp | -2.4% |
| Return on Equity | 1.9%+3.9pp | -2.0%-11.0pp | 9.0%+0.9pp | 8.1%-2.8pp | 10.8%-1.7pp | 12.5%+17.7pp | -5.2%-1.4pp | -3.7% |
| Return on Assets | 0.3%+0.7pp | -0.3%-1.7pp | 1.4%+0.2pp | 1.2%-0.3pp | 1.5%+0.0pp | 1.5%+2.0pp | -0.5%-0.1pp | -0.4% |
| Current Ratio | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt-to-Equity | 0.70-0.1 | 0.76-0.1 | 0.82-0.1 | 0.87-0.1 | 0.98-0.7 | 1.65-0.3 | 1.98+0.2 | 1.81 |
| FCF Margin | 17.7%+2.8pp | 14.8%+1.3pp | 13.6%+5.9pp | 7.7%-13.5pp | 21.2%+5.0pp | 16.2%-5.4pp | 21.6%+16.0pp | 5.6% |
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Frequently Asked Questions
What is Root, Inc.'s annual revenue?
Root, Inc. (ROOT) reported $1.5B in total revenue for fiscal year 2025. This represents a 29.0% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Root, Inc.'s revenue growing?
Root, Inc. (ROOT) revenue grew by 29% year-over-year, from $1.2B to $1.5B in fiscal year 2025.
Is Root, Inc. profitable?
Yes, Root, Inc. (ROOT) reported a net income of $40.3M in fiscal year 2025, with a net profit margin of 2.7%.
What is Root, Inc.'s EBITDA?
Root, Inc. (ROOT) had EBITDA of $73.6M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Root, Inc. have?
As of fiscal year 2025, Root, Inc. (ROOT) had $669.3M in cash and equivalents against $200.3M in long-term debt.
What is Root, Inc.'s operating margin?
Root, Inc. (ROOT) had an operating margin of 4.1% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Root, Inc.'s net profit margin?
Root, Inc. (ROOT) had a net profit margin of 2.7% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Root, Inc.'s return on equity (ROE)?
Root, Inc. (ROOT) has a return on equity of 14.2% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Root, Inc.'s free cash flow?
Root, Inc. (ROOT) generated $206.5M in free cash flow during fiscal year 2025. This represents a 5.7% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Root, Inc.'s operating cash flow?
Root, Inc. (ROOT) generated $206.5M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Root, Inc.'s total assets?
Root, Inc. (ROOT) had $1.7B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Root, Inc.'s capital expenditures?
Root, Inc. (ROOT) invested $0 in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is Root, Inc.'s debt-to-equity ratio?
Root, Inc. (ROOT) had a debt-to-equity ratio of 0.70 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Root, Inc.'s return on assets (ROA)?
Root, Inc. (ROOT) had a return on assets of 2.4% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Root, Inc.'s Piotroski F-Score?
Root, Inc. (ROOT) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Root, Inc.'s earnings high quality?
Root, Inc. (ROOT) has an earnings quality ratio of 5.12x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Root, Inc. cover its interest payments?
Root, Inc. (ROOT) has an interest coverage ratio of 2.9x, meaning it can adequately cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Root, Inc.?
Root, Inc. (ROOT) scores 60 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.