Root (ROOT) Q4 2024 earnings summary

Executive summary

• Achieved first full year of net income profitability in 2024, with significant operational and financial improvements year-over-year.

• Policies in force grew 21% year-over-year to over 414,000, supported by strong underwriting and technology investments.

• Expanded distribution channels, notably doubling new writings in the partnership channel, which now represents about a third of new business.

• Launched in Minnesota, reaching 76% of the U.S. population, with further state expansion planned.

Financial highlights

• Reported GAAP net income of $31 million for 2024 and adjusted EBITDA of $112 million, both substantial improvements from 2023.

• Fourth quarter net income was $22 million, a $46 million year-over-year improvement; operating income was $35 million and adjusted EBITDA $43 million.

• Gross premiums written reached $1.3 billion for the year.

• Q4 gross accident period loss ratio was 61%, a two-point improvement year-over-year; Q4 gross combined ratio was 91%, a 19-point improvement.

Outlook and guidance

• Expecting low- to mid-single-digit loss trend in 2025, with some modest rate decreases and a stable to slightly increasing loss ratio.

• Continued focus on disciplined underwriting, technology-driven pricing, and measured expansion in both direct and partnership channels.

• Anticipate state expansion and scaling of new marketing channels to drive further growth.