Root achieved a significant milestone in Q4 2025, maintaining net income profitability for the full year while growing annual revenue to $1.5 billion. The company demonstrated strong scaling economics through its AI-driven pricing models and expanded its distribution through a new data partnership with Toyota, despite a year-over-year decrease in quarterly net income due to deliberate growth investments.

In the second quarter of 2025, Root delivered record revenue growth, returned to GAAP profitability with positive net income and operating income, and expanded adjusted EBITDA driven by underwriting discipline and channel diversification.

Roots experienced a decline in total sales and net income in Q1 2024 compared to the previous year, primarily due to lower off-price sales and a disciplined inventory management approach. Despite this, the company saw an increase in DTC gross margin, improved free cash flow, and a significant reduction in net debt.

Roots experienced a slight decrease in total sales for Q4 2023, down 2.9% year-over-year, but saw an increase in net income by 12.6%. Gross margin improved significantly, rising to 58.6%.

Root delivered its first $200 million-plus quarter of Direct Written Premium, along with $6 million in Gross Profit and $27 million in Direct Contribution, driven by improvements in loss ratio.