Detailed financial statements for Root, Inc. (ROOT): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year with up to 20 years of history.
Root, Inc. operates within the United States, concentrating on delivering a range of insurance solutions, including policies for automobiles, residential properties, and rental occupancy. The company employs a direct-to-consumer business model, primarily connecting with its customers via user-friendly mobile applications and its official website.
Analysis Summary
Root, Inc. reported revenue of $1.52B in the most recent fiscal year, growing at a 5-year CAGR of 34.3%.
Trailing-twelve-month margins: gross margin 31.5%, operating margin 4.0%, net margin 3.9%.
At the current price of $52.44, ROOT trades at a P/E of 13.83 and an ROE of 15.91%. Market capitalisation stands at $735M.
Balance sheet quality for ROOT: current ratio of 2.6, net cash position of $488.6M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $192.4M represents 477% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $43.3M | $290.2M | $346.8M | $345.4M | $310.8M | $455.0M | $1.18B | $1.52B |
| Cost of Revenue | $53.7M | $373.7M | $361.0M | $397.3M | $343.0M | $378.9M | $839.4M | $1.13B |
| Gross Profit | -$10.4M | -$83.5M | -$14.2M | -$51.9M | -$32.2M | $76.1M | $337.1M | $386.6M |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $49.6M | $152.6M | $218.2M | $367.8M | $175.4M | $132.6M | $205.3M | $271.7M |
| Operating Expenses | $58.7M | $198.9M | $348.8M | $469.2M | $265.5M | $223.5M | $306.2M | $345.8M |
| Operating Income | -$69.1M | -$282.4M | -$363.0M | -$521.1M | -$297.7M | -$147.4M | $30.9M | $40.8M |
| EBITDA | -$67.6M | -$255.2M | -$269.7M | -$484.5M | -$249.3M | -$88.7M | $88.0M | $73.6M |
| Interest Expense | $900000 | $22.3M | $77.7M | $20.0M | $34.6M | $46.1M | $42.2M | $21.0M |
| Pre-tax Income | -$69.1M | -$282.4M | -$363.0M | -$521.1M | -$297.7M | -$147.4M | $30.9M | $40.8M |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -$500000 |
| Net Income | -$69.1M | -$282.4M | -$363.0M | -$521.1M | -$297.7M | -$147.4M | $30.9M | $40.3M |
| EPS | $-6.08 | $-24.83 | $-86.43 | $-37.62 | $-21.11 | $-10.24 | $1.96 | $2.49 |
| EPS (Diluted) | $-6.08 | $-24.83 | $-86.43 | $-37.62 | $-21.11 | $-10.24 | $1.83 | $2.24 |
| Shares Outstanding (Diluted) | $1.8M | $14.1M | $13.9M | $13.8M | $14.1M | $14.4M | $16.9M | $17.2M |
Balance Sheet (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $122.3M | $416.6M | $1.11B | $707.0M | $763.1M | $679.7M | $600.3M | $689.9M |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $35.0M | $122.7M | $130.1M | $148.1M | $111.9M | $247.1M | $305.3M | $332.8M |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Assets | $157.3M | $539.3M | $1.24B | $855.1M | $875.0M | $926.8M | $905.6M | $1.02B |
| Property, Plant & Equipment | $3.8M | $10.2M | 0 | $5.1M | $9.8M | $6.3M | $4.4M | $3.2M |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | $8.9M | $8.9M | $16.3M | $19.2M | $22.0M | $27.6M |
| Total Assets | $187.1M | $685.9M | $1.52B | $1.06B | $1.09B | $1.17B | $1.32B | $1.54B |
| Accounts Payable | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Short-term Debt | 0 | $99.5M | $99.5M | $4.3M | $3.2M | $3.0M | $2.2M | $2.3M |
| Total Current Liabilities | $34.5M | $227.5M | $143.8M | $83.6M | $65.5M | $238.5M | $331.0M | $389.7M |
| Long-term Debt | $14.9M | $91.8M | $78.5M | 0 | $288.1M | $291.1M | $196.3M | $197.0M |
| Total Liabilities | $100.2M | $499.5M | $492.3M | $415.1M | $700.8M | $896.5M | $1.00B | $1.14B |
| Retained Earnings | -$102.6M | -$385.0M | -$748.0M | -$1.27B | -$1.57B | -$1.72B | -$1.68B | -$1.64B |
| Total Equity | $86.9M | $186.4M | $1.03B | $648.4M | $389.1M | $277.7M | $315.7M | $396.3M |
| Total Debt | $14.9M | $191.3M | $178.0M | $14.1M | $298.6M | $299.3M | $202.3M | $201.3M |
| Net Debt | -$107.4M | -$225.3M | -$935.8M | -$692.9M | -$464.5M | -$380.4M | -$398.0M | -$488.6M |
| Working Capital | $122.8M | $311.8M | $1.10B | $771.5M | $809.5M | $688.3M | $574.6M | $633.0M |
Cash Flow (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Net Income | -$69.1M | -$282.4M | -$363.0M | -$521.1M | -$297.7M | -$147.4M | $30.9M | $40.3M |
| Depreciation & Amortization | $600000 | $4.9M | $15.6M | $16.6M | $13.8M | $12.6M | $14.9M | $11.8M |
| Stock-based Compensation | $100000 | $1.4M | $3.7M | $28.1M | $45.0M | $34.7M | $22.3M | $40.1M |
| Change in Working Capital | $42.0M | $119.3M | -$55.7M | $52.3M | $12.3M | $52.7M | $88.6M | $58.4M |
| Operating Cash Flow | -$26.1M | -$127.2M | -$287.2M | -$403.4M | -$210.6M | -$33.6M | $195.7M | $206.5M |
| Capital Expenditure | -$3.5M | -$12.1M | -$16.1M | -$11.2M | -$10.1M | -$9.4M | -$11.8M | -$14.1M |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock Repurchased | 0 | 0 | -$200000 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | -$29.6M | -$139.3M | -$303.3M | -$414.6M | -$220.7M | -$43.0M | $183.9M | $192.4M |
Growth & Margins (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +570.2% | +19.5% | -0.4% | -10.0% | +46.4% | +158.6% | +29.0% | |
| Net Income Growth (YoY) | -308.7% | -28.5% | -43.6% | +42.9% | +50.5% | +121.0% | +30.4% | |
| EPS Growth (YoY) | -308.4% | -248.1% | +56.5% | +43.9% | +51.5% | +119.1% | +27.0% | |
| Shares Change (YoY) | +694.6% | -1.4% | -0.3% | +1.8% | +2.1% | +17.4% | +1.8% | |
| FCF Growth (YoY) | -370.6% | -117.7% | -36.7% | +46.8% | +80.5% | +527.7% | +4.6% | |
| Gross Margin | -24.0% | -28.8% | -4.1% | -15.0% | -10.4% | 16.7% | 28.7% | 25.5% |
| Operating Margin | -159.6% | -97.3% | -104.7% | -150.9% | -95.8% | -32.4% | 2.6% | 2.7% |
| EBITDA Margin | -156.1% | -87.9% | -77.8% | -140.3% | -80.2% | -19.5% | 7.5% | 4.9% |
| Net Margin | -159.6% | -97.3% | -104.7% | -150.9% | -95.8% | -32.4% | 2.6% | 2.7% |
| FCF Margin | -68.4% | -48.0% | -87.5% | -120.0% | -71.0% | -9.5% | 15.6% | 12.7% |
| Effective Tax Rate | -0.0% | -0.0% | -0.0% | -0.0% | -0.0% | -0.0% | 0.0% | -1.2% |
Per-Share Data (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $-16.70 | $-9.89 | $-21.85 | $-29.95 | $-15.65 | $-2.99 | $10.88 | $11.19 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | $1.8M | $14.1M | $13.9M | $13.8M | $14.1M | $14.4M | $14.9M | $15.5M |
What to look at in Insurance
Insurers earn in 2 ways: underwriting well (combined ratio) and investing the float. Buffett built Berkshire that way.
- Op Margin 5y (Combined Ratio proxy) — Combined ratio proxy when FMP does not expose it. ≥10% 5y average = underwriting discipline (CR <100%)
- Book Value / Share growth — How Buffett measures Berkshire. The real value shareholders accumulate
- Debt / Equity — Leveraged insurers fail fast under catastrophes
- P/B (Price / Book) — Insurers are valued by book multiple. Here it is crossed with ROE (quality × valuation)
- Dividend growth streak — Consecutive years raising dividend per share — solid insurers stack decades
Profitability
| Return on Equity | 15.91% |
| Return on Invested Capital | 9.41% |
| Return on Assets | 3.67% |
| Gross Margin | 31.54% |
| Operating Margin | 3.96% |
| Net Margin | 3.90% |
Financial Health
| Debt / Equity | 0.95 |
| Current Ratio | 1.52 |
Key Ratios (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| P/E | -79.93 | -19.57 | -3.27 | -1.48 | -0.21 | -1.02 | 37.04 | 29.01 |
| P/B | 9.91 | 36.72 | 3.80 | 1.19 | 0.16 | 0.54 | 3.43 | 2.83 |
| P/S | 19.89 | 23.58 | 11.32 | 2.24 | 0.20 | 0.33 | 0.92 | 0.74 |
| Gross Margin | -24.0% | -28.8% | -4.1% | -15.0% | -10.4% | 16.7% | 28.7% | 25.5% |
| Operating Margin | -159.6% | -97.3% | -104.7% | -150.9% | -95.8% | -32.4% | 2.6% | 2.7% |
| Net Margin | -159.6% | -97.3% | -104.7% | -150.9% | -95.8% | -32.4% | 2.6% | 2.7% |
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Explore sector: Financial Services · Insurance - Property & Casualty
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