Root, Inc. is a full-stack insurance carrier headquartered in Columbus, Ohio, operating a direct-to-consumer model via its mobile app and website. The company was founded in 2015 by Alex Timm and Dan Manges with the mission to disrupt the traditional insurance industry by leveraging mobile technology and data science to ...Root, Inc. is a full-stack insurance carrier headquartered in Columbus, Ohio, operating a direct-to-consumer model via its mobile app and website. The company was founded in 2015 by Alex Timm and Dan Manges with the mission to disrupt the traditional insurance industry by leveraging mobile technology and data science to offer fair, personalized rates based on driving behavior rather than demographics. As of the latest data, Root employs 1,256 people and is publicly traded on NASDAQ under the symbol ROOT. The company offers auto, home, and renters insurance in over 30 states, targeting good drivers with lower premiums. Financially, Root has shown improving profitability with a net profit margin of 3.8% and a price-to-earnings ratio of 13.88. Its revenue per share is $99.84, and it has a market cap of $722 million. The company's business model emphasizes cost efficiency and technology, with a low expense ratio and high use of data analytics for risk assessment. Key financial ratios include a return on equity of 15.6%, an operating cash flow per share of $12.98, and a free cash flow per share of $11.78. Root has a strong balance sheet with a current ratio of 0.999 and a debt-to-equity ratio of 0.603. The company has also been recognized as a Great Place To Work, reflecting a positive corporate culture. Looking forward, Root aims to expand its product offerings and market reach, focusing on innovation and customer experience.
Plutux no es un asesor de inversiones. Los datos de mercado y el análisis generado por IA son solo informativos y educativos, no asesoramiento de inversión. Aviso legal
InteranualYoY significa Year-over-Year (interanual). Compara el último valor anual con el valor anual anterior para mostrar la fortaleza de la tendencia a largo plazo.
TrimestralQoQ significa Quarter-over-Quarter (intertrimestral). Compara el último trimestre con el trimestre inmediatamente anterior para mostrar cambios de impulso a corto plazo.
IngresosEl dinero total que entró por la puerta principal al vender cosas, antes de pagar una sola factura. Piensa en esto como el gran total de cada compra con tarjeta de los clientes. (YoY compara el rendimiento de este año con el del año pasado, mientras que QoQ compara los tres meses actuales con los tres anteriores).
$1.5B
+29.0%
-1.1%
Beneficio netoEl resultado final absoluto. Si la empresa pagara a cada proveedor, empleado, banquero y recaudador de impuestos, este es el dinero real que queda en su bolsillo al final del día.
$40.3M
+30.4%
-29.2%
Margen brutoEl margen básico. Si venden unas zapatillas de 100 dólares, este porcentaje indica cuánto de ese precio es ganancia justo después de pagar el caucho y los cordones, pero antes de pagar el alquiler de la tienda o los anuncios de televisión.
+25.5%
-11.1%
-9.8%
Margen operativoLa puntuación de eficiencia del 'trabajo diario'. De cada dólar que gasta un cliente, esto muestra cuántos centavos mantiene la empresa después de fabricar el producto Y pagar todos los gastos generales corporativos (como salarios, marketing y mantener las luces encendidas).
+2.7%
+2.4%
-28.3%
Margen netoEl porcentaje final que se lleva a casa. Cuando se eliminan todos los costos concebibles, impuestos y pagos de intereses, este es el número exacto de centavos que la empresa realmente se queda de cada dólar en ventas.
+2.7%
+1.1%
-28.5%
Flujo de caja libreEl santo grial del efectivo corporativo. Es el dinero físico gastable que queda después de que el negocio paga sus operaciones diarias Y compra las actualizaciones grandes y costosas (como nuevas fábricas o servidores) que necesita para sobrevivir. Este es el dinero 'libre' que pueden usar para pagar dividendos o recomprar acciones.
$192.4M
+4.6%
+827.6%
Margen FCFLa tasa definitiva de conversión de efectivo. Muestra qué tan buena es la empresa para convertir ventas regulares directamente en efectivo frío, duro y gastable. Un porcentaje alto significa que el negocio es una auténtica máquina de imprimir dinero.
+12.7%
-18.9%
+837.8%
Deuda/PatrimonioEl indicador de riesgo financiero. Compara cuánto del imperio de la empresa se construyó con dinero prestado (préstamos) frente al dinero propio de los propietarios (accionistas). Un número alto significa que están muy apalancados y juegan un juego más arriesgado; un número bajo significa que juegan a lo seguro.
50.8%
-20.7%
+107.2%
Ratio corrienteLa verificación de supervivencia de 12 meses. Simplemente compara el efectivo que tienen ahora mismo (más cosas que pueden convertirse rápidamente en efectivo) con las facturas inmediatas que absolutamente deben pagar este año. Una puntuación superior a 1 significa que tienen suficiente en la billetera para cubrir las próximas facturas sin entrar en pánico.
2.62x
-4.1%
—
Activos totalesEl tamaño absoluto del imperio de la empresa. Agrupa absolutamente todo lo valioso que poseen, desde el efectivo en la caja registradora y el inventario en el almacén, hasta las patentes de software en la bóveda y las fábricas en el suelo.
Operator: Greetings, and welcome to the Root's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Matt LaMalva, Head of IR and Corporate Development. Please go ahead.
Matthew LaMalva: Good afternoon, and thank you for joining us. Root is hosting this call to discuss its second quarter 2026 earnings results. Participating on today's call is Alex Timm, Co-Founder and Chief Executive Officer; and Megan Binkley, Chief Financial Officer. Earlier today, Root issued a shareholder letter announcing its financial results. We'll focus today on how we're executing against our model and the progress we're delivering across the business. While today's discussion will reflect the shareholder letter, for more complete information about our financial performance, we also encourage you to read our second quarter 2026 Form 10-Q, which was filed with the Securities and Exchange Commission today. Before we begin, I want to remind you that matters discussed on today's call will include forward-looking statements related to our operating performance, financial goals and business outlook, which are based on management's current beliefs and assumptions. Please note that these forward-looking statements reflect our opinions as of the date of this call, and we are not obligated to revise this information as a result of new developments that may occur. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause our actual results to differ materially from those expected and described today. For a more detailed description of our risk factors, please review our most recent 10-K, 10-Q and shareholder letter. A replay of this conference call will be available on our website under the Investor Relations section. I would also like to remind you that during the call, we will discuss some non-GAAP measures while we talk about Root's performance. You can find reconciliations of these historical measures to the nearest comparable GAAP measures in our financial disclosures, all of which are posted on our website at ir.joinroot.com. I will now turn the call over to Alex.
Alexander Timm: Thanks, Matt. Good afternoon, and thank you, everyone, for joining us. I'm happy to report that in the second quarter, Root continued to deliver strong performance while investing in long-term growth. Net income increased 15% year-over-year to $25 million, generating approximately a 31% annualized return on equity. Revenue increased 2% year-over-year to $389 million, and policies in force increased 6% year-over-year, ending the quarter at 484,000 policies. These results demonstrate the strength of our technology and data science capabilities we have built over the past decade. When we founded Root, our core belief was simple, insurance would ultimately be won through superior pricing and automation. Long before artificial intelligence became a …