Shares of Root, Inc. (NASDAQ: ROOT) surged 9.34% in pre-market trading on Thursday, following the release of the company's impressive second-quarter financial results. The insurance technology company's earnings report, which significantly outperformed analyst expectations, sparked investor enthusiasm and drove the stock's upward momentum.

Root reported a remarkable quarterly earnings per share (EPS) of $1.29, representing a dramatic turnaround from the $0.52 loss per share reported in the same period last year. This figure obliterated the analyst consensus estimate of $0.56, outperforming expectations by an astounding 130%. The company's revenue also exceeded forecasts, coming in at $382.9 million, surpassing the analyst consensus estimate of $354.2 million by 8.1%. This robust performance marks a 32.9% increase compared to sales of $289.2 million in the same quarter last year.

The strong financial results demonstrate Root's significant improvement in operational efficiency and profitability. The company's gross loss ratio improved to 58.0% in Q2 2025, down from 61.6% in Q2 2024, reflecting gains from updated pricing models and improved risk selection. The combined ratio of 94.3% indicates that Root collected more in premiums than it spent on claims and other costs, a key sign of insurance profitability. As Root continues to revolutionize the insurance industry through data science and technology, investors appear to be reassessing the company's growth trajectory and future potential, as reflected in the substantial stock price increase.