Shares of Root Inc. (NASDAQ: ROOT), a tech-driven insurance company, soared an impressive 21.01% on Wednesday in the intraday trading session, following the company's stellar fourth-quarter and full-year 2024 financial results.

The insurer reported fourth-quarter revenue of $326.7 million, surpassing analysts' consensus estimate of $291 million. More significantly, Root delivered an earnings per share (EPS) of $1.62, a remarkable outperformance compared to the Street's expectation of a loss of $0.44 per share.

Notably, Root achieved positive net income for the second consecutive quarter and marked a full-year net profit of $31 million, reflecting a substantial improvement of $178 million over the previous fiscal year. The company attributed its success to the difficult yet necessary decisions made in 2022 and 2023, paving the way for a "landmark year" in 2024.

Fueling the stock's momentum, Root also announced its successful refinancing of a $300 million term loan facility with BlackRock late last year. This strategic move reduced the principal to $200 million and lowered interest rates by 300 basis points, resulting in a projected 50% reduction in interest expenses on a run-rate basis.

Furthermore, Root expanded its auto insurance services to Minnesota in January 2025, increasing its coverage to over 77% of the U.S. population. This geographical expansion, coupled with broader market momentum, contributed to the stock's upward trajectory.