Root, Inc. (NASDAQ:ROOT) saw its stock price surge 5.77% in after-hours trading on Wednesday, following the release of its impressive 2025 first-quarter earnings report. The insurance technology company significantly outperformed analyst expectations, demonstrating strong growth and improved profitability.
Root reported quarterly earnings of $1.07 per share, drastically surpassing the analyst consensus estimate of $(0.06). This remarkable beat represents a 1,883.33% surprise and a 354.76% increase over the $(0.42) loss per share reported in the same period last year. The company's revenue also exceeded expectations, coming in at $349.40 million, 8.29% above the analyst consensus estimate of $322.66 million and marking a 37.07% year-over-year increase from $254.90 million.
Other key financial metrics further underscore Root's strong performance. The company reported gross premiums written of $410.8 million and a net income of $18.4 million for the quarter. These results suggest that Root's strategic initiatives and focus on profitability are beginning to pay off, potentially signaling a turning point for the previously struggling insurtech firm. Investors responded positively to these results, driving the stock's after-hours rally.
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