"For the second consecutive quarter, we generated operating income and positive adjusted EBITDA, a testament to our powerful data science and technology."
— Alex Timm, Co-Founder and CEO
03Detailed Report
ROOT
Root Inc
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 20, 2026
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Executive Summary
Root Inc (ROOT) reported robust financial results for Q2 2024, achieving a revenue of $289.2 million, a significant increase of 286.63% year-over-year. The management emphasized their disciplined approach to growth, with a keen focus on achieving profitability through superior data science and technology across their direct and partnership channels. Despite a net income loss of $8 million, which reflects an improvement of 79% year-over-year, Root management is optimistic about the strategic initiatives underway to enhance profitability. The company's operating income stood at $4 million, underlining their continued progress towards sustainable profitability and operational efficiency.
Key Performance Indicators
Revenue
Increasing
289.20M
QoQ: 13.46% | YoY: 286.63%
Gross Profit
Increasing
289.20M
1.00% margin
QoQ: 13.46% | YoY: 286.63%
Operating Income
Increasing
3.80M
QoQ: -29.63% | YoY: 110.35%
Net Income
Increasing
-7.80M
QoQ: -25.81% | YoY: 78.75%
EPS
Increasing
-0.52
QoQ: -23.81% | YoY: 79.61%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue Performance: Root achieved a revenue of $289.2 million, with a 13.46% increase compared to Q1 2024. This strong growth supports the company's strategic objectives and operational capabilities.
Profitability Metrics: The operating income recorded was $4 million, while net income reflected a loss of $8 million, improving 79% year-over-year. Additionally, the company's gross profit margin maintained a steady 100%.
Cash Flow Insights: The operating cash flow was positive at $62.6 million for Q2 2024, marking a solid operational performance. Furthermore, their cash balance stood at $668.2 million at the end of the quarter, providing substantial liquidity for growth initiatives.
Balance Sheet Health: The current ratio improved to 3.60, signifying good short-term financial health, while total assets amounted to $1.29 billion against total liabilities of $1.03 billion, showcasing their balance sheet strength.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
289.20M
286.63%
13.46%
Gross Profit
289.20M
286.63%
13.46%
Operating Income
3.80M
110.35%
-29.63%
Net Income
-7.80M
78.75%
-25.81%
EPS
-0.52
79.61%
-23.81%
Key Financial Ratios
Gross Profit Margin
Weak
1.00%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
1.31%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.03%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.01%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.03%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
3.60
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
High Risk
1.11
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-24.59x
Negative earnings make P/E ratio not meaningful
Price to Book
Fair Value
2.91x
Price-to-book ratio reasonable for profitable companies
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