Root Inc. (ROOT) Delivers Record 2025 Results with 29% Revenue Growth and $40M Net Income

Root Inc. (NASDAQ:ROOT) is one of the best fintech stocks to invest in. On February 25, Root delivered the full-year 2025 earnings results, reporting a 29% increase in revenue and a record net income of $40 million, which was a 30% jump over 2024. The company’s growth was supported by a 16% rise in Gross Written Premium and a doubling of the pace for policies in force compared to the previous year.

Management highlighted that Root is now in its strongest financial position to date, finishing the year with $312 million in unencumbered capital and using its AI-driven pricing models to increase customer lifetime values by more than 20%. Strategic partnerships and geographic expansion remained central to the company’s 2025 narrative. Root expanded its coverage to 80% of the US population and established high-profile collaborations, including a telematics-based insurance initiative with Toyota.

Source: Pexels.com

While full-year Adjusted EBITDA rose to $132 million, Q4 net income saw a year-over-year decline of $17 million, dropping to $5 million. This dip was attributed to heavy reinvestment in marketing and partnership integrations designed to capture a larger share of the $350 billion auto insurance market. For 2026, Root Inc. (NASDAQ:ROOT) expects a temporary tightening of margins as it prioritizes new business acquisition. The CEO noted that because new policies typically carry higher loss ratios than renewals, the company anticipates a lower full-year net income for 2026.

Root Inc. (NASDAQ:ROOT) provides insurance products and services in the US. The company offers automobile and renters insurance products.