Shares of Root, Inc. (NASDAQ:ROOT) surged 5.77% in after-hours trading on Wednesday following the release of the company's exceptional first-quarter 2025 financial results. The insurance technology company significantly outperformed analyst expectations, demonstrating strong growth and a remarkable turnaround in profitability.
Root reported quarterly earnings of $1.07 per share, obliterating the analyst consensus estimate of a $0.06 loss. This represents a staggering 1883.33% beat and a 354.76% improvement from the $0.42 loss per share reported in the same quarter last year. The company's revenue also impressed, coming in at $349.40 million, surpassing the analyst consensus estimate of $322.66 million by 8.29%. This marks a robust 37.07% increase in sales compared to the $254.90 million reported in the first quarter of 2024.
Other key financial metrics further underscored Root's strong performance. The company reported gross premiums written of $410.8 million and achieved a net income of $18.4 million for the quarter. These results signal a significant positive shift in Root's financial health and operational efficiency, likely contributing to the enthusiastic market response and the subsequent stock price surge.
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