Filing Flows › Root (ROOT) › Q1 2025
Root (ROOT) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 7, 2025
Root (ROOT) reported revenue of $349M for the first quarter 2025 (Q1 2025), +37% from a year earlier and +7% from the quarter before. Operating margin was 6.8%, net earnings $18.4M (5.3% of revenue).
Root, Q1 2025: revenue $349M (+37% year over year), operating margin 6.8%, net earnings $18.4M, operating cash flow $26.8M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $349M | +7% | +37% |
| Operating profit | $23.7M | -32% | +339% |
| Net earnings | $18.4M | -17% | — |
| Operating cash flow | $26.8M | -61% | +85% |
What changed
Revenue was $349.4M in Q1 2025, up 37% year over year and up 7% from the previous quarter.
Operating profit was $23.7M, a 6.8% margin (up 4.7 points year over year). Of the extra revenue versus a year earlier, 19% reached operating profit, above the 2% margin then. Total costs grew 31% against revenue growth of 37%. The fastest-growing cost line was Sales & marketing (+69%). Net earnings were $18.4M. The effective tax rate was 0.0%.
Operating cash flow was $26.8M (up 85% year over year), 146% of net earnings. Non-cash charges added back $2.0M of depreciation and amortization and $6.4M of share-based compensation.
Questions
What was Root's revenue in the first quarter 2025?
Root (ROOT) reported revenue of $349M for the first quarter 2025 (Q1 2025), +37% from a year earlier and +7% from the quarter before.
Was Root profitable in the first quarter 2025?
Operating profit was $23.7M (6.8% of revenue) and net earnings $18.4M.
Source: Root 10-Q on SEC EDGAR.