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Root Gears Up to Report Q3 Earnings: Here's What to Expect
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Key Takeaways
Root is expected to report Q3 loss of 43 cents per share. The estimate has been unchanged in the past 30 days.
Its Q3 is likely to have benefited from premium growth, digitalization and higher investment income.
Higher expenses may put pressure on margins, though improved pricing and underwriting could aid results.
Root, Inc. (ROOT - Free Report) is expected to register an improvement in its bottom line when it reports third-quarter 2025 results on Nov. 5, after the closing bell.
The consensus estimate for earnings is pegged at a loss of 43 cents per share. The Zacks Consensus Estimate for ROOT’s third-quarter earnings witnessed no movement in the past 30 days. The estimate suggests a year-over-year decrease of 131.9%.
What the Zacks Model Unveils for ROOT
Our proven model does not conclusively predict a beat for Root this time around. This is because the stock needs to have a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat. This is not the case, as you can see below.
Earnings ESP: Root has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate of as well as the Zacks Consensus Estimate is pegged at a loss of 43 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Root’s third-quarter results are likely to reflect a compelling product portfolio, geographic exposure and accelerated digitalization. Higher net premiums earned, improved net investment income, increased fee income and other income are expected to have favored the company’s top line in the third quarter.
Net premiums earned are likely to have improved, driven by an increase in policies in force resulting from increased direct performance marketing spend, continued growth in the partnership channel and higher premiums per policy resulting from rate actions and a shift in customer mix.
Net investment income is likely to have increased from a higher average cash balance and a larger investment portfolio skewed toward fixed-income maturities.
Higher loss and loss adjustment expenses, sales and marketing, other insurance expense, technology and development, and general and administrative expenses are likely to have increased operating expenses.
Combined ratio is likely to have improved owing to better pricing and increased exposure and prudent underwriting.
Stocks to Consider
Here are three insurance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Essent Group (ESNT - Free Report) has an Earnings ESP of +4.20% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $1.75, indicating a year-over-year increase of 6.1%.
ESNT’s earnings beat estimates in two of the last four reported quarters, while missing them in two.
HCI Group (HCI - Free Report) has an Earnings ESP of +87.40% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $2.35, indicating a year-over-year increase of 400%.
HCI’s earnings beat estimates in each of the last four reported quarters.
Assurant (AIZ - Free Report) has an Earnings ESP of +4.41% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $4.23, indicating a year-over-year increase of 41%.
AIZ’s earnings beat estimates in each of the last four reported quarters.
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Root Gears Up to Report Q3 Earnings: Here's What to Expect
Key Takeaways
Root, Inc. (ROOT - Free Report) is expected to register an improvement in its bottom line when it reports third-quarter 2025 results on Nov. 5, after the closing bell.
The consensus estimate for earnings is pegged at a loss of 43 cents per share. The Zacks Consensus Estimate for ROOT’s third-quarter earnings witnessed no movement in the past 30 days. The estimate suggests a year-over-year decrease of 131.9%.
What the Zacks Model Unveils for ROOT
Our proven model does not conclusively predict a beat for Root this time around. This is because the stock needs to have a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat. This is not the case, as you can see below.
Earnings ESP: Root has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate of as well as the Zacks Consensus Estimate is pegged at a loss of 43 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Root, Inc. Price and EPS Surprise
Root, Inc. price-eps-surprise | Root, Inc. Quote
Zacks Rank: ROOT carries a Zacks Rank #5 (Strong Sell) at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Shape Q3 Results of ROOT
Root’s third-quarter results are likely to reflect a compelling product portfolio, geographic exposure and accelerated digitalization.
Higher net premiums earned, improved net investment income, increased fee income and other income are expected to have favored the company’s top line in the third quarter.
Net premiums earned are likely to have improved, driven by an increase in policies in force resulting from increased direct performance marketing spend, continued growth in the partnership channel and higher premiums per policy resulting from rate actions and a shift in customer mix.
Net investment income is likely to have increased from a higher average cash balance and a larger investment portfolio skewed toward fixed-income maturities.
Higher loss and loss adjustment expenses, sales and marketing, other insurance expense, technology and development, and general and administrative expenses are likely to have increased operating expenses.
Combined ratio is likely to have improved owing to better pricing and increased exposure and prudent underwriting.
Stocks to Consider
Here are three insurance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Essent Group (ESNT - Free Report) has an Earnings ESP of +4.20% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $1.75, indicating a year-over-year increase of 6.1%.
ESNT’s earnings beat estimates in two of the last four reported quarters, while missing them in two.
HCI Group (HCI - Free Report) has an Earnings ESP of +87.40% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $2.35, indicating a year-over-year increase of 400%.
HCI’s earnings beat estimates in each of the last four reported quarters.
Assurant (AIZ - Free Report) has an Earnings ESP of +4.41% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $4.23, indicating a year-over-year increase of 41%.
AIZ’s earnings beat estimates in each of the last four reported quarters.