$ROOT
Root is showing rapid growth, but rising operating expenses are limiting EPS growth and clouding short-term profitability. Based on Q2 2025 results, revenue rose from $349.4M to $382.9M, but expense growth is holding back EPS expansion. The company has delivered four consecutive profitable quarters, and tangible book value per share has reached $13.89. Partnerships with dealers like Carvana and its data-driven pricing model support long-term growth, but short-term EPS is expected to decline in the second half of 2025, especially due to warrant expenses tied to Carvana.
The balance sheet