Root, Inc. (NASDAQ: ROOT), a tech-driven insurance company, witnessed a remarkable surge of 31.23% in its stock price on Thursday, February 27, 2025. This substantial rally was fueled by the company's impressive fourth-quarter and full-year 2024 financial performance, marking a significant milestone in its journey towards profitability.

In a standout performance, Root reported a Q4 revenue of $326.7 million, surpassing analysts' consensus estimate of $291 million. More notably, the company delivered an earnings per share (EPS) of $1.62, a remarkable outperformance compared to the Street's expectation of a loss of $0.44 per share.

The real highlight, however, was Root achieving positive net income for the second consecutive quarter and marking a full-year net profit of $31 million, reflecting a substantial improvement of $178 million over the previous fiscal year. This remarkable turnaround can be attributed to the strategic decisions made in 2022 and 2023, paving the way for what the company called a "landmark year" in 2024.

Additionally, Root showcased strong underwriting performance with a gross combined ratio of 95 and a gross loss ratio of 59%. The company's policies in force grew by an impressive 21% year-over-year, reaching over 414,000, highlighting its ability to expand its customer base significantly.

Furthermore, Root successfully reduced its run-rate interest expense by more than 50% and reinsurance costs, enhancing its financial efficiency. The company also made strides in diversifying its distribution channels, with new writings through its partnership channel representing roughly a third of overall new business.