Jim Cramer Weighs In on Root

Root, Inc. (NASDAQ:ROOT) is one of the stocks Jim Cramer recently discussed. During the lightning round, a caller asked about the company, and Cramer replied:

“I know Root… And by the way, Lemonade is the one that I’m looking at for, when it comes to insurance. Lemonade is your play. And by the way, I think Lemonade is disrupting the industry to the point where we’re seeing lower rates, possibly. I know that because we’re seeing a lot of insurance companies talk about lower rates, including Berkshire Hathaway.”

A technical stock market chart. Photo by Energepic from Pexels

Root, Inc. (NASDAQ:ROOT) provides auto and renters insurance through a direct-to-consumer model, mainly through its mobile app and website. The company reported its Q2 2025 results on August 6. It posted an EPS of $1.29, outperforming estimates by $0.61. The revenue of $383 million beat estimates by $44.55 million and was up 32.4% year-over-year. The company’s CEO and Co-Founder, Alexander Edward Timm, made the following comments at the conference call:

“These results are the culmination of consistent execution of our strategy, allowing us to create great experiences and great prices for our customers. Beyond financial results, we continue to advance our strategy, releasing our next-gen pricing model, continuing to rapidly grow our partnerships channel and making meaningful progress on our path to becoming national. Building AI and Machine Learning to better price insurance is the bedrock of our strategy. Our new pricing model substantially improves our risk selection, increasing customer lifetime values by 20% on average.

This impact could be even larger in some states and allows us to grow faster, collect more data, and continue to build even more predictive models.”

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Disclosure: None. This article is originally published at Insider Monkey.