RO
ROOT
Jun 30, 2025
Quarter ended Jun 30, 2025 · FY2025 Q2

Root, Inc. stock research

Root (ROOT) Free Cash Flow — Quarter Ended Jun 30, 2025

Revenue and operating cash flow both improved compared to the prior quarter, while free cash flow margin strengthened. Versus the same quarter last year, revenue was higher but operating cash flow, free cash flow, and margin were all lower.

Free cash flow takeaway

A quick read on the company's cash generation and what it means for investors.

Revenue and operating cash flow both improved compared to the prior quarter, while free cash flow margin strengthened. Versus the same quarter last year, revenue was higher but operating cash flow, free cash flow, and margin were all lower.

  • Operating cash flow of fifty-two million dollars converted fully into free cash flow as capital expenditure was zero, yielding a free cash flow margin of thirteen point six percent. This conversion rate improved from the prior quarter's seven point seven percent margin but weakened from the year-ago quarter's twenty-one point six percent margin.
  • Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all increased. Compared to the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were lower.

FCF snapshot

Quarterly and TTM cash-flow metrics with the minimum valuation context.

TTM free cash flow

$197.4M

Trailing twelve-month free cash flow.

Quarter free cash flow

$52.0M

Free cash flow in the selected fiscal quarter.

Operating cash flow

$52.0M

Cash generated by operations before capital spending.

CapEx

$0

Capital spending and related asset purchases.

FCF margin

13.6%

The share of revenue converted into free cash flow.

Cash flow trend

A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.

PeriodRevenueOperating CFCapExFCFFCF margin
2024-09-30$305.7M$49.4M$0$49.4M16.2%
2024-12-31$326.7M$69.2M$0$69.2M21.2%
2025-03-31$349.4M$26.8M$0$26.8M7.7%
2025-06-30$382.9M$52.0M$0$52.0M13.6%

Cash conversion quality

Checks that separate high-quality free cash flow from accounting noise or working-capital timing.

FCF / net income236.4%Shows whether accounting earnings convert into cash.
CapEx / revenue0.0%Lower capital intensity usually supports FCF margin.
Net cash$441.3MCash and equivalents minus total debt.

Recent events shaping cash flow

Near-term business events that help explain the free cash flow result.

Supportive

Revenue growth supporting cash flow

Revenue increased from the prior quarter, and operating cash flow rose accordingly, driving free cash flow higher. The absence of capital expenditure allowed all operating cash flow to become free cash flow.

The sequential improvement in free cash flow margin was the strongest observable driver this quarter.

What the cash flow says

How to interpret the company's free cash flow beyond the headline number.

Operating cash flow of fifty-two million dollars converted fully into free cash flow as capital expenditure was zero, yielding a free cash flow margin of thirteen point six percent. This conversion rate improved from the prior quarter's seven point seven percent margin but weakened from the year-ago quarter's twenty-one point six percent margin.

Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all increased. Compared to the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were lower.

Monitor whether operating cash flow can sustain its sequential improvement given the year-over-year decline from the same quarter last year.