10-K · February 25, 2026
Root Inc. experienced significant financial recovery in 2025 with net income of $40.3 million, contrasting with previous annual losses, and 30.9% revenue growth driven by increased policies in force. A reduced reliance…
Earnings analysis · 10-Q
ROOT earnings analysis
Filed May 6, 2026 · Our reading of the company's report
The latest report
Root Inc. reported strong Q1 2026 results with total revenues of $393.5 million, a 12.6% increase year-over-year, driven by a 13.2% rise in net premiums earned. Net income surged by 95.1% to $35.9 million, primarily due…
Read full summary
Root Inc. reported strong Q1 2026 results with total revenues of $393.5 million, a 12.6% increase year-over-year, driven by a 13.2% rise in net premiums earned. Net income surged by 95.1% to $35.9 million, primarily due to improved underwriting performance and strategic marketing adjustments. The company also initiated a $75 million share repurchase program, signaling confidence in its future performance.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.09
What stood out
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Strong Revenue Growth
Total revenue reached $393.5 million, up 12.6% from $349.4 million in Q1 2025.
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Significant EPS Increase
Diluted EPS surged to $1.09, climbing from $0.49 year-over-year.
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Record Net Income
Net income jumped 95.1% to $35.9 million, from $18.4 million in the previous year.
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Improved Operating Efficiency
Operating income rose by 72.6% to $40.9 million, highlighting better cost management.
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Successful Marketing Strategy
Sales and marketing expenses decreased significantly by 47% to $27.3 million, improving cost efficiency.
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New Share Repurchase Program
The board approved a $75 million share repurchase program, indicating strong confidence in the company's financial future.
What to watch
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Increased Loss Ratios
Gross accident period loss ratio worsened to 58.8%, up from 54.5% due to rising claim costs.
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Decline in Gross Premiums Written
Gross premiums written fell by 5.3% to $389 million, partially offsetting revenue growth.
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Financial Market Instability
Ongoing geopolitical instability and inflation could adversely affect long-term growth prospects.
Management's outlook
Management indicated challenges in growth but expressed confidence in strategic investments and partnerships.
Earlier filings 4
10-Q · November 5, 2025
Root Inc's Q3 2025 results showed a significant increase in total revenues driven by a robust growth in net premiums earned, indicating a strong performance despite challenges. Although the company reported a net loss,…
10-Q · August 6, 2025
Root, Inc. reported strong Q2 2025 earnings, with total revenue increasing to $382.9 million, a 32.4% rise from Q2 2024. Net income surged to $22 million, reversing a loss from the prior year, driven by a significant…
10-Q · May 7, 2025
Root, Inc. reported strong financial performance in Q1 2025, with substantial increases in both revenue and net income. Revenue rose 37.1% to $349.4 million, while EPS surged to $1.07, significantly exceeding estimates.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.