Root reported third quarter 2026 revenue of $381.3 million, falling slightly short of analyst estimates, while diluted EPS of $0.86 outperformed expectations. The company achieved its fourth consecutive quarter of GAAP profitability, supported by a 4.9 percentage point year-over-year improvement in the net combined ratio to 97.2%.
Key Highlights
- GAAP net income reached $14.4 million, a significant turnaround from the $5.4 million net loss reported in the prior-year period.
- Partnership channel new writings grew 19% year-over-year, representing 52% of total new writings as the company prioritized lower-cost acquisition.
- Direct channel growth was intentionally moderated as personal auto competition intensified, with management trading off incremental volume to maintain return thresholds.
- Root renewed its exclusive commercial partnership with Carvana through August 2028 and launched a new pilot program with Hyundai dealerships.
- The company repurchased $36.2 million of common stock during the quarter under its existing $75 million authorization.