Revenue: As of FY2026 Q1, the actual value is USD 393.5 M.EPS: As of FY2026 Q1, the actual value is USD 2.09, beating the estimate of USD 0.84.EBIT: As of FY2026 Q1, the actual value is USD 35.7 M.Root, Inc. operates as a single reporting segment, with net income being the primary measure for financial performance evaluation.<h4>Segment Revenue</h4><ul><li>Net Premiums Earned: Increased to $363.7 million in 2026 from $321.3 million in 2025.</li><li>Net Investment Income: Remained stable at $8.7 million in both 2026 and 2025.</li><li>Net Realized Gains on Investments: Increased to $0.1 million in 2026 from $0 million in 2025.</li><li>Fee Income: Increased to $20.3 million in 2026 from $18.7 million in 2025.</li><li>Other Income: Remained stable at $0.7 million in both 2026 and 2025.</li><li>Total Revenues: Increased to $393.5 million in 2026 from $349.4 million in 2025.</li></ul><h4>Operational Metrics</h4><ul><li>Net Income: Increased to $35.9 million in 2026 from $18.4 million in 2025.</li><li>Operating Income: Increased to $40.9 million in 2026 from $23.7 million in 2025.</li><li>Total Operating Expenses: Increased to $352.6 million in 2026 from $325.7 million in 2025.<ul><li>Loss and Loss Adjustment Expenses (LAE): Increased to $226.2 million in 2026 from $205.6 million in 2025.</li><li>Sales and Marketing: Decreased to $27.3 million in 2026 from $51.5 million in 2025.</li><li>Other Insurance Expense: Increased to $59.4 million in 2026 from $36.7 million in 2025.</li><li>Technology and Development: Increased to $15.2 million in 2026 from $11.4 million in 2025.</li><li>General and Administrative: Increased to $24.5 million in 2026 from $20.5 million in 2025.</li></ul></li><li>Interest Expense: Decreased to $4.8 million in 2026 from $5.3 million in 2025.</li><li>Income Tax Expense: Increased to $0.2 million in 2026 from $0 million in 2025.</li><li>Comprehensive Income: Increased to $32.4 million in 2026 from $21.4 million in 2025.</li><li>Direct Contribution (Non-GAAP): Increased to $140.5 million in 2026 from $127.1 million in 2025.</li><li>Adjusted EBITDA (Non-GAAP): Increased to $56.8 million in 2026 from $31.9 million in 2025.</li></ul><h4>Key Ratios</h4><ul><li>Net Loss and LAE Ratio: Decreased to 62.2% in 2026 from 64.0% in 2025.</li><li>Net Expense Ratio: Decreased to 29.2% in 2026 from 31.6% in 2025.</li><li>Net Combined Ratio: Decreased to 91.4% in 2026 from 95.6% in 2025.</li><li>Gross Loss Ratio: Decreased to 54.5% in 2026 from 56.1% in 2025.</li><li>Gross LAE Ratio: Increased to 7.1% in 2026 from 6.7% in 2025.</li><li>Gross Expense Ratio: Decreased to 29.1% in 2026 from 31.2% in 2025.</li><li>Gross Combined Ratio: Decreased to 90.7% in 2026 from 94.0% in 2025.</li><li>Gross Accident Period Loss Ratio: Increased to 58.8% in 2026 from 54.5% in 2025.</li></ul><h4>Unique Metrics</h4><ul><li>Policies in Force: Increased to 495,429 in 2026 from 453,800 in 2025.</li><li>Premiums per Policy: Decreased to $1,506 in 2026 from $1,614 in 2025.</li><li>Premiums in Force: Increased to $1,492.2 million in 2026 from $1,464.9 million in 2025.</li><li>Gross Premiums Written: Decreased to $389.0 million in 2026 from $410.8 million in 2025.</li><li>Gross Premiums Earned: Increased to $370.3 million in 2026 from $344.4 million in 2025.</li></ul><h4>Cash Flow</h4><ul><li>Net Cash Provided by Operating Activities: Decreased to $9.3 million in 2026 from $26.8 million in 2025.</li><li>Net Cash Used in Investing Activities: Increased to -$86.6 million in 2026 from -$13.8 million in 2025.</li><li>Net Cash Used in Financing Activities: Increased to -$3.7 million in 2026 from -$2.8 million in 2025.</li></ul><h4>Future Outlook and Strategy</h4>Root, Inc. aims for sustainable, long-term, and profitable growth by driving new customer growth and optimizing unit economics through direct and partnership channels. The company plans to invest in diversifying marketing channels, leveraging proprietary technology and data science, and focusing on partnerships to enhance pricing accuracy, operating efficiency, and customer experience. Additionally, Root, Inc. maintains flexibility in its reinsurance program, has secured a new senior secured term loan, and authorized a $75.0 million share repurchase program in May 2026.

Root | 10-Q: FY2026 Q1 Revenue: USD 393.5 M