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 37 M.<h4>Financial Results - Q1 2026 vs. Q1 2025</h4><ul><li>Net Income: Root, Inc. reported a net income of $35.9 million in Q1 2026, nearly doubling from $18.4 million in Q1 2025 .</li><li>Operating Income: Operating income increased to $40.9 million in Q1 2026 from $23.7 million in Q1 2025 .</li><li>Adjusted EBITDA: Adjusted EBITDA reached $56.8 million in Q1 2026, up from $31.9 million in Q1 2025 .</li><li>Net Combined Ratio: The net combined ratio improved by 4.2 points to 91.4% in Q1 2026, compared to 95.6% in Q1 2025 .</li><li>Gross Premiums Written: Gross premiums written were $389.0 million in Q1 2026, a 5% year-over-year moderation from $410.8 million in Q1 2025 .</li><li>Gross Premiums Earned: Gross premiums earned grew by 8% year-over-year to $370.3 million in Q1 2026, from $344.4 million in Q1 2025 .</li><li>Net Premiums Earned: Net premiums earned were $363.7 million in Q1 2026, compared to $321.3 million in Q1 2025 .</li><li>Gross Profit: Gross profit for Q1 2026 was $107.9 million, a slight increase from $107.1 million in Q1 2025 .</li><li>Direct Contribution: Direct contribution was $140.5 million in Q1 2026, compared to $127.1 million in Q1 2025 .</li><li>Return on Equity: Root, Inc. generated an approximately 47% annualized return on equity .</li></ul><h4>Operating Costs - Q1 2026 vs. Q1 2025</h4><ul><li>Loss and Loss Adjustment Expenses: $226.2 million in Q1 2026, up from $205.6 million in Q1 2025 .</li><li>Sales and Marketing: Decreased to $27.3 million in Q1 2026 from $51.5 million in Q1 2025 .</li><li>Other Insurance Expense: Increased to $59.4 million in Q1 2026 from $36.7 million in Q1 2025 .</li><li>Technology and Development: Increased to $15.2 million in Q1 2026 from $11.4 million in Q1 2025 .</li><li>General and Administrative: Increased to $24.5 million in Q1 2026 from $20.5 million in Q1 2025 .</li></ul><h4>Cash Flow</h4><ul><li>Cash Flow from Operating Activities: Net cash provided by operating activities was $9.3 million in Q1 2026, a decrease from $26.8 million in Q1 2025 .</li></ul><h4>Operational Metrics</h4><ul><li>Policies in Force: Policies in force increased by 9% year-over-year to 495,429 in Q1 2026, from 453,800 in Q1 2025 .</li><li>Partnership New Writings: New writings from the partnership channel grew nearly 30% year-over-year .</li></ul><h4>Debt Refinancing and Capital Allocation</h4><ul><li>Root, Inc. successfully refinanced its existing $200 million debt into a new senior secured term loan facility led by The Huntington National Bank on May 4, 2026, which matures on May 4, 2029 . The new term loan bears interest at SOFR + 3.25%, representing a 225 basis point reduction from the prior facility . This refinancing is expected to generate approximately $4.5 million in annual interest expense savings . The company anticipates expensing approximately $4.8 million in Q2 2026 for unamortized debt discount, issuance costs, and a prepayment premium related to the prior term loan . The term loan of $200,000,000 is repayable in installments, starting with $500,000 quarterly from September 30, 2026, until March 31, 2028, followed by $2,500,000 quarterly until the maturity date .</li><li>Root, Inc. authorized a share repurchase program of up to $75 million of its Class A common stock, with no fixed expiration date . This program allows for increased capacity to execute opportunistic share repurchases .</li></ul><h4>Financial Covenants (New Credit Agreement)</h4><ul><li>Minimum Risk-Based Capital Ratio: Each U.S. Insurance Subsidiary must maintain a Risk-Based Capital Ratio of no less than the greater of the highest required by the applicable Insurance Regulatory Authority or agreement, and 300%, commencing September 30, 2026 .</li><li>Maximum Debt to Capital Ratio: The Debt to Capital Ratio must not exceed 45.0% from September 30, 2026, through March 31, 2027; 40.0% from June 30, 2027, through March 31, 2028; and 35.0% from June 30, 2028, and each Fiscal Quarter thereafter .</li><li>Minimum Consolidated Net Worth: Consolidated Net Worth must be no less than the sum of 80.0% of Consolidated Net Worth as of December 31, 2025, plus 50.0% of Consolidated Net Income for each Fiscal Quarter ending after December 31, 2025, plus 50.0% of capital contributions received after December 31, 2025, minus 50% of Permitted Share Repurchases after December 31, 2025, commencing September 30, 2026 .</li><li>Minimum Debt Service Coverage Ratio: The Consolidated Debt Service Coverage Ratio must be no less than 1.40:1.00, commencing September 30, 2026 .</li><li>Minimum Regulated Subsidiary Equity: Regulated Subsidiary Equity must be no less than $125,000,000, commencing September 30, 2026 .</li></ul><h4>Outlook / Guidance</h4>Root, Inc. expects the debt refinancing to generate approximately $4.5 million in annual interest expense savings and enhance capital flexibility for share repurchases and strategic investments . The company anticipates the challenging growth environment may persist through 2026 but believes it is well-positioned for long-term growth, aiming to be in all contiguous U.S. states by the end of 2027 and launching in New Jersey in 2026 . Investments in pricing models and AI are expected to lead to continued strong margins, better customer prices, and long-term growth .

Root | 8-K: FY2026 Q1 Revenue: USD 393.5 M