Root, Inc. (ROOT)
NASDAQ:ROOT
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Earnings Data
Report Date
Aug 12, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.7Last Year’s EPS
1.29Same Quarter Last Year
Moderate Buy
Based on 3 Analysts Ratings
Earnings Call Summary
Q1 2026
Earnings Call Date:May 06, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call was broadly positive: management reported record profitability, meaningful YoY improvements in net income, operating income and adjusted EBITDA, strong unit-economics gains (LTV +~15%) and diversification gains with partnerships up 30% YoY and embedded volume milestones (Carvana >200k). Near-term challenges are acknowledged — a difficult direct channel, a 5% moderation in gross premiums written due to difficult comps, seasonal headwinds that should push loss ratios up modestly through the year, and macro risks around fuel and supply chains — but management presents these as cyclical, manageable and consistent with a disciplined capital allocation stance. Given the prominence of the record financial results, balance-sheet actions and distribution expansion versus cyclical/operational headwinds, the overall tone is constructive.Company Guidance
Record Profitability and Strong Earnings
Most profitable quarter in company history with annualized ROE of 47%. Q1 net income of $36 million, up $18 million year-over-year. Operating income of $41 million (up $17 million YoY) and adjusted EBITDA of $57 million (up $25 million YoY). Management attributes results to improved pricing, underwriting and capital allocation.
Policies and Premiums Growth
Policies in force grew 9% year-over-year. Gross premiums written were $389 million (a moderation of 5% YoY driven by a tough comp to early 2025 tariff-related demand), while gross premiums earned were $370 million, up 8% YoY.
Distribution Expansion and Partnerships
Partnerships grew new writings 30% year-over-year. Root now partners with more than 15,000 independent agents across 5,000 agencies and launched a partnership with Freeway Insurance. Embedded channel expansion includes Carvana surpassing 200,000 policies sold.
Improved Unit Economics and Customer LTV
Pricing and segmentation improvements increased customer lifetime value by roughly 15%, reflecting better acquisition efficiency and underwriting discipline.
Capital Allocation and Balance Sheet Actions
Refinanced a $200 million debt facility with Huntington, lowering annual interest expense by roughly $5 million. Board authorized a $75 million share repurchase program, giving management optionality to deploy excess capital while continuing to invest in growth and technology.
Favorable Reserve Development and Stable Loss Reserves
Reported a gross accident-period loss ratio of 58.8% and gross loss ratio of 54.5% (4.3 points of favorable development). ~2.5 points of prior-period favorability related to accident year 2025 across coverages, plus ~1.5 points from subrogation model enhancements. Management notes reserves have been stable and the book is relatively short-tailed.
ROOT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
ROOT Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 06, 2026 | $55.05 | ― | ― |
Feb 25, 2026 | $61.09 | $57.72 | -5.52% |
Nov 05, 2025 | $88.82 | $81.01 | -8.79% |
Aug 06, 2025 | $122.55 | $90.23 | -26.37% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Root, Inc. (ROOT) report earnings?
Root, Inc. (ROOT) is schdueled to report earning on Aug 12, 2026, After Close (Confirmed).
What is Root, Inc. (ROOT) earnings time?
Root, Inc. (ROOT) earnings time is at Aug 12, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ROOT EPS forecast?
ROOT EPS forecast for the fiscal quarter 2026 (Q2) is 0.7.