Companies · ROOT
Root Inc.
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Latest analysis
Updated Nov 4, 2026
Root delivers 18% ROE on strong Q3 profitability while scaling partnerships and launching AI-driven pricing algorithm.
Root generated $381 million in Q3 2026 revenue with $14 million net income and 18% annualized ROE, achieving a 97.2% combined ratio despite intentional discipline in direct acquisition spending. The company meaningfully advanced its strategy across three vectors: partnership new writings grew 19% YoY to represent 52% of total new writings; geographic footprint expanded to 38 states with entry into Wyoming and New Jersey proving to be the most successful state launch by new writings per capita; and a new pricing algorithm launched in Q4 delivers management's largest improvement in predictive power to date. Management positioned agentic AI shopping as a structural opportunity favoring Root's API architecture and pricing capabilities, while maintaining that long-term goal remains building the largest and most profitable personal lines insurer through disciplined capital deployment regardless of competitive environment.
Tone: bullishRevenue
$1.5B
ROOT 10-K · FY 2025
Employees
1,256
Revenue growth YoY
+29%
Founded
2015
Profile
ROOT 10-K Item 1 · Feb 25, 2026Root, Inc. is a technology-driven personal auto insurance company that uses telematics, mobile data, and machine learning to price policies based on individual driving behavior rather than demographic proxies. It distributes through a direct digital channel and a partnership channel that embeds its product within automotive and financial services platforms. As a full-stack carrier, Root controls underwriting, policy administration, and claims end-to-end on a single cloud-based technology platform.
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Root is a technology insurance company founded on the idea that car insurance rates should be based primarily on driving behaviors, not demographics. We are revolutionizing the archaic car insurance industry by using modern technology, data science, and telematics to offer fair, personalized rates to good drivers. We primarily reach customers through two channels: our direct channel, where we target consumers with what we believe to be a great insurance product at a great price, and through our partnership channel, where we meet consumers at contextually relevant times, such as during the car purchasing experience or through independent insurance agents. Our primary focus is the United States personal auto insurance market. We have built our company around the principle that each individual has unique behaviors and that customers should be in control and rewarded for their actions. For centuries, traditional insurance companies have grouped people into risk pools and long relied on the 'law of large numbers' to produce acceptable pricing on an aggregate basis. Root is different—we have the ability to use technology to measure risk based on individual driving performance, prioritizing fairness to the customer. We are fundamentally reinventing insurance through technology, data science, and a strong focus on the customer experience. We believe the approximately $350 billion United States personal auto insurance market is ripe for disruption. Traditional methods of pooled risk assessment are not personalized and inherently less precise given individual behavioral data is underutilized or not widely measured as a component of the insurance risk assessment process. As a full-stack insurance carrier, we have the infrastructure and flexibility to design products and to distribute, underwrite, administer, and pay claims. Our model, supported by proprietary technology, allows us to adapt more quickly across the value chain, provides design and feature discretion, and we believe enables us to innovate and iterate with more speed than any of our major competitors.
Primary products
- personal auto insurance
- renters insurance
- telematics-based usage-based insurance
- embedded insurance
End markets
Geographies
Named customers
Named competitors
“We believe that we compete favorably across many of these factors and have developed a platform and business model based on behavioral data collection and machine learning that will be difficult for incumbent insurance providers to emulate.” Competitive position, as stated in the filing
Revenue commentary · FY 2025
Total revenues increased $340.6 million, or 29.0%, in 2025 versus 2024, driven primarily by growth in net premiums earned as policies in force expanded through the partnership channel and cessions to reinsurers declined.
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