Root Posts $14.4 Million Q3 Profit as Revenue Falls to $381.3 Million

Root posted $14.4 million in third-quarter net income, reversing a year-earlier loss, as revenue slipped year over year to $381.3 million and gross premiums written also declined. Root announced results Nov. 4 for the quarter ended Sept. 30, 2026.

Net income compared with a $5.4 million loss in the third quarter of 2025. Diluted earnings were $0.86 per share, versus a loss of $0.35 per share a year earlier.

Revenue was $381.3 million, down from $387.8 million in the same period last year. Adjusted EBITDA, a non-GAAP measure, was $33.5 million, compared with $33.7 million a year earlier. The net combined ratio improved to 97.2% from 102.1%.

Gross premiums written fell 8% to $357.5 million. Root attributed the decline to lower premiums per policy and discipline in its direct channel as insurers competed more aggressively for growth.

“In the third quarter, Root delivered another quarter of strong profitability,” Root co-founder and CEO Alex Timm said.

Root is a technology company focused on car insurance. Its shares trade on Nasdaq under the ticker ROOT.