$ROOT

Root, Inc.

CIK:0001788882|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - UNAUDITED - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues:
Net premiums earned	$ 363.5	$ 353.0	$ 727.2	$ 674.3
Net investment income	5.0	9.4	13.7	18.1
Net realized gains on investments	0.0	0.0	0.1	0.0
Fee income	19.8	19.7	40.1	38.4
Other income	0.9	0.8	1.6	1.5
Total revenues	389.2	382.9	782.7	732.3
Operating expenses:
Loss and loss adjustment expenses	239.9	233.3	466.1	438.9
Sales and marketing	25.3	37.1	52.6	88.6
Other insurance expense	58.4	47.9	117.8	84.6
Technology and development	15.5	13.7	30.7	25.1
General and administrative	15.5	23.6	40.0	44.1
Total operating expenses	354.6	355.6	707.2	681.3
Operating income	34.6	27.3	75.5	51.0
Interest expense	4.1	5.3	8.9	10.6
Loss on extinguishment of debt	4.9	0.0	4.9	0.0
Income before income tax expense	25.6	22.0	61.7	40.4
Income tax expense	0.2	0.0	0.4	0.0
Net income	25.4	22.0	61.3	40.4
Net income attributable to participating securities	1.3	1.1	3.0	2.0
Net income attributable to common shareholders	24.1	20.9	58.3	38.4
Other comprehensive (loss) income:
Net income	25.4	22.0	61.3	40.4
Changes in net unrealized (losses) gains on investments	(2.4)	1.6	(5.9)	4.6
Comprehensive income	$ 23.0	$ 23.6	$ 55.4	$ 45.0
Earnings per common share: (both Class A and B)
Basic (in dollars per share)	$ 1.54	$ 1.36	$ 3.74	$ 2.51
Diluted (in dollars per share)	$ 1.49	$ 1.29	$ 3.58	$ 2.36
Weighted-average common shares outstanding: (both Class A and B)
Basic (in shares)	15.7	15.4	15.6	15.3
Diluted (in shares)	17.0	17.1	17.1	17.1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 61.3	$ 40.4
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation	16.0	14.8
Warrant compensation expense	3.5	0.0
Depreciation and amortization	5.8	4.0
Bad debt expense	19.1	17.8
Loss on extinguishment of debt	4.9	0.0
Net realized gains on investments	(0.1)	0.0
Change in fair value of equity securities	4.4	0.0
Changes in operating assets and liabilities:
Premiums receivable	(17.0)	(53.8)
Reinsurance premiums receivable	9.3	(14.2)
Reinsurance recoverable	8.3	19.3
Deferred policy acquisition costs	(2.7)	(9.5)
Other assets	4.3	9.0
Losses and loss adjustment expenses reserves	5.6	31.3
Unearned premiums	(9.7)	41.3
Premiums payable	(9.1)	13.8
Accounts payable and accrued expenses	(28.9)	(19.0)
Other liabilities	(8.2)	(16.4)
Net cash provided by operating activities	66.8	78.8
Cash flows from investing activities:
Purchases of investments	(173.2)	(45.9)
Proceeds from maturities, calls and pay downs of investments	29.4	34.2
Sales of investments	4.7	0.1
Capitalization of internally developed software	(7.2)	(6.0)
Net cash used in investing activities	(146.3)	(17.6)
Cash flows from financing activities:
Proceeds from exercise of stock options and restricted stock units	0.0	0.4
Taxes paid related to net share settlement of equity awards	(10.5)	(19.4)
Repurchase and retirement of common stock	(20.7)	0.0
Proceeds from issuance of debt, net of issuance costs	197.7	0.0
Repayments of long-term debt	(202.1)	0.0
Net cash used in financing activities	(35.6)	(19.0)
Net (decrease) increase in cash, cash equivalents, restricted cash, and restricted cash equivalents	(115.1)	42.2
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period	689.9	600.3
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period	$ 574.8	$ 642.5

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Investments:
Fixed maturities available-for-sale, at fair value (amortized cost: $508.3 and $383.1 at June 30, 2026 and December 31, 2025, respectively)	$ 506.3	$ 387.0
Short-term investments (amortized cost: $10.8 and zero at June 30, 2026 and December 31, 2025, respectively)	10.8	0.0
Other investments	0.0	4.4
Total investments	517.1	391.4
Cash and cash equivalents	509.6	669.3
Restricted cash and cash equivalents	65.2	20.6
Premiums receivable, net of allowance of $8.5 and $8.9 at June 30, 2026 and December 31, 2025, respectively	330.7	332.8
Reinsurance premiums receivable, net of allowance of zero at June 30, 2026 and December 31, 2025	87.0	96.3
Reinsurance recoverable, net of allowance of $0.1 at June 30, 2026 and December 31, 2025	25.2	33.5
Deferred policy acquisition costs	47.1	44.4
Other assets	86.6	86.2
Total assets	1,668.5	1,674.5
Liabilities:
Loss and loss adjustment expense reserves	489.2	483.6
Unearned premiums	384.0	393.7
Long-term debt	197.8	200.3
Premiums payable	87.6	96.7
Accounts payable and accrued expenses	47.9	74.2
Other liabilities	22.1	29.7
Total liabilities	1,228.6	1,278.2
Commitments and Contingencies
Redeemable convertible preferred stock, $0.0001 par value, 100.0 shares authorized, 14.1 shares issued and outstanding at June 30, 2026 and December 31, 2025 (redemption value of $126.5)	112.0	112.0
Stockholders’ equity:
Additional paid-in capital	1,910.2	1,922.0
Accumulated other comprehensive (loss) income	(2.0)	3.9
Accumulated loss	(1,580.3)	(1,641.6)
Total stockholders’ equity	327.9	284.3
Total liabilities, redeemable convertible preferred stock and stockholders’ equity	1,668.5	1,674.5
Class A common stock
Stockholders’ equity:
Common stock	0.0	0.0
Class B convertible common stock
Stockholders’ equity:
Common stock	$ 0.0	$ 0.0