Root posts 95% profit jump on marketing pullback, but loss ratio deteriorates sharply

Filed May 6, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 7, 2025 · ~1 min read

Key Changes

• high

  Net income surged 95% to $35.9M in Q1 2026, driven by a $24.8M cut in direct marketing spend and reduced reinsurance cessions, partially offset by higher loss costs.

  MD&A: Financial Results verify on EDGAR →
• high

  Gross accident period loss ratio worsened to 58.8% from 54.5%, driven by mid-single-digit severity increases and low-single-digit frequency increases due to higher repair and medical costs.

  MD&A: Loss Ratio verify on EDGAR →
• high

  Gross premiums written fell 5.3% to $389.0M as marketing cuts and slower tax-season demand offset partnership channel growth; management cites tariff-driven pull-forward in prior year.

  MD&A: Premiums verify on EDGAR →