Want to see ROOT full AI Analyst Report?
EarningsQ2 2026 Earnings Report
ROOT Q2 2026 EPS Results
Actual EPS$1.49
Consensus EPS$0.83
Beat/MissBeat by +$0.66
One Year Ago EPS$1.29
ROOT Q2 2026 Revenue Results
Actual Revenue$389.20M
Expected Revenue$395.14M
Beat/MissMissed by -$5.94M
YoY Revenue Growth+1.65%
Earnings Announcement Details
QuarterQ2 2026
Date08/05/2026
TimeAfter Close
Conference CallWednesday, August 5, 2026
ROOT Upcoming Earnings
Root's next earnings date is estimated for November 11, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
ROOT Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized durable profitability, underwriting strength (improved combined ratio), disciplined capital allocation (debt refinancing, share repurchases) and continued investments in AI, pricing models, distribution and R&D. These positive fundamentals were tempered by near-term growth headwinds: sequential PIF decline, competitive pricing pressure, modest declines in gross written/earned premium, a small investment impairment and guidance for higher seasonal loss ratios in H2. Management framed the weaker growth as tactical and cyclical while highlighting long-term levers (state expansion, partnerships, new pricing model) that should drive re-acceleration.Company Guidance
Profitability and Strong Returns
Net income increased 15% year-over-year to $25 million, generating approximately a 31% annualized return on equity, demonstrating meaningful profitability.
Revenue Growth and Policies in Force
Revenue rose 2% year-over-year to $389 million while policies in force increased 6% year-over-year to 484,000 policies, reflecting customer growth and retention.
Underwriting Discipline and Combined Ratio Improvement
Net combined ratio improved by ~3 percentage points year-over-year to ~92.1% (reported as 92%), driven primarily by expense discipline and stable loss performance (net loss & LAE ratio ~66%).
Expense, Balance Sheet and Capital Actions
Net expense ratio improved to ~26%; Root refinanced its $200 million debt facility into a new term loan (lowering cost of debt and increasing flexibility) and repurchased more than $20 million of shares under a $75 million authorization during the quarter.
Geographic and Distribution Expansion
Launched New Jersey in July, bringing Root to 37 states and covering over 80% of the addressable population, with a target for near-national footprint by end of 2027; partnership channel and independent agent distribution represented ~51% of new writings (up from ~44% a year ago).
Technology, AI and Pricing Model Progress
Company emphasized decade-long proprietary data (37+ billion miles of driving data and 900k+ filed claims) and AI investments; next-generation pricing model expected to begin rollout later this year (Q4) with prior model having improved customer LTVs by over 20%.
Targeted R&D and Growth Investment
Plans to invest approximately $10 million in R&D in H2 to test and expand into new acquisition channels and AI engineering; early results in new acquisition channels and AI-enabled development reported as encouraging.
Core Investment Income
Underlying investment income on cash, cash equivalents and fixed income portfolio remained ~ $10 million for the quarter, supporting overall income despite a one-time impairment.
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