| Metric | Value ($ M) | Q2 FY25 | Q3 FY24 |
|---|---|---|---|
| Revenue | 387.80 | 1.3% | 26.9% |
| Total Income | 387.80 | 1.3% | 26.9% |
| Expenditure | 387.50 | 9.0% | 42.8% |
| PBT | -5.00 | 122.7% | 121.9% |
| Net Profit | -5.40 | 124.5% | 123.7% |
| OPM | 0.08% | 7.05pp | 11.18pp |
| NPM | -1.39% | 7.14pp | 8.85pp |
| EPS | -0.35 | 125.7% | 124.1% |
Root, Inc. Reports Q3 2025 Revenue Growth of 27% YoY
04 May 2026 · 4 May, 8:02 am
Summary
Root, Inc. reported strong Q3 2025 results, with total revenue up 27% year-over-year driven by net earned premium growth. The company's gross loss ratio remained strong at 59%, demonstrating effective pricing and underwriting. Independent agent new writings tripled year-over-year, reflecting successful diversification of the Partnership channel. The company continues to invest in technology and expand its geographic footprint, launching in Washington state during the quarter.
Key Highlights
- 1
Total revenue grew 27% year-over-year, driven by net earned premium growth of 29% in Q3 2025.
- 2
Independent agent new writings more than tripled year-over-year, highlighting the ongoing diversification of the Partnership channel.
- 3
The gross loss ratio of 59% demonstrated the power of Root's pricing and underwriting technology and continues to trend below the long-term target of 60-65%.
- 4
Gross premiums written increased 17% and gross premiums earned increased 18% year-over-year for the third quarter.
- 5
Adjusted EBITDA was $33.7 million for Q3 2025.
- 6
Root launched in the state of Washington in Q3 2025, increasing its geographic footprint to 36 states.
Management Comments
Alex Timm
As we close out 2025 with exceptional underwriting performance, a healthy capital position and a strong culture, we are now in a position of strength to drive accelerating growth at our target unit economics. Put simply, we are optimistic that our superior technology will continue to drive growth despite an increasingly competitive environment. We believe this moat will continue to widen as we further invest in our platform and create even better customer experiences.
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