Root reports Q3 2025 results

Root Insurance released its Q3 2025 results, ending the period with ~466k policies-in-force, a 14% increase compared to Q3 2024. Root added ~11k policies to its overall count during the quarter.

Gross premiums written increased 17% YoY to $387 million.

Net loss and LAE was flat and stood at 66.5%.

Net combined ratio decreased by 11 points YoY to 102.1%.

The company spent $40.6 million on sales and marketing during the quarter, an increase of 19% compared to Q3 2024.

Root reported a net loss of $5 million in the quarter, compared to net income of ~$23 million in Q3 2024. The company claims that the net loss in the quarter was primarily driven by $17 million of non-cash expense related to its outstanding warrant structure with Carvana, of which $15.5 million reflects a cumulative expense catch-up.

The partnership channel, which includes embedded partners and independent agents, more than doubled new writings YoY. During the quarter, independent agents accounted for roughly 50% of overall partnership new writings.

As of September 30, 2025, Root had unencumbered capital of $309 million.