Root Inc. reported a third quarter 2025 net income loss of $5.4 million after landing in the positive with $22.8 million in profit a year ago.
Alex Timm, the Columbus, Ohio-based company’s CEO, said in a letter to shareholders that the loss was the result of “$17 million of non-cash expense related to our outstanding warrant structure with Carvana, of which $15.5 million reflects a cumulative expense catch-up.
“This expense reflects the success of our partnership, as the vesting of warrants is dependent on achieving policy origination milestones.”
To date, Root has booked about $35 million in net income versus $8.8 million a year ago.
For Q3, Root Inc, the parent of insurtech Root Insurance, booked a combined ratio of 102.1 compared with 91.1 a year ago.
In the letter, Timm said Root’s independent agency channel tripled new writings even though it is only active with about 10% of independent agents nationally. Independent agents, using the company’s comparative raters, accounted for roughly 50% of overall new writings in Q3, and Root is “rapidly” making new appointments. Root also uses embedded technology to gain business.
As in Q2 2025, partnerships with the likes of Hyundai Capital America, Experian, Caravan Insurance, and Goosehead Insurance made up 44% of new writings in Q3.
Gross premiums written increased 17% in Q3 to $387.2 million.
Root now operates in 36 states with the addition of Washington in Q3, and it has several state filings pending, Timm said.
During Q3, Root said it launched the latest version of a usage-based insurance model that it estimates to be 10% more predictive, and “is one of the most meaningful variables in our broader pricing engine,” Timm said.
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