Root Q3 revenue slightly misses estimates
ROOT•ROOT•ROOT•ROOT•Root reported Q3 revenue of $381.3 million, slightly below the $384.33 million consensus estimate, and adjusted EPS of $0.86. It expects to complete an $18.3 million real-property acquisition in Q4 2026, subject to customary closing conditions.
Root reported Q3 revenue of $381.3 million, slightly below the $384.33 million consensus estimate from six analysts. Adjusted EPS was $0.86.
Sales and marketing expense fell $8.4 million as Root reduced direct performance and experimental marketing amid heightened competition. Loss and LAE declined $6.0 million, with lower premiums earned and favorable prior-year reserve development; other insurance expense fell $6.8 million, helped by a $15.3 million decline in Carvana warrant expense following a 2025 catch-up charge. Root expects to complete its $18.3 million real-property acquisition in Q4 2026, has $38.8 million remaining under its share repurchase program, and expects existing liquidity to cover working capital and capital expenditures for at least 12 months.
