Root, Inc. (ROOT): debt financing — Root Q1 net income $36M, record profitability; refinances debt, authorizes $75M buyback

Root, Inc.

2026-Q1 EPS reported $2.09 revenue$393,500,000

Record Q1 net income of $36M (nearly doubled YoY); operating income $41M, adjusted EBITDA $57M.
Net combined ratio improved 4.2 pts to 91.4%; policies in force up 9% YoY to 200K+.
Refinanced $200M term loan at SOFR+3.25% (~225 bps reduction), saving ~$4.5M/year in interest.
Board authorized $75M share repurchase program; one-time Q2 charge of ~$4.8M for debt extinguishment.
Partnership new writings grew ~30% YoY; geographic expansion on track for NJ launch in 2026.

item 1.01 item 1.02 item 2.02 item 2.03 item 7.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Root, Inc. incurred term loan of $200.0 million with The Huntington National Bank at ABR (as defined in the Credit Agreement) or Term SOFR (as defined in the Credit maturing May 4, 2029.

Instrument: term loan
Principal: $200.0 million
Counterparty: The Huntington National Bank
Rate: ABR (as defined in the Credit Agreement) or Term SOFR (as defined in the Credit
Maturity: May 4, 2029
Event: incurrence

Exact text from the filing

On May 4, 2026, Root, Inc. (the “Company”) entered into that certain Credit Agreement (the “Credit Agreement”), by and among the Company, Caret Holdings, Inc., as borrower (the “Borrower”), the lenders from time to time party thereto and The Huntington National Bank, as the administrative agent. The Credit Agreement provides for a senior secured term loan of $200.0 million, the entire amount of which was funded on May 4, 2026.

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Earnings Releases SEC 8-K Item 2.02 confidence 0.9

Root, Inc. reported the quarter ended March 31, 2026 results: net income $36 million.

Period: the quarter ended March 31, 2026
Net income: $36 million
Result: reported results

Exact text from the filing

This is reflected in our results: • Delivered record profitability , nearly doubling net income year-over-year to $36 million

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Root, Inc. terminated Existing Credit Agreement with Acquiom Agency Services, LLC, as administrative agent (effective 2026-05-04).

Action: termination
Agreement: credit facility
Counterparty: Acquiom Agency Services, LLC, as administrative agent
Effective: 2026-05-04

Exact text from the filing

Concurrently with the Closing of the Credit Agreement, the Company prepaid all of the outstanding term loans under its term loan agreement, dated as of January 26, 2022 (as amended, the “Existing Credit Agreement”), by and among the Company, Holdings, the other loan parties party thereto, the lenders party thereto and Acquiom Agency Services, LLC, as administrative agent.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.96

Root, Inc. entered into Credit Agreement with The Huntington National Bank, as the administrative agent valued at $200.0 million (effective 2026-05-04).

Action: entry
Agreement: credit facility
Counterparty: The Huntington National Bank, as the administrative agent
Value: $200.0 million
Effective: 2026-05-04

Exact text from the filing

On May 4, 2026, Root, Inc. (the “Company”) entered into that certain Credit Agreement (the “Credit Agreement”), by and among the Company, Caret Holdings, Inc., as borrower (the “Borrower”), the lenders from time to time party thereto and The Huntington National Bank, as the administrative agent.

View on SEC.gov

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Root, Inc. filing history →

Source: SEC EDGAR

accession 0001788882-26-000046

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