0001788882-26-000014 | 10-K | XBRL Viewer

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SHARE-BASED COMPENSATION - Schedule of Exercise Price Range (Details) shares in Millions	12 Months Ended
	Dec. 31, 2025 $ / shares shares
$0.65 - $5.15
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price range, min (in dollars per share)	$ 0.65
Exercise price range, max (in dollars per share)	$ 5.15
Options outstanding, number of shares (in shares) \| shares	0.1
Options exercisable, number of shares (in shares) \| shares	0.1
Options outstanding, weighted-average exercise price (in dollars per share)	$ 2.56
Options exercisable, weighted-average exercise price (in dollars per share)	$ 2.56
Options outstanding, weighted-average remaining contractual term (in years)	1 year 4 months 6 days
Options exercisable, weighted-average remaining contractual term (in years)	1 year 4 months 6 days
$5.15 - $43.20
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price range, min (in dollars per share)	$ 5.15
Exercise price range, max (in dollars per share)	$ 43.20
Options outstanding, number of shares (in shares) \| shares	0.0
Options exercisable, number of shares (in shares) \| shares	0.0
Options outstanding, weighted-average exercise price (in dollars per share)	$ 37.26
Options exercisable, weighted-average exercise price (in dollars per share)	$ 37.26
Options outstanding, weighted-average remaining contractual term (in years)	2 years 11 months 19 days
Options exercisable, weighted-average remaining contractual term (in years)	2 years 11 months 19 days
$43.20 - $231.66
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price range, min (in dollars per share)	$ 43.20
Exercise price range, max (in dollars per share)	$ 231.66
Options outstanding, number of shares (in shares) \| shares	0.0
Options exercisable, number of shares (in shares) \| shares	0.0
Options outstanding, weighted-average exercise price (in dollars per share)	$ 137.01
Options exercisable, weighted-average exercise price (in dollars per share)	$ 137.01
Options outstanding, weighted-average remaining contractual term (in years)	4 years 2 months 1 day
Options exercisable, weighted-average remaining contractual term (in years)	4 years 2 months 1 day

SHARE-BASED COMPENSATION - Schedule of Restricted Stock Units and Unvested Stock Options (Details) $ in Millions	12 Months Ended
	Dec. 31, 2025 USD ($)
Service-based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs	$ 18.9
Remaining weighted-average period cost is expected to be recognized (in years)	1 year 3 months 25 days
Performance-based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs	$ 25.7
Remaining weighted-average period cost is expected to be recognized (in years)	2 years 6 months
Market-based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs	$ 0.4
Remaining weighted-average period cost is expected to be recognized (in years)	1 year 2 months 23 days
Unvested Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs	$ 0.1
Remaining weighted-average period cost is expected to be recognized (in years)	6 months

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Internally Developed Software (Details) - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024
Accounting Policies [Abstract]
Internally developed software	$ 57.4	$ 50.0
Accumulated amortization	(29.8)	(28.0)
Internally developed software, net	$ 27.6	$ 22.0

Schedule II: Condensed Combined Financial Information of Registrant - Schedule of Condensed Balance Sheet (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Assets
Other investments	$ 4.4	$ 4.4
Cash and cash equivalents	669.3	599.3
Restricted cash	1.1	1.0
Other assets	124.3	103.2
Total assets	1,674.5	1,495.7
Liabilities:
Long-term debt	200.3	200.1
Accounts payable and accrued expenses	74.2	71.1
Other liabilities	124.0	108.9
Total liabilities	1,278.2	1,180.0
Commitments and Contingencies
Redeemable convertible preferred stock, $0.0001 par value, 14.1 shares issued and outstanding at December 31, 2025 and December 31, 2024 (redemption value of $126.5)	112.0	112.0	$ 112.0	$ 112.0
Stockholders’ equity:
Additional paid-in capital	1,922.0	1,887.9
Accumulated other comprehensive income (loss)	3.9	(2.3)
Accumulated loss	(1,641.6)	(1,681.9)
Total stockholders’ equity	284.3	203.7	$ 165.7	$ 277.1
Total liabilities, redeemable convertible preferred stock and stockholders’ equity	$ 1,674.5	$ 1,495.7
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, outstanding (in shares)	14.1	14.1
Preferred stock, issued (in shares)	14.1	14.1
Preferred stock, liquidation preference	$ 126.5	$ 126.5
Class A Shares
Stockholders’ equity:
Common stock	$ 0.0	$ 0.0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares issued (in shares)	13.7	11.1
Common stock, shares outstanding (in shares)	13.7	11.1
Class B Shares
Stockholders’ equity:
Common stock	$ 0.0	$ 0.0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares issued (in shares)	1.8	4.0
Common stock, shares outstanding (in shares)	1.8	4.0
Parent Company
Assets
Other investments	$ 4.4	$ 4.4
Cash and cash equivalents	262.8	230.4
Restricted cash	1.1	1.0
Investments in subsidiaries	225.7	213.7
Other assets	51.5	49.9
Receivable from subsidiaries	70.1	43.0
Total assets	615.6	542.4
Liabilities:
Long-term debt	200.3	200.1
Accounts payable and accrued expenses	13.3	21.2
Other liabilities	5.7	5.4
Total liabilities	219.3	226.7
Commitments and Contingencies
Redeemable convertible preferred stock, $0.0001 par value, 14.1 shares issued and outstanding at December 31, 2025 and December 31, 2024 (redemption value of $126.5)	112.0	112.0
Stockholders’ equity:
Additional paid-in capital	1,922.0	1,887.9
Accumulated other comprehensive income (loss)	3.9	(2.3)
Accumulated loss	(1,641.6)	(1,681.9)
Total stockholders’ equity	284.3	203.7
Total liabilities, redeemable convertible preferred stock and stockholders’ equity	615.6	542.4
Parent Company \| Class A Shares
Stockholders’ equity:
Common stock	0.0	0.0
Parent Company \| Class B Shares
Stockholders’ equity:
Common stock	$ 0.0	$ 0.0

NATURE OF BUSINESS	12 Months Ended
NATURE OF BUSINESS	Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF BUSINESS	NATURE OF BUSINESS Root, Inc. is a holding company which, directly or indirectly, maintains 100% ownership of each of its subsidiaries, including, among others, Root Insurance Company, Root Property & Casualty Insurance Company, or Root Property & Casualty, both Ohio-domiciled insurance companies, Root Florida Insurance Company, or Root Florida, a Florida-domiciled insurance company formed in 2025, and Root Reinsurance Company, Ltd., a Cayman Islands-domiciled reinsurance company, together with Root, Inc., “we,” “us” or “our.” We were formed in 2015 and began writing personal auto insurance in July 2016. We are a technology company operating primarily a direct-to-consumer model with the majority of our personal insurance customers acquired through mobile apps and partnerships. We offer auto and renters insurance products underwritten by Root Insurance Company and auto insurance only through Root Property & Casualty and Root Florida.

LEASES - Schedule of Lease Cost (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Operating lease liabilities	$ 4.3	$ 6.0
Operating lease, liability, statement of financial position [Extensible Enumeration]	Other liabilities	Other liabilities
Operating lease right-of-use assets	$ 2.0	$ 2.6
Operating lease, right-of-use asset, statement of financial position [Extensible Enumeration]	Other assets	Other assets
Operating cash flows paid for amounts included in the measurement of lease liabilities	$ 2.2	$ 3.0	$ 3.2
Weighted-average of remaining operating lease term (years)	2 years 1 month 6 days	3 years 1 month 6 days
Weighted-average operating lease discount rate	11.79%	11.83%

INCOME TAXES - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Statutory United States federal income tax expense	21.00%	21.00%	21.00%
Valuation allowance	$ 339.8	$ 345.9
Valuation allowance decrease	$ 6.1

REINSURANCE

12 Months Ended

Dec. 31, 2025

Insurance [Abstract]

REINSURANCE

The following table reflects amounts affecting the consolidated balance sheets for reinsurance as of December 31, 2025 and 2024:


			2025		2024
			(dollars in millions)
Loss and LAE reserves:
Direct			$	385.7	$	341.7
Assumed			97.9		71.5
Ceded			(25.4)		(48.0)
Net loss and LAE reserves			$	458.2	$	365.2
Unearned premiums:
Direct			$	320.3	$	289.2
Assumed			73.4		64.7
Ceded			(6.3)		(25.1)
Net unearned premiums			$	387.4	$	328.8

The following table reflects amounts affecting the statements of operations and comprehensive income (loss) for reinsurance for the years ended December 31, 2025, 2024 and 2023:

	2025		2024		2023
	(dollars in millions)
Premiums written:
Direct	$	1,224.2	$	1,064.6	$	674.6
Assumed	281.6		236.5		108.5
Ceded	(45.4)		(137.0)		(209.9)
Net premiums written	$	1,460.4	$	1,164.1	$	573.2
Premiums earned:
Direct	$	1,193.2	$	1,010.8	$	564.9
Assumed	272.8		220.2		70.9
Ceded	(64.3)		(160.1)		(235.9)
Net premiums earned	$	1,401.7	$	1,070.9	$	399.9
Losses and LAE incurred:
Direct	$	744.1	$	673.5	$	424.1
Assumed	210.6		157.2		51.7
Ceded	(30.5)		(97.7)		(144.5)
Net losses and LAE incurred	$	924.2	$	733.0	$	331.3

There were no material commutations during 2025 and 2024. During 2023, we commuted certain agreements with our reinsurers, which resulted in $0.7 million of loss and loss adjustment expenses and a $4.6 million expense of other insurance expense, respectively, on the consolidated statements of operations and comprehensive income (loss). A portion of the loss and loss adjustment expenses is related to an allowance for credit losses of $1.7 million that was established due to a commutation with one of our reinsurers as of December 31, 2023. During 2024, we recovered $0.5 million from this previously commuted reinsurer and relieved the remaining reinsurance recoverable and related allowance for credit losses.

Additionally, in connection with the commutation of certain agreements with reinsurers during 2023, we received cash and cash equivalents and released collateral balances held of $27.1 million, reinsurance recoverable and receivable decreased by $35.1 million, prepaid reinsurance premiums were reduced by $34.6 million and reinsurance premiums payable decreased by $37.3 million.

If our reinsurance was cancelled at December 31, 2025 and 2024, the maximum amount of return ceded commissions due with the return of unearned premiums would have been $0.7 million and $4.4 million, respectively. Our reinsurance recoverable on unpaid losses gross of the provision for loss corridor, loss ratio caps and allowance for credit losses was $28.7 million and $53.8 million as of December 31, 2025 and 2024, respectively. As of December 31, 2025 and 2024, a provision for loss corridor of $2.5 million and $5.0 million, respectively, was recorded as a contra-asset in reinsurance recoverable on the consolidated balance sheets.

GEOGRAPHICAL BREAKDOWN OF GROSS PREMIUMS WRITTEN

Gross premiums written by state is as follows for the years ended December 31, 2025, 2024 and 2023:


	For the Years Ended December 31,
	2025				2024				2023
	Amount		% of Total		Amount		% of Total		Amount		% of Total
	(dollars in millions)
State:
Texas	$	288.5	19.2	%	$	249.3	19.2	%	$	134.3	17.1	%
Georgia	182.0		12.1		159.9		12.3		94.3		12.0
Florida	128.9		8.6		107.4		8.3		16.9		2.2
California	105.6		7.0		49.2		3.8		10.7		1.4
Pennsylvania	86.8		5.8		74.6		5.7		45.2		5.8
Colorado	76.2		5.1		72.8		5.6		53.6		6.8
South Carolina	53.6		3.6		52.6		4.0		34.4		4.4
Arizona	49.1		3.3		50.0		3.8		35.4		4.5
Nevada	39.9		2.6		23.4		1.8		17.8		2.3
Oklahoma	34.5		2.2		28.9		2.2		23.6		3.0
All others states	460.7		30.5		433.0		33.3		316.9		40.5
Total	$	1,505.8	100.0	%	$	1,301.1	100.0	%	$	783.1	100.0	%

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES - Schedule of Reconciliation (Details) - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Insurance [Abstract]
Loss and ALAE reserves—net of reinsurance	$ 424.9	$ 332.4
ULAE reserves—net of reinsurance	33.3	32.8
Reinsurance recoverables on unpaid losses	25.4	48.0	$ 43.8	$ 76.4
Total loss and LAE reserves—gross of reinsurance	$ 483.6	$ 413.2	$ 284.2	$ 287.4

- Definition

Amount, after valuation allowance, recoverable under reinsurance contracts for losses reported to the ceding insurer but not yet paid and amounts expected for incurred losses and settlement expenses, which have not yet been reported to the ceding insurer.

+ References + Details

STATUTORY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2025

Insurance [Abstract]

STATUTORY FINANCIAL INFORMATION

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES

The following provides a reconciliation of the beginning and ending reserve balances for loss and LAE, net of reinsurance:


	2025		2024		2023
	(dollars in millions)
Gross loss and LAE reserves, January 1	$	413.2	$	284.2	$	287.4
Reinsurance recoverable on unpaid losses	(48.0)		(43.8)		(76.4)
Net loss and LAE reserves, January 1	365.2		240.4		211.0
Net incurred loss and LAE related to:
Current year	953.6		752.4		338.3
Prior years	(29.4)		(19.4)		(7.0)
Total incurred	924.2		733.0		331.3
Net paid loss and LAE related to:
Current year	574.1		443.0		165.9
Prior years	257.1		165.2		136.0
Total paid	831.2		608.2		301.9
Net loss and LAE reserves, December 31	458.2		365.2		240.4
Plus reinsurance recoverable on unpaid losses	25.4		48.0		43.8
Gross loss and LAE reserves, December 31	$	483.6	$	413.2	$	284.2

The decrease to incurred losses for prior accident years in 2025 of $29.4 million was primarily driven by lower-than-expected reported losses and LAE from accident year 2024 related to liability and physical damage coverages.

The decrease to incurred losses for prior accident years in 2024 of $19.4 million was primarily driven by lower-than-expected reported losses and LAE from accident year 2023 related to liability and physical damage coverages.

The decrease to incurred losses for prior accident years in 2023 of $7.0 million was primarily driven by lower-than-expected reported losses from accident year 2022 related to liability and physical damage coverages.

The following table shows incurred and paid losses and allocated loss adjustment expenses, or ALAE, development by accident year for private passenger auto and renters in aggregate, cumulative claim frequency is defined as the number of reported claims at the claim level which includes reported claims that do not result in a liability:


Incurred Losses and ALAE—Net of Reinsurance
Accident Year	2021 (unaudited)		2022 (unaudited)		2023 (unaudited)		2024 (unaudited)		2025		IBNR		Reported Claims(1)
	(dollars in millions)



2021	$	341.6	$	348.1	$	349.6	$	348.6	$	346.8	$	1.1	152,531
2022			296.0		288.4		286.0		288.2		4.1		119,564
2023					291.2		276.5		275.7		4.7		88,241
2024							667.2		644.8		26.4		143,012
2025									857.0		232.4		156,609
Total									$	2,412.5	$	268.7	659,957

Cumulative Paid Losses and ALAE—Net of Reinsurance
Accident Year	2021 (unaudited)		2022 (unaudited)		2023 (unaudited)		2024 (unaudited)		2025
	(dollars in millions)



2021	$	179.4	$	294.6	$	332.3	$	342.5	$	344.9
2022			175.3		248.3		274.7		281.6
2023					133.9		245.2		266.1
2024							387.5		591.1
2025									506.1
Total									1,989.8
All outstanding liabilities before 2021—net of reinsurance									2.2
Loss and ALAE reserves—net of reinsurance									$	424.9

_______________

(1) Reported by claim event.

The following table sets forth the reconciliation of the claims development tables to the balance sheet losses and ALAE reserves, with separate disclosure of unallocated LAE, or ULAE, and reinsurance recoverable on unpaid losses for the years ended December 31, 2025 and 2024:


	2025		2024
	(dollars in millions)
Loss and ALAE reserves—net of reinsurance	$	424.9	$	332.4
ULAE reserves—net of reinsurance	33.3		32.8
Reinsurance recoverables on unpaid losses	25.4		48.0
Total loss and LAE reserves—gross of reinsurance	$	483.6	$	413.2

The following table sets forth the historical average annual percentage payout of incurred losses and ALAE (claims duration), net of reinsurance, as of December 31, 2025:


Year	1		2		3		4		5
Incremental paid(1)	56.1	%	32.6	%	9.2	%	2.7	%	0.7	%

(1) Supplemental information and unaudited.

STATUTORY FINANCIAL INFORMATION

Root Insurance Company, Root Property & Casualty and Root Florida, or our insurance subsidiaries, are required to prepare statutory financial statements in conformity with the basis of accounting practices prescribed or

permitted by their respective states of domicile, the Ohio Department of Insurance and the Florida Office of Insurance Regulation, or Florida OIR. Ohio and Florida have adopted the National Association of Insurance Commissioners, or NAIC, Accounting Practices and Procedures Manual as the basis of their statutory accounting practices. Root Insurance Company, Root Property & Casualty and Root Florida’s statutory capital and surplus as of December 31, 2025 and 2024 and statutory net income (loss) for the years ended December 31, 2025, 2024 and 2023 are as follows:


	Statutory Net Income (Loss)						Statutory Capital and Surplus
	2025		2024		2023		2025		2024
	(dollars in millions)
Root Insurance Company	$	61.8	$	37.6	$	(44.4)	$	57.8	$	115.7
Root Property & Casualty	37.3		5.9		(12.2)		143.3		33.3
Root Florida	(12.1)		N/A(1)		N/A(1)		45.9		N/A(1)
Total	$	87.0	$	43.5	$	(56.6)	$	247.0	$	149.0

______________

(1) Root Florida was incorporated in 2025.

The payment of dividends by our insurance subsidiaries is subject to restrictions set forth in the insurance laws and regulations of the State of Ohio and the State of Florida. These insurance laws require domestic insurance companies to notify the supervisory superintendent, commissioner and/or director to seek prior regulatory approval to pay a dividend or distribute cash or other property if the fair market value thereof, together with that of other dividends or distributions made in the preceding twelve months, exceeds the greater of (1) 10% of statutory-basis policyholders' surplus as of the prior December 31 or (2) the statutory-basis net income of the insurer as of the prior December 31.

The insurance laws also require domestic insurers to seek prior regulatory approval for any dividend paid from other than earned surplus. Earned surplus is defined under the insurance laws as the amount equal to our unassigned funds as set forth in its most recent statutory financial statements, including net unrealized capital gains and losses. Additionally, following any dividend, an insurer’s policyholder surplus must be reasonable in relation to the insurer's outstanding liabilities and adequate for its financial needs.

In addition to these limitations, in accordance with our consent order as a new entity, Root Florida is prohibited from paying any dividends for its first three years of operation without prior approval from the Florida OIR. After this initial three-year period, dividend payments by Root Florida become subject to the standard dividend limitations described above.

After receiving approval from the Ohio Department of Insurance, Root Insurance Company paid extraordinary dividends of $123.0 million for the year ended December 31, 2025. Root Insurance Company did not pay any dividends for the years ended December 31, 2024 and 2023. Root Property & Casualty and Root Florida did not pay any dividends for the years ended December 31, 2025, 2024 and 2023.

Our wholly-owned, Cayman Islands-based reinsurance subsidiary, Root Reinsurance Company, Ltd., or Root Re, maintains a Class B(iii) insurer license under Cayman Islands Monetary Authority, or CIMA. At December 31, 2025, Root Re was subject to compliance with certain capital levels and a net premiums earned to capital ratio up to 15:1, which we maintained as of December 31, 2025. Root Re must notify CIMA before it can pay any dividend to the holding company. Root Re paid dividends of $60.0 million, zero, and zero to Caret Holdings, Inc. for the years ended December 31, 2025, 2024 and 2023.

The NAIC Risk-Based Capital, or RBC, model law requires every insurer to calculate its total adjusted capital and RBC requirement to ensure insurer solvency. Regulatory guidelines provide for an insurance commissioner to intervene if the insurer experiences financial difficulty, as evidenced by a company's total adjusted capital falling below established relationships to required RBC. The model includes components for asset risk, underwriting risk, credit risk and other factors. The State of Ohio and the State of Florida impose a minimum RBC requirement that is developed by the NAIC. The formulas in the model for determining the amount of RBC specify various weighting

factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio of total adjusted capital to authorized control level RBC, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels, all of which require specified corrective action. Root Insurance Company and Root Property & Casualty’s capital and surplus exceeded its minimum statutory surplus requirements and authorized control level RBC of $4.8 million and $36.1 million for the year ended December 31, 2025, respectively, and $16.1 million and $3.3 million for the year ended December 31, 2024, respectively. Root Florida, incorporated in 2025, reported capital in excess of its minimum statutory surplus requirements and authorized control level RBC of $10.5 million for the year ended December 31, 2025.

- Definition

The entire disclosure for the types of coverages and products sold, and the assets, obligations, recorded liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

+ References + Details

STATUTORY FINANCIAL INFORMATION - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Root Insurance Company
Statutory Accounting Practices [Line Items]
Distributed amount	$ 123.0	$ 0.0	$ 0.0
Authorized control level RBC	4.8	16.1
Root Reinsurance Company, Ltd.
Statutory Accounting Practices [Line Items]
Distributed amount	60.0	0.0	$ 0.0
Root Property & Casualty
Statutory Accounting Practices [Line Items]
Authorized control level RBC	36.1	$ 3.3
Root Florida
Statutory Accounting Practices [Line Items]
Authorized control level RBC	$ 10.5

LONG-TERM DEBT - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		1 Months Ended		12 Months Ended
	Oct. 29, 2024	Oct. 31, 2024	Jan. 31, 2022	Dec. 31, 2025	Dec. 31, 2024
Debt Instrument [Line Items]
Unamortized discount and debt issuance costs				$ 3.0	$ 3.7
Secured Debt
Debt Instrument [Line Items]
Percentage of secured pledge of capital stock				100.00%
Secured Debt \| Class A Shares
Debt Instrument [Line Items]
Warrants outstanding (in shares)			0.3
Exercise price of warrants (in dollars per share)			$ 162.00
Principal balance \| Secured Debt
Debt Instrument [Line Items]
Debt instrument, term	6 years		5 years
Extinguishment of debt, amount		$ 237.1
Debt amount	$ 200.0
Debt instrument, floor interest rate (in percent)		1.00%
Written notice period				3 days
Principal balance \| Secured Debt \| Minimum
Debt Instrument [Line Items]
Variable rate percentage (in percent)		5.25%
Principal balance \| Secured Debt \| Maximum
Debt Instrument [Line Items]
Variable rate percentage (in percent)		6.00%
Amended Term Loan C, Modification \| Secured Debt
Debt Instrument [Line Items]
Debt amount		$ 62.9
Amended Term Loan C, Black Rock Funds \| Secured Debt
Debt Instrument [Line Items]
Debt amount		137.1
Amended Term Loan C \| Secured Debt
Debt Instrument [Line Items]
Debt amount		$ 200.0
Insurance subsidiaries amount				$ 50.0
Debt instrument, direct contribution, margin measured (in percent)				20.00%
Debt covenant, surplus threshold				$ 125.0
Unamortized discount and debt issuance costs					2.4
Amended Term Loan C, Extinguished And Modified \| Secured Debt
Debt Instrument [Line Items]
Unamortized discount and debt issuance costs					$ 5.4
2026 Term Loan \| Secured Debt
Debt Instrument [Line Items]
Debt instrument, prepayment premium				1.00%

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2025

Commitments and Contingencies Disclosure [Abstract]

Schedule of Purchase Obligations

The following table summarizes, by remaining maturity, future commitments related to other arrangements as of December 31, 2025:


	Purchase Obligations
	(dollars in millions)
2026	$	11.4
2027	10.6
2028	7.6
2029	3.4
2030 and thereafter	5.6
Total	$	38.6

NATURE OF BUSINESS (Details)	Dec. 31, 2025
Root Insurance Company
Schedule of Equity Method Investments [Line Items]
Ownership percentage (in percent)	100.00%
Root Florida
Schedule of Equity Method Investments [Line Items]
Ownership percentage (in percent)	100.00%
Root Reinsurance Company, Ltd.
Schedule of Equity Method Investments [Line Items]
Ownership percentage (in percent)	100.00%
Root Property & Casualty Insurance Company
Schedule of Equity Method Investments [Line Items]
Ownership percentage (in percent)	100.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

INVESTMENTS - Schedule of Contractual Maturity (Details) - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024
Amortized Cost
Due in one year or less	$ 25.4
Due after one year through five years	253.0
Due five years through 10 years	54.1
Due after 10 years	50.6
Amortized Cost	383.1	$ 309.1
Fair Value
Due in one year or less	25.4
Due after one year through five years	255.9
Due five years through 10 years	54.8
Due after 10 years	50.9
Fair Value	$ 387.0	$ 306.8

GEOGRAPHICAL BREAKDOWN OF GROSS PREMIUMS WRITTEN (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Effects of Reinsurance [Line Items]
Total	$ 1,505.8	$ 1,301.1	$ 783.1
Gross Written Premiums \| Geographic Concentration Risk
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	100.00%	100.00%	100.00%
Texas
Effects of Reinsurance [Line Items]
Total	$ 288.5	$ 249.3	$ 134.3
Texas \| Gross Written Premiums \| Geographic Concentration Risk
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	19.20%	19.20%	17.10%
Georgia
Effects of Reinsurance [Line Items]
Total	$ 182.0	$ 159.9	$ 94.3
Georgia \| Gross Written Premiums \| Geographic Concentration Risk
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	12.10%	12.30%	12.00%
Florida
Effects of Reinsurance [Line Items]
Total	$ 128.9	$ 107.4	$ 16.9
Florida \| Gross Written Premiums \| Geographic Concentration Risk
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	8.60%	8.30%	2.20%
California
Effects of Reinsurance [Line Items]
Total	$ 105.6	$ 49.2	$ 10.7
California \| Gross Written Premiums \| Geographic Concentration Risk
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	7.00%	3.80%	1.40%
Pennsylvania
Effects of Reinsurance [Line Items]
Total	$ 86.8	$ 74.6	$ 45.2
Pennsylvania \| Gross Written Premiums \| Geographic Concentration Risk
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	5.80%	5.70%	5.80%
Colorado
Effects of Reinsurance [Line Items]
Total	$ 76.2	$ 72.8	$ 53.6
Colorado \| Gross Written Premiums \| Geographic Concentration Risk
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	5.10%	5.60%	6.80%
South Carolina
Effects of Reinsurance [Line Items]
Total	$ 53.6	$ 52.6	$ 34.4
South Carolina \| Gross Written Premiums \| Geographic Concentration Risk
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	3.60%	4.00%	4.40%
Arizona
Effects of Reinsurance [Line Items]
Total	$ 49.1	$ 50.0	$ 35.4
Arizona \| Gross Written Premiums \| Geographic Concentration Risk
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	3.30%	3.80%	4.50%
Nevada
Effects of Reinsurance [Line Items]
Total	$ 39.9	$ 23.4	$ 17.8
Nevada \| Gross Written Premiums \| Geographic Concentration Risk
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	2.60%	1.80%	2.30%
Oklahoma
Effects of Reinsurance [Line Items]
Total	$ 34.5	$ 28.9	$ 23.6
Oklahoma \| Gross Written Premiums \| Geographic Concentration Risk
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	2.20%	2.20%	3.00%
All others states
Effects of Reinsurance [Line Items]
Total	$ 460.7	$ 433.0	$ 316.9
All others states \| Gross Written Premiums \| Geographic Concentration Risk
Effects of Reinsurance [Line Items]
Concentration percentage (in percent)	30.50%	33.30%	40.50%

FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2025

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

The following tables provide information about our financial assets measured and reported at fair value as of December 31, 2025 and 2024:


	2025
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in millions)
Assets
Fixed maturities:
United States Treasury securities and agencies	$	46.7	$	2.5	$	—	$	49.2
Municipal securities	—		23.2		—		23.2
Corporate debt securities	—		159.0		—		159.0
Asset-backed securities	—		155.6		—		155.6
Total fixed maturities	46.7		340.3		—		387.0

Cash equivalents and restricted cash equivalents	388.0		—		—		388.0
Total assets at fair value	$	434.7	$	340.3	$	—	$	775.0

	2024
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in millions)
Assets
Fixed maturities:
United States Treasury securities and agencies	$	46.2	$	—	$	—	$	46.2
Municipal securities	—		23.5		—		23.5
Corporate debt securities	—		105.7		—		105.7
Asset-backed securities	—		116.6		—		116.6
Total fixed maturities	46.2		245.8		—		292.0
Short-term investments	11.8		3.0		—		14.8
Cash equivalents	342.4		—		—		342.4
Total assets at fair value	$	400.4	$	248.8	$	—	$	649.2

We estimate the fair value of all our different classes of Level 2 fixed maturities and short-term investments by using quoted prices from a combination of an independent pricing vendor or broker/dealer, pricing models, quoted prices of securities with similar characteristics or discounted cash flows. All significant inputs were observable in the active markets.

Fair Value of Long-Term Debt

The carrying amount of long-term debt is recorded at the unpaid balance, net of discount and debt issuance costs, and includes interest payable. The fair value of outstanding long-term debt as of December 31, 2025 was classified within Level 2 of the fair value hierarchy. The fair value was based on a model referencing observable interest rates and spreads to project and discount cash flows to present value. As of December 31, 2025 and 2024, the carrying amounts and fair values of these financial instruments were as follows:


	Carrying Amount as of December 31, 2025		Estimated Fair Value as of December 31, 2025		Carrying Amount as of December 31, 2024		Estimated Fair Value as of December 31, 2024
	(dollars in millions)
Long-term debt	$	200.3	$	204.1	$	200.1	$	204.9

The carrying amounts of other short-term financial instruments approximates their fair value due to their short-term nature.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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+ Details

LONG-TERM DEBT (Tables)

12 Months Ended

Dec. 31, 2025

Debt Disclosure [Abstract]

Schedule of Long Term Debt

The following summarizes the carrying value of long-term debt as of December 31, 2025 and 2024:


	2025		2024
	(dollars in millions)
Principal balance	$	200.0	$	200.0





Accrued interest payable	3.3		3.8
Unamortized discount and debt issuance costs	(3.0)		(3.7)
Total	$	200.3	$	200.1

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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-URI https://asc.fasb.org/1943274/2147481112/505-10-50-6

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-7

+ Details

STATUTORY FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2025

Insurance [Abstract]

Schedule of Statutory Financial Information

Root Insurance Company, Root Property & Casualty and Root Florida’s statutory capital and surplus as of December 31, 2025 and 2024 and statutory net income (loss) for the years ended December 31, 2025, 2024 and 2023 are as follows:


	Statutory Net Income (Loss)						Statutory Capital and Surplus
	2025		2024		2023		2025		2024
	(dollars in millions)
Root Insurance Company	$	61.8	$	37.6	$	(44.4)	$	57.8	$	115.7
Root Property & Casualty	37.3		5.9		(12.2)		143.3		33.3
Root Florida	(12.1)		N/A(1)		N/A(1)		45.9		N/A(1)
Total	$	87.0	$	43.5	$	(56.6)	$	247.0	$	149.0

______________

(1) Root Florida was incorporated in 2025.

- Definition

Tabular disclosure of how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and permitted accounting practices of the state or country of domicile in which a relevant statutory filing is made, or differences in results based on the National Association of Insurance Commissioners (NAIC) prescribed practices, or a combination thereof. Describes the accounting practices used and the related monetary effect on statutory surplus, net income, and risk-based capital. If an insurance enterprise's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact is disclosed in the financial statements. Permitted statutory accounting practices include practices not prescribed but allowed by the domiciliary state insurance department regulatory authority.

+ References + Details

Schedule II: Condensed Combined Financial Information of Registrant - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Caret Holdings, Inc.
Condensed Financial Information Disclosure [Line Items]
Ownership percentage (in percent)	100.00%
Root Insurance Company
Condensed Financial Information Disclosure [Line Items]
Ownership percentage (in percent)	100.00%
Dividends from subsidiary	$ 123.0	$ 0.0	$ 0.0
Root Reinsurance Company, Ltd.
Condensed Financial Information Disclosure [Line Items]
Ownership percentage (in percent)	100.00%
Dividends from subsidiary	$ 60.0	0.0	0.0
Root Insurance Agency, LLC
Condensed Financial Information Disclosure [Line Items]
Dividends from subsidiary	$ 0.0	$ 25.0	$ 0.0

- Definition

Amount of income (loss) for proportionate share of equity method investee's income (loss).

+ References + Details

EARNINGS (LOSS) PER SHARE - Schedule of Anti-Dilutive Securities (Details) - shares shares in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	7.6	7.5	10.6
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	0.0	0.0	0.1
Nonvested shares subject to repurchase
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	0.0	0.0	0.1
Service-based restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	0.1	0.0	1.5
Market-based restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	0.0	0.0	0.4
Redeemable convertible preferred stock (as converted to common stock)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	0.0	0.0	0.8
Warrants to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	7.5	7.5	7.7

Schedule V: Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Valuation allowance for deferred tax assets
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	$ 345.9	$ 356.4	$ 322.3
Charged to costs and expenses	(4.8)	0.0	34.9
Charge to other accounts	(1.3)	0.0	(0.8)
Deductions	0.0	(10.5)	0.0
Balance at end of period	339.8	345.9	356.4
Allowance for premium receivables
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	9.8	4.0	2.8
Charged to costs and expenses	36.7	34.1	12.5
Charge to other accounts	0.0	0.0	0.0
Deductions	(37.6)	(28.3)	(11.3)
Balance at end of period	8.9	9.8	4.0
Allowance for reinsurance recoverables
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	0.1	1.8	0.2
Charged to costs and expenses	0.0	(0.5)	1.6
Charge to other accounts	0.0	0.0	0.0
Deductions	0.0	(1.2)	0.0
Balance at end of period	$ 0.1	$ 0.1	$ 1.8

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name Regulation S-X (SX)
-Number 210
-Section 12
-Subsection 09
-Paragraph Column E
-Publisher SEC

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name Regulation S-X (SX)
-Number 210
-Section 12
-Subsection 09
-Paragraph Column D
-Publisher SEC

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name Regulation S-X (SX)
-Number 210
-Section 12
-Subsection 09
-Paragraph Column C
-Subparagraph (1)
-Publisher SEC

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name Regulation S-X (SX)
-Number 210
-Section 12
-Subsection 09
-Paragraph Column C
-Subparagraph (2)
-Publisher SEC

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Name Regulation S-X (SX)
-Number 210
-Section 12
-Subsection 09
-Paragraph Column B
-Publisher SEC

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480738/235-10-S50-5

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 4
-Subparagraph (SX 210.12-09(Column C)(2))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-4

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 4
-Subparagraph (SX 210.12-09(Column C)(1))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-4

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 4
-Subparagraph (SX 210.12-09(Column B))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-4

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 4
-Subparagraph (SX 210.12-09(Column E))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-4

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 4
-Subparagraph (SX 210.12-09(Column D))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-4

+ Details

REINSURANCE (Tables)

12 Months Ended

Dec. 31, 2025

Insurance [Abstract]

Schedule of Direct Premiums Written

The following table reflects amounts affecting the consolidated balance sheets for reinsurance as of December 31, 2025 and 2024:


			2025		2024
			(dollars in millions)
Loss and LAE reserves:
Direct			$	385.7	$	341.7
Assumed			97.9		71.5
Ceded			(25.4)		(48.0)
Net loss and LAE reserves			$	458.2	$	365.2
Unearned premiums:
Direct			$	320.3	$	289.2
Assumed			73.4		64.7
Ceded			(6.3)		(25.1)
Net unearned premiums			$	387.4	$	328.8

The following table reflects amounts affecting the statements of operations and comprehensive income (loss) for reinsurance for the years ended December 31, 2025, 2024 and 2023:

	2025		2024		2023
	(dollars in millions)
Premiums written:
Direct	$	1,224.2	$	1,064.6	$	674.6
Assumed	281.6		236.5		108.5
Ceded	(45.4)		(137.0)		(209.9)
Net premiums written	$	1,460.4	$	1,164.1	$	573.2
Premiums earned:
Direct	$	1,193.2	$	1,010.8	$	564.9
Assumed	272.8		220.2		70.9
Ceded	(64.3)		(160.1)		(235.9)
Net premiums earned	$	1,401.7	$	1,070.9	$	399.9
Losses and LAE incurred:
Direct	$	744.1	$	673.5	$	424.1
Assumed	210.6		157.2		51.7
Ceded	(30.5)		(97.7)		(144.5)
Net losses and LAE incurred	$	924.2	$	733.0	$	331.3

Gross premiums written by state is as follows for the years ended December 31, 2025, 2024 and 2023:


	For the Years Ended December 31,
	2025				2024				2023
	Amount		% of Total		Amount		% of Total		Amount		% of Total
	(dollars in millions)
State:
Texas	$	288.5	19.2	%	$	249.3	19.2	%	$	134.3	17.1	%
Georgia	182.0		12.1		159.9		12.3		94.3		12.0
Florida	128.9		8.6		107.4		8.3		16.9		2.2
California	105.6		7.0		49.2		3.8		10.7		1.4
Pennsylvania	86.8		5.8		74.6		5.7		45.2		5.8
Colorado	76.2		5.1		72.8		5.6		53.6		6.8
South Carolina	53.6		3.6		52.6		4.0		34.4		4.4
Arizona	49.1		3.3		50.0		3.8		35.4		4.5
Nevada	39.9		2.6		23.4		1.8		17.8		2.3
Oklahoma	34.5		2.2		28.9		2.2		23.6		3.0
All others states	460.7		30.5		433.0		33.3		316.9		40.5
Total	$	1,505.8	100.0	%	$	1,301.1	100.0	%	$	783.1	100.0	%

RESTRUCTURING COSTS - Schedule of Restructuring Costs Recorded In Consolidated Statements of Operations and Comprehensive Income (Loss) (Details) - General and administrative - USD ($) $ in Millions	12 Months Ended			48 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2025
Restructuring Cost and Reserve [Line Items]
Total restructuring costs	$ 0.1	$ 0.2	$ 11.2	$ 30.1
Employee costs
Restructuring Cost and Reserve [Line Items]
Total restructuring costs	0.0	0.1	7.7	23.3
Real estate exit costs
Restructuring Cost and Reserve [Line Items]
Total restructuring costs	0.1	0.1	0.0	2.3
Other costs
Restructuring Cost and Reserve [Line Items]
Total restructuring costs	$ 0.0	$ 0.0	$ 3.5	$ 4.5

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

INVESTMENTS - Special Deposits (Details) - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Amortized costs of special deposits	$ 15.7	$ 15.8
Fair of special deposits	15.9	$ 15.6
Balances held in the trust	$ 77.0

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Cash flows from operating activities:
Net income (loss)	$ 40.3	$ 30.9	$ (147.4)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Share-based compensation	40.1	18.5	17.3
Warrant compensation expense	19.2	3.8	17.4
Depreciation and amortization	11.8	14.9	12.6
Bad debt expense	36.7	33.6	14.1
Loss on extinguishment of debt	0.0	5.4	0.0
Gain on lease modification	0.0	0.0	(0.3)
Changes in operating assets and liabilities:
Premiums receivable	(64.2)	(92.3)	(147.7)
Reinsurance recoverable and receivable	20.8	(24.8)	21.9
Prepaid reinsurance premiums	18.8	23.1	26.0
Other assets	(14.6)	(25.0)	4.8
Losses and loss adjustment expenses reserves	70.4	129.0	(3.2)
Unearned premiums	39.8	70.2	147.2
Reinsurance premiums payable	(30.4)	(21.6)	(65.4)
Accounts payable and accrued expenses	2.7	1.3	27.7
Other liabilities	15.1	28.7	41.4
Net cash provided by (used in) operating activities	206.5	195.7	(33.6)
Cash flows from investing activities:
Purchases of investments	(147.4)	(197.8)	(76.0)
Proceeds from maturities, call and pay downs of investments	67.8	54.6	37.5
Sales of investments	2.0	0.6	2.2
Capitalization of internally developed software	(14.1)	(11.4)	(9.2)
Purchases of fixed assets	0.0	(0.4)	(0.2)
Net cash used in investing activities	(91.7)	(154.4)	(45.7)
Cash flows from financing activities:
Proceeds from exercise of stock options and restricted stock units	0.3	0.1	0.0
Taxes paid related to net share settlement of equity awards	(25.5)	(15.1)	(1.1)
Payment of preferred stock and related warrants issuance costs	0.0	(3.0)	(3.0)
Proceeds from issuance of debt and related warrants, net of issuance costs	0.0	134.4	0.0
Repayments of long-term debt	0.0	(237.1)	0.0
Net cash used in financing activities	(25.2)	(120.7)	(4.1)
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents	89.6	(79.4)	(83.4)
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of year	600.3	679.7	763.1
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of year	$ 689.9	$ 600.3	$ 679.7

INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Schedule of AFS Debt Securities

The amortized cost and fair value of short-term investments and available-for-sale fixed maturity securities at December 31, 2025 and 2024 are as follows:



	2025
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in millions)
Fixed maturities:
United States Treasury securities and agencies	$	48.4	$	—	$	0.8	$	—	$	49.2
Municipal securities	23.0		—		0.3		(0.1)		23.2
Corporate debt securities	157.3		—		1.9		(0.2)		159.0
Asset-backed securities	154.4		—		1.5		(0.3)		155.6
Total fixed maturities	$	383.1	$	—	$	4.5	$	(0.6)	$	387.0


	2024
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in millions)
Fixed maturities:
United States Treasury securities and agencies	$	46.5	$	—	$	—	$	(0.3)	$	46.2
Municipal securities	23.9		—		0.1		(0.5)		23.5
Corporate debt securities	106.6		—		0.3		(1.2)		105.7
Asset-backed securities	117.3		—		0.4		(1.1)		116.6
Total fixed maturities	294.3		—		0.8		(3.1)		292.0
Short-term investments	14.8		—		—		—		14.8
Total	$	309.1	$	—	$	0.8	$	(3.1)	$	306.8

The following table sets forth the amortized cost and fair value of short-term investments and available-for-sale fixed maturity securities by contractual maturity at December 31, 2025:


	2025
	Amortized Cost		Fair Value
	(dollars in millions)
Due in one year or less	$	25.4	$	25.4
Due after one year through five years	253.0		255.9
Due five years through 10 years	54.1		54.8
Due after 10 years	50.6		50.9
Total	$	383.1	$	387.0

Schedule of Unrealized Losses

The following tables reflect the gross unrealized losses and fair value of short-term investments and available-for-sale fixed maturity securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2025 and 2024:


	2025
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(dollars in millions)
Fixed maturities:
United States Treasury securities	$	2.0	$	—	$	0.7	$	—	$	2.7	$	—
Municipal securities	—		—		6.5		(0.1)		6.5		(0.1)
Corporate debt securities	21.5		—		7.4		(0.2)		28.9		(0.2)
Asset-backed securities	20.3		(0.1)		5.9		(0.2)		26.2		(0.3)
Total fixed maturities	$	43.8	$	(0.1)	$	20.5	$	(0.5)	$	64.3	$	(0.6)



	2024
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(dollars in millions)
Fixed maturities:
United States Treasury securities and agencies	$	26.4	$	(0.3)	$	1.8	$	—	$	28.2	$	(0.3)
Municipal securities	7.1		(0.1)		10.4		(0.4)		17.5		(0.5)
Corporate debt securities	49.5		(0.6)		21.1		(0.6)		70.6		(1.2)
Asset-backed securities	53.6		(0.6)		10.6		(0.5)		64.2		(1.1)
Total fixed maturities	136.6		(1.6)		43.9		(1.5)		180.5		(3.1)
Short-term investments	6.4		—		—		—		6.4		—
Total	$	143.0	$	(1.6)	$	43.9	$	(1.5)	$	186.9	$	(3.1)

Schedule of Net Investment Income

The following table sets forth the components of net investment income for the years ended December 31, 2025, 2024 and 2023:


	For the Years Ended December 31,
	2025		2024		2023
	(dollars in millions)
Interest on fixed maturities and short-term investments	$	14.7	$	9.6	$	4.8
Interest on cash, cash equivalents, restricted cash, and restricted cash equivalents	25.4		31.9		28.0

Total	40.1		41.5		32.8
Investment expense	(6.4)		(5.6)		(2.6)
Net investment income	$	33.7	$	35.9	$	30.2

Schedule of Credit Ratings

The following tables summarize the credit ratings of short-term investments and available-for-sale fixed maturity securities at December 31, 2025 and 2024:


	December 31, 2025
	Amortized Cost		Fair Value		% of Total Fair Value
S&P Global rating or equivalent	(dollars in millions)
AAA	$	81.5	$	82.1	21.2	%
AA+, AA, AA-	171.4		173.3		44.8
A+, A, A-	107.7		108.8		28.1
BBB+, BBB, BBB-	22.5		22.8		5.9
Total	$	383.1	$	387.0	100.0	%



	December 31, 2024
	Amortized Cost		Fair Value		% of Total Fair Value
S&P Global rating or equivalent	(dollars in millions)
AAA	$	75.2	$	74.8	24.4	%
AA+, AA, AA-, A-1+	146.0		145.0		47.3
A+, A, A-	67.8		67.1		21.9
BBB+, BBB, BBB-	20.1		19.9		6.4
Total	$	309.1	$	306.8	100.0	%

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-9

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

+ Details

- Definition

Tabular disclosure of all significant concentrations of risk, including credit risk and market risk, arising from all financial instruments (as defined), whether from an individual counterparty or groups of counterparties. The disclosure concerning concentrations of risk may consist of the following information: (1) for concentrations of credit risk disclosure may include: (a) information about the (shared) activity, region, or economic characteristic that identifies the concentration, (b) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity, (c) the policy of requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments, and (d) the policy of entering into master netting arrangements to mitigate the credit risk of financial instruments, information about the arrangements for which the entity is a party, and a brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk and (2) for disclosure of quantitative information about the market risks of financial instruments that is consistent with the way the company manages or adjusts those risks, disclosure may include: (a) more details about current positions and perhaps activity during the period, (b) the hypothetical effects on comprehensive income (or net assets), or annual income, of several possible changes in market prices, (c) a gap analysis of interest rate re-pricing or maturity dates, (d) the duration of the financial instruments, (e) the entity's value at risk from derivatives and from other positions at the end of the reporting period and the average value at risk during the year, or (f) other ways of reporting quantitative information as internally developed.

+ References + Details

LEASES (Tables)

12 Months Ended

Dec. 31, 2025

Leases [Abstract]

Schedule of Lease Cost

The following table summarizes supplemental balance sheets information related to leases at December 31, 2025 and 2024:


	2025		2024
	(dollars in millions)
Operating leases:
Operating lease liabilities	$	4.3	$	6.0
Operating lease right-of-use assets	$	2.0	$	2.6

Supplemental cash flow information for the years ended December 31, 2025, 2024 and 2023 are as follows:


	For the Years Ended December 31,
	2025		2024		2023
	(dollars in millions)
Operating cash flows paid for amounts included in the measurement of lease liabilities	$	2.2	$	3.0	$	3.2

The weighted-average remaining lease term and weighted-average operating lease discount rate, as of December 31, 2025 and 2024 are as follows:


	2025		2024
Weighted-average of remaining operating lease term (years)	2.10		3.10
Weighted-average operating lease discount rate	11.79	%	11.83	%

Schedule of Future Lease Payments

Future lease payments as of December 31, 2025 were as follows:


	Operating Leases
	(dollars in millions)
2026	$	2.3
2027	2.3
2028	0.2
2029	—
2030 and thereafter	—

Total future lease payments	4.8
Less: imputed interest	(0.5)
Total lease liabilities	$	4.3

Schedule II: Condensed Combined Financial Information of Registrant - Schedule of Condensed Statement of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Revenues:
Net investment income	$ 33.7	$ 35.9	$ 30.2
Total revenues	1,517.1	1,176.5	455.0
Operating expenses:
Sales and marketing	174.8	135.8	49.3
Other insurance expense	206.3	106.4	47.6
Technology and development	53.1	53.3	44.8
General and administrative	96.9	69.5	83.3
Total operating expenses	1,455.3	1,098.0	556.3
Operating income (loss)	61.8	78.5	(101.3)
Interest expense	21.0	42.2	46.1
Loss on extinguishment of debt	0.0	5.4	0.0
Income tax benefit	0.5	0.0	0.0
Net income (loss)	40.3	30.9	(147.4)
Other comprehensive income (loss):
Comprehensive income (loss)	46.5	31.1	(144.1)
Parent Company
Revenues:
Net investment income	9.0	17.4	21.5
Total revenues	9.0	17.4	21.5
Operating expenses:
Sales and marketing	0.0	0.4	1.5
Other insurance expense	19.8	4.7	17.8
Technology and development	6.2	23.0	17.3
General and administrative	28.1	8.9	23.4
Total operating expenses	54.1	37.0	60.0
Operating income (loss)	(45.1)	(19.6)	(38.5)
Interest expense	21.0	42.2	46.1
Loss on extinguishment of debt	0.0	5.4	0.0
Loss before income tax benefit	(66.1)	(67.2)	(84.6)
Income tax benefit	(11.0)	(12.4)	(1.8)
Net loss before equity net income (loss) of subsidiaries	(55.1)	(54.8)	(82.8)
Net income (loss) of subsidiaries	95.4	85.7	(64.6)
Net income (loss)	40.3	30.9	(147.4)
Other comprehensive income (loss):
Other comprehensive income of subsidiaries	6.2	0.2	3.3
Comprehensive income (loss)	$ 46.5	$ 31.1	$ (144.1)

SHARE-BASED COMPENSATION - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2025 USD ($) shares	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Sep. 01, 2025 shares	Aug. 31, 2022 shares	Oct. 31, 2021 tranche shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense \| $	$ 40.1	$ 18.5	$ 17.3
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares)	1,000,000.0
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares)	4,900,000
Annual shares increase, percentage of outstanding stock	4.00%
Shares available for issuance (in shares)	1,800,000
2020 ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual shares increase, percentage of outstanding stock					1.00%
Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs \| $	$ 7.8
Remaining weighted-average period cost is expected to be recognized (in years)	1 year 9 months
Class A Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)						7,200,000
Class A Shares \| 2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum shares allowed to be issued (in shares)	6,700,000
Class A Shares \| 2020 ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares outstanding, annual shares increase (in shares)					400,000
Short Term Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches \| tranche						3
Shares issued (in shares)				0
Long Term Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches \| tranche						5
Long Term Warrant \| Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense \| $	$ 19.2	$ 3.8	$ 17.4
Long Term Warrant \| Class A Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)	7,200,000
Unrecognized compensation costs \| $	$ 11.2
Carvana
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches \| tranche						8

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Revenues:
Net premiums earned	$ 1,401.7	$ 1,070.9	$ 399.9
Net investment income	33.7	35.9	30.2
Fee income	78.3	66.0	23.4
Other income	3.4	3.7	1.5
Total revenues	1,517.1	1,176.5	455.0
Operating expenses:
Loss and loss adjustment expenses	924.2	733.0	331.3
Sales and marketing	174.8	135.8	49.3
Other insurance expense	206.3	106.4	47.6
Technology and development	53.1	53.3	44.8
General and administrative	96.9	69.5	83.3
Total operating expenses	1,455.3	1,098.0	556.3
Operating income (loss)	61.8	78.5	(101.3)
Interest expense	21.0	42.2	46.1
Loss on extinguishment of debt	0.0	5.4	0.0
Income (loss) before income tax expense	40.8	30.9	(147.4)
Income tax expense	0.5	0.0	0.0
Net income (loss)	40.3	30.9	(147.4)
Net income attributable to participating securities	2.0	1.7	0.0
Net income (loss) attributable to common shareholders	38.3	29.2	(147.4)
Other comprehensive income (loss):
Net income (loss)	40.3	30.9	(147.4)
Changes in net unrealized gains on investments	6.2	0.2	3.3
Comprehensive income (loss)	$ 46.5	$ 31.1	$ (144.1)
Earnings (loss) per common share: (both Class A and B)
Basic (in dollars per share)	$ 2.49	$ 1.96	$ (10.24)
Diluted (in dollars per share)	$ 2.36	$ 1.83	$ (10.24)
Weighted-average common shares outstanding: (both Class A and B)
Basic (in shares)	15.4	14.9	14.4
Diluted (in shares)	17.1	16.9	14.4

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2025

Accounting Policies [Abstract]

Schedule of Supplemental Disclosures

The supplemental disclosures for cash and non-cash flows for the years ended December 31, 2025, 2024 and 2023 are as follows:


	For the Years Ended December 31,
	2025		2024		2023
	(dollars in millions)
Supplemental disclosures:
Interest paid	$	20.7	$	43.9	$	42.5
Federal income taxes paid	—		—		—
State income taxes paid	0.6		—		—

Schedule of Internally Developed Software

The capitalized cost and accumulated amortization of internally developed software in other assets in our consolidated balance sheets at December 31, 2025 and 2024 are as follows:


	As of December 31,
	2025		2024
	(dollars in millions)
Internally developed software	$	57.4	$	50.0
Accumulated amortization	(29.8)		(28.0)
Internally developed software, net	$	27.6	$	22.0

Schedule of Fixed Assets

The capitalized cost and accumulated depreciation of fixed assets in other assets in our consolidated balance sheets at December 31, 2025 and 2024 are as follows:


	As of December 31,
	2025		2024
	(dollars in millions)
Computers	$	1.7	$	6.0
Furniture	1.0		2.6
Leasehold improvements	5.3		7.2
Total fixed assets, at cost	8.0		15.8
Accumulated depreciation	(6.8)		(14.0)
Fixed assets, net	$	1.2	$	1.8

SHARE-BASED COMPENSATION - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	$ 40.1	$ 18.5	$ 17.3
Loss and loss adjustment expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	3.7	1.9	0.7
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	1.0	0.7	0.3
Other insurance expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	1.3	0.8	0.6
Technology and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	6.6	3.4	3.4
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	27.3	11.7	12.3
Net Investment Income
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	$ 0.2	$ 0.0	$ 0.0

RESTRUCTURING COSTS

12 Months Ended

Dec. 31, 2025

Restructuring and Related Activities [Abstract]

RESTRUCTURING COSTS

Beginning in 2022, we conducted strategic initiatives to reduce operating costs, improve efficiency, and increase focus on our strategic priorities. These initiatives resulted in restructuring actions that included a reduction in workforce levels, contract terminations, and in certain instances, a reduction in office space. These restructuring actions include the following costs:

Employee costs—consist of severance, benefits, share-based compensation, and employee compensation expense dependent upon continuous employment for certain employees and related employee costs.

Real estate exit costs—consist of real estate exit costs primarily related to accelerated amortization of right-of-use assets, leasehold improvements and furniture and fixtures.

Other costs—primarily consist of contract termination costs incurred as part of our efforts to improve efficiency and reduce operating costs and accelerated expense for software that no longer has economic benefit.

As of December 31, 2025, we do not expect to incur any additional material expenditures in future periods related to restructuring actions that have occurred.

The following table displays restructuring costs recorded in general and administrative expenses on the consolidated statements of operations and comprehensive income (loss):


	For the Years Ended December 31,						Cumulative Incurred Through December 31, 2025
	2025		2024		2023
	(dollars in millions)
Restructuring costs:
Employee costs	$	—	$	0.1	$	7.7	$	23.3
Real estate exit costs	0.1		0.1		—		2.3
Other costs	—		—		3.5		4.5
Total restructuring costs	$	0.1	$	0.2	$	11.2	$	30.1

The following table displays a rollforward of the accrual for restructuring costs recorded in accounts payable and accrued expenses on the consolidated balance sheets:


	Employee costs
	(dollars in millions)
Restructuring liability as of December 31, 2023	$	8.3
Expense incurred	0.1

Payments	(8.4)
Restructuring liability as of December 31, 2024	—
Expense incurred	—

Payments	—
Restructuring liability as of December 31, 2025	$	—

LONG-TERM DEBT - Schedule Of Debt (Details) - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024
Debt Disclosure [Abstract]
Principal balance	$ 200.0	$ 200.0
Accrued interest payable	3.3	3.8
Unamortized discount and debt issuance costs	(3.0)	(3.7)
Total	$ 200.3	$ 200.1

- Definition

Amount of unamortized debt discount (premium) and debt issuance costs.

+ References + Details

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(22))
-SubTopic 10
-Topic 210
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 235
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477314/942-235-S99-2

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480738/235-10-S50-4

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-3

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 55
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482949/835-30-55-8

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(16))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478546/942-210-S99-1

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69B

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1D
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1D

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 944
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03(a)(16)(a)(2))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478777/944-210-S99-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (b)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-4

+ Details

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Supplemental Disclosures (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Interest paid	$ 20.7	$ 43.9	$ 42.5
Federal income taxes paid	0.0	0.0	0.0
State income taxes paid	$ 0.6	$ 0.0	$ 0.0

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) shares in Millions		1 Months Ended	12 Months Ended
	Oct. 29, 2024 USD ($)	Jan. 31, 2022	Dec. 31, 2025 USD ($) day shares	Dec. 31, 2024 USD ($) shares	Dec. 31, 2023 USD ($)	Oct. 31, 2021 tranche shares
Asset Acquisition [Line Items]
Impairment of intangible assets			$ 0	$ 0	$ 0
Reinsurance premiums payable			2,400,000	32,800,000
Premiums receivable			332,800,000	305,300,000
Allowance for premiums receivable			8,900,000	9,800,000
Expense related to allowance for credit loss			36,700,000	34,100,000	12,500,000
Deferred policy acquisition cost			44,400,000	29,300,000
Deferred policy acquisition costs, amortization expense			97,400,000	35,700,000	35,100,000
Valuation allowance			$ 339,800,000	345,900,000
Amortization period			5 years
Amortization expense			$ 8,500,000	8,600,000	6,300,000
Depreciation expense			$ 200,000	$ 1,000,000.0	$ 1,500,000
Preferred stock, issued (in shares) \| shares			14.1	14.1
Unvested Stock Options
Asset Acquisition [Line Items]
Vesting period			4 years
Unvested Stock Options \| Tranche 1
Asset Acquisition [Line Items]
Vesting period			1 year
Vesting percentage			25.00%
Unvested Stock Options \| Tranche 2
Asset Acquisition [Line Items]
Vesting period			3 years
Vesting percentage			2.00%
Restricted Stock Units (RSUs) \| Minimum
Asset Acquisition [Line Items]
Vesting period			2 years
Restricted Stock Units (RSUs) \| Maximum
Asset Acquisition [Line Items]
Vesting period			4 years
Restricted Stock Units (RSUs) \| Tranche 1
Asset Acquisition [Line Items]
Vesting period			1 year
Vesting percentage			50.00%
Restricted Stock Units (RSUs) \| Tranche 2
Asset Acquisition [Line Items]
Vesting period			1 year
Vesting percentage			25.00%
Other Certain RSUs 3 \| Tranche 1
Asset Acquisition [Line Items]
Vesting period			1 year
Performance-based Restricted Stock Units \| Minimum
Asset Acquisition [Line Items]
Vesting period				2 years
Percentage of target award			0.00%	0.00%
Performance-based Restricted Stock Units \| Maximum
Asset Acquisition [Line Items]
Vesting period				3 years
Percentage of target award			200.00%	200.00%
Performance-based Restricted Stock Units \| Tranche 1
Asset Acquisition [Line Items]
Vesting period			1 year
Performance-based Restricted Stock Units \| Tranche 2
Asset Acquisition [Line Items]
Vesting period			2 years
Performance-based Restricted Stock Units \| Tranche 3
Asset Acquisition [Line Items]
Vesting period			3 years
Performance Shares, Vesting Over Three Years \| Tranche 1
Asset Acquisition [Line Items]
Vesting period				3 years
Vesting percentage				25.00%
Performance Shares, Vesting Over Three Years \| Tranche 2
Asset Acquisition [Line Items]
Vesting period				3 years
Vesting percentage				25.00%
Performance Shares, Vesting Over Two Years \| Tranche 1
Asset Acquisition [Line Items]
Vesting period				2 years
Vesting percentage				33.00%
Performance Shares, Vesting Over Two Years \| Tranche 2
Asset Acquisition [Line Items]
Vesting percentage				8.00%
Market-based Restricted Stock Units
Asset Acquisition [Line Items]
Expected volatility rate			76.00%
Expected term			5 years
Risk free interest rate			4.06%
Expected dividend rate			0.00%
Market-based Restricted Stock Units \| Monte Carlo Valuation
Asset Acquisition [Line Items]
Expected volatility rate			50.00%
Volatility, weighted-average			50.00%
Market-based Restricted Stock Units \| Minimum
Asset Acquisition [Line Items]
Vesting period			1 year
Market-based Restricted Stock Units \| Maximum
Asset Acquisition [Line Items]
Vesting period			4 years
Computers
Asset Acquisition [Line Items]
Useful life			3 years
Furniture
Asset Acquisition [Line Items]
Useful life			5 years
Unaffiliated Texas County Mutual Insurance Company
Asset Acquisition [Line Items]
Reinsurance premiums payable			$ 96,700,000	$ 84,200,000
Premiums receivable			96,300,000	83,600,000
Carvana
Asset Acquisition [Line Items]
Preferred stock, issued (in shares) \| shares						14.1
Number of tranches \| tranche						8
Investment agreement, term of agreement						5 years
Internet Domain Names
Asset Acquisition [Line Items]
Purchase of assets			1,300,000	1,300,000
Root Property & Casualty
Asset Acquisition [Line Items]
Purchases of indefinite-lived intangible assets and transaction costs			$ 8,900,000	$ 8,900,000
Principal balance \| Secured Debt
Asset Acquisition [Line Items]
Debt amount	$ 200,000,000.0
Debt instrument, term	6 years	5 years
Class A Shares
Asset Acquisition [Line Items]
Consecutive trading days \| day			45

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024
Investments:
Fixed maturities available-for-sale, at fair value (amortized cost: $383.1 and $294.3 at December 31, 2025 and December 31, 2024, respectively)	$ 387.0	$ 292.0
Short-term investments (amortized cost: zero and $14.8 at December 31, 2025 and December 31, 2024, respectively)	0.0	14.8
Other investments	4.4	4.4
Total investments	391.4	311.2
Cash and cash equivalents	669.3	599.3
Restricted cash and cash equivalents	20.6	1.0
Premiums receivable, net of allowance of $8.9 and $9.8 at December 31, 2025 and December 31, 2024, respectively	332.8	305.3
Reinsurance recoverable and receivable, net of allowance of $0.1 at December 31, 2025 and December 31, 2024	129.8	150.6
Prepaid reinsurance premiums	6.3	25.1
Other assets	124.3	103.2
Total assets	1,674.5	1,495.7
Liabilities:
Loss and loss adjustment expense reserves	483.6	413.2
Unearned premiums	393.7	353.9
Long-term debt	200.3	200.1
Reinsurance premiums payable	2.4	32.8
Accounts payable and accrued expenses	74.2	71.1
Other liabilities	124.0	108.9
Total liabilities	1,278.2	1,180.0
Commitments and Contingencies (Note 13)
Redeemable convertible preferred stock, $0.0001 par value, 14.1 shares issued and outstanding at December 31, 2025 and December 31, 2024 (redemption value of $126.5) (Note 11)	112.0	112.0
Stockholders’ equity:
Additional paid-in capital	1,922.0	1,887.9
Accumulated other comprehensive income (loss)	3.9	(2.3)
Accumulated loss	(1,641.6)	(1,681.9)
Total stockholders’ equity	284.3	203.7
Total liabilities, redeemable convertible preferred stock and stockholders’ equity	1,674.5	1,495.7
Class A Shares
Stockholders’ equity:
Common stock	0.0	0.0
Class B Shares
Stockholders’ equity:
Common stock	$ 0.0	$ 0.0

CAPITAL STOCK	12 Months Ended
CAPITAL STOCK	Dec. 31, 2025
Equity [Abstract]
CAPITAL STOCK	CAPITAL STOCK As of December 31, 2025, our total authorized shares consist of 1.0 billion shares of Class A common stock, 269.0 million shares of Class B common stock, and 100.0 million shares of preferred stock. In October 2021, we issued redeemable convertible preferred stock to Carvana pursuant to the Investment Agreement. We received $126.5 million of gross proceeds from the issuance of 14.1 million shares of redeemable convertible preferred stock designated as the Series A Preferred Stock, which have a redemption value of $126.5 million, and issued Carvana eight tranches of warrants to purchase shares of the Company’s Class A common stock, of which three tranches expired unexercised in 2025. Further details on the warrants are discussed in Note 12, “Share-Based Compensation.” In connection with the Investment Agreement, we incurred issuance costs of $19.6 million, which were allocated between the redeemable convertible preferred stock and the warrants based on their relative fair values. The voting, dividend and liquidation rights of the holders of our Class A and Class B common stock are subject to and qualified by the rights, powers, and preferences of the holders of the preferred stock. Other rights, privileges, and preferences of our capital stock are as follows: Dividends—Class A and Class B common stock are entitled to the same dividend rights. We are not permitted to declare, pay, or set aside any dividends on shares of any other class or series of capital stock unless the holders of the preferred stock then outstanding first receive, or simultaneously receive, a dividend. Beginning after the fifth anniversary of the Integrated Platform becoming available to customers, Series A Preferred Stockholders are entitled to receive, when, as and if declared by the board of directors, a dividend at an annual rate of 5% of the liquidation preference per share of Series A Preferred Stock, if our 90-day volume-weighted average price per share of Class A common stock is below the conversion price at that time. Voting Rights—Our Class B common stock has ten votes per share and our Class A common stock has one vote per share. Holders of preferred stock are entitled to vote, together with the holders of Class A common stock and Class B common stock, on an as-converted basis on all matters submitted to a vote of the holders of Class A common stock and Class B common stock. Liquidation Preferences—In the event of any voluntary or involuntary liquidation, dissolution, or winding up of our business, after payment or provision for payment of the debts and other liabilities of the Company, the holders of Series A Preferred Stock are entitled to receive, before any distribution out of the assets of the Company may be made to or set aside for the holders of any common stock, an amount per share equal to the greater of (i) $9.00 per share plus the amount of any accrued but unpaid dividends thereon as of such date and (ii) the amount such preferred stockholders would have received had they, immediately prior to such an event, converted such shares of Series A Preferred Stock into Class A common stock. Thereafter, holders of Class A and Class B common stock are entitled to any remaining proceeds on a pro-rata basis. Class A and Class B common stock are entitled to the same liquidation rights. Conversion and Transfer—Each share of Class B common stock is convertible at any time into one share of Class A common stock. Future transfers by holders of our Class B common stock will generally result in those shares converting into shares of our Class A common stock, subject to limited exceptions, such as certain transfers effected for tax or estate planning purposes. Series A Preferred Stock shall be convertible, at the option of the holder thereof, at any time, or from time to time, into shares of Class A common stock at a conversion rate equal to the liquidation preference divided by the conversion price. As of December 31, 2025, the conversion price was $162.00 per share and the Series A Preferred Stock was convertible into 0.8 million shares of Class A common stock. To the extent that such conversion would cause the holder to hold in excess of 9.9% of the voting stock, such conversion would be subject to approval from state insurance regulatory authorities in Ohio and Florida. Redemption and Balance Sheet Classification—The redeemable convertible preferred stock is classified as mezzanine equity because while it is not mandatorily redeemable, it will become convertible or redeemable at the option of the preferred stockholder in connection with any change of control of the Company, which is considered not solely within our control.

Insider Trading Policies and Procedures	12 Months Ended
Insider Trading Policies and Procedures	Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES

12 Months Ended

Dec. 31, 2025

Insurance [Abstract]

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES

The following provides a reconciliation of the beginning and ending reserve balances for loss and LAE, net of reinsurance:


	2025		2024		2023
	(dollars in millions)
Gross loss and LAE reserves, January 1	$	413.2	$	284.2	$	287.4
Reinsurance recoverable on unpaid losses	(48.0)		(43.8)		(76.4)
Net loss and LAE reserves, January 1	365.2		240.4		211.0
Net incurred loss and LAE related to:
Current year	953.6		752.4		338.3
Prior years	(29.4)		(19.4)		(7.0)
Total incurred	924.2		733.0		331.3
Net paid loss and LAE related to:
Current year	574.1		443.0		165.9
Prior years	257.1		165.2		136.0
Total paid	831.2		608.2		301.9
Net loss and LAE reserves, December 31	458.2		365.2		240.4
Plus reinsurance recoverable on unpaid losses	25.4		48.0		43.8
Gross loss and LAE reserves, December 31	$	483.6	$	413.2	$	284.2


Incurred Losses and ALAE—Net of Reinsurance
Accident Year	2021 (unaudited)		2022 (unaudited)		2023 (unaudited)		2024 (unaudited)		2025		IBNR		Reported Claims(1)
	(dollars in millions)



2021	$	341.6	$	348.1	$	349.6	$	348.6	$	346.8	$	1.1	152,531
2022			296.0		288.4		286.0		288.2		4.1		119,564
2023					291.2		276.5		275.7		4.7		88,241
2024							667.2		644.8		26.4		143,012
2025									857.0		232.4		156,609
Total									$	2,412.5	$	268.7	659,957

Cumulative Paid Losses and ALAE—Net of Reinsurance
Accident Year	2021 (unaudited)		2022 (unaudited)		2023 (unaudited)		2024 (unaudited)		2025
	(dollars in millions)



2021	$	179.4	$	294.6	$	332.3	$	342.5	$	344.9
2022			175.3		248.3		274.7		281.6
2023					133.9		245.2		266.1
2024							387.5		591.1
2025									506.1
Total									1,989.8
All outstanding liabilities before 2021—net of reinsurance									2.2
Loss and ALAE reserves—net of reinsurance									$	424.9

_______________

(1) Reported by claim event.


	2025		2024
	(dollars in millions)
Loss and ALAE reserves—net of reinsurance	$	424.9	$	332.4
ULAE reserves—net of reinsurance	33.3		32.8
Reinsurance recoverables on unpaid losses	25.4		48.0
Total loss and LAE reserves—gross of reinsurance	$	483.6	$	413.2

The following table sets forth the historical average annual percentage payout of incurred losses and ALAE (claims duration), net of reinsurance, as of December 31, 2025:


Year	1		2		3		4		5
Incremental paid(1)	56.1	%	32.6	%	9.2	%	2.7	%	0.7	%

(1) Supplemental information and unaudited.

STATUTORY FINANCIAL INFORMATION


	Statutory Net Income (Loss)						Statutory Capital and Surplus
	2025		2024		2023		2025		2024
	(dollars in millions)
Root Insurance Company	$	61.8	$	37.6	$	(44.4)	$	57.8	$	115.7
Root Property & Casualty	37.3		5.9		(12.2)		143.3		33.3
Root Florida	(12.1)		N/A(1)		N/A(1)		45.9		N/A(1)
Total	$	87.0	$	43.5	$	(56.6)	$	247.0	$	149.0

______________

(1) Root Florida was incorporated in 2025.

- Definition

+ References + Details

SHARE-BASED COMPENSATION - Schedule of Additional Information Pertaining to Restricted Stock Units (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Service-based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total grant date fair value of awards granted	$ 20.6	$ 16.9	$ 8.5
Total grant date fair value of awards vested	15.5	14.2	27.3
Total intrinsic value of awards vested	59.3	40.4	3.4
Performance-based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total grant date fair value of awards granted	17.3	18.3	0.0
Market-based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total grant date fair value of awards granted	0.0	0.0	2.3
Total grant date fair value of awards vested	0.5	0.3	0.0
Total intrinsic value of awards vested	$ 10.1	$ 2.4	$ 0.0

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

EARNINGS (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2025

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

The following table displays the computation of basic and diluted EPS for both Class A and Class B common stock for the years ended December 31, 2025, 2024 and 2023:


	For the Years Ended December 31,
	2025		2024		2023
	(in millions, except per share amounts)
Numerator:
Net income (loss)	$	40.3	$	30.9	$	(147.4)
Less: Undistributed income allocated to participating securities	2.0		1.7		—
Net income (loss) attributable to common shareholders	38.3		29.2		(147.4)
Denominator:
Weighted-average common shares outstanding: basic (both Class A and B)	15.4		14.9		14.4
Effect of dilutive securities:
Redeemable convertible preferred stock	0.8		0.8		—
Service-based restricted stock units	0.5		0.8		—
Market-based restricted stock units	0.3		0.3		—
Stock options	0.1		0.1		—

Weighted-average common shares outstanding: diluted (both Class A and B)	17.1		16.9		14.4
Earnings (loss) per common share (both Class A and B):
Basic	$	2.49	$	1.96	$	(10.24)
Diluted	$	2.36	$	1.83	$	(10.24)

For the year ended December 31, 2023, we operated at a loss and therefore, the conversion of common stock equivalents would increase the denominator of the diluted EPS calculation and create a lower loss per share. Therefore, these common stock equivalents are considered anti-dilutive and diluted EPS is equal to basic EPS.

We excluded the following potentially dilutive common stock equivalents, presented based on amounts outstanding at each year end, from the computation of diluted EPS attributable to common stockholders for the years indicated because including them would have had an anti-dilutive effect:


	For the Years Ended December 31,
	2025	2024	2023
	(in millions)
Options to purchase common stock	—	—	0.1
Nonvested shares subject to repurchase	—	—	0.1
Service-based restricted stock units	0.1	—	1.5
Market-based restricted stock units	—	—	0.4
Redeemable convertible preferred stock (as converted to common stock)	—	—	0.8
Warrants to purchase common stock	7.5	7.5	7.7
Total	7.6	7.5	10.6

INVESTMENTS - Schedule of Credit Ratings (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 383.1	$ 309.1
Fair Value	$ 387.0	$ 306.8
AFS Securities \| Credit Rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage (in percent)	100.00%	100.00%
AAA
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 81.5	$ 75.2
Fair Value	$ 82.1	$ 74.8
AAA \| AFS Securities \| Credit Rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage (in percent)	21.20%	24.40%
AA+, AA, AA-
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 171.4
Fair Value	$ 173.3
AA+, AA, AA- \| AFS Securities \| Credit Rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage (in percent)	44.80%
A+, A, A-
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 107.7	$ 67.8
Fair Value	$ 108.8	$ 67.1
A+, A, A- \| AFS Securities \| Credit Rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage (in percent)	28.10%	21.90%
BBB+, BBB, BBB-
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 22.5	$ 20.1
Fair Value	$ 22.8	$ 19.9
BBB+, BBB, BBB- \| AFS Securities \| Credit Rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage (in percent)	5.90%	6.40%
AA+, AA, AA-, A-1+
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		$ 146.0
Fair Value		$ 145.0
AA+, AA, AA-, A-1+ \| AFS Securities \| Credit Rating
Debt Securities, Available-for-sale [Line Items]
Concentration percentage (in percent)		47.30%

LEASES

12 Months Ended

Dec. 31, 2025

Leases [Abstract]

LEASES

We have operating leases primarily for office space. We determine if an arrangement is a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether we obtain substantially all of the economic benefits from and have the ability to direct the use of the asset. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Operating lease right-of-use assets and corresponding operating lease liabilities are recognized upon the commencement date based primarily on the present value of lease payments over the lease term. We use the implicit rate of the lease, if it is readily determinable, in determining the present value of lease payments. Our leases generally do not provide an implicit rate. Therefore, we use a collateralized incremental borrowing rate that incorporates information available at commencement date, including our company-specific interest rates from recent debt issuances, which we adjusted to obtain our company-specific interest rate risk. We also leverage commercial mortgage-backed securities, or CMBS, rates for transactions with similar values, origination dates, geographies and property types as the respective lease, which are adjusted using linear interpolation if the lease term falls between the published CMBS terms.

The following table summarizes supplemental balance sheets information related to leases at December 31, 2025 and 2024:


	2025		2024
	(dollars in millions)
Operating leases:
Operating lease liabilities	$	4.3	$	6.0
Operating lease right-of-use assets	$	2.0	$	2.6

Operating lease liabilities are included in other liabilities and operating lease right-of-use assets are included in other assets in our consolidated balance sheets.

Operating lease expense, variable lease expense and short-term lease expense recognized during the years ended December 31, 2025, 2024 and 2023 were immaterial.

Supplemental cash flow information for the years ended December 31, 2025, 2024 and 2023 are as follows:


	For the Years Ended December 31,
	2025		2024		2023
	(dollars in millions)
Operating cash flows paid for amounts included in the measurement of lease liabilities	$	2.2	$	3.0	$	3.2

We have restricted cash of $1.1 million and $1.0 million as of December 31, 2025 and 2024, respectively, held by a financial institution to satisfy letter of credit requirements for certain property leases.

We also sublease certain office space, resulting in sublease income. Sublease income and the related assets and cash flows are not material to our consolidated financial statements as of and for the years ended December 31, 2025, 2024 and 2023. Sublease income is recognized as a reduction to operating lease expense in our consolidated statements of operations and comprehensive income (loss).

The weighted-average remaining lease term and weighted-average operating lease discount rate, as of December 31, 2025 and 2024 are as follows:


	2025		2024
Weighted-average of remaining operating lease term (years)	2.10		3.10
Weighted-average operating lease discount rate	11.79	%	11.83	%

Future lease payments as of December 31, 2025 were as follows:


	Operating Leases
	(dollars in millions)
2026	$	2.3
2027	2.3
2028	0.2
2029	—
2030 and thereafter	—

Total future lease payments	4.8
Less: imputed interest	(0.5)
Total lease liabilities	$	4.3

LEASES - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024
Leases [Abstract]
Restricted cash and cash equivalents	$ 1.1	$ 1.0

INVESTMENTS - Other Investments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Other investments	$ 4.4	$ 4.4
Realized gains or losses on other investments	$ 0.0	$ 0.0	$ 0.0

INCOME TAXES

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

INCOME TAXES

The following table displays income tax expense for the years ended December 31, 2025, 2024 and 2023:


	For the Years Ended December 31,
	2025		2024		2023
	(dollars in millions)
Current:
Federal	$	—	$	—	$	—
State	0.5		—		—
Foreign	—		—		—
Total current	0.5		—		—
Deferred:
Federal	—		—		—
State	—		—		—
Foreign	—		—		—
Total deferred	—		—		—
Total income tax expense	$	0.5	$	—	$	—

ASU No. 2023-09 became effective for the annual reporting period beginning January 1, 2025. Further details are discussed in Note 2, “Basis of Presentation and Summary of Significant Accounting Policies.”

The income tax expense differed from the amounts computed by applying the statutory United States federal income tax rate of 21% in 2025 to pretax income, and is presented in accordance with the guidance in ASU 2023-09, as a result of the following:


	2025
	(dollars in millions)
Income (loss) before income taxes
Domestic	$	(59.5)
Foreign	100.3
Income before income taxes	$	40.8

Statutory United States federal income tax expense	$	8.6	21.0	%
State and local income tax expense, net of federal income tax effect(1)	0.4		1.0
Foreign tax effects - Cayman Islands
Foreign rate differential	(21.2)		(52.0)
Effect of cross-border tax laws
United States tax on foreign insurance income	21.2		52.0
Valuation allowance on deferred tax assets	(12.6)		(30.9)
Nontaxable and nondeductible items
Share-based compensation	(11.8)		(28.9)
Nondeductible warrant expense	9.3		22.8
Nondeductible compensation	5.8		14.2
Other nondeductible expenses	0.2		0.5
Other adjustments	0.6		1.5
Income tax expense	$	0.5	1.2	%

______________

(1) Florida makes up the majority of the state and local income tax expense, net of federal income tax effect category.

The income tax expense differed from the amounts computed by applying the statutory United States federal income tax rate of 21% in 2024 and 2023 to pretax income, and is presented in accordance with the guidance that applied prior to the adoption of ASU 2023-09, as a result of the following:


	2024				2023
	(dollars in millions)
Income (loss) before income taxes	$	30.9			$	(147.4)
Statutory United States federal income tax expense (benefit)	6.5		21.0	%	(30.9)		21.0	%
Valuation allowance on deferred tax assets	(10.5)		(34.0)		34.9		(23.7)

Share-based compensation	(6.0)		(19.4)		5.5		(3.7)
Nondeductible compensation	2.9		9.4		1.2		(0.8)
Return to provision permanent adjustments	—		—		—		—
State net operating loss	7.9		25.6		(10.5)		7.1
Other	(0.8)		(2.6)		(0.2)		0.1
Income tax expense	$	—	—	%	$	—	—	%

The following table sets forth the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2025 and 2024:


	2025		2024
	(dollars in millions)
Deferred tax assets:
Unpaid losses and loss adjustment expenses	$	4.2	$	3.3
Unearned premium reserves	16.4		14.2



Disallowed interest carryforward	10.4		20.8



Deferred compensation	5.2		8.2
Stock and warrant compensation	12.6		12.0


Other	6.0		5.1
State net operating loss carryforward	28.0		20.0
Federal net operating loss carryforward	269.8		271.6
Gross deferred assets	352.6		355.2
Less valuation allowance	(339.8)		(345.9)
Total deferred tax assets, less valuation allowance	12.8		9.3
Deferred tax liabilities:
Research and experimental expenditures	—		0.2
Fixed assets	0.3		0.4
Deferred policy acquisition costs	9.9		6.7
Intangible assets	0.7		0.6
Investments	0.9		0.9

Other	1.0		0.5
Deferred tax liabilities	12.8		9.3
Net deferred tax asset	$	—	$	—

The above amounts were calculated in accordance with ASC 740, Income Taxes. The application of ASC 740 requires a company to evaluate the recoverability of deferred tax assets and to establish a valuation allowance if necessary to reduce the carrying value of the deferred tax asset to an amount which is more likely than not to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance we include many factors, including: (1) the nature of the deferred tax assets and liabilities; (2) whether they are ordinary or capital; (3) the timing of expected reversal; (4) taxable income in prior carry back years as well as projected taxable earnings exclusive of reversing temporary differences and carry forwards; (5) the length of time that carryovers can be used; (6) unique tax rules that would impact the utilization of the deferred tax assets; and (7) any tax planning strategies that we would employ to avoid a tax benefit expiring unused. Although lack of realization is not assured, we believe it is more likely than not that the deferred tax assets will not be realized. As such, a valuation allowance of $339.8 million has been established. The valuation allowance decreased by $6.1 million primarily due to our net operating income for the year ended December 31, 2025.

The following table sets forth carryforwards related to NOLs and tax credits as of December 31, 2025:


	Carryforward with Expiration		Carryforward Indefinitely		Total		Years of Expiration
	(dollars in millions)
Federal	$	629.6	$	655.1	$	1,284.7	2038-2046
State and local (gross, apportioned)	232.1		255.2		487.3		2026-2045
Research and development credits	0.9		—		0.9		2036-2038
Total	$	862.6	$	910.3	$	1,772.9

We file a consolidated federal income tax return and certain state income tax returns. Tax years 2022 and forward are still open to United States federal examinations. The federal statute of limitations is generally three years. With some exceptions, the statute of limitations for state income and franchise tax returns remains open for tax years 2021 and forward. There are currently no tax years under examination.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 740
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Name Accounting Standards Codification
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-Paragraph 1
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-URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
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-Section 50
-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478822/944-740-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 5: http://www.xbrl.org/2003/role/exampleRef
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-Paragraph 231
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Section 50
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-URI https://asc.fasb.org/1943274/2147482685/740-10-50-14

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-21

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-17

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Dec. 31, 2025 USD ($)
Purchase Obligations
2026	$ 11.4
2027	10.6
2028	7.6
2029	3.4
2030 and thereafter	5.6
Total	$ 38.6

GEOGRAPHICAL BREAKDOWN OF GROSS PREMIUMS WRITTEN (Tables)

12 Months Ended

Dec. 31, 2025

Insurance [Abstract]

Schedule of Gross Premiums Written

The following table reflects amounts affecting the consolidated balance sheets for reinsurance as of December 31, 2025 and 2024:


			2025		2024
			(dollars in millions)
Loss and LAE reserves:
Direct			$	385.7	$	341.7
Assumed			97.9		71.5
Ceded			(25.4)		(48.0)
Net loss and LAE reserves			$	458.2	$	365.2
Unearned premiums:
Direct			$	320.3	$	289.2
Assumed			73.4		64.7
Ceded			(6.3)		(25.1)
Net unearned premiums			$	387.4	$	328.8

The following table reflects amounts affecting the statements of operations and comprehensive income (loss) for reinsurance for the years ended December 31, 2025, 2024 and 2023:

	2025		2024		2023
	(dollars in millions)
Premiums written:
Direct	$	1,224.2	$	1,064.6	$	674.6
Assumed	281.6		236.5		108.5
Ceded	(45.4)		(137.0)		(209.9)
Net premiums written	$	1,460.4	$	1,164.1	$	573.2
Premiums earned:
Direct	$	1,193.2	$	1,010.8	$	564.9
Assumed	272.8		220.2		70.9
Ceded	(64.3)		(160.1)		(235.9)
Net premiums earned	$	1,401.7	$	1,070.9	$	399.9
Losses and LAE incurred:
Direct	$	744.1	$	673.5	$	424.1
Assumed	210.6		157.2		51.7
Ceded	(30.5)		(97.7)		(144.5)
Net losses and LAE incurred	$	924.2	$	733.0	$	331.3

Gross premiums written by state is as follows for the years ended December 31, 2025, 2024 and 2023:


	For the Years Ended December 31,
	2025				2024				2023
	Amount		% of Total		Amount		% of Total		Amount		% of Total
	(dollars in millions)
State:
Texas	$	288.5	19.2	%	$	249.3	19.2	%	$	134.3	17.1	%
Georgia	182.0		12.1		159.9		12.3		94.3		12.0
Florida	128.9		8.6		107.4		8.3		16.9		2.2
California	105.6		7.0		49.2		3.8		10.7		1.4
Pennsylvania	86.8		5.8		74.6		5.7		45.2		5.8
Colorado	76.2		5.1		72.8		5.6		53.6		6.8
South Carolina	53.6		3.6		52.6		4.0		34.4		4.4
Arizona	49.1		3.3		50.0		3.8		35.4		4.5
Nevada	39.9		2.6		23.4		1.8		17.8		2.3
Oklahoma	34.5		2.2		28.9		2.2		23.6		3.0
All others states	460.7		30.5		433.0		33.3		316.9		40.5
Total	$	1,505.8	100.0	%	$	1,301.1	100.0	%	$	783.1	100.0	%

INCOME TAXES - Schedule of Effective Income Tax Reconciliation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Income (loss) before income taxes
Domestic	$ (59.5)
Foreign	100.3
Income (loss) before income tax expense	40.8	$ 30.9	$ (147.4)
Amount
Statutory United States federal income tax expense (benefit)	8.6	6.5	(30.9)
State and local income tax expense, net of federal income tax effect	0.4
Foreign rate differential	(21.2)
Effect of cross-border tax laws
United States tax on foreign insurance income	21.2
Valuation allowance on deferred tax assets	(12.6)	(10.5)	34.9
Nontaxable and nondeductible items
Share-based compensation	(11.8)	(6.0)	5.5
Nondeductible warrant expense	9.3
Nondeductible compensation	5.8
Other nondeductible expenses	0.2
Other adjustments	0.6	(0.8)	(0.2)
Nondeductible compensation		2.9	1.2
Return to provision permanent adjustments		0.0	0.0
State net operating loss		7.9	(10.5)
Total income tax expense	$ 0.5	$ 0.0	$ 0.0
Percent
Statutory United States federal income tax expense	21.00%	21.00%	21.00%
State and local income tax expense, net of federal income tax effect	1.00%
Foreign rate differential	(52.00%)
Effect of cross-border tax laws
United States tax on foreign insurance income	52.00%
Valuation allowance on deferred tax assets	(30.90%)	(34.00%)	(23.70%)
Nontaxable and nondeductible items
Share-based compensation	(28.90%)	(19.40%)	(3.70%)
Nondeductible warrant expense	0.228
Share-based compensation	14.20%
Nondeductible compensation		9.40%	(0.80%)
Other nondeductible expenses	0.50%
Return to provision permanent adjustments		0.00%	0.00%
Other adjustments	1.50%	(2.60%)	0.10%
State net operating loss		25.60%	7.10%
Income tax expense	1.20%	0.00%	0.00%

SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2025

Share-Based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION

Warrants

As part of the Investment Agreement discussed in Note 11, “Capital Stock,” we issued Carvana eight tranches of warrants, comprised of three tranches of “short-term warrants” and five tranches of “long-term warrants,” with the opportunity to purchase a maximum of 7.2 million shares of Class A common stock. The short-term warrants had an expiration date of September 1, 2025 and the long-term warrants have an expiration date of September 1, 2027.

On September 1, 2025, all of the short-term warrants expired unexercised and therefore, no short-term warrants remain outstanding. All compensation cost associated with the short-term warrants was previously recognized. For the years ended December 31, 2024 and 2023, we recognized compensation expense of $3.8 million and $17.4 million, respectively. There is no expense reversal because the performance obligations had been previously met.

As of December 31, 2025, certain long-term warrant tranches were probable of vesting. We recognized compensation expense considering the probability of and progress toward achieving the long-term warrant policy origination milestones. For the year ended December 31, 2025, we recognized compensation expense of $19.2 million. Warrant compensation expense is recorded in other insurance expense in the consolidated statements of operations and comprehensive income (loss). All of these warrants are out-of-the-money and, therefore, have no intrinsic value as of December 31, 2025.

Based on the probability of achieving certain policy origination milestones, unrecognized compensation cost is approximately $7.8 million as of December 31, 2025. The weighted-average remaining compensation costs are expected to be recognized over a period of 1.75 years.

The following table provides the maximum remaining unrecognized compensation costs as of December 31, 2025, and other key terms of the warrants:



Warrants	Exercise Price		Shares Issued (in millions)	Grant Date Fair Value per Share		Unrecognized Compensation Costs (in millions)		Vesting Condition
Long-Term
Tranche 1	$	180.00	1.4	$	7.64	$	—	100,000 policy originations
Tranche 2	$	225.00	1.5	$	6.32	1.2		200,000 policy originations
Tranche 3	$	270.00	1.5	$	4.39	6.6		300,000 policy originations
Tranche 4	$	405.00	1.5	$	1.70	2.4		400,000 policy originations
Tranche 5	$	540.00	1.3	$	0.75	1.0		500,000 policy originations
Total Long-Term			7.2			$	11.2

2020 Equity Incentive Plan

We maintain an equity incentive plan, the 2020 Equity Incentive Plan, or the 2020 Plan, for the issuance and grant of equity awards (restricted stock, RSUs, PRSUs, MRSUs and incentive and nonqualified stock options) to our officers, directors, employees and certain advisors. As of December 31, 2025, the number of shares authorized under the 2020 Plan was 4.9 million shares of Class A common stock, inclusive of available shares previously reserved for issuance under the 2015 Equity Incentive Plan, or the 2015 Plan, and subject to increase for awards previously issued under the 2015 Plan which are forfeited or lapse unexercised. In addition, this reserve will automatically increase on January 1 of each year, which commenced on January 1, 2021 and will end on (and including) January 1, 2030, in an amount equal to 4% of the total number of shares of capital stock outstanding on December 31 of the preceding year. However, the board of directors may act prior to January 1 of a given year to provide that the increase for such year will be a lesser number of shares of Class A common stock. The aggregate maximum number of shares of Class A common stock that may be issued pursuant to the exercise of incentive stock options is 6.7 million shares. As of December 31, 2025, the number of shares available for issuance under the 2020 Plan was 1.8 million.

In August 2022, our board of directors approved the First Amendment to our 2020 Employee Stock Purchase Plan, or ESPP. As of December 31, 2025, the number of shares authorized and available for issuance under the ESPP was 1.0 million shares. In addition, the number of shares reserved for issuance under the ESPP is subject to an annual increase on the first day of each calendar year beginning on January 1, 2021 and ending on and including January 1, 2030, in an amount equal to the lesser of (i) 1% of the total number of shares of capital stock outstanding on December 31 of the preceding year and (ii) 0.4 million shares of Class A common stock. Our board of directors may act prior to January 1 of a given year to provide that the increase for such year will be a lesser number of shares of Class A common stock.

2015 Equity Incentive Plan

In 2015, the board of directors of the Company adopted the 2015 Plan under which the Company could grant equity awards (restricted stock, and incentive and nonqualified stock options) to its officers, directors, employees and certain advisors. In October 2020, the 2015 Plan was superseded by the 2020 Plan and all reserved shares under the 2015 Plan were transferred to the 2020 Plan.

The following table displays share-based compensation expense recorded in the consolidated statements of operations and comprehensive income (loss):


	For the Years Ended December 31,
	2025		2024		2023
	(dollars in millions)
Share-based compensation expense:
Net investment income	$	0.2	$	—	$	—
Loss and loss adjustment expenses	3.7		1.9		0.7
Sales and marketing	1.0		0.7		0.3
Other insurance expense	1.3		0.8		0.6
Technology and development	6.6		3.4		3.4
General and administrative	27.3		11.7		12.3
Total share-based compensation expense	$	40.1	$	18.5	$	17.3

The unrecognized compensation cost and the remaining weighted-average period over which these costs are expected to be recognized for restricted stock units and unvested stock options as of December 31, 2025 is as follows:


	Service-based Restricted Stock Units	Performance-based Restricted Stock Units		Market-based Restricted Stock Units		Unvested Stock Options
		(dollars in millions)
Unrecognized compensation costs		$	18.9	$	25.7	$	0.4	$	0.1
Remaining weighted-average period cost is expected to be recognized (in years)		1.32		2.50		1.23		0.50

Restricted Stock Units

A summary of restricted stock units activity for the years ended December 31, 2025, 2024 and 2023 is as follows:


	For the Years Ended December 31,
	Service-based Restricted Stock Units			Performance-based Restricted Stock Units			Market-based Restricted Stock Units
Restricted Stock Units	Number of Shares	Weighted-Average Grant Date Fair Value per Share		Number of Shares	Weighted-Average Grant Date Fair Value per Share		Number of Shares	Weighted-Average Grant Date Fair Value per Share
	(in millions, except per share amounts)
Unvested at December 31, 2022	1.1	$	51.81	—	$	—	—	$	—
Granted	1.2	6.91		—	—		0.4	5.91
Vested	(0.6)	49.11		—	—		—	—
Forfeited, expired or canceled	(0.2)	51.90		—	—		—	—
Unvested at December 31 2023	1.5	$	16.74	—	$	—	0.4	$	5.91
Granted	0.3	50.55		0.2	75.55		—	—
Vested	(0.8)	18.34		—	—		—	7.69
Forfeited, expired or canceled	—	22.21		—	—		—	—
Unvested at December 31, 2024	1.0	$	25.89	0.2	$	75.55	0.4	$	5.71
Granted	0.2	116.62		0.2	125.91		—	—
Vested	(0.5)	28.33		—	—		(0.1)	6.70
Forfeited, expired or canceled	(0.1)	57.16		—	—		—	—
Unvested at December 31, 2025	0.6	$	47.81	0.4	$	93.78	0.3	$	5.43

Additional information pertaining to restricted stock units for the years ended December 31, 2025, 2024 and 2023 is as follows:


		For the Years Ended December 31,
		2025		2024		2023
	(dollars in millions)
Service-based restricted stock units:
Total grant date fair value of awards granted		$	20.6	$	16.9	$	8.5
Total grant date fair value of awards vested		15.5		14.2		27.3
Total intrinsic value of awards vested		59.3		40.4		3.4

Performance-based restricted stock units:
Total grant date fair value of awards granted		$	17.3	$	18.3	$	—



Market-based restricted stock units:
Total grant date fair value of awards granted		$	—	$	—	$	2.3
Total grant date fair value of awards vested		0.5		0.3		—
Total intrinsic value of awards vested		10.1		2.4		—

Stock Options

A summary of option activity for the years ended December 31, 2025, 2024 and 2023 is as follows:


Options	Number of Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value
	(in millions, except exercise price and term amounts)
Outstanding at December 31, 2022	0.2	$	38.15	5.63	$	0.2
Granted	—	8.94
Exercised	—	—			—
Forfeited, expired or canceled	(0.1)	44.88
Outstanding at December 31, 2023	0.1	$	33.68	4.29	$	0.5
Granted	—	—
Exercised	—	16.77			0.3
Forfeited, expired or canceled	—	90.82
Outstanding at December 31, 2024	0.1	$	34.13	3.15	$	6.7
Granted	—	—
Exercised	—	13.09			3.2
Forfeited, expired or canceled	—	139.87
Outstanding at December 31, 2025	0.1	$	34.80	2.28	$	5.1

A summary of total options outstanding and exercisable at December 31, 2025:


	Options Outstanding and Exercisable
Options	Number of Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in Years)
	(in millions, except exercise price and term amounts)
Range of Exercise Prices:
$0.65 - $5.15	0.1	$	2.56	1.35
$5.15 - $43.20	—	$	37.26	2.97
$43.20 - $231.66	—	$	137.01	4.17

Schedule II: Condensed Combined Financial Information of Registrant

12 Months Ended

Dec. 31, 2025

Condensed Financial Information Disclosure [Abstract]

Schedule II: Condensed Combined Financial Information of Registrant


ROOT, INC. and CARET HOLDINGS, INC.
Schedule II: Condensed Combined Financial Information of Registrant
Balance Sheets (Parent Company)
	As of December 31,
	2025		2024
	(in millions, except par value)
Assets
Other investments	$	4.4	$	4.4
Cash and cash equivalents	262.8		230.4
Restricted cash	1.1		1.0
Investments in subsidiaries	225.7		213.7




Other assets	51.5		49.9
Receivable from subsidiaries	70.1		43.0
Total Assets	$	615.6	$	542.4
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity
Liabilities:


Long-term debt	$	200.3	$	200.1


Accounts payable and accrued expenses	13.3		21.2
Other liabilities	5.7		5.4

Total liabilities	219.3		226.7
Commitments and Contingencies
Redeemable convertible preferred stock, $0.0001 par value, 14.1 shares issued and outstanding at December 31, 2025 and December 31, 2024 (redemption value of $126.5)	112.0		112.0
Stockholders’ equity:
Class A common stock, $0.0001 par value, 13.7 and 11.1 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively	—		—
Class B common stock, $0.0001 par value, 1.8 and 4.0 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively	—		—

Additional paid-in capital	1,922.0		1,887.9
Accumulated other comprehensive income (loss)	3.9		(2.3)
Accumulated loss	(1,641.6)		(1,681.9)
Total stockholders’ equity	284.3		203.7
Total liabilities, redeemable convertible preferred stock and stockholders’ equity	$	615.6	$	542.4

See Notes to Condensed Combined Financial Statements


ROOT, INC. and CARET HOLDINGS, INC.
Schedule II: Condensed Combined Financial Information of Registrant
Statements of Operations and Comprehensive Income (Loss) (Parent Company)
	For the Years Ended December 31,
	2025		2024		2023
	(dollars in millions)
Revenue:
Net investment income	$	9.0	$	17.4	$	21.5

Total revenue	9.0		17.4		21.5
Operating expenses:
Sales and marketing	—		0.4		1.5
Other insurance expense	19.8		4.7		17.8
Technology and development	6.2		23.0		17.3
General and administrative	28.1		8.9		23.4
Total operating expenses	54.1		37.0		60.0
Operating loss	(45.1)		(19.6)		(38.5)
Interest expense	21.0		42.2		46.1
Loss on early extinguishment of debt	—		5.4		—
Loss before income tax benefit	(66.1)		(67.2)		(84.6)
Income tax benefit	(11.0)		(12.4)		(1.8)
Net loss before equity net income (loss) of subsidiaries	(55.1)		(54.8)		(82.8)
Net income (loss) of subsidiaries	95.4		85.7		(64.6)
Net income (loss)	40.3		30.9		(147.4)
Other comprehensive income (loss):
Other comprehensive income of subsidiaries	6.2		0.2		3.3
Comprehensive income (loss)	$	46.5	$	31.1	$	(144.1)

See Notes to Condensed Combined Financial Statements


ROOT, INC. and CARET HOLDINGS, INC.
Schedule II: Condensed Combined Financial Information of Registrant
Statements of Cash Flows (Parent Company)
	For the Years Ended December 31,
	2025		2024		2023
	(dollars in millions)
Cash flows from operating activities:


























Net cash provided by (used in) operating activities	$	42.3	$	(43.2)	$	(89.1)
Cash flows from investing activities:



Capitalization of internally developed software	(14.1)		(11.4)		(9.2)
Purchases of fixed assets	—		(0.4)		(0.2)
Dividends from subsidiaries	123.0		25.0		—
Investment in subsidiaries	(93.5)		(23.3)		(44.8)
Net cash provided by (used in) investing activities	15.4		(10.1)		(54.2)
Cash flows from financing activities:

Proceeds from exercise of stock options and restricted stock units	0.3		0.1		—
Taxes paid related to net share settlement of equity awards	(25.5)		(15.1)		(1.1)

Payment of preferred stock and related warrants issuance costs	—		(3.0)		(3.0)
Proceeds from issuance of debt and related warrants, net of issuance cost	—		134.4		—
Repayments of long-term debt	—		(237.1)		—



Net cash used in financing activities	(25.2)		(120.7)		(4.1)
Net decrease in cash, cash equivalents and restricted cash	32.5		(174.0)		(147.4)
Cash, cash equivalents and restricted cash at beginning of year	231.4		405.4		552.8
Cash, cash equivalents and restricted cash at end of year	$	263.9	$	231.4	$	405.4

See Notes to Condensed Combined Financial Statements

ROOT, INC. and CARET HOLDINGS, INC.

Notes to Condensed Combined Financial Statements (Parent Company)

1. Business

Caret Holdings, Inc. is a holding company which was formed in 2015. We are a technology company operating primarily a direct-to-consumer model with the majority of our personal insurance customers acquired through mobile apps. We offer auto and renters insurance products. In August 2019 a new holding company, Root, Inc. was formed, which became the parent of Caret Holdings, Inc. and maintains 100% ownership of Caret Holdings, Inc.

2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation and Combination—The condensed combined financial statements include the accounts of Root, Inc. and its wholly owned subsidiary, Caret Holdings, Inc., and are prepared in accordance with accounting principles generally accepted in the United States. All intercompany accounts and transactions have been eliminated. These financial statements have been combined in order to present comparative parent company financial statements for 2025, 2024 and 2023 and should be read in conjunction with our consolidated financial statements.

Use of Estimates—The preparation of condensed combined financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Dividends from Subsidiary—Root, Inc. received dividends and return of capital of $123.0 million, zero and zero from Root Insurance Company, dividends and return on capital of $60.0 million, zero and zero from Root Reinsurance Company, Ltd. and dividends and return of capital of zero, $25.0 million and zero from Root Insurance Agency, LLC for the years ended December 31, 2025, 2024 and 2023, respectively.

Statement of Cash Flows—The supplemental disclosures for cash and non-cash flows for the years ended December 31, 2025, 2024 and 2023 are as follows:


	2025		2024		2023
	(dollars in millions)
Supplemental disclosures:
Interest paid	$	20.7	$	43.9	$	42.5
Federal income taxes paid	—		—		—
State income taxes paid	$	0.6	—		—

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed combined balance sheets that sum to the total of the same such amount in the condensed combined statements of cash flows:


	2025		2024
	(dollars in millions)
Cash and cash equivalents	$	262.8	$	230.4
Restricted cash	1.1		1.0
Total cash, cash equivalents and restricted cash shown in the condensed combined statements of cash flows	$	263.9	$	231.4

3. Guarantees

Root, Inc. entered into agreements with the Director of the Ohio Department of Insurance and the Commissioner of the Florida Office of Insurance Regulation (each, a “Regulator”), under which it guarantees that certain of its insurance subsidiaries will maintain the greater of applicable capital and surplus requirements or risk-based capital levels, as well as any additional surplus required by the respective Regulator. These guarantees remain in effect until the applicable Regulator releases Root, Inc. from its obligations in writing.

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2025 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Terminated	false
Jonathan Allison [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On December 1, 2025, Jonathan Allison, the Company’s Chief Administrative Officer, modified a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (a “10b5-1 Plan”). Mr. Allison’s 10b5-1 Plan provides for the potential sale of up to 46,477 shares of Class A common stock and terminates no later than March 3, 2027.
Name	Jonathan Allison
Title	Chief Administrative Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	On December 1, 2025
Expiration Date	March 3, 2027
Arrangement Duration	457 days
Aggregate Available	46,477
Mahtiyar Bonakdarpour [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On December 9, 2025, Mahtiyar Bonakdarpour, the Company’s President and Chief Technology Officer, entered into a 10b5-1 Plan. Mr. Bonakdarpour’s 10b5-1 Plan provides for the potential sale of up to 84,883 shares of Class A common stock and terminates no later than March 15, 2027.
Name	Mahtiyar Bonakdarpour
Title	President and Chief Technology Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	On December 9, 2025
Expiration Date	March 15, 2027
Arrangement Duration	461 days
Aggregate Available	84,883
Douglas Ulman [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On December 11, 2025, Douglas Ulman, a member of the Company’s Board of Directors, terminated a 10b5-1 Plan.
Name	Douglas Ulman
Title	Board of Directors
Rule 10b5-1 Arrangement Terminated	true
Termination Date	December 11, 2025
Alexander Timm [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On December 12, 2025, Alexander Timm, the Company’s Chairman of the Board and Chief Executive Officer, entered into a 10b5-1 Plan. Mr. Timm’s 10b5-1 Plan provides for the potential sale of up to 181,991 shares of Class A common stock and terminates no later than March 16, 2027.
Name	Alexander Timm
Title	Chairman of the Board and Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	On December 12, 2025
Expiration Date	March 16, 2027
Arrangement Duration	459 days
Aggregate Available	181,991
Megan Binkley [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On December 15, 2025, Megan Binkley, the Company’s Chief Financial Officer, entered into a 10b5-1 Plan. Ms. Binkley’s 10b5-1 Plan provides for the potential sale of up to 22,500 shares of Class A common stock and terminates no later than April 2, 2027.
Name	Megan Binkley
Title	Chief Financial Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	On December 15, 2025
Expiration Date	April 2, 2027
Arrangement Duration	473 days
Aggregate Available	22,500

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Fixed Assets (Details) - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024
Property, Plant and Equipment [Line Items]
Total fixed assets, at cost	$ 8.0	$ 15.8
Accumulated depreciation	(6.8)	(14.0)
Fixed assets, net	1.2	1.8
Computers
Property, Plant and Equipment [Line Items]
Total fixed assets, at cost	1.7	6.0
Furniture
Property, Plant and Equipment [Line Items]
Total fixed assets, at cost	1.0	2.6
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total fixed assets, at cost	$ 5.3	$ 7.2

REINSURANCE - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
REINSURANCE - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Effects of Reinsurance [Line Items]
Incurred expense for commutations of certain reinsurance agreements	$ 0.0	$ 0.0
Provision for loss corridor	0.1	0.1	$ 1.7
Recoverable		0.5
Expense related to allowance for credit loss	36.7	34.1	12.5
Cash and cash equivalents	669.3	599.3
Reinsurance recoverable and receivable	20.8	(24.8)	21.9
Prepaid reinsurance premiums	18.8	23.1	26.0
Expense related to allowance for credit loss	30.4	21.6	65.4
Maximum amount of ceded commissions returned	0.7	4.4
Reinsurance recoverable unpaid losses	28.7	53.8
Provision for loss corridor	$ 2.5	$ 5.0
Commutation of Certain Agreements
Effects of Reinsurance [Line Items]
Cash and cash equivalents			27.1
Reinsurance recoverable and receivable			35.1
Prepaid reinsurance premiums			34.6
Expense related to allowance for credit loss			37.3
Loss and Loss Adjustment Expenses
Effects of Reinsurance [Line Items]
Incurred expense for commutations of certain reinsurance agreements			0.7
Other insurance expense
Effects of Reinsurance [Line Items]
Incurred expense for commutations of certain reinsurance agreements			$ 4.6

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES - Schedule of Historical Claims (Details)	Dec. 31, 2025
Insurance [Abstract]
Incremental paid, year 1	56.10%
Incremental paid, year 2	32.60%
Incremental paid, year 3	9.20%
Incremental paid, year 4	2.70%
Incremental paid, year 5	0.70%

LEASES - Schedule of Future Lease Payments (Details) - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024
Leases [Abstract]
2026	$ 2.3
2027	2.3
2028	0.2
2029	0.0
2030 and thereafter	0.0
Total future lease payments	4.8
Less: imputed interest	(0.5)
Total lease liabilities	$ 4.3	$ 6.0

FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Carrying Amounts and Fair Values of Financial Instruments (Details) - Level 2 - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 200.3	$ 200.1
Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 204.1	$ 204.9

- Definition

The fair value amount of long-term debt whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 4: http://www.xbrl.org/2003/role/exampleRef
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-SubTopic 10
-Topic 825
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482881/825-10-55-10

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (c)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-28

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-11

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-11

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-10

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482881/825-10-55-12

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

+ Details

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2025

Share-Based Payment Arrangement [Abstract]

Schedule of Warrants

The following table provides the maximum remaining unrecognized compensation costs as of December 31, 2025, and other key terms of the warrants:



Warrants	Exercise Price		Shares Issued (in millions)	Grant Date Fair Value per Share		Unrecognized Compensation Costs (in millions)		Vesting Condition
Long-Term
Tranche 1	$	180.00	1.4	$	7.64	$	—	100,000 policy originations
Tranche 2	$	225.00	1.5	$	6.32	1.2		200,000 policy originations
Tranche 3	$	270.00	1.5	$	4.39	6.6		300,000 policy originations
Tranche 4	$	405.00	1.5	$	1.70	2.4		400,000 policy originations
Tranche 5	$	540.00	1.3	$	0.75	1.0		500,000 policy originations
Total Long-Term			7.2			$	11.2

Schedule of Share-Based Compensation Expense

The following table displays share-based compensation expense recorded in the consolidated statements of operations and comprehensive income (loss):


	For the Years Ended December 31,
	2025		2024		2023
	(dollars in millions)
Share-based compensation expense:
Net investment income	$	0.2	$	—	$	—
Loss and loss adjustment expenses	3.7		1.9		0.7
Sales and marketing	1.0		0.7		0.3
Other insurance expense	1.3		0.8		0.6
Technology and development	6.6		3.4		3.4
General and administrative	27.3		11.7		12.3
Total share-based compensation expense	$	40.1	$	18.5	$	17.3

Schedule of Restricted Stock and Unvested Stock Options


	Service-based Restricted Stock Units	Performance-based Restricted Stock Units		Market-based Restricted Stock Units		Unvested Stock Options
		(dollars in millions)
Unrecognized compensation costs		$	18.9	$	25.7	$	0.4	$	0.1
Remaining weighted-average period cost is expected to be recognized (in years)		1.32		2.50		1.23		0.50

Schedule of RSU, PRSU and MRSU Activity

A summary of restricted stock units activity for the years ended December 31, 2025, 2024 and 2023 is as follows:


	For the Years Ended December 31,
	Service-based Restricted Stock Units			Performance-based Restricted Stock Units			Market-based Restricted Stock Units
Restricted Stock Units	Number of Shares	Weighted-Average Grant Date Fair Value per Share		Number of Shares	Weighted-Average Grant Date Fair Value per Share		Number of Shares	Weighted-Average Grant Date Fair Value per Share
	(in millions, except per share amounts)
Unvested at December 31, 2022	1.1	$	51.81	—	$	—	—	$	—
Granted	1.2	6.91		—	—		0.4	5.91
Vested	(0.6)	49.11		—	—		—	—
Forfeited, expired or canceled	(0.2)	51.90		—	—		—	—
Unvested at December 31 2023	1.5	$	16.74	—	$	—	0.4	$	5.91
Granted	0.3	50.55		0.2	75.55		—	—
Vested	(0.8)	18.34		—	—		—	7.69
Forfeited, expired or canceled	—	22.21		—	—		—	—
Unvested at December 31, 2024	1.0	$	25.89	0.2	$	75.55	0.4	$	5.71
Granted	0.2	116.62		0.2	125.91		—	—
Vested	(0.5)	28.33		—	—		(0.1)	6.70
Forfeited, expired or canceled	(0.1)	57.16		—	—		—	—
Unvested at December 31, 2025	0.6	$	47.81	0.4	$	93.78	0.3	$	5.43

Schedule of Restricted Stock Unit Activity

Additional information pertaining to restricted stock units for the years ended December 31, 2025, 2024 and 2023 is as follows:


		For the Years Ended December 31,
		2025		2024		2023
	(dollars in millions)
Service-based restricted stock units:
Total grant date fair value of awards granted		$	20.6	$	16.9	$	8.5
Total grant date fair value of awards vested		15.5		14.2		27.3
Total intrinsic value of awards vested		59.3		40.4		3.4

Performance-based restricted stock units:
Total grant date fair value of awards granted		$	17.3	$	18.3	$	—



Market-based restricted stock units:
Total grant date fair value of awards granted		$	—	$	—	$	2.3
Total grant date fair value of awards vested		0.5		0.3		—
Total intrinsic value of awards vested		10.1		2.4		—

Schedule of Option Activity

A summary of option activity for the years ended December 31, 2025, 2024 and 2023 is as follows:


Options	Number of Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value
	(in millions, except exercise price and term amounts)
Outstanding at December 31, 2022	0.2	$	38.15	5.63	$	0.2
Granted	—	8.94
Exercised	—	—			—
Forfeited, expired or canceled	(0.1)	44.88
Outstanding at December 31, 2023	0.1	$	33.68	4.29	$	0.5
Granted	—	—
Exercised	—	16.77			0.3
Forfeited, expired or canceled	—	90.82
Outstanding at December 31, 2024	0.1	$	34.13	3.15	$	6.7
Granted	—	—
Exercised	—	13.09			3.2
Forfeited, expired or canceled	—	139.87
Outstanding at December 31, 2025	0.1	$	34.80	2.28	$	5.1

Schedule of Exercise Price Range

A summary of total options outstanding and exercisable at December 31, 2025:


	Options Outstanding and Exercisable
Options	Number of Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in Years)
	(in millions, except exercise price and term amounts)
Range of Exercise Prices:
$0.65 - $5.15	0.1	$	2.56	1.35
$5.15 - $43.20	—	$	37.26	2.97
$43.20 - $231.66	—	$	137.01	4.17

REINSURANCE - Schedule of Reinsurance (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Loss and LAE reserves:
Direct	$ 385.7	$ 341.7
Assumed	97.9	71.5
Ceded	(25.4)	(48.0)	$ (43.8)	$ (76.4)
Net loss and LAE reserves, January 1	458.2	365.2	240.4	$ 211.0
Unearned premiums:
Direct	320.3	289.2
Assumed	73.4	64.7
Ceded	(6.3)	(25.1)
Net unearned premiums	387.4	328.8
Premiums written:
Direct	1,224.2	1,064.6	674.6
Assumed	281.6	236.5	108.5
Ceded	(45.4)	(137.0)	(209.9)
Net premiums written	1,460.4	1,164.1	573.2
Premiums earned:
Direct	1,193.2	1,010.8	564.9
Assumed	272.8	220.2	70.9
Ceded	(64.3)	(160.1)	(235.9)
Net premiums earned	1,401.7	1,070.9	399.9
Losses and LAE incurred:
Direct	744.1	673.5	424.1
Assumed	210.6	157.2	51.7
Ceded	(30.5)	(97.7)	(144.5)
Net losses and LAE incurred	$ 924.2	$ 733.0	$ 331.3

SHARE-BASED COMPENSATION - Schedule of RSU, PRSU and MRSU Activity (Details) - $ / shares shares in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Service-based Restricted Stock Units
Number of Shares
Beginning balance (in shares)	1.0	1.5	1.1
Granted (in shares)	0.2	0.3	1.2
Vested (in shares)	(0.5)	(0.8)	(0.6)
Forfeited, expired or canceled (in shares)	(0.1)	0.0	(0.2)
Ending balance (in shares)	0.6	1.0	1.5
Weighted-Average Grant Date Fair Value per Share
Beginning balance (in dollars per shares)	$ 25.89	$ 16.74	$ 51.81
Granted (in dollars per shares)	116.62	50.55	6.91
Vested (in dollars per shares)	28.33	18.34	49.11
Forfeited, expired or canceled (in dollars per share)	57.16	22.21	51.90
Ending balance (in dollars per shares)	$ 47.81	$ 25.89	$ 16.74
Performance-based Restricted Stock Units
Number of Shares
Beginning balance (in shares)	0.2	0.0	0.0
Granted (in shares)	0.2	0.2	0.0
Vested (in shares)	0.0	0.0	0.0
Forfeited, expired or canceled (in shares)	0.0	0.0	0.0
Ending balance (in shares)	0.4	0.2	0.0
Weighted-Average Grant Date Fair Value per Share
Beginning balance (in dollars per shares)	$ 75.55	$ 0	$ 0
Granted (in dollars per shares)	125.91	75.55	0
Vested (in dollars per shares)	0	0	0
Forfeited, expired or canceled (in dollars per share)	0	0	0
Ending balance (in dollars per shares)	$ 93.78	$ 75.55	$ 0
Market-based Restricted Stock Units
Number of Shares
Beginning balance (in shares)	0.4	0.4	0.0
Granted (in shares)	0.0	0.0	0.4
Vested (in shares)	(0.1)	0.0	0.0
Forfeited, expired or canceled (in shares)	0.0	0.0	0.0
Ending balance (in shares)	0.3	0.4	0.4
Weighted-Average Grant Date Fair Value per Share
Beginning balance (in dollars per shares)	$ 5.71	$ 5.91	$ 0
Granted (in dollars per shares)	0	0	5.91
Vested (in dollars per shares)	6.70	7.69	0
Forfeited, expired or canceled (in dollars per share)	0	0	0
Ending balance (in dollars per shares)	$ 5.43	$ 5.71	$ 5.91

AUDIT INFORMATION	12 Months Ended
AUDIT INFORMATION	Dec. 31, 2025
Audit Information [Abstract]
Auditor Firm ID	34
Auditor Name	DELOITTE & TOUCHE LLP
Auditor Location	Columbus, Ohio

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2025
Accounting Policies [Abstract]
Basis of Presentation	The consolidated financial statements include the accounts of Root, Inc. and its subsidiaries, all of which are wholly owned.The condensed combined financial statements include the accounts of Root, Inc. and its wholly owned subsidiary, Caret Holdings, Inc., and are prepared in accordance with accounting principles generally accepted in the United States.
Consolidation	These financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP. All intercompany accounts and transactions have been eliminated.These financial statements have been combined in order to present comparative parent company financial statements for 2025, 2024 and 2023 and should be read in conjunction with our consolidated financial statements.
Use of Estimates	Use of Estimates—The preparation of consolidated financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates reflected in our consolidated financial statements include, but are not limited to, reserves for loss and loss adjustment expense, or LAE, valuation allowances on our deferred tax assets and the amount of reinsurance recoverable and receivable from reinsurance contracts. Use of Estimates—The preparation of condensed combined financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Legal and Other Contingencies	Legal and Other Contingencies—From time to time, we are party to litigation and legal proceedings relating to our business operations. We consider legal actions relating to claims made in the ordinary course of seeking indemnification for a loss covered by the insurance policy in establishing loss and LAE reserves. In the ordinary course of business, we also face certain lawsuits that seek damages beyond policy limits, or extra-contractual claims. We continually evaluate potential liabilities and reserves for litigation and other matters using the guidance issued in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 450, Contingencies. Under this guidance, we may only record reserves for a loss if, as of the date the financial statements are issued or available to be issued, the likelihood of occurrence is deemed probable and we can reasonably estimate the amount of the loss. When disclosing litigation, claims or other matters where a material loss is judged to be reasonably possible, we will disclose an estimated range of loss or state that an estimate cannot be made. We consider each matter using this guidance and record reserves for losses as warranted by establishing a reserve in loss and loss adjustment expense reserves for extra-contractual claims and other liabilities for class action, other non-claims related lawsuits and other matters in our consolidated balance sheets. Any non-reinsurance related recoveries are recognized as other assets in our consolidated balance sheets. We record amounts within loss and loss adjustment expenses for extra-contractual claims and general and administrative for class action and other non-claims related lawsuits in our consolidated statements of operations and comprehensive income (loss). For other recoveries, we record these amounts in the same account as the initial expense in our consolidated statements of operations and comprehensive income (loss). Further details are discussed in Note 13, “Commitments and Contingencies.”
Debt and Equity Issuance Costs	Debt and Equity Issuance Costs—Debt and equity issuance costs, which primarily consist of advisor, legal, accounting, and other third-party fees directly related to issuing debt and equity instruments, are capitalized as other assets in our consolidated balance sheets if incurred prior to closing the related transaction. We incurred such costs in connection with our $200.0 million six-year term loan, or Amended Term Loan, that we entered into on October 29, 2024 and the investment agreement with Carvana Group, LLC, or Investment Agreement, that we entered into on August 21, 2021. Upon close of the related transaction, these deferred issuance costs are generally offset against the related proceeds. Debt issuance costs are subsequently amortized over the term of the financing agreement as interest expense on the consolidated statements of operations and comprehensive income (loss).
Indefinite-Lived Intangible Assets	Indefinite-Lived Intangible Assets—As of December 31, 2025 and 2024, we had insurance licenses of $8.9 million and an intangible asset related to the purchase of the Root.com domain of $1.3 million, including transaction costs, in other assets on the consolidated balance sheets. We incur a minimal fee to renew each license. These intangible assets are not amortized, but instead are tested for impairment annually or when indicators of impairment exist. The impairment test for indefinite-lived intangibles involves first assessing qualitative factors to determine if it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount. If so, then a quantitative test is performed to compare the estimated fair value of the indefinite-lived intangible asset to the respective asset's carrying amount. The evaluation requires the use of estimates and significant judgments and considers the weight of evidence and significance of all identified events and circumstances and most relevant drivers of fair value, both positive and negative, in determining whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount. No impairment was recognized for 2025, 2024 or 2023 related to indefinite-lived intangible assets.
Segment Information	Segment Information—We are a technology company that provides direct-to-consumer insurance products to customers. We operate as a single reporting segment that is managed on a consolidated basis. Our Chief Executive Officer is our chief operating decision maker, or CODM. The primary measure the CODM utilizes to manage operations, monitor budget versus actual results, and evaluate financial performance is net income (loss) as reported on the consolidated statements of comprehensive income (loss). This information is regularly provided to the CODM. The CODM allocates resources based on consolidated expense and forecasted expense information. Significant expenses, which are presented on the consolidated statements of operations and comprehensive income (loss), include loss and LAE, sales and marketing, other insurance expense and technology and development. Other segment items include expenses that our CODM does not evaluate for purposes of making operating decisions. These items include general and administrative, interest expense, loss on extinguishment of debt and income tax expense, which can all be found on the consolidated statements of operations and comprehensive income (loss). Assets provided to the CODM are consistent with those reported on the consolidated balance sheets.
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents—Cash consists of cash on deposit. Cash equivalents are short-term, highly liquid investments that typically mature within three months from the date of origination or purchase and are principally stated at amortized cost, which approximates their fair value. Restricted cash consists of amounts held by a financial institution to satisfy letter of credit requirements for certain property leases. Restricted cash equivalents consist of short-term, highly liquid investments held by a financial institution to maintain certain collateral requirements with an unaffiliated Texas county mutual insurance company and are stated at amortized cost, which approximates their fair value. If checks are issued in excess of cash balances in individual bank accounts, a book overdraft shall be reclassified to accounts payable on the consolidated balance sheets. When a check is issued whereby a disbursement account is used to write the check, but the account is not funded until the check is presented for payment this “negative cash” balance is included in cash and cash equivalents on the consolidated balance sheets, if the funding account has sufficient funds.
Investments	Investments—Investments in debt securities are classified as short-term and available-for-sale fixed maturity securities and are carried at fair value with any unrealized gains and losses, net of taxes, recorded as a component of accumulated other comprehensive income (loss). Management regularly reviews our securities for signs of impairment, an assessment requiring significant management judgment. The criteria that management considers are the financial condition of the issuer, including receipt of scheduled principal and interest cash flows, fair value of a security that has fallen below the amortized value, maturity dates, current economic conditions and intent to sell, including if it is more likely than not that we will be required to sell the security before recovery. We then assess whether the decline in value is due to non-credit related or credit related factors. Non-credit related declines in fair value are recorded as unrealized losses in accumulated other comprehensive income (loss). If we determine that the decline is credit related, we establish an allowance for credit losses equal to the difference between the discounted cash flow model and the amortized value, the allowance would be recorded in net realized gains and losses on investments in our consolidated statements of operations and comprehensive income (loss). This allowance may be subsequently adjusted for recoveries or further credit losses. No such credit losses were recognized in 2025, 2024 and 2023. Other investments primarily consist of private equity investments without a readily determinable fair value. We elected to account for these investments at cost minus any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or a similar investment of the same issuer. Such changes are accounted for within net investment income in our consolidated statements of operations and comprehensive income (loss). We also invest in Low Income Housing Tax Credits, or LIHTC, projects by way of investing in a limited liability entity to offset certain state premium taxes. The purpose of these investments is to encourage private capital investments into regions within these states that are in need of economic development, while providing tax credits and operating loss tax benefits to investors. We account for this investment using the cost method because our interest in the limited liability entity is minor and we have virtually no influence over the entity’s operating and financial policies. When we utilize the tax credits, the associated investment becomes impaired. Impairment of the investment is recognized within net investment income in our consolidated statements of operations and comprehensive income (loss).
Fair Value Measurements	Fair Value Measurements—Fair value is defined as the price that would be received upon selling an asset or the price paid to transfer a liability on the measurement date in the principal or most advantageous market for the asset or liability in an orderly transaction between willing market participants. A three-tier hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are: Level 1 - Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices in active markets for identical assets and liabilities. Level 2 - Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets and liabilities that are actively traded. This also includes pricing models for which the inputs are corroborated by market data. Level 3 - Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Private equity investments that have been remeasured as of December 31, 2025 due to an observable event or impairment are classified within Level 3 of the fair value hierarchy because their estimated fair values are based on valuation methodologies that may include a combination of the observable transaction price at the transaction date and other unobservable inputs, including volatility and the rights and obligations associated with the investments we hold. See Note 3, “Investments,” for further information on our private equity investments.
Leases	Leases—We record leases in accordance with ASC Topic 842, Leases. We recognized a right-of-use asset and liability on the consolidated balance sheets for all leases, except for leases covering a period of fewer than 12 months. Operating lease expense for operating lease right-of-use assets is recognized on a straight-line basis over the lease term, which may include options to extend or terminate the lease when it is reasonably certain to do so and there is a significant economic incentive to exercise that option. For additional information refer to Note 8, “Leases.”
Premiums	Premiums, Premiums Receivable and Premium Write-offs—Premiums written are deferred and earned pro rata over the policy period. Unearned premium is established to cover the unexpired portion of premiums written. A premium deficiency, as measured on a gross basis, is recorded when the sum of expected losses, LAE, unamortized policy acquisition costs and maintenance costs exceed the recorded unearned premium reserve and anticipated investment income. We did not record a premium deficiency reserve in 2025, 2024 or 2023. We have a fronting arrangement with an unaffiliated Texas county mutual insurance company, or the fronting carrier. We route all of our new auto policies in Texas through the fronting carrier whereby we assume 100% of the related premium and losses on those policies. The fronting arrangement allows us to have greater rating and underwriting flexibility. Premiums assumed are deferred and earned pro rata over the policy period. Unearned premium is established to cover the unexpired portion of premiums assumed. Unaffiliated premiums payable are amounts owed to the fronting carrier for premiums assumed and are recorded in other liabilities on the consolidated balance sheets. Unaffiliated premiums payable was $96.7 million and $84.2 million as of December 31, 2025 and 2024, respectively. Unaffiliated reinsurance premiums receivable are the amounts owed to us from the fronting carrier for reinsurance premiums and are recorded in reinsurance recoverable and receivable on the consolidated balance sheets. Unaffiliated reinsurance premiums receivable was $96.3 million and $83.6 million as of December 31, 2025 and 2024, respectively.
Premiums Receivable	Premiums receivable represents premiums written but not yet collected. Generally, premiums are collected prior to providing risk coverage, minimizing our exposure to credit risk. Due to a variety of factors, certain premiums billed may not be collected, for which we establish an allowance for expected credit losses based primarily on an analysis of historical collection experience, adjusted for current economic conditions.
Premium Write-offs	A policy is considered past due on the first day after its due date and policies greater than 90 days past due are written-off.
Fee and Other Income	Fee Income—Fee income consists primarily of the flat fee we charge for installment payments which relates to the additional administrative costs associated with processing more frequent billings. These fees are recognized in the period in which we process the installment. We also charge policy fees, which are typically nonrefundable fees that are intended to reimburse a portion of the costs incurred to underwrite the policy. These fees are recognized ratably over the policy coverage period. Fee income also includes late payment fees that are collected from our policyholders. These fees are recognized in the period in which we process the late payment. Other Income—Other income is primarily comprised of revenue earned from distributing website and mobile application policy inquiry leads in geographies where we do not have a presence, recognized when we generate the lead.
Sales and Marketing	Sales and Marketing—Sales and marketing includes both acquisition and fixed expenses. We view direct performance marketing, experimental marketing, channel media, advertising and referral fees as acquisition expenses. We view sponsorship and related salaries, health benefits, bonuses, employee retirement plan-related expenses and employee share-based compensation expense, or Personnel Costs, and overhead allocated based on headcount, or Overhead, related to our brand strategy, creative and business development activities, certain data science activities and certain non-commission expenses related to the partnership channel as fixed expenses. Sales and marketing costs are expensed as incurred. General and Administrative—General and administrative are fixed expenses that primarily relate to external professional service expenses; Personnel Costs and Overhead for corporate functions; and depreciation expense for computers, furniture and other fixed assets; and restructuring costs which include employee costs, real estate exit costs and other costs. General and administrative expenses are expensed as incurred.
Other Insurance Expense	Other Insurance Expense—Other insurance expense includes expenses primarily related to insurance and underwriting operations of the business and is comprised of acquisition, variable and fixed expenses. We view report costs and refunds related to these expenses and commission expenses related to our partnership channel as acquisition costs. We view premium taxes, credit card and policy processing expenses and premium write-offs as variable expenses. We view insurance license expenses, warrant compensation expense related to policies originating through the integrated automobile insurance solution for Carvana’s online buying platform, or Integrated Platform, low-income housing tax credits which offset certain state premium taxes, Personnel Costs and Overhead related to actuarial and certain data science activities as fixed expenses. We amortize a portion of our deferred policy acquisition costs including certain commissions related to our partnership channel, premium taxes, and report costs related to the successful acquisition of a policy. Tax credits are recognized when utilized. Other insurance expense is expensed as incurred, except for costs related to deferred policy acquisition costs that are capitalized and subsequently amortized over the same period in which the related premiums are earned. Warrant compensation expense is recognized on a pro-rata basis considering progress toward achieving milestones for policies originated through the Integrated Platform as defined under the Carvana commercial agreement. These expenses are recognized net of ceding commissions earned from our quota share reinsurance agreements. The ceding commission provides for reimbursement of both direct and other periodic acquisition costs, including certain underwriting and marketing costs, and is presented as a reduction of other insurance expense.
Technology and Development	Technology and Development—Technology and development are fixed expenses that consist of software development costs related to our mobile app and homegrown information technology systems; third-party services related to infrastructure support; Personnel Costs and Overhead for engineering, product, technology, and certain data science activities; and amortization of internally developed software. Technology and development is expensed as incurred, except for development and testing costs related to internally developed software that are capitalized and subsequently amortized over the expected useful life.
General and Administrative	Sales and Marketing—Sales and marketing includes both acquisition and fixed expenses. We view direct performance marketing, experimental marketing, channel media, advertising and referral fees as acquisition expenses. We view sponsorship and related salaries, health benefits, bonuses, employee retirement plan-related expenses and employee share-based compensation expense, or Personnel Costs, and overhead allocated based on headcount, or Overhead, related to our brand strategy, creative and business development activities, certain data science activities and certain non-commission expenses related to the partnership channel as fixed expenses. Sales and marketing costs are expensed as incurred. General and Administrative—General and administrative are fixed expenses that primarily relate to external professional service expenses; Personnel Costs and Overhead for corporate functions; and depreciation expense for computers, furniture and other fixed assets; and restructuring costs which include employee costs, real estate exit costs and other costs. General and administrative expenses are expensed as incurred.
Deferred Policy Acquisition Costs	Deferred Policy Acquisition Costs—Policy acquisition costs consist primarily of premium taxes, certain marketing costs and underwriting expenses, and commission expenses related to our partnership channel, net of ceding commissions, related to the successful acquisition of new or renewal business. They are deferred and amortized over the same period in which the related premiums are earned. Ceding commissions relating to reinsurance agreements are recorded as a reimbursement for both deferrable and non-deferrable acquisition costs. The portion of the ceding commission that is equal to the pro rata share of policy acquisition costs based on quota share percentage is recorded as an offset to the gross deferred policy acquisition costs. Any portion of the ceding commission that exceeds the policy acquisition costs of the business ceded is recorded as excess ceding commission, a deferred liability, and amortized over the same period in which the related premiums are earned.
Loss and Loss Adjustment Expense and Reserves	Loss and Loss Adjustment Expense and Reserves—Loss and LAE include the costs incurred for claims, payments made and estimated future payments to be made to or on behalf of our policyholders, including expenses needed to adjust or settle claims, net of amounts ceded to reinsurers. Loss and LAE reserves include an amount determined using adjuster determined case-base estimates for reported claims and actuarial determined unpaid claim estimates using past experience and historical emergence patterns for unreported losses and LAE. These reserves are a liability established to cover the estimated ultimate cost to settle insured losses. The estimation of the liability for loss and LAE reserves is complex and includes subjective considerations and management’s judgment. The actuarial methods to determine unpaid loss estimates consider loss trends, contract interpretation, mix of business, regulatory environment, economic conditions, inflation and other risk factors impacting claims settlement. The method used to estimate unpaid LAE liability is based on claims transaction data, including the relative cost of adjusting and settling a range of claim types from express material damage claims to more complex injury cases. There is considerable uncertainty associated with the actuarial estimates, and therefore no assurance can be made that the ultimate unpaid claim liability will not vary materially from such estimates. These loss estimates are continually reviewed by management and adjusted as necessary, with adjustments included in the period determined and recorded in loss and LAE in our consolidated statements of operations and comprehensive income (loss). As such, loss and LAE reserves represent management’s best estimate of the ultimate liability related to reported and unreported claims. Our loss and LAE reserves are recorded gross of reinsurance and net of amounts expected to be received from salvage (the amount recovered from a total loss claims expense) and subrogation (the right to recover payments from third parties). Loss and LAE are net of amounts ceded to reinsurers. We enter into reinsurance contracts to limit our exposure to potential losses as well as to provide additional capacity to write more business. These expenses are a function of the size and term of the insurance policies we write and the loss experience associated with the underlying risks. This includes an allowance for credit losses based on the probability of default and expected loss given default of a reinsurer. Loss and LAE may be paid out over a period of years. Various other expenses incurred during claims processing are considered LAE. These amounts include Personnel Costs for claims-related employees, vendor expenses, software expense, internally developed software amortization, and Overhead.
Reinsurance	Reinsurance—In the ordinary course of business, we cede and retrocede a portion of our business written and assumed, respectively, to reinsurers to limit the maximum net loss potential arising from large risks and catastrophes. These arrangements, known as treaties, provide for reinsurance coverage on quota-share and excess-of-loss basis. All reinsurance contracts provide for indemnification against loss or liability relating to insurance risk and have been accounted for as reinsurance. Although the ceding of reinsurance does not discharge us from our primary liability to the policyholder, the insurance company that assumes the coverage assumes the related liability. Over time, our strategy continues to evolve and we may choose to amend, commute, and/or non-renew certain third-party reinsurance agreements, which may result in us retaining more or less of our business in the future. Amounts recoverable from and payable to reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured business. Reinsurance premiums, commissions and expense reimbursements related to reinsured business are accounted for on a basis consistent with the basis used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums ceded to other companies have been reported as a reduction of premiums earned and are recognized over the remaining policy period based on the reinsurance protection provided. Amounts applicable to reinsurance ceded for unearned premium reserves are reported as a prepaid reinsurance premiums asset in the accompanying consolidated balance sheets and as reduction of unearned premiums in Note 6, “Reinsurance.” Ceding commissions received in connection with reinsurance ceded have been accounted for as a reduction of other insurance expense in the consolidated statements of operations and comprehensive income (loss). Some of our reinsurance agreements provide for adjustment of amount of coverage based on loss experience. We recognize the asset or liability arising from these adjustable features in the period the adjustment occurs, which is calculated based on experience to date under the agreement. In the event that all or any of the reinsuring companies might be unable to meet their obligations under existing reinsurance agreements, we would be liable for such defaulted amounts. We evaluate and monitor the financial condition associated with our reinsurers in order to minimize our exposure to significant losses from reinsurer insolvencies. We obtain our reinsurance from a diverse group of reinsurers and monitor concentration as well as financial strength ratings of the reinsurers to minimize counterparty credit risk. To recognize this risk of credit loss, we have established an allowance for credit losses based on the probability of default and the expected loss given default as influenced by factors such as the reinsurer’s credit rating and average life of our reinsurance recoverables.
Income Taxes	Income Taxes—For the 2025 tax year, we will file a consolidated federal income tax return with Caret Holdings, Inc., Root Insurance Company, Root Property & Casualty, Root Florida, Root Lone Star Insurance Agency, Inc. and Root Reinsurance Company, Ltd. The consolidated return also includes Root Insurance Agency, LLC, Root Enterprise, LLC, Root Republic Managing General Agency, LLC, Root Texas Managing General Agency, LLC, and Root Scout, LLC, which are disregarded entities under Caret Holdings, Inc. for federal income tax purposes. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are recognized as allowed under ASC 740, Income Taxes. We establish a valuation allowance when there is more likely than not insufficient evidence to support the recoverability of the deferred tax asset under ASC 740. In making such a determination, management considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of recent operations. If it is determined that the deferred tax assets would be realizable in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. A valuation allowance of $339.8 million and $345.9 million was established as of December 31, 2025 and 2024, respectively. Further details are discussed in Note 9, “Income Taxes.” We recognize the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained under examination by the appropriate taxing authority. Interest and penalties on our reserve for uncertain tax positions are recognized as a component of tax expense. As of December 31, 2025 and 2024, we did not have any unrecognized tax benefits for uncertain tax positions and had no accrued interest or penalties related to uncertain tax positions.
Internally Developed Software	Internally Developed Software—We review our software development activity and capitalize costs during the application development phase under ASC 350-40, Internal-Use Software. Generally, these costs are amortized on a straight-line basis over a five-year period. Internally developed software costs are assessed for impairment at least quarterly, which also ensures that the assets are still in service. If there are assets identified as no longer in use or impaired, the remaining unamortized costs will be fully amortized or the asset is written off.
Fixed Assets	Fixed Assets—Fixed Assets are carried at cost, net of accumulated depreciation. We capitalize purchases of certain fixed assets, including computers, furniture, and leasehold improvements. Depreciation on computers and furniture is recognized on a straight-line basis over a useful life of three years and five years, respectively. Depreciation on leasehold improvements is recognized on a straight-line basis over the shorter of their useful life or the life of the lease. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.
Employee Share-Based Compensation	Employee Share-Based Compensation—We award share-based compensation to our officers, directors, employees, and certain advisors, through approval from the Compensation Committee of the board of directors. These awards have been made in the forms of stock options, service-based restricted stock units, or RSUs, market-based restricted stock units, or MRSUs, performance-based restricted stock units, or PRSUs, and restricted stock. Share-based compensation expense is recognized based on the grant date fair value of the awards, which is determined using the Black-Scholes Merton, or BSM, option-pricing model. The BSM option pricing model requires inputs based on certain subjective assumptions, including the expected stock price volatility, the expected term of the options (generally ten years from grant date), the risk-free interest rate for a period that approximates the expected term of the option, and our expected dividend yield. We recognize forfeitures as they occur, which generally results in the reversal of previously recognized expense for nonvested awards. In the event of an involuntary termination that results in the cancellation of an award, the remaining unrecognized compensation cost for the entire award is recognized in the period of cancellation. If the award is cancelled and concurrently replaced upon termination, it follows modification accounting, typically as a Type III improbable-to-probable modification whereby it is effectively treated as a forfeiture and new grant as of the date of termination. For performance-based awards, expense is not recognized until it is probable that the performance condition(s) will be met. We assess the probability of the awards vesting based on the performance conditions on a quarterly basis. If a performance condition is improbable but later becomes probable of achievement, a catch up of expense will be recorded as if the award had been vesting on a ratable basis from the grant date. If a performance condition is not achieved or becomes improbable of achievement, the respective cumulative compensation cost is reversed. For market-based awards, if the market condition(s) are never achieved before the expiration date, but the service condition is met, the respective compensation costs remain recognized. Stock options generally vested over four years, with 25% cliff vesting after one year and approximately 2% vesting each month over three years thereafter. RSUs generally vest over two or four years. For our awards vesting over two years, 50% cliff vests after one year and the remainder vest in equal quarterly installments over the following year. For our awards vesting over four years, 25% cliff vests after one year and the remainder vest in equal quarterly or monthly installments over three years thereafter. Certain other RSUs fully vest after one year. We generally recognize share-based compensation expense ratably over the respective vesting period. PRSUs granted in 2024 are expected to vest over an explicit service period of two to three years after the performance period and are dependent upon the fulfillment of both a service condition and the achievement of certain adjusted EBITDA and new writings goals during the performance period. The actual number of PRSUs earned can vary from zero to 200% of the target depending on goal achievement relative to the adjusted EBITDA and new writings goal matrix. The performance period begins on January 1, 2025 and ends on December 31, 2025. For our awards vesting over three years, 25% vests on the Compensation Committee certification date, expected to be in February 2026, and 25% vests annually over approximately three years thereafter. For our awards vesting over two years, 33% vests on the Compensation Committee certification date and approximately 8% vests quarterly over approximately two years thereafter. The expense is recognized ratably over the requisite service period. The performance period for PRSUs granted in 2025 begins on January 1, 2025 and ends on December 31, 2027 and is divided into three sub-performance periods, each beginning on January 1, 2025 and ending on December 31, 2025, 2026, and 2027, respectively. These overlapping sub-periods are one, two, and three years in duration. The actual number of PRSUs that vest can vary from zero to 200% of the target depending on goal achievement relative to gross accident period loss ratio and policies in force goal matrix. Expense for each sub-performance period is recognized ratably over the requisite service period. Awards earned in any sub-performance period vest on the Compensation Committee certification date, which is expected to be in the first quarter of the subsequent year. The PRSU compensation expense is recognized based on the grant date fair value of the award, which was determined using the Company’s closing stock price as of the grant date. MRSUs are expected to vest over a derived service period of one to four years and are dependent upon the fulfillment of both a service condition and the achievement of stock-price goals during the performance period, with the latter being classified as a market condition according to ASC 718, Stock Compensation. The service condition with respect to the first and second tranches of MRSUs was satisfied on April 1, 2024 and April 1 2025, respectively. The remaining two tranches of MRSUs will be met in installments on each of the subsequent two anniversaries of that date, or Vesting Date Requirement, subject to the individual’s continued service through such dates. Stock price goals must be met on or after the respective tranche’s Vesting Date Requirement and are based on the average closing price per share of our Class A common stock over a consecutive 45-day trading period. Any tranche of MRSUs with respect to which the stock price goal has not been met as of April 1, 2028 (the final day of the performance period) will be forfeited as of such date. The MRSU compensation expense is recognized based on the grant date fair value of the award, which was determined by simulating Root’s stock prices using a Monte Carlo simulation in a risk-neutral framework, assuming a Geometric Brownian Motion. The simulation is repeated 100,000 times, and the average of the discounted values for each tranche is the grant date fair value for that tranche. The median time to vest is the derived service period. Employing a Monte Carlo simulation requires a range of inputs for each uncertain variable, and establishing linkage between the assumptions, if necessary. Inputs and assumptions used in our analysis included our stock price at grant date, exercise prices, the term of the MRSUs, equity volatility, risk-free rate and dividend yield. Equity volatility was derived using a blended volatility assumption of 50% weight on Root’s historical volatility calculated from daily stock returns since IPO to the grant date and a 50% weight based on Root’s term matched simple average peer volatility as of the valuation date because our company-specific volatility is not sufficient by itself at the time of grant. The fair value of the MRSUs is estimated on the date of grant using a Monte Carlo simulation with Geometric Brownian Motion that uses certain inputs, assumptions and estimates, as follows: expected term of approximately five years, based on the contractual term of the MRSUs; risk-free interest rate of 4.06%, based on United States Constant Maturity Yield Curve over a similar term; dividend rate of 0.0%, based on our historical and expected future dividend payouts; and volatility of 76%, and other factors. MRSU expense is recognized via a graded vesting method over the derived service period. In the event that both the service condition and market condition are met earlier, expense would be accelerated. Warrant Compensation—In October 2021, we closed the Investment Agreement with Carvana that included the issuance of 14.1 million shares of redeemable convertible preferred stock designated as the Series A Convertible Preferred Stock and the issuance of eight tranches of warrants to purchase shares of the Company’s Class A common stock, of which three tranches expired unexercised in 2025. As part of the Investment Agreement, we and Carvana also entered into a five-year commercial agreement whereby our auto insurance products will be embedded into the Integrated Platform. The commercial agreement provides for agent commissions payable to Carvana for policy origination and an enterprise total loss replacement vehicle solution. The Carvana warrants compensation expense is recognized based on the grant date fair value of the award, which was determined using a Monte Carlo simulation in a risk-neutral framework, as contemplated in the Income Approach of valuation. Specifically, future equity is simulated in each period assuming a Geometric Brownian Motion. We considered the features of the warrants and the interdependency of exercise decisions between the Short-Term Warrants and the Long-Term Warrants in using the Monte Carlo simulation in order to determine the optimum exercise decision. The optimum exercise decision was made by choosing the option which would give the highest aggregate expected value to the holder in each of the 100,000 simulated paths. The payoff of each path is then calculated based on the simulated equity and discounted back to time zero using the applicable risk-free rates. The fair value of the warrants are then calculated as the average value from all simulation paths. Employing a Monte Carlo simulation with Geometric Brownian Motion requires a range of inputs for each uncertain variable, and establishing linkage between the assumptions, if necessary. Inputs and assumptions used in our analysis included our stock price at grant date, exercise prices, the term of the warrants, equity volatility, risk-free rate and dividend yield. Additional considerations included a discount for lack of marketability resulting from Carvana’s five-year lock-up period. These warrants vest as the parties develop an integrated automobile insurance solution for the Integrated Platform and insurance sales through the Integrated Platform. The associated compensation expense is dependent on our periodic assessment of the probability of the milestones being achieved. If deemed probable, we recognize compensation expense on a pro-rata basis considering progress toward achieving the milestones. If a performance condition is no longer probable of achievement, any previously recognized compensation expense is reversed and no subsequent compensation expense is recognized until achievement is once again probable, at which point a cumulative catch-up is recognized. In determining the classification as equity, we followed guidance issued within ASC 480, Distinguishing Liabilities from Equity, and ASC 815, Derivatives and Hedging.
Earnings (Loss) Per Share	Earnings (Loss) Per Share—Earnings (loss) per share, or EPS, results are a key indicator of the overall performance relative to each share of our outstanding common stock. Basic earnings per share is calculated using the two-step method. Undistributed earnings are allocated to participating securities based on the extent to which each class may share in earnings as if all the earnings for the period have been distributed. Basic earnings per share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding for the period. Common shares, when contingencies, such as vesting requirements, exist and have not been satisfied, are excluded from basic earnings per share. Our shares of Class A and Class B common stock are entitled to the same liquidation and dividend rights and therefore earnings are allocated equally. Our redeemable convertible preferred stock and nonvested shares subject to repurchase are considered to be participating securities because they participate in dividends that are non-forfeitable and distributions with common stock. Diluted EPS for both Class A and Class B common stock includes all the components of basic EPS, plus the dilutive effect of common stock equivalents, but excludes those common stock equivalents from the calculation of diluted EPS when the effect of inclusion, assessed individually, would be anti-dilutive. The dilutive effect of stock options, nonvested shares subject to repurchase, RSUs, PRSUs, MRSUs, and warrants are calculated using the treasury stock method. The dilutive effect of redeemable convertible preferred stock is calculated using the if-converted method. For periods in which we operate at a loss, the conversion of common stock equivalents would increase the denominator of the diluted earnings per share calculation and create a lower loss per share. Therefore, these common stock equivalents are considered antidilutive and diluted EPS is equal to basic EPS. Participating securities do not participate in losses and therefore are not allocated in the two-class method. Further details are discussed in Note 14, “Earnings (Loss) Per Share.”
Recently Adopted Accounting Pronouncements/Recently Issued Financial Accounting Standards Not Yet Adopted	Recently Adopted Accounting Pronouncements—In December 2023, the FASB issued Accounting Standards Update, or ASU, No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, or ASU 2023-09. This ASU looks to enhance the transparency and decision usefulness of income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The main provisions to the rate reconciliation disclosure require public entities on an annual basis to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The main provisions to the income taxes paid disclosure require that all entities disclose on an annual basis the amount of income taxes paid disaggregated by federal, state and foreign taxes and the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid meets a quantitative threshold. This ASU also requires all entities to disclose income (loss) from continuing operations before income tax expense (benefit) disaggregated between domestic and foreign and income tax expense (benefit) from continuing operations disaggregated by federal, state and foreign. ASU 2023-09 became effective for the annual reporting period beginning January 1, 2025, and we adopted the standard as of that date on a prospective basis. The adoption did not have an impact on our results of operations or financial condition. Recently Issued Financial Accounting Standards Not Yet Adopted—In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This ASU clarifies the scope of interim reporting, improves the form and content requirements for interim financial statements, and consolidates interim disclosure requirements within Topic 270. This ASU also introduces a new disclosure principle requiring entities to disclose information about events or changes in circumstances since the last annual reporting period that have a material impact on the company. This ASU may be applied prospectively or retrospectively with an effective date for public entities for interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the effects of the new standard. We are currently evaluating the impact of this ASU. In September 2025, the FASB issued ASU No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting For Internal-Use Software. This ASU removes references to prescriptive and sequential software development stages in the guidance and instead requires entities to capitalize software development costs once management has authorized and committed to funding the project and it is probable that the project will be completed and the software will be used for its intended function. The guidance also requires entities to evaluate whether significant development uncertainty exists, which may delay capitalization until such uncertainty has been resolved. This ASU also specifies that the disclosure requirements in ASC 360-10 are required for all capitalized internal-use software costs. This ASU may be applied prospectively, retrospectively, or through a modified transition approach with an effective date for all entities for annual reporting periods beginning after December 15, 2027, including interim periods within those reporting periods. Early adoption is permitted. We are currently evaluating the impact of this ASU. In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU looks to improve financial reporting by requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. The main provisions require a company to disclose in the notes to the financial statements the amounts of employee compensation, depreciation, intangible asset amortization and certain other costs and expenses included in each relevant expense caption and include certain amounts that are already required to be disclosed under current generally accepted accounting principles in the same disclosure as the other disaggregation requirements. It also requires a company to disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. This ASU is to be applied on a prospective basis with an effective date for the first annual reporting period beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the impact of this ASU.

INVESTMENTS

12 Months Ended

Dec. 31, 2025

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

The amortized cost and fair value of short-term investments and available-for-sale fixed maturity securities at December 31, 2025 and 2024 are as follows:



	2025
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in millions)
Fixed maturities:
United States Treasury securities and agencies	$	48.4	$	—	$	0.8	$	—	$	49.2
Municipal securities	23.0		—		0.3		(0.1)		23.2
Corporate debt securities	157.3		—		1.9		(0.2)		159.0
Asset-backed securities	154.4		—		1.5		(0.3)		155.6
Total fixed maturities	$	383.1	$	—	$	4.5	$	(0.6)	$	387.0


	2024
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in millions)
Fixed maturities:
United States Treasury securities and agencies	$	46.5	$	—	$	—	$	(0.3)	$	46.2
Municipal securities	23.9		—		0.1		(0.5)		23.5
Corporate debt securities	106.6		—		0.3		(1.2)		105.7
Asset-backed securities	117.3		—		0.4		(1.1)		116.6
Total fixed maturities	294.3		—		0.8		(3.1)		292.0
Short-term investments	14.8		—		—		—		14.8
Total	$	309.1	$	—	$	0.8	$	(3.1)	$	306.8

Management reviewed the available-for-sale fixed maturity securities and short-term investments at each balance sheet date to consider whether it was necessary to recognize a credit loss as of December 31, 2025 and 2024. We do not intend to sell the investments and it is not more likely than not that we will be required to sell the security before recovery. Management concluded that the unrealized losses on the available-for-sale fixed maturity securities and short-term investments were due to non-credit related factors and, therefore, there was no allowance for credit loss as of December 31, 2025 and 2024.


	2025
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(dollars in millions)
Fixed maturities:
United States Treasury securities	$	2.0	$	—	$	0.7	$	—	$	2.7	$	—
Municipal securities	—		—		6.5		(0.1)		6.5		(0.1)
Corporate debt securities	21.5		—		7.4		(0.2)		28.9		(0.2)
Asset-backed securities	20.3		(0.1)		5.9		(0.2)		26.2		(0.3)
Total fixed maturities	$	43.8	$	(0.1)	$	20.5	$	(0.5)	$	64.3	$	(0.6)



	2024
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(dollars in millions)
Fixed maturities:
United States Treasury securities and agencies	$	26.4	$	(0.3)	$	1.8	$	—	$	28.2	$	(0.3)
Municipal securities	7.1		(0.1)		10.4		(0.4)		17.5		(0.5)
Corporate debt securities	49.5		(0.6)		21.1		(0.6)		70.6		(1.2)
Asset-backed securities	53.6		(0.6)		10.6		(0.5)		64.2		(1.1)
Total fixed maturities	136.6		(1.6)		43.9		(1.5)		180.5		(3.1)
Short-term investments	6.4		—		—		—		6.4		—
Total	$	143.0	$	(1.6)	$	43.9	$	(1.5)	$	186.9	$	(3.1)

Other Investments

As of December 31, 2025 and 2024, other investments related to our private equity investments were $4.4 million. There were no realized or unrealized gains or losses or impairment losses recognized on private equity investments for the years ended December 31, 2025, 2024 and 2023.

There were no realized gains or losses on short-term investments and available-for-sale fixed maturities for the years ended December 31, 2025, 2024 and 2023.

The following table sets forth the amortized cost and fair value of short-term investments and available-for-sale fixed maturity securities by contractual maturity at December 31, 2025:


	2025
	Amortized Cost		Fair Value
	(dollars in millions)
Due in one year or less	$	25.4	$	25.4
Due after one year through five years	253.0		255.9
Due five years through 10 years	54.1		54.8
Due after 10 years	50.6		50.9
Total	$	383.1	$	387.0

The following table sets forth the components of net investment income for the years ended December 31, 2025, 2024 and 2023:


	For the Years Ended December 31,
	2025		2024		2023
	(dollars in millions)
Interest on fixed maturities and short-term investments	$	14.7	$	9.6	$	4.8
Interest on cash, cash equivalents, restricted cash, and restricted cash equivalents	25.4		31.9		28.0

Total	40.1		41.5		32.8
Investment expense	(6.4)		(5.6)		(2.6)
Net investment income	$	33.7	$	35.9	$	30.2

The following tables summarize the credit ratings of short-term investments and available-for-sale fixed maturity securities at December 31, 2025 and 2024:


	December 31, 2025
	Amortized Cost		Fair Value		% of Total Fair Value
S&P Global rating or equivalent	(dollars in millions)
AAA	$	81.5	$	82.1	21.2	%
AA+, AA, AA-	171.4		173.3		44.8
A+, A, A-	107.7		108.8		28.1
BBB+, BBB, BBB-	22.5		22.8		5.9
Total	$	383.1	$	387.0	100.0	%



	December 31, 2024
	Amortized Cost		Fair Value		% of Total Fair Value
S&P Global rating or equivalent	(dollars in millions)
AAA	$	75.2	$	74.8	24.4	%
AA+, AA, AA-, A-1+	146.0		145.0		47.3
A+, A, A-	67.8		67.1		21.9
BBB+, BBB, BBB-	20.1		19.9		6.4
Total	$	309.1	$	306.8	100.0	%

Pursuant to certain regulatory requirements, we are required to hold assets on deposit with various state insurance departments for the benefit of policyholders. These special deposits are included in available-for-sale fixed maturity securities on the consolidated balance sheets. As of December 31, 2025 and 2024, these required deposits had an amortized cost of $15.7 million and $15.8 million, respectively, and fair value of $15.9 million and $15.6 million, respectively. We maintain restricted cash equivalents and certain investments in a trust to meet collateral requirements with the fronting carrier. As of December 31, 2025, we held investments in the trust of $77.0 million. There are withdrawal and other restrictions on these deposits. Ultimately, when unearned premiums run off and loss reserves are paid under this program, any remaining trust balances will be released and available for general use.

INCOME TAXES - Schedule of Operating Loss and Tax Credit Carryforwards (Details) $ in Millions	Dec. 31, 2025 USD ($)
Operating Loss Carryforwards [Line Items]
Operating loss and tax credit carryforwards, subject to expiration	$ 862.6
Operating loss and tax credit carryforwards, not subject to expiration	910.3
Operating loss and tax credit carryforwards	1,772.9
Research and development credits
Operating Loss Carryforwards [Line Items]
Carryforward with expiration	0.9
Carryforward indefinitely	0.0
Total	0.9
Federal
Operating Loss Carryforwards [Line Items]
Carryforward with Expiration	629.6
Carryforward Indefinitely	655.1
Total	1,284.7
State and local (gross, apportioned)
Operating Loss Carryforwards [Line Items]
Carryforward with Expiration	232.1
Carryforward Indefinitely	255.2
Total	$ 487.3

Schedule II: Condensed Combined Financial Information of Registrant - Schedule of Condensed Cash Flow Statement (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$ 206.5	$ 195.7	$ (33.6)
Cash flows from investing activities:
Capitalization of internally developed software	(14.1)	(11.4)	(9.2)
Purchases of fixed assets	0.0	(0.4)	(0.2)
Net cash used in investing activities	(91.7)	(154.4)	(45.7)
Cash flows from financing activities:
Proceeds from exercise of stock options and restricted stock units	0.3	0.1	0.0
Taxes paid related to net share settlement of equity awards	(25.5)	(15.1)	(1.1)
Payment of preferred stock and related warrants issuance costs	0.0	(3.0)	(3.0)
Proceeds from issuance of debt and related warrants, net of issuance costs	0.0	134.4	0.0
Repayments of long-term debt	0.0	(237.1)	0.0
Net cash used in financing activities	(25.2)	(120.7)	(4.1)
Net decrease in cash, cash equivalents and restricted cash	89.6	(79.4)	(83.4)
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of year	600.3	679.7	763.1
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of year	689.9	600.3	679.7
Parent Company
Cash flows from operating activities:
Net cash provided by (used in) operating activities	42.3	(43.2)	(89.1)
Cash flows from investing activities:
Capitalization of internally developed software	(14.1)	(11.4)	(9.2)
Purchases of fixed assets	0.0	(0.4)	(0.2)
Dividends from subsidiaries	123.0	25.0	0.0
Investment in subsidiaries	(93.5)	(23.3)	(44.8)
Net cash used in investing activities	15.4	(10.1)	(54.2)
Cash flows from financing activities:
Proceeds from exercise of stock options and restricted stock units	0.3	0.1	0.0
Taxes paid related to net share settlement of equity awards	(25.5)	(15.1)	(1.1)
Payment of preferred stock and related warrants issuance costs	0.0	(3.0)	(3.0)
Proceeds from issuance of debt and related warrants, net of issuance costs	0.0	134.4	0.0
Repayments of long-term debt	0.0	(237.1)	0.0
Net cash used in financing activities	(25.2)	(120.7)	(4.1)
Net decrease in cash, cash equivalents and restricted cash	32.5	(174.0)	(147.4)
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of year	231.4	405.4	552.8
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of year	$ 263.9	$ 231.4	$ 405.4

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2025

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

During the normal course of business, we enter into various agreements to purchase services, primarily data and information technology based services, that are enforceable and legally binding. Certain supply contracts contain penalty provisions for early termination, in addition to variable costs that are based on volume and usage. We do not expect to incur penalty payments under these provisions that would materially affect our financial position, results of operations or cash flows.

The following table summarizes, by remaining maturity, future commitments related to other arrangements as of December 31, 2025:


	Purchase Obligations
	(dollars in millions)
2026	$	11.4
2027	10.6
2028	7.6
2029	3.4
2030 and thereafter	5.6
Total	$	38.6

From time to time, we are party to litigation and legal proceedings relating to our business operations. While the outcome of all legal actions is not presently determinable, except as set forth below, we do not believe that we are party to any current or pending legal action that if concluded adversely could reasonably be expected to have a material adverse effect on our financial condition or results of operations and cash flow.

On December 23, 2025, an amended putative collective and class action complaint was filed against the Company, Root, Inc., and its wholly owned subsidiary, Caret Holdings, Inc., in the United States District Court for the Southern District of Ohio, Eastern Division (Case No. 2:25-cv-01078-ALM-KAJ) by a former employee individually and on behalf of other similarly situated current and former employees. The complaint alleges that the defendants violated the Fair Labor Standards Act and the Missouri Minimum Wage Law by failing to pay non-exempt customer service representatives for all hours worked, including alleged off-the-clock pre-shift and post-shift work and overtime compensation. The complaint seeks unpaid wages, overtime compensation, liquidated damages, statutory damages, pre- and post-judgment interest, attorneys’ fees, and costs on behalf of the named plaintiff and members of the proposed collective and class. The Company intends to vigorously defend against the claims. The lawsuit is in its early stages. Accordingly, at this time, the Company cannot predict the outcome of this matter or reasonably estimate the likelihood or magnitude of any potential loss contingency.

We are contingently liable for possible future assessments under regulatory requirements for insolvencies and impairments of unaffiliated insurance companies.

Schedule II: Condensed Combined Financial Information of Registrant - Schedule of Supplemental Disclosures (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Condensed Financial Information Disclosure [Line Items]
Interest paid	$ 20.7	$ 43.9	$ 42.5
Federal income taxes paid	0.0	0.0	0.0
State income taxes paid	0.6	0.0	0.0
Parent Company
Condensed Financial Information Disclosure [Line Items]
Interest paid	20.7	43.9	42.5
Federal income taxes paid	0.0	0.0	0.0
State income taxes paid	$ 0.6	$ 0.0	$ 0.0

RESTRUCTURING COSTS (Tables)

12 Months Ended

Dec. 31, 2025

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Costs

The following table displays restructuring costs recorded in general and administrative expenses on the consolidated statements of operations and comprehensive income (loss):


	For the Years Ended December 31,						Cumulative Incurred Through December 31, 2025
	2025		2024		2023
	(dollars in millions)
Restructuring costs:
Employee costs	$	—	$	0.1	$	7.7	$	23.3
Real estate exit costs	0.1		0.1		—		2.3
Other costs	—		—		3.5		4.5
Total restructuring costs	$	0.1	$	0.2	$	11.2	$	30.1

The following table displays a rollforward of the accrual for restructuring costs recorded in accounts payable and accrued expenses on the consolidated balance sheets:


	Employee costs
	(dollars in millions)
Restructuring liability as of December 31, 2023	$	8.3
Expense incurred	0.1

Payments	(8.4)
Restructuring liability as of December 31, 2024	—
Expense incurred	—

Payments	—
Restructuring liability as of December 31, 2025	$	—

INVESTMENTS - Schedule of Unrealized Losses (Details) - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024
Fair Value
Less than 12 Months		$ 143.0
12 Months or More		43.9
Total		186.9
Unrealized Loss
Less than 12 Months		(1.6)
12 Months or More		(1.5)
Total		(3.1)
United States Treasury securities and agencies
Fair Value
Less than 12 Months	$ 2.0	26.4
12 Months or More	0.7	1.8
Total	2.7	28.2
Unrealized Loss
Less than 12 Months	0.0	(0.3)
12 Months or More	0.0	0.0
Total	0.0	(0.3)
Municipal securities
Fair Value
Less than 12 Months	0.0	7.1
12 Months or More	6.5	10.4
Total	6.5	17.5
Unrealized Loss
Less than 12 Months	0.0	(0.1)
12 Months or More	(0.1)	(0.4)
Total	(0.1)	(0.5)
Corporate debt securities
Fair Value
Less than 12 Months	21.5	49.5
12 Months or More	7.4	21.1
Total	28.9	70.6
Unrealized Loss
Less than 12 Months	0.0	(0.6)
12 Months or More	(0.2)	(0.6)
Total	(0.2)	(1.2)
Asset-backed securities
Fair Value
Less than 12 Months	20.3	53.6
12 Months or More	5.9	10.6
Total	26.2	64.2
Unrealized Loss
Less than 12 Months	(0.1)	(0.6)
12 Months or More	(0.2)	(0.5)
Total	(0.3)	(1.1)
Total fixed maturities
Fair Value
Less than 12 Months	43.8	136.6
12 Months or More	20.5	43.9
Total	64.3	180.5
Unrealized Loss
Less than 12 Months	(0.1)	(1.6)
12 Months or More	(0.5)	(1.5)
Total	$ (0.6)	(3.1)
Short-term investments
Fair Value
Less than 12 Months		6.4
12 Months or More		0.0
Total		6.4
Unrealized Loss
Less than 12 Months		0.0
12 Months or More		0.0
Total		$ 0.0

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES (Tables)

12 Months Ended

Dec. 31, 2025

Insurance [Abstract]

Schedule of Reserve Balance

The following provides a reconciliation of the beginning and ending reserve balances for loss and LAE, net of reinsurance:


	2025		2024		2023
	(dollars in millions)
Gross loss and LAE reserves, January 1	$	413.2	$	284.2	$	287.4
Reinsurance recoverable on unpaid losses	(48.0)		(43.8)		(76.4)
Net loss and LAE reserves, January 1	365.2		240.4		211.0
Net incurred loss and LAE related to:
Current year	953.6		752.4		338.3
Prior years	(29.4)		(19.4)		(7.0)
Total incurred	924.2		733.0		331.3
Net paid loss and LAE related to:
Current year	574.1		443.0		165.9
Prior years	257.1		165.2		136.0
Total paid	831.2		608.2		301.9
Net loss and LAE reserves, December 31	458.2		365.2		240.4
Plus reinsurance recoverable on unpaid losses	25.4		48.0		43.8
Gross loss and LAE reserves, December 31	$	483.6	$	413.2	$	284.2


	2025		2024
	(dollars in millions)
Loss and ALAE reserves—net of reinsurance	$	424.9	$	332.4
ULAE reserves—net of reinsurance	33.3		32.8
Reinsurance recoverables on unpaid losses	25.4		48.0
Total loss and LAE reserves—gross of reinsurance	$	483.6	$	413.2

Schedule of ALAE by Accident Year


Incurred Losses and ALAE—Net of Reinsurance
Accident Year	2021 (unaudited)		2022 (unaudited)		2023 (unaudited)		2024 (unaudited)		2025		IBNR		Reported Claims(1)
	(dollars in millions)



2021	$	341.6	$	348.1	$	349.6	$	348.6	$	346.8	$	1.1	152,531
2022			296.0		288.4		286.0		288.2		4.1		119,564
2023					291.2		276.5		275.7		4.7		88,241
2024							667.2		644.8		26.4		143,012
2025									857.0		232.4		156,609
Total									$	2,412.5	$	268.7	659,957

Cumulative Paid Losses and ALAE—Net of Reinsurance
Accident Year	2021 (unaudited)		2022 (unaudited)		2023 (unaudited)		2024 (unaudited)		2025
	(dollars in millions)



2021	$	179.4	$	294.6	$	332.3	$	342.5	$	344.9
2022			175.3		248.3		274.7		281.6
2023					133.9		245.2		266.1
2024							387.5		591.1
2025									506.1
Total									1,989.8
All outstanding liabilities before 2021—net of reinsurance									2.2
Loss and ALAE reserves—net of reinsurance									$	424.9

_______________

(1) Reported by claim event.

Schedule of Reconciliation of Claims Development to Liability


Incurred Losses and ALAE—Net of Reinsurance
Accident Year	2021 (unaudited)		2022 (unaudited)		2023 (unaudited)		2024 (unaudited)		2025		IBNR		Reported Claims(1)
	(dollars in millions)



2021	$	341.6	$	348.1	$	349.6	$	348.6	$	346.8	$	1.1	152,531
2022			296.0		288.4		286.0		288.2		4.1		119,564
2023					291.2		276.5		275.7		4.7		88,241
2024							667.2		644.8		26.4		143,012
2025									857.0		232.4		156,609
Total									$	2,412.5	$	268.7	659,957

Cumulative Paid Losses and ALAE—Net of Reinsurance
Accident Year	2021 (unaudited)		2022 (unaudited)		2023 (unaudited)		2024 (unaudited)		2025
	(dollars in millions)



2021	$	179.4	$	294.6	$	332.3	$	342.5	$	344.9
2022			175.3		248.3		274.7		281.6
2023					133.9		245.2		266.1
2024							387.5		591.1
2025									506.1
Total									1,989.8
All outstanding liabilities before 2021—net of reinsurance									2.2
Loss and ALAE reserves—net of reinsurance									$	424.9

_______________

(1) Reported by claim event.

Schedule of Historical Claims

The following table sets forth the historical average annual percentage payout of incurred losses and ALAE (claims duration), net of reinsurance, as of December 31, 2025:


Year	1		2		3		4		5
Incremental paid(1)	56.1	%	32.6	%	9.2	%	2.7	%	0.7	%

(1) Supplemental information and unaudited.

LONG-TERM DEBT

12 Months Ended

Dec. 31, 2025

Debt Disclosure [Abstract]

LONG-TERM DEBT

In January 2022, we entered into a five-year term loan. As part of the loan agreement, we issued warrants to the lender to purchase approximately 0.3 million shares of our Class A common stock at a strike price of $162.00 per share, or Tranche 1 Warrants.

In September 2024, we entered into the first amendment to the term loan, which, among other things, provides greater flexibility for investments in future insurance subsidiaries. In October 2024, we entered into the second amendment to the term loan, or Amended Term Loan, that resulted in extinguishment of $237.1 million of the term loan, modification of $62.9 million of the term loan, and new borrowings of $137.1 million. The resulting principal amount under the Amended Term Loan is $200.0 million and has a maturity date of October 29, 2030. Interest is payable quarterly and is determined on a floating interest rate calculated on Secured Overnight Financing Rate, with a 1.0% floor, plus an applicable margin ranging from 5.25% to 6.00%, based upon the debt-to-capital ratio payable quarterly.

The Amended Term Loan contains debt covenants that require cash and cash equivalents held in entities other than our insurance subsidiaries to be at least $50.0 million at all times, direct contribution margin on a rolling twelve months to be at least 20% at the end of each fiscal quarter and the surplus of our insurance and Cayman subsidiaries to be at least $125.0 million at the end of each fiscal quarter.

Additionally, in connection with the Amended Term Loan, a new expiration date was established for the Tranche 1 Warrants of January 26, 2027.

In connection with the Amended Term Loan, during 2024, we recognized a loss on extinguishment of debt of $5.4 million and we incurred $2.4 million of debt discount and issuance costs related to the new borrowings, which were capitalized and will be amortized over the life of the Amended Term Loan.

The Amended Term Loan can be repaid at any time through the maturity date as long as we provide at least three business days written notice and pay a prepayment premium of 1.00% applicable between October 29, 2025 to October 25, 2026, and no prepayment premium thereafter. The Amended Term Loan is secured by the assets of Root, Inc. and those of our wholly-owned subsidiary loan parties. In addition, we have pledged 100% of the capital stock of our subsidiaries.

The following summarizes the carrying value of long-term debt as of December 31, 2025 and 2024:


	2025		2024
	(dollars in millions)
Principal balance	$	200.0	$	200.0





Accrued interest payable	3.3		3.8
Unamortized discount and debt issuance costs	(3.0)		(3.7)
Total	$	200.3	$	200.1

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A

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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES - Schedule of Reserve Balance (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Gross loss and LAE reserves, January 1	$ 413.2	$ 284.2	$ 287.4
Reinsurance recoverable on unpaid losses	(48.0)	(43.8)	(76.4)
Net loss and LAE reserves, January 1	458.2	365.2	240.4	$ 211.0
Net incurred loss and LAE related to:
Current year	953.6	752.4	338.3
Prior years	(29.4)	(19.4)	(7.0)
Net losses and LAE incurred	924.2	733.0	331.3
Net paid loss and LAE related to:
Current year	574.1	443.0	165.9
Prior years	257.1	165.2	136.0
Total paid	831.2	608.2	301.9
Net loss and LAE reserves, December 31	458.2	365.2	240.4
Plus reinsurance recoverable on unpaid losses	25.4	48.0	43.8
Gross loss and LAE reserves, December 31	$ 483.6	$ 413.2	$ 284.2

Schedule V: Valuation and Qualifying Accounts (Tables)

12 Months Ended

Dec. 31, 2025

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule of Valuation Allowance


ROOT, INC. AND SUBSIDIARIES
Schedule V: Valuation and Qualifying Accounts
For the Years Ended December 31, 2025, 2024 and 2023

			Additions
	Balance at beginning of period		Charged to costs and expenses		Charge to other accounts		Deductions		Balance at end of period
	(dollars in millions)
Year Ended December 31, 2023
Valuation allowance for deferred tax assets	$	322.3	$	34.9	$	(0.8)	$	—	$	356.4
Allowance for premium receivables	$	2.8	$	12.5	$	—	$	(11.3)	$	4.0
Allowance for reinsurance recoverables	$	0.2	$	1.6	$	—	$	—	$	1.8

Year Ended December 31, 2024
Valuation allowance for deferred tax assets	$	356.4	$	—	$	—	$	(10.5)	$	345.9
Allowance for premium receivables	$	4.0	$	34.1	$	—	$	(28.3)	$	9.8
Allowance for reinsurance recoverables	$	1.8	$	(0.5)	$	—	$	(1.2)	$	0.1

Year Ended December 31, 2025
Valuation allowance for deferred tax assets	$	345.9	$	(4.8)	$	(1.3)	$	—	$	339.8
Allowance for premium receivables	$	9.8	$	36.7	$	—	$	(37.6)	$	8.9
Allowance for reinsurance recoverables	$	0.1	$	—	$	—	$	—	$	0.1

INCOME TAXES - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Current:
Federal	$ 0.0	$ 0.0	$ 0.0
State	0.5	0.0	0.0
Foreign	0.0	0.0	0.0
Total current	0.5	0.0	0.0
Deferred:
Federal	0.0	0.0	0.0
State	0.0	0.0	0.0
Foreign	0.0	0.0	0.0
Total deferred	0.0	0.0	0.0
Total income tax expense	$ 0.5	$ 0.0	$ 0.0

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions	Dec. 31, 2025	Dec. 31, 2024
Amortized cost, fixed maturities	$ 383.1	$ 294.3
Amortized cost, short term investments	0.0	14.8
Allowance for premiums receivable	8.9	9.8
Allowance for credit loss	$ 0.1	$ 0.1
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, issued (in shares)	14.1	14.1
Preferred stock, outstanding (in shares)	14.1	14.1
Preferred stock, liquidation preference	$ 126.5	$ 126.5
Class A Shares
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares issued (in shares)	13.7	11.1
Common stock, shares outstanding (in shares)	13.7	11.1
Class B Shares
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares issued (in shares)	1.8	4.0
Common stock, shares outstanding (in shares)	1.8	4.0

STATUTORY FINANCIAL INFORMATION - Schedule of Statutory Financial Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Statutory Accounting Practices [Line Items]
Statutory Net Income (Loss)	$ 87.0	$ 43.5	$ (56.6)
Statutory Capital and Surplus	247.0	149.0
Root Insurance Company
Statutory Accounting Practices [Line Items]
Statutory Net Income (Loss)	61.8	37.6	(44.4)
Statutory Capital and Surplus	57.8	115.7
Root Property & Casualty
Statutory Accounting Practices [Line Items]
Statutory Net Income (Loss)	37.3	5.9	$ (12.2)
Statutory Capital and Surplus	143.3	$ 33.3
Root Florida
Statutory Accounting Practices [Line Items]
Statutory Net Income (Loss)	(12.1)
Statutory Capital and Surplus	$ 45.9

SHARE-BASED COMPENSATION- Schedule of Warrants (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2025	Oct. 31, 2021
Class A Shares
Class of Warrant or Right [Line Items]
Shares issued (in shares)		7.2
Long Term Warrant \| Class A Shares
Class of Warrant or Right [Line Items]
Shares issued (in shares)	7.2
Unrecognized compensation costs	$ 11.2
Long Term Warrant \| Tranche 1
Class of Warrant or Right [Line Items]
Exercise price of warrants (in dollars per share)	$ 180.00
Long Term Warrant \| Tranche 1 \| Class A Shares
Class of Warrant or Right [Line Items]
Shares issued (in shares)	1.4
Grant date fair value per share (in dollars per share)	$ 7.64
Unrecognized compensation costs	$ 0.0
Long Term Warrant \| Tranche 2
Class of Warrant or Right [Line Items]
Exercise price of warrants (in dollars per share)	$ 225.00
Long Term Warrant \| Tranche 2 \| Class A Shares
Class of Warrant or Right [Line Items]
Shares issued (in shares)	1.5
Grant date fair value per share (in dollars per share)	$ 6.32
Unrecognized compensation costs	$ 1.2
Long Term Warrant \| Tranche 3
Class of Warrant or Right [Line Items]
Exercise price of warrants (in dollars per share)	$ 270.00
Long Term Warrant \| Tranche 3 \| Class A Shares
Class of Warrant or Right [Line Items]
Shares issued (in shares)	1.5
Grant date fair value per share (in dollars per share)	$ 4.39
Unrecognized compensation costs	$ 6.6
Long Term Warrant \| Tranche 4
Class of Warrant or Right [Line Items]
Exercise price of warrants (in dollars per share)	$ 405.00
Long Term Warrant \| Tranche 4 \| Class A Shares
Class of Warrant or Right [Line Items]
Shares issued (in shares)	1.5
Grant date fair value per share (in dollars per share)	$ 1.70
Unrecognized compensation costs	$ 2.4
Long Term Warrant \| Tranche 5
Class of Warrant or Right [Line Items]
Exercise price of warrants (in dollars per share)	$ 540.00
Long Term Warrant \| Tranche 5 \| Class A Shares
Class of Warrant or Right [Line Items]
Shares issued (in shares)	1.3
Grant date fair value per share (in dollars per share)	$ 0.75
Unrecognized compensation costs	$ 1.0

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Insurance [Abstract]
Incurred losses and LAE attributable to prior accident years	$ (29.4)	$ (19.4)	$ (7.0)

RESTRUCTURING COSTS - Schedule of Restructuring Costs Recorded In Accounts Payable and Accrued Expenses (Details) - Employee costs - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning balance	$ 0.0	$ 8.3
Expense incurred	$ 0.0	$ 0.1
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration]	Accounts payable and accrued expenses	Accounts payable and accrued expenses
Payments	$ 0.0	$ (8.4)
Restructuring liability, ending balance	$ 0.0	$ 0.0

- Definition

Amount of expenses associated with exit or disposal activities pursuant to an authorized plan. Excludes expenses related to a discontinued operation or an asset retirement obligation.

+ References + Details

Schedule II: Condensed Combined Financial Information of Registrant (Tables)

12 Months Ended

Dec. 31, 2025

Condensed Financial Information Disclosure [Line Items]

Schedule of Condensed Balance Sheet


ROOT, INC. and CARET HOLDINGS, INC.
Schedule II: Condensed Combined Financial Information of Registrant
Balance Sheets (Parent Company)
	As of December 31,
	2025		2024
	(in millions, except par value)
Assets
Other investments	$	4.4	$	4.4
Cash and cash equivalents	262.8		230.4
Restricted cash	1.1		1.0
Investments in subsidiaries	225.7		213.7




Other assets	51.5		49.9
Receivable from subsidiaries	70.1		43.0
Total Assets	$	615.6	$	542.4
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity
Liabilities:


Long-term debt	$	200.3	$	200.1


Accounts payable and accrued expenses	13.3		21.2
Other liabilities	5.7		5.4

Total liabilities	219.3		226.7
Commitments and Contingencies
Redeemable convertible preferred stock, $0.0001 par value, 14.1 shares issued and outstanding at December 31, 2025 and December 31, 2024 (redemption value of $126.5)	112.0		112.0
Stockholders’ equity:
Class A common stock, $0.0001 par value, 13.7 and 11.1 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively	—		—
Class B common stock, $0.0001 par value, 1.8 and 4.0 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively	—		—

Additional paid-in capital	1,922.0		1,887.9
Accumulated other comprehensive income (loss)	3.9		(2.3)
Accumulated loss	(1,641.6)		(1,681.9)
Total stockholders’ equity	284.3		203.7
Total liabilities, redeemable convertible preferred stock and stockholders’ equity	$	615.6	$	542.4

See Notes to Condensed Combined Financial Statements

Schedule of Condensed Statement of Operations and Comprehensive Income (Loss)


ROOT, INC. and CARET HOLDINGS, INC.
Schedule II: Condensed Combined Financial Information of Registrant
Statements of Operations and Comprehensive Income (Loss) (Parent Company)
	For the Years Ended December 31,
	2025		2024		2023
	(dollars in millions)
Revenue:
Net investment income	$	9.0	$	17.4	$	21.5

Total revenue	9.0		17.4		21.5
Operating expenses:
Sales and marketing	—		0.4		1.5
Other insurance expense	19.8		4.7		17.8
Technology and development	6.2		23.0		17.3
General and administrative	28.1		8.9		23.4
Total operating expenses	54.1		37.0		60.0
Operating loss	(45.1)		(19.6)		(38.5)
Interest expense	21.0		42.2		46.1
Loss on early extinguishment of debt	—		5.4		—
Loss before income tax benefit	(66.1)		(67.2)		(84.6)
Income tax benefit	(11.0)		(12.4)		(1.8)
Net loss before equity net income (loss) of subsidiaries	(55.1)		(54.8)		(82.8)
Net income (loss) of subsidiaries	95.4		85.7		(64.6)
Net income (loss)	40.3		30.9		(147.4)
Other comprehensive income (loss):
Other comprehensive income of subsidiaries	6.2		0.2		3.3
Comprehensive income (loss)	$	46.5	$	31.1	$	(144.1)

See Notes to Condensed Combined Financial Statements

Schedule of Condensed Cash Flow Statement


ROOT, INC. and CARET HOLDINGS, INC.
Schedule II: Condensed Combined Financial Information of Registrant
Statements of Cash Flows (Parent Company)
	For the Years Ended December 31,
	2025		2024		2023
	(dollars in millions)
Cash flows from operating activities:


























Net cash provided by (used in) operating activities	$	42.3	$	(43.2)	$	(89.1)
Cash flows from investing activities:



Capitalization of internally developed software	(14.1)		(11.4)		(9.2)
Purchases of fixed assets	—		(0.4)		(0.2)
Dividends from subsidiaries	123.0		25.0		—
Investment in subsidiaries	(93.5)		(23.3)		(44.8)
Net cash provided by (used in) investing activities	15.4		(10.1)		(54.2)
Cash flows from financing activities:

Proceeds from exercise of stock options and restricted stock units	0.3		0.1		—
Taxes paid related to net share settlement of equity awards	(25.5)		(15.1)		(1.1)

Payment of preferred stock and related warrants issuance costs	—		(3.0)		(3.0)
Proceeds from issuance of debt and related warrants, net of issuance cost	—		134.4		—
Repayments of long-term debt	—		(237.1)		—



Net cash used in financing activities	(25.2)		(120.7)		(4.1)
Net decrease in cash, cash equivalents and restricted cash	32.5		(174.0)		(147.4)
Cash, cash equivalents and restricted cash at beginning of year	231.4		405.4		552.8
Cash, cash equivalents and restricted cash at end of year	$	263.9	$	231.4	$	405.4

See Notes to Condensed Combined Financial Statements

Schedule of Supplemental Disclosures

The supplemental disclosures for cash and non-cash flows for the years ended December 31, 2025, 2024 and 2023 are as follows:


	For the Years Ended December 31,
	2025		2024		2023
	(dollars in millions)
Supplemental disclosures:
Interest paid	$	20.7	$	43.9	$	42.5
Federal income taxes paid	—		—		—
State income taxes paid	0.6		—		—

Parent Company

Condensed Financial Information Disclosure [Line Items]

Schedule of Supplemental Disclosures

The supplemental disclosures for cash and non-cash flows for the years ended December 31, 2025, 2024 and 2023 are as follows:


	2025		2024		2023
	(dollars in millions)
Supplemental disclosures:
Interest paid	$	20.7	$	43.9	$	42.5
Federal income taxes paid	—		—		—
State income taxes paid	$	0.6	—		—

Schedule of Restrictions on Cash and Cash Equivalents


	2025		2024
	(dollars in millions)
Cash and cash equivalents	$	262.8	$	230.4
Restricted cash	1.1		1.0
Total cash, cash equivalents and restricted cash shown in the condensed combined statements of cash flows	$	263.9	$	231.4

EARNINGS (LOSS) PER SHARE (Tables)

12 Months Ended

Dec. 31, 2025

Earnings Per Share [Abstract]

Schedule of Earnings Per Share

The following table displays the computation of basic and diluted EPS for both Class A and Class B common stock for the years ended December 31, 2025, 2024 and 2023:


	For the Years Ended December 31,
	2025		2024		2023
	(in millions, except per share amounts)
Numerator:
Net income (loss)	$	40.3	$	30.9	$	(147.4)
Less: Undistributed income allocated to participating securities	2.0		1.7		—
Net income (loss) attributable to common shareholders	38.3		29.2		(147.4)
Denominator:
Weighted-average common shares outstanding: basic (both Class A and B)	15.4		14.9		14.4
Effect of dilutive securities:
Redeemable convertible preferred stock	0.8		0.8		—
Service-based restricted stock units	0.5		0.8		—
Market-based restricted stock units	0.3		0.3		—
Stock options	0.1		0.1		—

Weighted-average common shares outstanding: diluted (both Class A and B)	17.1		16.9		14.4
Earnings (loss) per common share (both Class A and B):
Basic	$	2.49	$	1.96	$	(10.24)
Diluted	$	2.36	$	1.83	$	(10.24)

Schedule of Anti-Dilutive Securities


	For the Years Ended December 31,
	2025	2024	2023
	(in millions)
Options to purchase common stock	—	—	0.1
Nonvested shares subject to repurchase	—	—	0.1
Service-based restricted stock units	0.1	—	1.5
Market-based restricted stock units	—	—	0.4
Redeemable convertible preferred stock (as converted to common stock)	—	—	0.8
Warrants to purchase common stock	7.5	7.5	7.7
Total	7.6	7.5	10.6

INVESTMENTS - Schedule of Amortized Cost and Fair Value (Details) - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 383.1	$ 309.1
Allowance for Expected Credit Losses		0.0
Gross Unrealized Gains		0.8
Gross Unrealized Losses		(3.1)
Fair Value	387.0	306.8
United States Treasury securities and agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	48.4	46.5
Allowance for Expected Credit Losses	0.0	0.0
Gross Unrealized Gains	0.8	0.0
Gross Unrealized Losses	0.0	(0.3)
Fair Value	49.2	46.2
Municipal securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	23.0	23.9
Allowance for Expected Credit Losses	0.0	0.0
Gross Unrealized Gains	0.3	0.1
Gross Unrealized Losses	(0.1)	(0.5)
Fair Value	23.2	23.5
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	157.3	106.6
Allowance for Expected Credit Losses	0.0	0.0
Gross Unrealized Gains	1.9	0.3
Gross Unrealized Losses	(0.2)	(1.2)
Fair Value	159.0	105.7
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	154.4	117.3
Allowance for Expected Credit Losses	0.0	0.0
Gross Unrealized Gains	1.5	0.4
Gross Unrealized Losses	(0.3)	(1.1)
Fair Value	155.6	116.6
Total fixed maturities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	383.1	294.3
Allowance for Expected Credit Losses	0.0	0.0
Gross Unrealized Gains	4.5	0.8
Gross Unrealized Losses	(0.6)	(3.1)
Fair Value	$ 387.0	292.0
Short-term investments
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		14.8
Allowance for Expected Credit Losses		0.0
Gross Unrealized Gains		0.0
Gross Unrealized Losses		0.0
Fair Value		$ 14.8

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The following table displays income tax expense for the years ended December 31, 2025, 2024 and 2023:


	For the Years Ended December 31,
	2025		2024		2023
	(dollars in millions)
Current:
Federal	$	—	$	—	$	—
State	0.5		—		—
Foreign	—		—		—
Total current	0.5		—		—
Deferred:
Federal	—		—		—
State	—		—		—
Foreign	—		—		—
Total deferred	—		—		—
Total income tax expense	$	0.5	$	—	$	—

Schedule of Effective Income Tax Reconciliation


	2025
	(dollars in millions)
Income (loss) before income taxes
Domestic	$	(59.5)
Foreign	100.3
Income before income taxes	$	40.8

Statutory United States federal income tax expense	$	8.6	21.0	%
State and local income tax expense, net of federal income tax effect(1)	0.4		1.0
Foreign tax effects - Cayman Islands
Foreign rate differential	(21.2)		(52.0)
Effect of cross-border tax laws
United States tax on foreign insurance income	21.2		52.0
Valuation allowance on deferred tax assets	(12.6)		(30.9)
Nontaxable and nondeductible items
Share-based compensation	(11.8)		(28.9)
Nondeductible warrant expense	9.3		22.8
Nondeductible compensation	5.8		14.2
Other nondeductible expenses	0.2		0.5
Other adjustments	0.6		1.5
Income tax expense	$	0.5	1.2	%

______________

(1) Florida makes up the majority of the state and local income tax expense, net of federal income tax effect category.


	2024				2023
	(dollars in millions)
Income (loss) before income taxes	$	30.9			$	(147.4)
Statutory United States federal income tax expense (benefit)	6.5		21.0	%	(30.9)		21.0	%
Valuation allowance on deferred tax assets	(10.5)		(34.0)		34.9		(23.7)

Share-based compensation	(6.0)		(19.4)		5.5		(3.7)
Nondeductible compensation	2.9		9.4		1.2		(0.8)
Return to provision permanent adjustments	—		—		—		—
State net operating loss	7.9		25.6		(10.5)		7.1
Other	(0.8)		(2.6)		(0.2)		0.1
Income tax expense	$	—	—	%	$	—	—	%

Schedule of Deferred Tax Assets and Liabilities

The following table sets forth the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2025 and 2024:


	2025		2024
	(dollars in millions)
Deferred tax assets:
Unpaid losses and loss adjustment expenses	$	4.2	$	3.3
Unearned premium reserves	16.4		14.2



Disallowed interest carryforward	10.4		20.8



Deferred compensation	5.2		8.2
Stock and warrant compensation	12.6		12.0


Other	6.0		5.1
State net operating loss carryforward	28.0		20.0
Federal net operating loss carryforward	269.8		271.6
Gross deferred assets	352.6		355.2
Less valuation allowance	(339.8)		(345.9)
Total deferred tax assets, less valuation allowance	12.8		9.3
Deferred tax liabilities:
Research and experimental expenditures	—		0.2
Fixed assets	0.3		0.4
Deferred policy acquisition costs	9.9		6.7
Intangible assets	0.7		0.6
Investments	0.9		0.9

Other	1.0		0.5
Deferred tax liabilities	12.8		9.3
Net deferred tax asset	$	—	$	—

Schedule of Operating Loss Carryforwards

The following table sets forth carryforwards related to NOLs and tax credits as of December 31, 2025:


	Carryforward with Expiration		Carryforward Indefinitely		Total		Years of Expiration
	(dollars in millions)
Federal	$	629.6	$	655.1	$	1,284.7	2038-2046
State and local (gross, apportioned)	232.1		255.2		487.3		2026-2045
Research and development credits	0.9		—		0.9		2036-2038
Total	$	862.6	$	910.3	$	1,772.9

Schedule of Tax Credit Carryforwards

The following table sets forth carryforwards related to NOLs and tax credits as of December 31, 2025:


	Carryforward with Expiration		Carryforward Indefinitely		Total		Years of Expiration
	(dollars in millions)
Federal	$	629.6	$	655.1	$	1,284.7	2038-2046
State and local (gross, apportioned)	232.1		255.2		487.3		2026-2045
Research and development credits	0.9		—		0.9		2036-2038
Total	$	862.6	$	910.3	$	1,772.9

SHARE-BASED COMPENSATION - Schedule of Option Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Number of Shares
Outstanding, beginning balance (in shares)	0.1	0.1	0.2
Granted (in shares)	0.0	0.0	0.0
Exercised (in shares)	0.0	0.0	0.0
Forfeited, expired or canceled (in shares)	0.0	0.0	(0.1)
Outstanding, ending balance (in shares)	0.1	0.1	0.1	0.2
Weighted-Average Exercise Price
Outstanding, beginning balance (in dollars per share)	$ 34.13	$ 33.68	$ 38.15
Granted (in dollars per share)	0	0	8.94
Exercised (in dollars per share)	13.09	16.77	0
Forfeited, expired or canceled (in dollars per share)	139.87	90.82	44.88
Outstanding, ending balance (in dollars per share)	$ 34.80	$ 34.13	$ 33.68	$ 38.15
Outstanding, weighted-average remaining contractual term (in years)	2 years 3 months 10 days	3 years 1 month 24 days	4 years 3 months 14 days	5 years 7 months 17 days
Outstanding, aggregate intrinsic value	$ 5.1	$ 6.7	$ 0.5	$ 0.2
Exercised, aggregate intrinsic value	$ 3.2	$ 0.3	$ 0.0

Cybersecurity Risk Management and Strategy Disclosure	12 Months Ended
Cybersecurity Risk Management and Strategy Disclosure	Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]	The Company has processes in place designed to protect its information systems and to assess, identify and manage material risks from cybersecurity threats. Accordingly, the Company has designed and implemented an Information Security Program, designed to protect the confidentiality, integrity, and availability of its information systems and data (including nonpublic information in its possession, custody, or control), as well as to comply with privacy and Information Security Program requirements for insurers as set forth in applicable state laws and regulations. As part of the Information Security Program, the Company has implemented an information security and privacy training and awareness program for Root employees, which includes new-hire training, ongoing periodic training, security tabletop exercises and regular phishing simulation and exercises. In addition, the Company engages third parties as necessary in connection with these processes. The Company has engaged third parties to perform information security risk assessments and testing on a periodic basis. It also has engaged third parties to provide a variety of services, including providing hosted security products as well as services to support cybersecurity incident detection and response activities. In order to identify and manage risk from third parties, the Company has implemented a third-party cybersecurity risk management program involving the assessment of information security risk related to the third-party, with consideration given to the inherent risk level, the adequacy of the third-party’s control environment to mitigate those risks, and areas of residual risk. The breadth and depth of the assessment activities are designed to be commensurate with the nature and scope of the services provided by the third party. The Company’s cybersecurity risk management processes are integrated into the Company’s enterprise risk management process. Our board of directors oversees an enterprise-wide approach to risk management, designed to support the achievement of organizational objectives, to improve long-term organizational performance and to enhance stockholder value. A fundamental part of risk management is not only understanding the most significant risks a company faces and what steps management is taking to manage those risks, but also understanding what level of risk is appropriate for a given company. The involvement of our full board of directors in reviewing our business is an integral aspect of its assessment of management’s tolerance for risk and also its determination of what constitutes an appropriate level of risk. In connection with its reviews of the operations of our business, the board of directors addresses the primary risks associated with our business including cybersecurity. In particular, our board of directors is committed to the prevention, timely detection and mitigation of the effects of cybersecurity threats or incidents. We have previously experienced cybersecurity threats to our information technology infrastructure and have experienced cybersecurity incidents that have resulted in threat actors obtaining customer personal information, attempts to breach our systems, fraudulent activity and other incidents. As of the filing of this Annual Report on Form 10-K, however, we are not aware of any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, that have occurred that have materially affected, or are reasonably likely to materially affect, the Company, including its business strategy, results of operations or financial condition. However, future threats could materially affect our business strategy, results of operations or financial condition. Risks related to cybersecurity events are detailed in the section of this Annual Report on Form 10-K titled “Risk Factors—Risks Related to Our Business—Cybersecurity incidents, or real or perceived errors, failures or bugs in our or our vendors’ systems, or our website or mobile app could impair our operations, compromise our confidential information or our customers’ personal information, damage our reputation and brand, and harm our business, financial condition, operating results and prospects.”
Cybersecurity Risk Management Processes Integrated [Flag]	true
Cybersecurity Risk Management Processes Integrated [Text Block]	The Company has processes in place designed to protect its information systems and to assess, identify and manage material risks from cybersecurity threats. Accordingly, the Company has designed and implemented an Information Security Program, designed to protect the confidentiality, integrity, and availability of its information systems and data (including nonpublic information in its possession, custody, or control), as well as to comply with privacy and Information Security Program requirements for insurers as set forth in applicable state laws and regulations. As part of the Information Security Program, the Company has implemented an information security and privacy training and awareness program for Root employees, which includes new-hire training, ongoing periodic training, security tabletop exercises and regular phishing simulation and exercises.
Cybersecurity Risk Management Third Party Engaged [Flag]	true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag]	true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag]	false
Cybersecurity Risk Board of Directors Oversight [Text Block]	While our full board of directors has overall responsibility for risk oversight, it has delegated oversight of certain risks to its committees, including the oversight of risks from cybersecurity threats. The board of directors delegated the oversight of cybersecurity risks to the Audit, Risk and Finance Committee, which oversees controls for the Company’s major financial and security risk exposures. The board of directors, through the Audit, Risk and Finance Committee, oversees the design and implementation of the Information Security Program. The board of directors and the Audit, Risk and Finance Committee are informed about these risks through regular reports from the Chief Information Security Officer, or CISO, about the Information Security Program. Additionally, the board of directors is informed of significant cybersecurity incidents, as needed, by the Computer Security Incident Response Team, which is led by the Company’s General Counsel. The Company’s CISO is responsible for assessing and managing risks from cybersecurity threats. The Company’s CISO also leads the Information Security group and is responsible for the day-to-day management of the Information Security Program. Srini Srinivasan is the Company’s CISO and reports directly to the Company’s President and Chief Technology Officer. Mr. Srinivasan has an extensive background in cybersecurity, technology, and risk management across a variety of industries, including financial services, healthcare, retail, e-commerce and technology. Additionally, Mr. Srinivasan holds various information security certifications. The Information Security group, senior leadership and the CISO are informed about and monitor the prevention, detection, mitigation, and remediation of cybersecurity incidents through the Information Security Program. At least quarterly, the CISO provides updates to the Audit, Risk and Finance Committee, which includes updates on the overall Information Security Program status and compliance, cybersecurity related risks, and recommended changes to the Information Security Program. Senior members of our Information Security, Internal Audit and Legal functions also provide detailed, regular reports on information security and privacy to the Audit, Risk and Finance Committee.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]	While our full board of directors has overall responsibility for risk oversight, it has delegated oversight of certain risks to its committees, including the oversight of risks from cybersecurity threats.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]	The board of directors delegated the oversight of cybersecurity risks to the Audit, Risk and Finance Committee, which oversees controls for the Company’s major financial and security risk exposures.
Cybersecurity Risk Role of Management [Text Block]	The board of directors and the Audit, Risk and Finance Committee are informed about these risks through regular reports from the Chief Information Security Officer, or CISO, about the Information Security Program.
Cybersecurity Risk Management Positions or Committees Responsible [Flag]	true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]	The board of directors, through the Audit, Risk and Finance Committee, oversees the design and implementation of the Information Security Program. The board of directors and the Audit, Risk and Finance Committee are informed about these risks through regular reports from the Chief Information Security Officer, or CISO, about the Information Security Program. Additionally, the board of directors is informed of significant cybersecurity incidents, as needed, by the Computer Security Incident Response Team, which is led by the Company’s General Counsel.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]	Mr. Srinivasan has an extensive background in cybersecurity, technology, and risk management across a variety of industries, including financial services, healthcare, retail, e-commerce and technology. Additionally, Mr. Srinivasan holds various information security certifications.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]	The Company’s CISO is responsible for assessing and managing risks from cybersecurity threats. The Company’s CISO also leads the Information Security group and is responsible for the day-to-day management of the Information Security Program. Srini Srinivasan is the Company’s CISO and reports directly to the Company’s President and Chief Technology Officer. Mr. Srinivasan has an extensive background in cybersecurity, technology, and risk management across a variety of industries, including financial services, healthcare, retail, e-commerce and technology. Additionally, Mr. Srinivasan holds various information security certifications.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag]	true

INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024
Deferred tax assets:
Unpaid losses and loss adjustment expenses	$ 4.2	$ 3.3
Unearned premium reserves	16.4	14.2
Disallowed interest carryforward	10.4	20.8
Deferred compensation	5.2	8.2
Stock and warrant compensation	12.6	12.0
Other	6.0	5.1
State net operating loss carryforward	28.0	20.0
Federal net operating loss carryforward	269.8	271.6
Gross deferred assets	352.6	355.2
Less valuation allowance	(339.8)	(345.9)
Total deferred tax assets, less valuation allowance	12.8	9.3
Deferred tax liabilities:
Research and experimental expenditures	0.0	0.2
Fixed assets	0.3	0.4
Deferred policy acquisition costs	9.9	6.7
Intangible assets	0.7	0.6
Investments	0.9	0.9
Other	1.0	0.5
Deferred tax liabilities	12.8	9.3
Net deferred tax asset	$ 0.0	$ 0.0

CAPITAL STOCK (Details) $ / shares in Units, $ in Millions	1 Months Ended	12 Months Ended
CAPITAL STOCK (Details) $ / shares in Units, $ in Millions	Oct. 31, 2021 USD ($) tranche vote $ / shares shares	Dec. 31, 2025 USD ($) $ / shares shares	Dec. 31, 2024 USD ($) shares
Temporary Equity [Line Items]
Preferred stock, authorized (in shares)		100,000,000.0
Preferred stock, issued (in shares)		14,100,000	14,100,000
Preferred stock, liquidation preference \| $		$ 126.5	$ 126.5
Debt issuance costs \| $	$ 19.6
Preferred stock, dividend percentage	5.00%
Root, Inc \| Carvana
Temporary Equity [Line Items]
Ownership percentage (in percent)		9.90%
Carvana
Temporary Equity [Line Items]
Preferred stock, issued (in shares)	14,100,000
Number of tranches \| tranche	8
Conversion price (in dollars per share) \| $ / shares	$ 9.00	$ 162.00
Common stock, shares issued (in shares)		800,000
Class A Shares
Temporary Equity [Line Items]
Common stock, shares authorized (in shares)		1,000,000,000.0
Voting rights \| vote	1
Conversion of stock (in shares)		1
Common stock, shares issued (in shares)		13,700,000	11,100,000
Class B Shares
Temporary Equity [Line Items]
Common stock, shares authorized (in shares)		269,000,000.0
Voting rights \| vote	10
Common stock, shares issued (in shares)		1,800,000	4,000,000.0
Series A Preferred Stock \| Carvana
Temporary Equity [Line Items]
Proceeds from issuance of convertible stock \| $	$ 126.5
Preferred stock, liquidation preference \| $	$ 126.5

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES - Schedule of ALAE by Accident Year (Details) $ in Millions	Dec. 31, 2025 USD ($) claim	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Claims Development [Line Items]
Incurred Losses and ALAE—Net of Reinsurance	$ 2,412.5
IBNR	$ 268.7
Reported claims \| claim	659,957
Cumulative Paid Losses and ALAE—Net of Reinsurance	$ 1,989.8
All outstanding liabilities before 2021—net of reinsurance	2.2
Loss and ALAE reserves—net of reinsurance	424.9
2021
Claims Development [Line Items]
Incurred Losses and ALAE—Net of Reinsurance	346.8	$ 348.6	$ 349.6	$ 348.1	$ 341.6
IBNR	$ 1.1
Reported claims \| claim	152,531
Cumulative Paid Losses and ALAE—Net of Reinsurance	$ 344.9	342.5	332.3	294.6	$ 179.4
2022
Claims Development [Line Items]
Incurred Losses and ALAE—Net of Reinsurance	288.2	286.0	288.4	296.0
IBNR	$ 4.1
Reported claims \| claim	119,564
Cumulative Paid Losses and ALAE—Net of Reinsurance	$ 281.6	274.7	248.3	$ 175.3
2023
Claims Development [Line Items]
Incurred Losses and ALAE—Net of Reinsurance	275.7	276.5	291.2
IBNR	$ 4.7
Reported claims \| claim	88,241
Cumulative Paid Losses and ALAE—Net of Reinsurance	$ 266.1	245.2	$ 133.9
2024
Claims Development [Line Items]
Incurred Losses and ALAE—Net of Reinsurance	644.8	667.2
IBNR	$ 26.4
Reported claims \| claim	143,012
Cumulative Paid Losses and ALAE—Net of Reinsurance	$ 591.1	$ 387.5
2025
Claims Development [Line Items]
Incurred Losses and ALAE—Net of Reinsurance	857.0
IBNR	$ 232.4
Reported claims \| claim	156,609
Cumulative Paid Losses and ALAE—Net of Reinsurance	$ 506.1

Schedule V: Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2025

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule V: Valuation and Qualifying Accounts


ROOT, INC. AND SUBSIDIARIES
Schedule V: Valuation and Qualifying Accounts
For the Years Ended December 31, 2025, 2024 and 2023

			Additions
	Balance at beginning of period		Charged to costs and expenses		Charge to other accounts		Deductions		Balance at end of period
	(dollars in millions)
Year Ended December 31, 2023
Valuation allowance for deferred tax assets	$	322.3	$	34.9	$	(0.8)	$	—	$	356.4
Allowance for premium receivables	$	2.8	$	12.5	$	—	$	(11.3)	$	4.0
Allowance for reinsurance recoverables	$	0.2	$	1.6	$	—	$	—	$	1.8

Year Ended December 31, 2024
Valuation allowance for deferred tax assets	$	356.4	$	—	$	—	$	(10.5)	$	345.9
Allowance for premium receivables	$	4.0	$	34.1	$	—	$	(28.3)	$	9.8
Allowance for reinsurance recoverables	$	1.8	$	(0.5)	$	—	$	(1.2)	$	0.1

Year Ended December 31, 2025
Valuation allowance for deferred tax assets	$	345.9	$	(4.8)	$	(1.3)	$	—	$	339.8
Allowance for premium receivables	$	9.8	$	36.7	$	—	$	(37.6)	$	8.9
Allowance for reinsurance recoverables	$	0.1	$	—	$	—	$	—	$	0.1

CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY - USD ($) shares in Millions, $ in Millions	Total	Class A Shares	Class B Shares	Class A and Class B Convertible Common Stock	Class A and Class B Convertible Common Stock Class A Shares	Class A and Class B Convertible Common Stock Class B Shares	Additional Paid-In Capital	Accumulated Other Comprehensive(Loss) Income	Accumulated Loss
Beginning balance (in shares) at Dec. 31, 2022	14.1
Beginning balance at Dec. 31, 2022	$ 112.0
Ending balance (in shares) at Dec. 31, 2023	14.1
Ending balance at Dec. 31, 2023	$ 112.0
Beginning balance (in shares) at Dec. 31, 2022					9.2	5.0
Beginning balance at Dec. 31, 2022	277.1			$ 0.0			$ 1,850.7	$ (5.8)	$ (1,567.8)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(147.4)								(147.4)
Other comprehensive income	3.3							3.3
Common stock—option exercises and restricted stock units vesting, net of shares withheld for employee taxes (in shares)					0.3
Reclassification of early-exercised stock option from liabilities	0.1						0.1
Common stock—share-based compensation expense	17.3						17.3
Warrant compensation expense	17.4						17.4
Warrants issuance costs	(2.1)						(2.1)
Ending balance (in shares) at Dec. 31, 2023					9.5	5.0
Ending balance at Dec. 31, 2023	$ 165.7			0.0			1,883.4	(2.5)	(1,715.2)
Ending balance (in shares) at Dec. 31, 2024	14.1
Ending balance at Dec. 31, 2024	$ 112.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	30.9								30.9
Other comprehensive income	0.2							0.2
Conversion of Class B to Class A common stock (in shares)					1.0	(1.0)
Common stock—option exercises and restricted stock units vesting, net of shares withheld for employee taxes (in shares)					0.6
Common stock—option exercises and restricted stock units vesting, net of shares withheld for employee taxes	(15.0)						(17.4)		2.4
Common stock—share-based compensation expense	18.5						18.5
Warrant compensation expense	3.8						3.8
Warrants issuance costs	(0.4)						(0.4)
Ending balance (in shares) at Dec. 31, 2024		11.1	4.0		11.1	4.0
Ending balance at Dec. 31, 2024	$ 203.7			0.0			1,887.9	(2.3)	(1,681.9)
Ending balance (in shares) at Dec. 31, 2025	14.1
Ending balance at Dec. 31, 2025	$ 112.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	40.3								40.3
Other comprehensive income	6.2							6.2
Conversion of Class B to Class A common stock (in shares)					2.2	(2.2)
Conversion of Class B to Class A common stock	0.0
Common stock—option exercises and restricted stock units vesting, net of shares withheld for employee taxes (in shares)					0.4
Common stock—option exercises and restricted stock units vesting, net of shares withheld for employee taxes	(25.2)						(25.2)		0.0
Common stock—share-based compensation expense	40.1						40.1
Warrant compensation expense	19.2						19.2
Ending balance (in shares) at Dec. 31, 2025		13.7	1.8		13.7	1.8
Ending balance at Dec. 31, 2025	$ 284.3			$ 0.0			$ 1,922.0	$ 3.9	$ (1,641.6)

EARNINGS (LOSS) PER SHARE - Schedule of Basic and Diluted Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Numerator:
Net income (loss)	$ 40.3	$ 30.9	$ (147.4)
Less: Undistributed income allocated to participating securities	2.0	1.7	0.0
Net income (loss) attributable to common shareholders	$ 38.3	$ 29.2	$ (147.4)
Denominator:
Weighted-average common shares outstanding: basic (both Class A and B) (in shares)	15.4	14.9	14.4
Effect of dilutive securities:
Weighted-average common shares outstanding: diluted (both Class A and B) (in shares)	17.1	16.9	14.4
Earnings (loss) per common share (both Class A and B):
Basic (in dollars per share)	$ 2.49	$ 1.96	$ (10.24)
Diluted (in dollars per share)	$ 2.36	$ 1.83	$ (10.24)
Redeemable convertible preferred stock
Effect of dilutive securities:
Redeemable convertible preferred stock (in shares)	0.8	0.8	0.0
Service-based restricted stock units
Effect of dilutive securities:
RSUs, MRSUs and Stock options (in shares)	0.5	0.8	0.0
Market-based restricted stock units
Effect of dilutive securities:
RSUs, MRSUs and Stock options (in shares)	0.3	0.3	0.0
Stock options
Effect of dilutive securities:
RSUs, MRSUs and Stock options (in shares)	0.1	0.1	0.0

INVESTMENTS - Schedule of Net Investment Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Net Investment Income [Line Items]
Total	$ 40.1	$ 41.5	$ 32.8
Investment expense	(6.4)	(5.6)	(2.6)
Net investment income	33.7	35.9	30.2
Interest on fixed maturities and short-term investments
Net Investment Income [Line Items]
Total	14.7	9.6	4.8
Interest on cash, cash equivalents, restricted cash, and restricted cash equivalents
Net Investment Income [Line Items]
Total	$ 25.4	$ 31.9	$ 28.0

- Definition

Amount, after investment expense, of income earned from investments in securities and real estate. Includes, but is not limited to, real estate investment, policy loans, dividends, and interest. Excludes realized gain (loss) on investments.

+ References + Details

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2025

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Assets and Liabilities

The following tables provide information about our financial assets measured and reported at fair value as of December 31, 2025 and 2024:


	2025
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in millions)
Assets
Fixed maturities:
United States Treasury securities and agencies	$	46.7	$	2.5	$	—	$	49.2
Municipal securities	—		23.2		—		23.2
Corporate debt securities	—		159.0		—		159.0
Asset-backed securities	—		155.6		—		155.6
Total fixed maturities	46.7		340.3		—		387.0

Cash equivalents and restricted cash equivalents	388.0		—		—		388.0
Total assets at fair value	$	434.7	$	340.3	$	—	$	775.0

	2024
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in millions)
Assets
Fixed maturities:
United States Treasury securities and agencies	$	46.2	$	—	$	—	$	46.2
Municipal securities	—		23.5		—		23.5
Corporate debt securities	—		105.7		—		105.7
Asset-backed securities	—		116.6		—		116.6
Total fixed maturities	46.2		245.8		—		292.0
Short-term investments	11.8		3.0		—		14.8
Cash equivalents	342.4		—		—		342.4
Total assets at fair value	$	400.4	$	248.8	$	—	$	649.2

Schedule of Carrying Amounts and Fair Values of Financial Instruments

As of December 31, 2025 and 2024, the carrying amounts and fair values of these financial instruments were as follows:


	Carrying Amount as of December 31, 2025		Estimated Fair Value as of December 31, 2025		Carrying Amount as of December 31, 2024		Estimated Fair Value as of December 31, 2024
	(dollars in millions)
Long-term debt	$	200.3	$	204.1	$	200.1	$	204.9

FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Fair Value of Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024
Assets
Fixed maturities:	$ 387.0	$ 306.8
Cash equivalents	388.0	342.4
Total assets at fair value	775.0	649.2
United States Treasury securities and agencies
Assets
Fixed maturities:	49.2	46.2
Municipal securities
Assets
Fixed maturities:	23.2	23.5
Corporate debt securities
Assets
Fixed maturities:	159.0	105.7
Asset-backed securities
Assets
Fixed maturities:	155.6	116.6
Total fixed maturities
Assets
Fixed maturities:	387.0	292.0
Short-term investments
Assets
Fixed maturities:		14.8
Level 1
Assets
Cash equivalents	388.0	342.4
Total assets at fair value	434.7	400.4
Level 1 \| United States Treasury securities and agencies
Assets
Fixed maturities:	46.7	46.2
Level 1 \| Municipal securities
Assets
Fixed maturities:	0.0	0.0
Level 1 \| Corporate debt securities
Assets
Fixed maturities:	0.0	0.0
Level 1 \| Asset-backed securities
Assets
Fixed maturities:	0.0	0.0
Level 1 \| Total fixed maturities
Assets
Fixed maturities:	46.7	46.2
Level 1 \| Short-term investments
Assets
Fixed maturities:		11.8
Level 2
Assets
Cash equivalents	0.0	0.0
Total assets at fair value	340.3	248.8
Level 2 \| United States Treasury securities and agencies
Assets
Fixed maturities:	2.5	0.0
Level 2 \| Municipal securities
Assets
Fixed maturities:	23.2	23.5
Level 2 \| Corporate debt securities
Assets
Fixed maturities:	159.0	105.7
Level 2 \| Asset-backed securities
Assets
Fixed maturities:	155.6	116.6
Level 2 \| Total fixed maturities
Assets
Fixed maturities:	340.3	245.8
Level 2 \| Short-term investments
Assets
Fixed maturities:		3.0
Level 3
Assets
Cash equivalents	0.0	0.0
Total assets at fair value	0.0	0.0
Level 3 \| United States Treasury securities and agencies
Assets
Fixed maturities:	0.0	0.0
Level 3 \| Municipal securities
Assets
Fixed maturities:	0.0	0.0
Level 3 \| Corporate debt securities
Assets
Fixed maturities:	0.0	0.0
Level 3 \| Asset-backed securities
Assets
Fixed maturities:	0.0	0.0
Level 3 \| Total fixed maturities
Assets
Fixed maturities:	$ 0.0	0.0
Level 3 \| Short-term investments
Assets
Fixed maturities:		$ 0.0

COVER PAGE - USD ($) $ in Billions	12 Months Ended
COVER PAGE - USD ($) $ in Billions	Dec. 31, 2025	Feb. 18, 2026	Jun. 30, 2025
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2025
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-39658
Entity Registrant Name	ROOT, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-2717903
Entity Address, Address Line One	80 E. Rich Street
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Columbus
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43215
City Area Code	866
Local Phone Number	980-9431
Title of 12(b) Security	Class A common stock,$0.0001 par value per share
Trading Symbol	ROOT
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction Flag	false
Entity Shell Company	false
Entity Public Float			$ 1.6
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE Part III of this report incorporates by reference specific portions of the Registrant’s Notice of Annual Meeting and Proxy Statement relating to the Annual Meeting of Stockholders to be held on or about June 3, 2026.
Amendment Flag	false
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	FY
Entity Central Index Key	0001788882
Class A Shares
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		13,748,408
Class B Shares
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,806,236

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2025

Accounting Policies [Abstract]

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Consolidation—The consolidated financial statements include the accounts of Root, Inc. and its subsidiaries, all of which are wholly owned. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP. All intercompany accounts and transactions have been eliminated.

Use of Estimates—The preparation of consolidated financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates reflected in our consolidated financial statements include, but are not limited to, reserves for loss and loss adjustment expense, or LAE, valuation allowances on our deferred tax assets and the amount of reinsurance recoverable and receivable from reinsurance contracts.

Legal and Other Contingencies—From time to time, we are party to litigation and legal proceedings relating to our business operations. We consider legal actions relating to claims made in the ordinary course of seeking indemnification for a loss covered by the insurance policy in establishing loss and LAE reserves. In the ordinary course of business, we also face certain lawsuits that seek damages beyond policy limits, or extra-contractual claims.

We continually evaluate potential liabilities and reserves for litigation and other matters using the guidance issued in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 450, Contingencies. Under this guidance, we may only record reserves for a loss if, as of the date the financial statements are issued or available to be issued, the likelihood of occurrence is deemed probable and we can reasonably estimate the amount of the loss. When disclosing litigation, claims or other matters where a material loss is judged to be reasonably possible, we will disclose an estimated range of loss or state that an estimate cannot be made. We consider each matter using this guidance and record reserves for losses as warranted by establishing a reserve in loss and loss adjustment expense reserves for extra-contractual claims and other liabilities for class action, other non-claims related lawsuits and other matters in our consolidated balance sheets. Any non-reinsurance related recoveries are recognized as other assets in our consolidated balance sheets. We record amounts within loss and loss adjustment expenses for extra-contractual claims and general and administrative for class action and other non-claims related lawsuits in our consolidated statements of operations and comprehensive income (loss). For other recoveries, we record these amounts in the same account as the initial expense in our consolidated statements of operations and comprehensive income (loss). Further details are discussed in Note 13, “Commitments and Contingencies.”

Debt and Equity Issuance Costs—Debt and equity issuance costs, which primarily consist of advisor, legal, accounting, and other third-party fees directly related to issuing debt and equity instruments, are capitalized as other assets in our consolidated balance sheets if incurred prior to closing the related transaction. We incurred such costs

in connection with our $200.0 million six-year term loan, or Amended Term Loan, that we entered into on October 29, 2024 and the investment agreement with Carvana Group, LLC, or Investment Agreement, that we entered into on August 21, 2021. Upon close of the related transaction, these deferred issuance costs are generally offset against the related proceeds. Debt issuance costs are subsequently amortized over the term of the financing agreement as interest expense on the consolidated statements of operations and comprehensive income (loss).

Indefinite-Lived Intangible Assets—As of December 31, 2025 and 2024, we had insurance licenses of $8.9 million and an intangible asset related to the purchase of the Root.com domain of $1.3 million, including transaction costs, in other assets on the consolidated balance sheets. We incur a minimal fee to renew each license. These intangible assets are not amortized, but instead are tested for impairment annually or when indicators of impairment exist. The impairment test for indefinite-lived intangibles involves first assessing qualitative factors to determine if it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount. If so, then a quantitative test is performed to compare the estimated fair value of the indefinite-lived intangible asset to the respective asset's carrying amount. The evaluation requires the use of estimates and significant judgments and considers the weight of evidence and significance of all identified events and circumstances and most relevant drivers of fair value, both positive and negative, in determining whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount. No impairment was recognized for 2025, 2024 or 2023 related to indefinite-lived intangible assets.

Segment Information—We are a technology company that provides direct-to-consumer insurance products to customers. We operate as a single reporting segment that is managed on a consolidated basis. Our Chief Executive Officer is our chief operating decision maker, or CODM. The primary measure the CODM utilizes to manage operations, monitor budget versus actual results, and evaluate financial performance is net income (loss) as reported on the consolidated statements of comprehensive income (loss). This information is regularly provided to the CODM.

The CODM allocates resources based on consolidated expense and forecasted expense information. Significant expenses, which are presented on the consolidated statements of operations and comprehensive income (loss), include loss and LAE, sales and marketing, other insurance expense and technology and development. Other segment items include expenses that our CODM does not evaluate for purposes of making operating decisions. These items include general and administrative, interest expense, loss on extinguishment of debt and income tax expense, which can all be found on the consolidated statements of operations and comprehensive income (loss). Assets provided to the CODM are consistent with those reported on the consolidated balance sheets.

Statement of Cash Flows—The supplemental disclosures for cash and non-cash flows for the years ended December 31, 2025, 2024 and 2023 are as follows:


	For the Years Ended December 31,
	2025		2024		2023
	(dollars in millions)
Supplemental disclosures:
Interest paid	$	20.7	$	43.9	$	42.5
Federal income taxes paid	—		—		—
State income taxes paid	0.6		—		—

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents—Cash consists of cash on deposit. Cash equivalents are short-term, highly liquid investments that typically mature within three months from the date of origination or purchase and are principally stated at amortized cost, which approximates their fair value. Restricted cash consists of amounts held by a financial institution to satisfy letter of credit requirements for certain property leases. Restricted cash equivalents consist of short-term, highly liquid investments held by a financial institution to maintain certain collateral requirements with an unaffiliated Texas county mutual insurance company and are stated at amortized cost, which approximates their fair value.

If checks are issued in excess of cash balances in individual bank accounts, a book overdraft shall be reclassified to accounts payable on the consolidated balance sheets. When a check is issued whereby a disbursement account is used to write the check, but the account is not funded until the check is presented for payment this “negative cash” balance is included in cash and cash equivalents on the consolidated balance sheets, if the funding account has sufficient funds.

Investments—Investments in debt securities are classified as short-term and available-for-sale fixed maturity securities and are carried at fair value with any unrealized gains and losses, net of taxes, recorded as a component of accumulated other comprehensive income (loss).

Management regularly reviews our securities for signs of impairment, an assessment requiring significant management judgment. The criteria that management considers are the financial condition of the issuer, including receipt of scheduled principal and interest cash flows, fair value of a security that has fallen below the amortized value, maturity dates, current economic conditions and intent to sell, including if it is more likely than not that we will be required to sell the security before recovery. We then assess whether the decline in value is due to non-credit related or credit related factors. Non-credit related declines in fair value are recorded as unrealized losses in accumulated other comprehensive income (loss). If we determine that the decline is credit related, we establish an allowance for credit losses equal to the difference between the discounted cash flow model and the amortized value, the allowance would be recorded in net realized gains and losses on investments in our consolidated statements of operations and comprehensive income (loss). This allowance may be subsequently adjusted for recoveries or further credit losses. No such credit losses were recognized in 2025, 2024 and 2023.

Other investments primarily consist of private equity investments without a readily determinable fair value. We elected to account for these investments at cost minus any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or a similar investment of the same issuer. Such changes are accounted for within net investment income in our consolidated statements of operations and comprehensive income (loss).

We also invest in Low Income Housing Tax Credits, or LIHTC, projects by way of investing in a limited liability entity to offset certain state premium taxes. The purpose of these investments is to encourage private capital investments into regions within these states that are in need of economic development, while providing tax credits and operating loss tax benefits to investors. We account for this investment using the cost method because our interest in the limited liability entity is minor and we have virtually no influence over the entity’s operating and financial policies. When we utilize the tax credits, the associated investment becomes impaired. Impairment of the investment is recognized within net investment income in our consolidated statements of operations and comprehensive income (loss).

Fair Value Measurements—Fair value is defined as the price that would be received upon selling an asset or the price paid to transfer a liability on the measurement date in the principal or most advantageous market for the asset or liability in an orderly transaction between willing market participants. A three-tier hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are:

Level 1 - Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices in active markets for identical assets and liabilities.

Level 2 - Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets and liabilities that are actively traded. This also includes pricing models for which the inputs are corroborated by market data.

Level 3 - Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.

Private equity investments that have been remeasured as of December 31, 2025 due to an observable event or impairment are classified within Level 3 of the fair value hierarchy because their estimated fair values are based on

valuation methodologies that may include a combination of the observable transaction price at the transaction date and other unobservable inputs, including volatility and the rights and obligations associated with the investments we hold. See Note 3, “Investments,” for further information on our private equity investments.

Leases—We record leases in accordance with ASC Topic 842, Leases. We recognized a right-of-use asset and liability on the consolidated balance sheets for all leases, except for leases covering a period of fewer than 12 months. Operating lease expense for operating lease right-of-use assets is recognized on a straight-line basis over the lease term, which may include options to extend or terminate the lease when it is reasonably certain to do so and there is a significant economic incentive to exercise that option. For additional information refer to Note 8, “Leases.”

Premiums, Premiums Receivable and Premium Write-offs—Premiums written are deferred and earned pro rata over the policy period. Unearned premium is established to cover the unexpired portion of premiums written. A premium deficiency, as measured on a gross basis, is recorded when the sum of expected losses, LAE, unamortized policy acquisition costs and maintenance costs exceed the recorded unearned premium reserve and anticipated investment income. We did not record a premium deficiency reserve in 2025, 2024 or 2023.

We have a fronting arrangement with an unaffiliated Texas county mutual insurance company, or the fronting carrier. We route all of our new auto policies in Texas through the fronting carrier whereby we assume 100% of the related premium and losses on those policies. The fronting arrangement allows us to have greater rating and underwriting flexibility. Premiums assumed are deferred and earned pro rata over the policy period. Unearned premium is established to cover the unexpired portion of premiums assumed. Unaffiliated premiums payable are amounts owed to the fronting carrier for premiums assumed and are recorded in other liabilities on the consolidated balance sheets. Unaffiliated premiums payable was $96.7 million and $84.2 million as of December 31, 2025 and 2024, respectively. Unaffiliated reinsurance premiums receivable are the amounts owed to us from the fronting carrier for reinsurance premiums and are recorded in reinsurance recoverable and receivable on the consolidated balance sheets. Unaffiliated reinsurance premiums receivable was $96.3 million and $83.6 million as of December 31, 2025 and 2024, respectively.

Premiums receivable represents premiums written but not yet collected. Generally, premiums are collected prior to providing risk coverage, minimizing our exposure to credit risk. Due to a variety of factors, certain premiums billed may not be collected, for which we establish an allowance for expected credit losses based primarily on an analysis of historical collection experience, adjusted for current economic conditions. Allowance for credit losses was $8.9 million and $9.8 million as of December 31, 2025 and 2024, respectively, on the consolidated balance sheets. A policy is considered past due on the first day after its due date and policies greater than 90 days past due are written-off. We recognized bad debt expense of $36.7 million, $34.1 million and $12.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Fee Income—Fee income consists primarily of the flat fee we charge for installment payments which relates to the additional administrative costs associated with processing more frequent billings. These fees are recognized in the period in which we process the installment. We also charge policy fees, which are typically nonrefundable fees that are intended to reimburse a portion of the costs incurred to underwrite the policy. These fees are recognized ratably over the policy coverage period. Fee income also includes late payment fees that are collected from our policyholders. These fees are recognized in the period in which we process the late payment.

Other Income—Other income is primarily comprised of revenue earned from distributing website and mobile application policy inquiry leads in geographies where we do not have a presence, recognized when we generate the lead.

Sales and Marketing—Sales and marketing includes both acquisition and fixed expenses. We view direct performance marketing, experimental marketing, channel media, advertising and referral fees as acquisition expenses. We view sponsorship and related salaries, health benefits, bonuses, employee retirement plan-related expenses and employee share-based compensation expense, or Personnel Costs, and overhead allocated based on headcount, or Overhead, related to our brand strategy, creative and business development activities, certain data science activities and certain non-commission expenses related to the partnership channel as fixed expenses. Sales and marketing costs are expensed as incurred.

Other Insurance Expense—Other insurance expense includes expenses primarily related to insurance and underwriting operations of the business and is comprised of acquisition, variable and fixed expenses. We view report costs and refunds related to these expenses and commission expenses related to our partnership channel as acquisition costs. We view premium taxes, credit card and policy processing expenses and premium write-offs as variable expenses. We view insurance license expenses, warrant compensation expense related to policies originating through the integrated automobile insurance solution for Carvana’s online buying platform, or Integrated Platform, low-income housing tax credits which offset certain state premium taxes, Personnel Costs and Overhead related to actuarial and certain data science activities as fixed expenses.

We amortize a portion of our deferred policy acquisition costs including certain commissions related to our partnership channel, premium taxes, and report costs related to the successful acquisition of a policy. Tax credits are recognized when utilized. Other insurance expense is expensed as incurred, except for costs related to deferred policy acquisition costs that are capitalized and subsequently amortized over the same period in which the related premiums are earned. Warrant compensation expense is recognized on a pro-rata basis considering progress toward achieving milestones for policies originated through the Integrated Platform as defined under the Carvana commercial agreement.

These expenses are recognized net of ceding commissions earned from our quota share reinsurance agreements. The ceding commission provides for reimbursement of both direct and other periodic acquisition costs, including certain underwriting and marketing costs, and is presented as a reduction of other insurance expense.

Technology and Development—Technology and development are fixed expenses that consist of software development costs related to our mobile app and homegrown information technology systems; third-party services related to infrastructure support; Personnel Costs and Overhead for engineering, product, technology, and certain data science activities; and amortization of internally developed software. Technology and development is expensed as incurred, except for development and testing costs related to internally developed software that are capitalized and subsequently amortized over the expected useful life.

General and Administrative—General and administrative are fixed expenses that primarily relate to external professional service expenses; Personnel Costs and Overhead for corporate functions; and depreciation expense for computers, furniture and other fixed assets; and restructuring costs which include employee costs, real estate exit costs and other costs. General and administrative expenses are expensed as incurred.

Deferred Policy Acquisition Costs—Policy acquisition costs consist primarily of premium taxes, certain marketing costs and underwriting expenses, and commission expenses related to our partnership channel, net of ceding commissions, related to the successful acquisition of new or renewal business. They are deferred and amortized over the same period in which the related premiums are earned. Ceding commissions relating to reinsurance agreements are recorded as a reimbursement for both deferrable and non-deferrable acquisition costs. The portion of the ceding commission that is equal to the pro rata share of policy acquisition costs based on quota share percentage is recorded as an offset to the gross deferred policy acquisition costs. Any portion of the ceding commission that exceeds the policy acquisition costs of the business ceded is recorded as excess ceding commission, a deferred liability, and amortized over the same period in which the related premiums are earned. Deferred policy acquisition costs, net of accumulated amortization, was $44.4 million and $29.3 million as of December 31, 2025 and 2024, respectively. We amortized deferred policy acquisition costs of $97.4 million, $35.7 million and $35.1 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Loss and Loss Adjustment Expense and Reserves—Loss and LAE include the costs incurred for claims, payments made and estimated future payments to be made to or on behalf of our policyholders, including expenses needed to adjust or settle claims, net of amounts ceded to reinsurers. Loss and LAE reserves include an amount determined using adjuster determined case-base estimates for reported claims and actuarial determined unpaid claim estimates using past experience and historical emergence patterns for unreported losses and LAE. These reserves are a liability established to cover the estimated ultimate cost to settle insured losses. The estimation of the liability for loss and LAE reserves is complex and includes subjective considerations and management’s judgment. The actuarial methods to determine unpaid loss estimates consider loss trends, contract interpretation, mix of business, regulatory environment, economic conditions, inflation and other risk factors impacting claims settlement. The method used to estimate unpaid LAE liability is based on claims transaction data, including the relative cost of adjusting and settling a range of claim types from express material damage claims to more complex injury cases. There is considerable uncertainty associated with the actuarial estimates, and therefore no assurance can be made that the ultimate unpaid claim liability will not vary materially from such estimates. These loss estimates are continually reviewed by management and adjusted as necessary, with adjustments included in the period determined and recorded in loss and LAE in our consolidated statements of operations and comprehensive income (loss). As such, loss and LAE reserves represent management’s best estimate of the ultimate liability related to reported and unreported claims.

Our loss and LAE reserves are recorded gross of reinsurance and net of amounts expected to be received from salvage (the amount recovered from a total loss claims expense) and subrogation (the right to recover payments from third parties).

Loss and LAE are net of amounts ceded to reinsurers. We enter into reinsurance contracts to limit our exposure to potential losses as well as to provide additional capacity to write more business. These expenses are a function of the size and term of the insurance policies we write and the loss experience associated with the underlying risks. This includes an allowance for credit losses based on the probability of default and expected loss given default of a reinsurer. Loss and LAE may be paid out over a period of years.

Various other expenses incurred during claims processing are considered LAE. These amounts include Personnel Costs for claims-related employees, vendor expenses, software expense, internally developed software amortization, and Overhead.

Reinsurance—In the ordinary course of business, we cede and retrocede a portion of our business written and assumed, respectively, to reinsurers to limit the maximum net loss potential arising from large risks and catastrophes. These arrangements, known as treaties, provide for reinsurance coverage on quota-share and excess-of-loss basis. All reinsurance contracts provide for indemnification against loss or liability relating to insurance risk and have been accounted for as reinsurance. Although the ceding of reinsurance does not discharge us from our primary liability to the policyholder, the insurance company that assumes the coverage assumes the related liability. Over time, our strategy continues to evolve and we may choose to amend, commute, and/or non-renew certain third-party reinsurance agreements, which may result in us retaining more or less of our business in the future. Amounts recoverable from and payable to reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured business. Reinsurance premiums, commissions and expense reimbursements related to reinsured business are accounted for on a basis consistent with the basis used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums ceded to other companies have been reported as a reduction of premiums earned and are recognized over the remaining policy period based on the reinsurance protection provided. Amounts applicable to reinsurance ceded for unearned premium reserves are reported as a prepaid reinsurance premiums asset in the accompanying consolidated balance sheets and as reduction of unearned premiums in Note 6, “Reinsurance.” Ceding commissions received in connection with reinsurance ceded have been accounted for as a reduction of other insurance expense in the consolidated statements of operations and comprehensive income (loss).

Some of our reinsurance agreements provide for adjustment of amount of coverage based on loss experience. We recognize the asset or liability arising from these adjustable features in the period the adjustment occurs, which is calculated based on experience to date under the agreement.

In the event that all or any of the reinsuring companies might be unable to meet their obligations under existing reinsurance agreements, we would be liable for such defaulted amounts. We evaluate and monitor the financial

condition associated with our reinsurers in order to minimize our exposure to significant losses from reinsurer insolvencies. We obtain our reinsurance from a diverse group of reinsurers and monitor concentration as well as financial strength ratings of the reinsurers to minimize counterparty credit risk. To recognize this risk of credit loss, we have established an allowance for credit losses based on the probability of default and the expected loss given default as influenced by factors such as the reinsurer’s credit rating and average life of our reinsurance recoverables.

Income Taxes—For the 2025 tax year, we will file a consolidated federal income tax return with Caret Holdings, Inc., Root Insurance Company, Root Property & Casualty, Root Florida, Root Lone Star Insurance Agency, Inc. and Root Reinsurance Company, Ltd. The consolidated return also includes Root Insurance Agency, LLC, Root Enterprise, LLC, Root Republic Managing General Agency, LLC, Root Texas Managing General Agency, LLC, and Root Scout, LLC, which are disregarded entities under Caret Holdings, Inc. for federal income tax purposes.

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Deferred tax assets are recognized as allowed under ASC 740, Income Taxes. We establish a valuation allowance when there is more likely than not insufficient evidence to support the recoverability of the deferred tax asset under ASC 740. In making such a determination, management considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of recent operations. If it is determined that the deferred tax assets would be realizable in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. A valuation allowance of $339.8 million and $345.9 million was established as of December 31, 2025 and 2024, respectively. Further details are discussed in Note 9, “Income Taxes.”

We recognize the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained under examination by the appropriate taxing authority. Interest and penalties on our reserve for uncertain tax positions are recognized as a component of tax expense. As of December 31, 2025 and 2024, we did not have any unrecognized tax benefits for uncertain tax positions and had no accrued interest or penalties related to uncertain tax positions.

Internally Developed Software—We review our software development activity and capitalize costs during the application development phase under ASC 350-40, Internal-Use Software. Generally, these costs are amortized on a straight-line basis over a five-year period. Internally developed software costs are assessed for impairment at least quarterly, which also ensures that the assets are still in service. If there are assets identified as no longer in use or impaired, the remaining unamortized costs will be fully amortized or the asset is written off. We amortized internally developed software of $8.5 million, $8.6 million and $6.3 million for the years ended December 31, 2025, 2024 and 2023, respectively. The capitalized cost and accumulated amortization of internally developed software in other assets in our consolidated balance sheets at December 31, 2025 and 2024 are as follows:


	As of December 31,
	2025		2024
	(dollars in millions)
Internally developed software	$	57.4	$	50.0
Accumulated amortization	(29.8)		(28.0)
Internally developed software, net	$	27.6	$	22.0

Fixed Assets—Fixed Assets are carried at cost, net of accumulated depreciation. We capitalize purchases of certain fixed assets, including computers, furniture, and leasehold improvements. Depreciation on computers and furniture is recognized on a straight-line basis over a useful life of three years and five years, respectively.

Depreciation on leasehold improvements is recognized on a straight-line basis over the shorter of their useful life or the life of the lease. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts. When assets are no longer in use or impaired, the asset and accumulated depreciation are written off. For the years ended December 31, 2025, 2024 and 2023, depreciation expense was $0.2 million, $1.0 million and $1.5 million, respectively. The capitalized cost and accumulated depreciation of fixed assets in other assets in our consolidated balance sheets at December 31, 2025 and 2024 are as follows:


	As of December 31,
	2025		2024
	(dollars in millions)
Computers	$	1.7	$	6.0
Furniture	1.0		2.6
Leasehold improvements	5.3		7.2
Total fixed assets, at cost	8.0		15.8
Accumulated depreciation	(6.8)		(14.0)
Fixed assets, net	$	1.2	$	1.8

Employee Share-Based Compensation—We award share-based compensation to our officers, directors, employees, and certain advisors, through approval from the Compensation Committee of the board of directors. These awards have been made in the forms of stock options, service-based restricted stock units, or RSUs, market-based restricted stock units, or MRSUs, performance-based restricted stock units, or PRSUs, and restricted stock.

Share-based compensation expense is recognized based on the grant date fair value of the awards, which is determined using the Black-Scholes Merton, or BSM, option-pricing model. The BSM option pricing model requires inputs based on certain subjective assumptions, including the expected stock price volatility, the expected term of the options (generally ten years from grant date), the risk-free interest rate for a period that approximates the expected term of the option, and our expected dividend yield.

We recognize forfeitures as they occur, which generally results in the reversal of previously recognized expense for nonvested awards. In the event of an involuntary termination that results in the cancellation of an award, the remaining unrecognized compensation cost for the entire award is recognized in the period of cancellation. If the award is cancelled and concurrently replaced upon termination, it follows modification accounting, typically as a Type III improbable-to-probable modification whereby it is effectively treated as a forfeiture and new grant as of the date of termination. For performance-based awards, expense is not recognized until it is probable that the performance condition(s) will be met. We assess the probability of the awards vesting based on the performance conditions on a quarterly basis. If a performance condition is improbable but later becomes probable of achievement, a catch up of expense will be recorded as if the award had been vesting on a ratable basis from the grant date. If a performance condition is not achieved or becomes improbable of achievement, the respective cumulative compensation cost is reversed. For market-based awards, if the market condition(s) are never achieved before the expiration date, but the service condition is met, the respective compensation costs remain recognized.

Stock options generally vested over four years, with 25% cliff vesting after one year and approximately 2% vesting each month over three years thereafter. RSUs generally vest over two or four years. For our awards vesting over two years, 50% cliff vests after one year and the remainder vest in equal quarterly installments over the following year. For our awards vesting over four years, 25% cliff vests after one year and the remainder vest in equal quarterly or monthly installments over three years thereafter. Certain other RSUs fully vest after one year. We generally recognize share-based compensation expense ratably over the respective vesting period.

PRSUs granted in 2024 are expected to vest over an explicit service period of two to three years after the performance period and are dependent upon the fulfillment of both a service condition and the achievement of certain adjusted EBITDA and new writings goals during the performance period. The actual number of PRSUs earned can vary from zero to 200% of the target depending on goal achievement relative to the adjusted EBITDA and new writings goal matrix. The performance period begins on January 1, 2025 and ends on December 31, 2025. For our awards vesting over three years, 25% vests on the Compensation Committee certification date, expected to be in February 2026, and 25% vests annually over approximately three years thereafter. For our awards vesting over two years, 33% vests on the Compensation Committee certification date and approximately 8% vests quarterly over approximately two years thereafter. The expense is recognized ratably over the requisite service period.

The performance period for PRSUs granted in 2025 begins on January 1, 2025 and ends on December 31, 2027 and is divided into three sub-performance periods, each beginning on January 1, 2025 and ending on December 31, 2025, 2026, and 2027, respectively. These overlapping sub-periods are one, two, and three years in duration. The actual number of PRSUs that vest can vary from zero to 200% of the target depending on goal achievement relative to gross accident period loss ratio and policies in force goal matrix. Expense for each sub-performance period is recognized ratably over the requisite service period. Awards earned in any sub-performance period vest on the Compensation Committee certification date, which is expected to be in the first quarter of the subsequent year.

The PRSU compensation expense is recognized based on the grant date fair value of the award, which was determined using the Company’s closing stock price as of the grant date.

MRSUs are expected to vest over a derived service period of one to four years and are dependent upon the fulfillment of both a service condition and the achievement of stock-price goals during the performance period, with the latter being classified as a market condition according to ASC 718, Stock Compensation. The service condition with respect to the first and second tranches of MRSUs was satisfied on April 1, 2024 and April 1 2025, respectively. The remaining two tranches of MRSUs will be met in installments on each of the subsequent two anniversaries of that date, or Vesting Date Requirement, subject to the individual’s continued service through such dates. Stock price goals must be met on or after the respective tranche’s Vesting Date Requirement and are based on the average closing price per share of our Class A common stock over a consecutive 45-day trading period. Any tranche of MRSUs with respect to which the stock price goal has not been met as of April 1, 2028 (the final day of the performance period) will be forfeited as of such date.

The MRSU compensation expense is recognized based on the grant date fair value of the award, which was determined by simulating Root’s stock prices using a Monte Carlo simulation in a risk-neutral framework, assuming a Geometric Brownian Motion. The simulation is repeated 100,000 times, and the average of the discounted values for each tranche is the grant date fair value for that tranche. The median time to vest is the derived service period.

Employing a Monte Carlo simulation requires a range of inputs for each uncertain variable, and establishing linkage between the assumptions, if necessary. Inputs and assumptions used in our analysis included our stock price at grant date, exercise prices, the term of the MRSUs, equity volatility, risk-free rate and dividend yield. Equity volatility was derived using a blended volatility assumption of 50% weight on Root’s historical volatility calculated from daily stock returns since IPO to the grant date and a 50% weight based on Root’s term matched simple average peer volatility as of the valuation date because our company-specific volatility is not sufficient by itself at the time of grant.

The fair value of the MRSUs is estimated on the date of grant using a Monte Carlo simulation with Geometric Brownian Motion that uses certain inputs, assumptions and estimates, as follows: expected term of approximately five years, based on the contractual term of the MRSUs; risk-free interest rate of 4.06%, based on United States Constant Maturity Yield Curve over a similar term; dividend rate of 0.0%, based on our historical and expected future dividend payouts; and volatility of 76%, and other factors.

MRSU expense is recognized via a graded vesting method over the derived service period. In the event that both the service condition and market condition are met earlier, expense would be accelerated.

Warrant Compensation—In October 2021, we closed the Investment Agreement with Carvana that included the issuance of 14.1 million shares of redeemable convertible preferred stock designated as the Series A Convertible

Preferred Stock and the issuance of eight tranches of warrants to purchase shares of the Company’s Class A common stock, of which three tranches expired unexercised in 2025. As part of the Investment Agreement, we and Carvana also entered into a five-year commercial agreement whereby our auto insurance products will be embedded into the Integrated Platform. The commercial agreement provides for agent commissions payable to Carvana for policy origination and an enterprise total loss replacement vehicle solution.

The Carvana warrants compensation expense is recognized based on the grant date fair value of the award, which was determined using a Monte Carlo simulation in a risk-neutral framework, as contemplated in the Income Approach of valuation. Specifically, future equity is simulated in each period assuming a Geometric Brownian Motion. We considered the features of the warrants and the interdependency of exercise decisions between the Short-Term Warrants and the Long-Term Warrants in using the Monte Carlo simulation in order to determine the optimum exercise decision. The optimum exercise decision was made by choosing the option which would give the highest aggregate expected value to the holder in each of the 100,000 simulated paths. The payoff of each path is then calculated based on the simulated equity and discounted back to time zero using the applicable risk-free rates. The fair value of the warrants are then calculated as the average value from all simulation paths.

Employing a Monte Carlo simulation with Geometric Brownian Motion requires a range of inputs for each uncertain variable, and establishing linkage between the assumptions, if necessary. Inputs and assumptions used in our analysis included our stock price at grant date, exercise prices, the term of the warrants, equity volatility, risk-free rate and dividend yield. Additional considerations included a discount for lack of marketability resulting from Carvana’s five-year lock-up period.

These warrants vest as the parties develop an integrated automobile insurance solution for the Integrated Platform and insurance sales through the Integrated Platform. The associated compensation expense is dependent on our periodic assessment of the probability of the milestones being achieved. If deemed probable, we recognize compensation expense on a pro-rata basis considering progress toward achieving the milestones. If a performance condition is no longer probable of achievement, any previously recognized compensation expense is reversed and no subsequent compensation expense is recognized until achievement is once again probable, at which point a cumulative catch-up is recognized. In determining the classification as equity, we followed guidance issued within ASC 480, Distinguishing Liabilities from Equity, and ASC 815, Derivatives and Hedging.

For additional information refer to Note 12, “Share-Based Compensation.”

Earnings (Loss) Per Share—Earnings (loss) per share, or EPS, results are a key indicator of the overall performance relative to each share of our outstanding common stock. Basic earnings per share is calculated using the two-step method. Undistributed earnings are allocated to participating securities based on the extent to which each class may share in earnings as if all the earnings for the period have been distributed. Basic earnings per share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding for the period. Common shares, when contingencies, such as vesting requirements, exist and have not been satisfied, are excluded from basic earnings per share.

Our shares of Class A and Class B common stock are entitled to the same liquidation and dividend rights and therefore earnings are allocated equally. Our redeemable convertible preferred stock and nonvested shares subject to repurchase are considered to be participating securities because they participate in dividends that are non-forfeitable and distributions with common stock.

Diluted EPS for both Class A and Class B common stock includes all the components of basic EPS, plus the dilutive effect of common stock equivalents, but excludes those common stock equivalents from the calculation of diluted EPS when the effect of inclusion, assessed individually, would be anti-dilutive. The dilutive effect of stock options, nonvested shares subject to repurchase, RSUs, PRSUs, MRSUs, and warrants are calculated using the treasury stock method. The dilutive effect of redeemable convertible preferred stock is calculated using the if-converted method.

For periods in which we operate at a loss, the conversion of common stock equivalents would increase the denominator of the diluted earnings per share calculation and create a lower loss per share. Therefore, these common stock equivalents are considered antidilutive and diluted EPS is equal to basic EPS. Participating securities do not

participate in losses and therefore are not allocated in the two-class method. Further details are discussed in Note 14, “Earnings (Loss) Per Share.”

Recently Adopted Accounting Pronouncements—In December 2023, the FASB issued Accounting Standards Update, or ASU, No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, or ASU 2023-09. This ASU looks to enhance the transparency and decision usefulness of income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The main provisions to the rate reconciliation disclosure require public entities on an annual basis to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The main provisions to the income taxes paid disclosure require that all entities disclose on an annual basis the amount of income taxes paid disaggregated by federal, state and foreign taxes and the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid meets a quantitative threshold. This ASU also requires all entities to disclose income (loss) from continuing operations before income tax expense (benefit) disaggregated between domestic and foreign and income tax expense (benefit) from continuing operations disaggregated by federal, state and foreign. ASU 2023-09 became effective for the annual reporting period beginning January 1, 2025, and we adopted the standard as of that date on a prospective basis. The adoption did not have an impact on our results of operations or financial condition.

Recently Issued Financial Accounting Standards Not Yet Adopted—In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This ASU clarifies the scope of interim reporting, improves the form and content requirements for interim financial statements, and consolidates interim disclosure requirements within Topic 270. This ASU also introduces a new disclosure principle requiring entities to disclose information about events or changes in circumstances since the last annual reporting period that have a material impact on the company.

This ASU may be applied prospectively or retrospectively with an effective date for public entities for interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the effects of the new standard. We are currently evaluating the impact of this ASU.

In September 2025, the FASB issued ASU No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting For Internal-Use Software. This ASU removes references to prescriptive and sequential software development stages in the guidance and instead requires entities to capitalize software development costs once management has authorized and committed to funding the project and it is probable that the project will be completed and the software will be used for its intended function. The guidance also requires entities to evaluate whether significant development uncertainty exists, which may delay capitalization until such uncertainty has been resolved. This ASU also specifies that the disclosure requirements in ASC 360-10 are required for all capitalized internal-use software costs.

This ASU may be applied prospectively, retrospectively, or through a modified transition approach with an effective date for all entities for annual reporting periods beginning after December 15, 2027, including interim periods within those reporting periods. Early adoption is permitted. We are currently evaluating the impact of this ASU.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU looks to improve financial reporting by requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. The main provisions require a company to disclose in the notes to the financial statements the amounts of employee compensation, depreciation, intangible asset amortization and certain other costs and expenses included in each relevant expense caption and include certain amounts that are already required to be disclosed under current generally accepted accounting principles in the same disclosure as the other disaggregation requirements. It also requires a company to disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses.

This ASU is to be applied on a prospective basis with an effective date for the first annual reporting period beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the impact of this ASU.

GEOGRAPHICAL BREAKDOWN OF GROSS PREMIUMS WRITTEN

12 Months Ended

Dec. 31, 2025

Insurance [Abstract]

GEOGRAPHICAL BREAKDOWN OF GROSS PREMIUMS WRITTEN

REINSURANCE

The following table reflects amounts affecting the consolidated balance sheets for reinsurance as of December 31, 2025 and 2024:


			2025		2024
			(dollars in millions)
Loss and LAE reserves:
Direct			$	385.7	$	341.7
Assumed			97.9		71.5
Ceded			(25.4)		(48.0)
Net loss and LAE reserves			$	458.2	$	365.2
Unearned premiums:
Direct			$	320.3	$	289.2
Assumed			73.4		64.7
Ceded			(6.3)		(25.1)
Net unearned premiums			$	387.4	$	328.8

The following table reflects amounts affecting the statements of operations and comprehensive income (loss) for reinsurance for the years ended December 31, 2025, 2024 and 2023:

	2025		2024		2023
	(dollars in millions)
Premiums written:
Direct	$	1,224.2	$	1,064.6	$	674.6
Assumed	281.6		236.5		108.5
Ceded	(45.4)		(137.0)		(209.9)
Net premiums written	$	1,460.4	$	1,164.1	$	573.2
Premiums earned:
Direct	$	1,193.2	$	1,010.8	$	564.9
Assumed	272.8		220.2		70.9
Ceded	(64.3)		(160.1)		(235.9)
Net premiums earned	$	1,401.7	$	1,070.9	$	399.9
Losses and LAE incurred:
Direct	$	744.1	$	673.5	$	424.1
Assumed	210.6		157.2		51.7
Ceded	(30.5)		(97.7)		(144.5)
Net losses and LAE incurred	$	924.2	$	733.0	$	331.3

GEOGRAPHICAL BREAKDOWN OF GROSS PREMIUMS WRITTEN

Gross premiums written by state is as follows for the years ended December 31, 2025, 2024 and 2023:


	For the Years Ended December 31,
	2025				2024				2023
	Amount		% of Total		Amount		% of Total		Amount		% of Total
	(dollars in millions)
State:
Texas	$	288.5	19.2	%	$	249.3	19.2	%	$	134.3	17.1	%
Georgia	182.0		12.1		159.9		12.3		94.3		12.0
Florida	128.9		8.6		107.4		8.3		16.9		2.2
California	105.6		7.0		49.2		3.8		10.7		1.4
Pennsylvania	86.8		5.8		74.6		5.7		45.2		5.8
Colorado	76.2		5.1		72.8		5.6		53.6		6.8
South Carolina	53.6		3.6		52.6		4.0		34.4		4.4
Arizona	49.1		3.3		50.0		3.8		35.4		4.5
Nevada	39.9		2.6		23.4		1.8		17.8		2.3
Oklahoma	34.5		2.2		28.9		2.2		23.6		3.0
All others states	460.7		30.5		433.0		33.3		316.9		40.5
Total	$	1,505.8	100.0	%	$	1,301.1	100.0	%	$	783.1	100.0	%

Schedule II: Condensed Combined Financial Information of Registrant - Schedule of Restrictions on Cash and Cash Equivalents (Details) - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Condensed Financial Information Disclosure [Line Items]
Cash and cash equivalents	$ 669.3	$ 599.3
Restricted cash and cash equivalents	1.1	1.0
Total cash, cash equivalents and restricted cash shown in the condensed combined statements of cash flows	689.9	600.3	$ 679.7	$ 763.1
Parent Company
Condensed Financial Information Disclosure [Line Items]
Cash and cash equivalents	262.8	230.4
Restricted cash and cash equivalents	1.1	1.0
Total cash, cash equivalents and restricted cash shown in the condensed combined statements of cash flows	$ 263.9	$ 231.4	$ 405.4	$ 552.8