ROOT · CIK 1788882
What Root, Inc. told the SEC could break it.
Root's disclosures describe a company concentrated on almost every axis. Auto insurance is substantially all of its business, and nearly half of its 2025 gross premiums — about 46.9% — came from just four states (Texas, Georgia, Florida and California), concentrating its catastrophe, loss-trend and regulatory exposure. Its core differentiator, telematics-based pricing, is itself a regulatory pressure point, since state insurance regulators could limit how it uses or protects that model — all while it carries a $1.64 billion accumulated deficit and a term loan whose covenants could accelerate repayment if breached.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Geographic concentration
- Texas, Georgia, Florida, California premium concentrationhigh
Roughly 46.9% of Root's 2025 gross premiums written originated in Texas, Georgia, Florida and California, concentrating catastrophe, loss-trend and regulatory exposure in four states.
“Approximately 46.9% of our gross premiums written for the year ended December 31, 2025 originated from customers in Texas , Georgia, Florida, and California.”
SEC filing →As of 2026
Liquidity & debt
- Amended Term Loan covenants and accumulated lossesmedium
Root carries an Amended Term Loan with a floating rate and restrictive covenants — non-compliance could accelerate repayment — against an accumulated deficit of $1.64 billion as of December 31, 2025.
“Our failure to comply with covenants contained in the Amended Term Loan may result in acceleration of our repayment obligations, which could harm our liquidity, financial condition, operating results, business and prospects and cause the price of our Class A common stock to decline.”
SEC filing →As of 2026
Other disclosures
- Mono-line auto insurance concentrationmedium
Auto insurance constitutes substantially all of Root's business, leaving it more sensitive than diversified insurers to any decline in auto insurance rates or demand.
“Since auto insurance constitutes substantially all of our business, we are more sensitive than other insurers and more adversely affected by trends that could decrease auto insurance rates or reduce demand for auto insurance over time.”
SEC filing →As of 2026
Regulatory & policy
- Regulatory restriction of telematics-based pricing modelmedium
State insurance regulators may limit Root's ability to develop or implement its core telematics-based pricing model or restrict the confidentiality of its proprietary technology — a threat to its central differentiator.
“regulators may limit our ability to develop or implement our telematics-based pricing model and/or may eliminate or restrict the confidentiality of our proprietary technology.”
SEC filing →As of 2026
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its suppliers
Experian
“our partnership with Carvana Group, LLC, or Carvana, and other partnerships, such as our partnerships with Hyundai Capital America, Toyota and Experian”
Cited →Hyundai Capital America
“our partnership with Carvana Group, LLC, or Carvana, and other partnerships, such as our partnerships with Hyundai Capital America, Toyota and Experian”
Cited →“our partnership with Carvana Group, LLC, or Carvana, and other partnerships, such as our partnerships with Hyundai Capital America, Toyota and Experian”
Cited →“our partnership with Carvana Group, LLC, or Carvana, and other partnerships, such as our partnerships with Hyundai Capital America, Toyota and Experian”
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