Carvana Co.

“With Carvana, we are deeply embedded in their purchase flow. Customers can quote and buy an insurance in 3 clicks and as little as 30 seconds without ever leaving the Carvana experience.”

Root is deeply embedded in Carvana's vehicle purchase flow, a 4-year-old partnership aligned on increasing vehicle transactions.

“our net loss in the quarter was primarily driven by a $17 million noncash expense related to our warrant structure with Carvana. Of the $17 million, $15.5 million reflects a cumulative expense catch-up. This expense ultimately reflects the success of our partnership as the vesting of warrants depends on achieving policy origination milestones.”

Root's warrant-vesting expense with Carvana grows as policy-origination milestones are met, signaling ramping volume through the Carvana insurance partnership.

“we're very happy with the Carvana partnership. It's been a huge success for us. And we think that, that product is really special in market.”

Root calls its Carvana embedded-insurance partnership a huge success, though it notes no single partner is a majority of partnership volume; a positive read-through for the Carvana tie-up.

“assuming the Carvana short-term warrants expire unexercised on September 1, we would recognize a cumulative warrant expense catch-up”

Root expects a ~$16-18M Q3 noncash warrant expense tied to its Carvana embedded-insurance partnership as short-term warrants transition to long-term (policy-sales-based) warrants.

“A great example of that is Carvana Insurance built with Root, which offers a three-click, bondable purchase experience on a partner platform that our customers have come to know and trust.”

Root cites its embedded insurance partnership with Carvana as the flagship example of a fully-embedded, frictionless purchase experience it plans to replicate with other partners.

“in addition to $6 billion with Ally through October 2026.”

Ally remains a major loan-purchase partner for Carvana, committed to buy up to $6 billion of Carvana's loans through October 2026 alongside newer partner agreements.

“how do you think about competition from new entrants such as Amazon that also have warehouse and logistics capabilities?”

An analyst raises Amazon as a potential new entrant competitor in used-car retail given its warehouse and logistics capabilities; Carvana emphasizes its structural advantages over the broader industry.