Trading update for the year ended 31 March 2025

Ondo InsurTech Plc (LSE: ONDO), a leading provider of claims prevention technology for home insurers, provides the following trading update for the year ended 31 March 2025.

Highlights

• Registered customers of approximately 151,000 representing 59% year-on-year growth (2024: 95,468).
• Annualised contracted recurring revenue of £5.9m boosted by the deal with The Hanover Insurance Group, a top 20 US homeowner insurer with operations in multiple states.
• Revenue of not less than £3.8m (2024: £2.7m), representing year-on-year growth of 40%. However, performance for the year was impacted by continuing delays in Sweden.
• Deferred revenue of £3.1m reflecting existing partner commitments for undelivered LeakBots, expected to be delivered in the year ending 31 March 2026.
• Trading EBITDA positively on a run rate basis remains on track to be delivered by the year ending 31 March 2026.
• Prepaid contract model firmly established with upfront cash deposits from customers now effectively eliminating the need for increased working capital requirements from current trading.
• Cash of approximately £4.0m (before loan note repayments due to HomeServe of £1.3m in April 2025) with no anticipated requirement for future funding, ensuring a strong financial position to support ongoing operations.

US operations successfully scaling

The scale-up of U.S. operations continues to progress positively:

• Registered customers of 34,000 in the US, reflecting 435% year-on-year growth with the US accounting for 47% of registered customer growth.
• State expansion being driven by LeakBot activations in 23 states, supported by Nationwide's program extension and recent expansions with key U.S. insurance partners, including Mutual of Enumclaw, PURE Insurance, and Selective Insurance.
• Contracted insurer partners expand coverage to over 14 million homes across the US, UK, Sweden and Denmark, reinforcing market presence in key regions and highlighting strong growth prospects as expansion in the US continues to gain momentum.
• Customer feedback remains extremely strong with a Net Promoter Score at +80, with a customer satisfaction rating of 4.93/5.

Transformed working capital profile

The Company has established a robust contract model, ensuring advance payments for initial rollouts across all recent contract wins. This has virtually eliminated increased working capital demands from trading.

Additionally:

• Warrant exercises since September 2024 equate to 17.6m new ordinary shares, generating £4.2m in cash inflows (before loan note repayments due to HomeServe).
• HomeServe loan note repayments totaling £1.7m have been made this calendar year, comprising £0.4m in January and £1.3m in April, further reducing the outstanding balance to approximately £5.5m as at the date of this announcement (inclusive of rolled up interest).

Craig Foster, CEO of Ondo InsurTech, commented: "LeakBot is proven to save insurers' claims costs totaling many times the cost of deployment. Despite slower-than-expected contract momentum, we have exceeded our expectations in securing new insurer partnerships over the past twelve months. In the United States of America, we are now contracted with 7 insurers including 3 of the Top Twenty US home insurance companies, giving us access to 5.8m households across 23 states. Looking ahead, our focus is on scaling existing partnerships, accelerating US adoption, and increasing production to meet growing demand."