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Highlights

  • Registered customers up 59% YoY, with major U.S. expansion driving growth

  • Annualised recurring revenue hits £5.9m, boosted by top-tier U.S. insurer deal

  • Positive financial footing with £4.0m in cash and no anticipated funding needs

Ondo InsurTech Plc (LSE:ONDO), a leading provider of claims prevention technology for home insurers, has issued a robust trading update for the year ended 31 March 2025, despite some regional challenges.

Growth Across the Board

The company registered approximately 151,000 customers by year-end, marking a 59% increase over the previous year’s total of 95,468. This growth was propelled in large part by Ondo’s U.S. expansion, where registered customer numbers rose an astonishing 435% year-on-year, reaching 34,000. The U.S. now accounts for 47% of overall customer growth.

Supporting this surge, Ondo has broadened its insurer partner base to now cover over 14 million homes across the U.S., UK, Sweden, and Denmark. A pivotal partnership with The Hanover Insurance Group, a top 20 U.S. homeowner insurer, has also bolstered Ondo’s annualised contracted recurring revenue (ARR), which now stands at £5.9 million.

Revenue and Financial Performance

Revenue for the year is expected to reach not less than £3.8 million, reflecting 40% year-on-year growth (FY24: £2.7 million). However, continued delays in Sweden modestly impacted overall performance.

Deferred revenue amounted to £3.1 million, highlighting the performance of Ondo’s prepaid contract model. These revenues, tied to undelivered LeakBots, are expected to be realised in FY26.

The company maintains that positive trading EBITDA on a run rate basis is on track to be achieved by March 2026.

Importantly, Ondo ended the financial year with £4.0 million in cash, even after accounting for an upcoming £1.3 million loan note repayment to HomeServe due in April. 

Expansion in the United States

Ondo’s U.S. operations continue to scale efficiently. The LeakBot water damage prevention solution is now active in 23 U.S. states, thanks to ongoing deployments with high-profile insurance partners including Nationwide, PURE Insurance, Selective Insurance, and Mutual of Enumclaw.

The U.S. expansion has helped solidify Ondo’s reputation, with customer satisfaction remaining exceptionally high. The company reported a Net Promoter Score (NPS) of +80 and a customer rating of 4.93 out of 5.

Optimised Working Capital and Warrant Conversion

Ondo's shift to a prepaid contract model has transformed its working capital structure, effectively reducing cash strain during product rollouts. The approach requires upfront deposits from partners, aligning cash flow more closely with operational needs.

Further supporting the balance sheet, warrant exercises since September 2024 have resulted in the issuance of 17.6 million new shares, bringing in £4.2 million in cash inflows. Combined with HomeServe loan repayments totalling £1.7 million this year, Ondo has significantly reduced its outstanding debt burden to approximately £5.5 million, including accrued interest