3 December 2025

Ondo Insurtech Plc

("Ondo", the "Company" or the "Group")

Results for six months ended 30 September 2025

Craig Foster, CEO of Ondo InsurTech, commented:

"I'm very encouraged by the momentum we've built in the US. Delivering seven-fold growth has validated both our model and the size of the opportunity. With strong partner demand and a growing pipeline, this is the right moment to invest in building a truly national US solution so we can support expansion across the whole of the United States and cement our position as the market leading solution."

Enquiries

CHAIRMAN'S STATEMENT

The first half of the year has been one of both strong operational progress and important strategic evolution for Ondo. The Group continued to build momentum across its core markets, particularly in the United States, where customer numbers and recurring revenues grew seven-fold. The Board is encouraged by the continued expansion of our insurance partner network, the strengthening quality of our recurring revenue base, and the clear validation of our unit economics.

The USA has now become the principal engine of growth for the business, with partners expanding their programmes across 26 states and demonstrating strong appetite to accelerate deployment.  Customer feedback remains outstanding, and the shareholder value generated by these programmes are highly attractive.

While the management team's efforts have been rewarded with continuing strong growth in the United States, as set out in these interim results progress in Europe - particularly in the Sweden - has been significantly slower, as we highlighted earlier this year.  As a consequence, revenues in the current year will be lower than previously forecast. 

Nevertheless, the focus of the majority of Ondo's resources and management bandwidth on the USA has paid off.  The USA is now the majority of our Revenue, with US revenues and customers growing 7x year on year.  We now work with US insurers across 26 states and the demand for geographic expansion has been faster than we anticipated.  Nationwide are our largest single customer worldwide and Liberty Mutual were our largest customer in terms of new shipments in the period under review.  Despite inherent inefficiency in the plumbing repair network today our US Customer Lifetime Value as a ratio of Customer Acquisition Costs are already at SaaS best-in-class benchmark levels.  I believe we have a remarkable opportunity before us to take a market leadership position in the United States.

To ensure the Company is fully resourced to pursue these opportunities, Ondo has today announced a placing, subscription and retail offer to raise funding to invest in US infrastructure.  This enables us to invest in growth, build out the plumbing repair network to cover more US states and commence the next stage of development of our new complimentary sensor hardware - LeakBot Edge.  The new hardware means we can protect homes also in the hottest parts of the USA (like Florida and Texas) where the shut-off valve is outside.  We are announcing an investment programme to complete the design-for-manufacture with an aim to launch LeakBot Edge in early 2027.   

The Board believes that the steps being taken position the Company well for long-term success. With a growing base of high-quality recurring revenue, expanding strategic partnerships, and a clear roadmap for product innovation, Ondo remains strongly placed to deliver sustainable value for shareholders.

GM Wood CBE DBA FCA BA

Chairman

2 December 2025

CHIEF EXECUTIVE'S STATEMENT

The first half of FY26 has marked a defining period for Ondo. Our progress in the United States has accelerated materially, our recurring revenue base continues to expand, and our unit economics in the USA are now firmly proven at scale.

Group Performance

Group revenue for the six months to 30 September 2025 grew 26% to £2.1 million (H1 25: £1.7m), supported by substantial growth in the US and continued adoption of our recurring revenue model across all regions. Recurring revenues more than doubled, rising 110%, and now represent 86% of total revenues, with the majority from the US.

Customer numbers increased 64% year-on-year to 187,000, with the US customer base alone expanding seven-fold to 48,000. This growth reflects strong policyholder engagement, insurer support, and the widening impact of our partnerships.  We have announced eight new contracts in the current year to date (Ageas, Admiral, If in Europe, and Nationwide, Indiana Farm Bureau, Westfield, Bear River Mutual and The Hanover in the USA).  Most notably Nationwide have now signed a third order and further expanded their distribution of LeakBot into a total of 26 U.S. states.  Indiana Farm Bureau after a successful pilot have now doubled their commitment and plan to deploy LeakBot into 15% of their customer base in 2026 citing "strong claims savings and exceptional customer satisfaction".  And not least, Liberty Mutual were one of our largest customers by volume in the interim period and as the 3^rd largest personal lines insurers in the United States are a great opportunity for accelerated growth into next year and beyond. 

At the same time, progress in Europe, and particularly in the Nordic region, has been slower than we had projected.  As announced earlier this year we have experienced material delays in the planned expansion of new contracts, particularly into Sweden.  In the UK we have successfully executed the NFU deployment, and they are now our largest partner in the UK and the first European partner on our US-style recurring pricing model.  We were pleased to announce a material new contract also with Admiral in the UK, and an opportunity to extend our long-lasting relationship with TopDamark following its merger with If which was announced earlier in the year.

United States

The US continues to be the standout driver of growth, with the period characterised by:

Crucially, we have validated our US unit economics using real customer data at scale:

^{1, 2} ARR and Contracted ARR for definition see glossary of terms below

The underlying gross margin of the US customers is already 50%.  Already in states with slightly higher density (like Indiana) we are at 1.8 jobs per day which delivers a 61% gross margin. This level of performance is particularly compelling given that US operations are still in an early maturity phase, with current device density and engineer efficiency that management expect to naturally improve.  As density improves, we expect cost per job to fall and margins to further increase materially.

We completed 1,400 in home repairs across 26 US States (although through careful coordination 80% of the volume is concentrated in the Top 10 states as we build out device density).  We have managed to do this while maintaining a >86 NPS score and returning a 135% ROI for carrier partners.

Product Innovation: LeakBot Edge

A major development during the period was the successful R&D progress behind LeakBot Edge, our new solution designed for homes in hot climates and multi-family buildings - segments where our existing device is unsuitable, and no effective solution exists. This market comprises approximately 28 million single-family homes in hot climate states in USA and 79m apartments across the USA and Western Europe.

Following successful alpha testing (in Australia) and partner feedback, LeakBot Edge has become a material new opportunity for the Company. It will complete our ability to offer US insurers a single, national solution and positions Ondo uniquely in a substantial untapped market.

LeakBot Edge is a new hardware sensor that is intended to offer the same benefits as the original LeakBot - micro-leak sensitivity, self-install and a single device that can protect a whole home.  It is designed to plug straight into our existing operating model (pricing model, homeowner app, software platform and in-home repair service). The difference is that it is designed to be installed outside a property in hot climates where the stop tap is located on the exterior of the building.  There are some 28 million homes like this in the USA and an estimated further 26 million in hot countries in Western Europe.  What's more we believe the solution may also have broader applicability in 79 million apartments in the USA and Western Europe too.  The technically difficult part (core technology R&D) has been done, and we are now planning to finalise the design and commercialisation to launch LeakBot Edge in early 2027.

Financial Review

Group revenue for the six months to 30 September 2025 was £2.1 million (H1 25: £1.7m),  However due to the rapid roll out the US we have reported gross loss of £327,000 in the first half (H1 25: profit £403,000). 

Due to the ongoing US expansion Administrative Costs in H1 26 increased to £3.2m (H1 25: £2.5m).  As a result, the EBITDA loss for the period was £3.3m (H1 25: £2.0m). 

Underlying Gross Margin before customer acquisition costs were 54%, comprising 63% in the Nordics, 52% in the UK and 50% in the USA. After customer acquisition costs, Group gross margin was -15.5%, reflecting the current scale-up phase in the US with £1.5m invested in customer acquisition costs (device and shipping fees).

^{3, 4} LTV and CAC for definition see glossary of terms below

As previously stated, our US prepayment model is designed so that growth will not create a working capital strain.  Our intention was that new customers would indeed be cashflow positive in Year 1 and thus contribute towards overheads. Based on the now substantially larger dataset from the US, we have updated this position.

Based on current installation rates new US customers are cash break-even (due to the advance-fee  structure) and EBITDA-negative in year one.  In the period we made a $34 P&L loss for each customer acquired. 

At current installation rates in the US, we are investing an average of $54 in device and shipping fees for every new customer activated - this is essentially our Customer Acquisition Cost (CAC).  Those new customers today then have a 50% gross margin and a 4.9 year average lifetime (based on a 1.7% monthly churn rate).  So, each customer today is worth a Lifetime Average Value (LTV) of $147 each - even at today's sub-optimal repair costs. 

That's a ratio of LTV:CAC of >2.7:1.  Best in class SaaS benchmarks for recurring revenue software businesses is an LTV:CAC of around 3:1 showing that, even though our margins will continue to improve as device density grows, these are already highly investable unit economics. As jobs-per-day rise in line with slightly denser states like Indiana the gross margin increases to 61%, LTV to $180 ad LTV:CAC of 3.3:1.

This reinforces the boards' view that we should not slow down customer acquisition. In fact, accelerating customer growth is the fastest path to building shareholder value, building a valuable recurring revenue customer base with increasing density, improving margins, and generating free cashflow.

To maintain this pace of growth, we must continue hiring ahead of revenue - especially plumbers and customer-support resources - to ensure we can maintain strong ROI for insurers as they monitor underwriting results and scale their rollouts.

The Group began the period with £4.0 million in cash and ended with a balance of £0.6 million, following a net outflow of £3.4 million. This movement can be broken down as:

These factors are consistent with a business scaling rapidly in its largest market and laying the groundwork for continued expansion.

Outlook

In light of the opportunities and updated economics, the Board has approved a capital raise to accelerate US infrastructure expansion and enable the next phase of growth. The raise serves two strategic purposes:

With the newly announced LeakBot Edge developments programme and increased investment in US infrastructure the Company is revising guidance for the FY26.  The Board now anticipates that revenues in the current year will be in the range of £4.5 to £5.0 million and that EBITDA loss will be approximately £5.0 to £5.5 million.

Ondo enters the second half of the year with strong momentum, a rapidly expanding customer base, proven unit economics, and significant opportunities ahead. Our US partners continue to increase the scale and ambition of their programmes, and we are now positioned to deliver a truly national solution through the combination of LeakBot and LeakBot Edge.

While we are choosing to invest in growth in the near term, the strategic rationale is compelling. We are building a category-defining business in a vast, under-served market, supported by long-term insurer partnerships, high customer satisfaction, and a recurring revenue model with powerful lifetime economics. 

The decisions taken this period - investing in growth, strengthening our operational capability, and expanding our addressable market - are designed to maximise the long-term value of the business for shareholders and ensure Ondo cements its position in the near-term as the clear market leader in Predict and Prevent technology for water damage claims in the USA.  

Craig Foster

Chief Executive Officer

2 December 2025