Ondo InsurTech results 2026: US growth accelerates as losses widen

Ondo InsurTech PLC has reported faster US expansion and a much stronger recurring revenue mix for the year ended 31 March 2026. However, the LeakBot provider remains heavily loss-making and required a significant refinancing shortly after the year-end.

Revenue increased by 20% to £4.6 million, while recurring revenue rose by 51% to £3.8 million. The US was the main engine of growth, with regional revenue more than doubling to £2.3 million.

The tension for investors is straightforward. Ondo appears to be gaining commercial traction, especially in America, but operating losses, cash consumption and dilution show that scaling this business remains expensive.

Ondo InsurTech's key figures

Metric	FY26	FY25	Change
Revenue	£4.6 million	£3.9 million	+20%
Recurring revenue	£3.8 million	£2.5 million	+51%
Annualised Recurring Revenue	£4.6 million	£3.3 million	+41%
Contracted Annualised Recurring Revenue	£6.8 million	£5.9 million	+15%
Active LeakBots	144,507	108,284	+33%
US revenue	£2.3 million	£1.1 million	+117%
Operating loss	£6.4 million	£5.2 million	Widened
Loss for the year	£7.2 million	£6.2 million	Widened
Year-end cash	£1.1 million	£4.0 million	Down 72%

Annualised Recurring Revenue, or ARR, is the annual value of recurring income generated by active devices at a particular point in time.

Contracted Annualised Recurring Revenue, or C-ARR, also includes expected recurring income from contracted devices that have not yet been activated. Ondo assumes a 70% activation rate for devices expected to go live within 18 months.

Recurring revenue is becoming the core business

The most encouraging feature of the results is the change in revenue quality.

Recurring revenue represented 83% of group revenue, compared with 66% in FY25. Device and set-up fees declined from £1.3 million to £805,152, but recurring software and services revenue increased from £2.5 million to £3.8 million.

That shift creates weaker upfront revenue but should provide greater visibility if deployed LeakBots remain active. Average monthly recurring revenue per Active LeakBot also increased from £1.96 to £2.21.

There is evidence that Ondo's contracted base could support further growth. C-ARR reached £6.8 million, compared with reported year-end ARR of £4.6 million. The gap represents business already contracted but not yet fully activated, rather than an ordinary sales pipeline.

Investors should still treat C-ARR differently from recognised revenue. Deployment timing and the assumed activation rate matter, and the company has previously experienced deferred US orders.

The US has become Ondo's largest market

US revenue increased by 117% to £2.3 million and accounted for 49% of group revenue, up from 27% a year earlier.

US Active LeakBots rose by 114% to 57,408 across 26 states and 11 insurance partners. Ondo also completed 3,070 in-home repairs, an increase of 123%, while its US Net Promoter Score improved from +79 to +88.

The company secured new or expanded contracts with Nationwide, Westfield Insurance, Indiana Farm Bureau and Selective. It also launched programmes with Hanover and Liberty Mutual. Nationwide has confirmed its intention to order a further 35,000 LeakBots in the second half of 2026.

Ondo reported that each Active LeakBot generates approximately $197 of lifetime value and approximately $148 of net profit after acquisition costs over an average device life of 6.5 years. These figures are based on monthly churn of 1.27% and the plumbing network's current efficiency.

Those unit economics sound attractive, but they are management calculations rather than group-level profitability. Ondo still needs to prove that positive device economics can translate into sustainable cash generation after central and expansion costs.

UK and Nordic revenue moved backwards

UK revenue declined by 16% to £1.1 million, while Nordic revenue fell by 16% to £1.2 million. This happened despite combined UK and Nordic Active LeakBots growing by 7%.

Management attributes the revenue declines to a switch away from upfront device fees towards recurring contracts. NFU Mutual became Ondo's largest UK partner and the first in the country to adopt recurring pricing.

Admiral signed a two-year agreement to deploy another 10,000 devices during 2026, while Ageas began a trial. In Denmark, Alm. Brand Group committed to at least 15,000 devices across three brands, with deployment beginning in March 2026.

The explanation for lower regional revenue is credible within the disclosed change in contract structure. Nevertheless, investors will want the growing recurring base to produce clear regional revenue growth in future periods.

Losses and cash consumption remain the main concern

Ondo's operating loss widened from £5.2 million to £6.4 million. The loss for the year increased from £6.2 million to £7.2 million, while net cash used in operations rose from £3.3 million to £4.3 million.

Year-end cash fell to £1.1 million from £4.0 million, and the group reported negative equity of £8.3 million at 31 March 2026. Borrowings totalled £6.6 million, including £491,000 repayable within one year at that date.

Gross profit was only £219,000 on revenue of £4.6 million, producing a gross operating margin of 4.7%. Management says rapid US deployment suppresses the blended margin because device costs are fully expensed in year one, with higher margins expected from year two onwards.

That means the model may benefit as the installed base matures. For now, however, Ondo's reported margins remain thin and its cost base continues to exceed revenue substantially.

July's refinancing provided essential breathing room

Ondo completed a refinancing after the reporting period. It included a £2.9 million equity fundraise, £2.0 million of convertible loan notes and a committed credit facility of up to £2.0 million.

The company issued 96.71 million new ordinary shares at 3.0p through the placing and retail offer. The convertible notes carry a conversion price of 3.2p, creating further potential dilution.

The £2.0 million credit facility is available from 1 April 2027 and carries an interest rate of 17.5% when drawn. This provides additional liquidity, but it is expensive funding.

More positively, Ondo renegotiated its HomeServe vendor loan notes. The interest rate was reduced to 5%, the redemption date was extended to 31 May 2030 and cash debt servicing was reduced by £7.2 million through December 2029. A previously committed £491,000 remains payable in two instalments during 2026.

The changes remove an immediate repayment threat and materially improve near-term financial flexibility. They do not remove the need for Ondo to narrow its losses and move towards self-funded growth.

What investors should watch next

Active LeakBots reached approximately 167,000 by 30 June 2026, up from 144,507 at the March year-end. The US base reached 66,000, while Sweden and Denmark recorded year-on-year growth of 38% and 25%, respectively. The UK remained broadly stable at 30,400 devices.

The growth in active devices, recurring revenue and US insurer relationships is promising. The refinancing also gives Ondo more time to convert contracted deployments into revenue and cash flow.

The key tests are now whether gross margins improve as US devices enter their second year, C-ARR converts into active recurring revenue, and operating cash outflows begin to reduce. Ondo has not disclosed numerical revenue, profit or cash-flow guidance for FY27.

These results show a company with genuine commercial momentum but a financial model that is still being proven. Investors can read the original company announcement for the complete audited figures and notes.