Two kinds of conversion
A video file is a container (MP4, MOV, MKV) holding picture and sound that were compressed with a codec. If your file already holds H.264 picture and AAC or MP3 sound, as most MOV and MKV files from cameras and screen recorders do, the tool lifts them out and places them in an MP4 container unchanged. That takes seconds and loses nothing. If the picture uses another codec (HEVC from a recent iPhone, WMV, MPEG-2, VP9), it is re-encoded to H.264 so that it plays everywhere.