We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Onfolio Q2 Revenues Soar 83% but Losses Persist, Shares Drop
Read MoreHide Full Article
Shares of Onfolio Holdings, Inc. (ONFO - Free Report) have declined 1.8% since the company reported its earnings for the second quarter of 2025. This compares to the S&P 500 index’s 0.2% decrease over the same period. Over the past month, the stock has retreated 22.9%, sharply underperforming the S&P 500’s 1.8% gain. The recent sell-off underscores investor caution despite notable operational improvements, suggesting heightened scrutiny of the company’s path to profitability.
On the financial front, Onfolio delivered strong top-line growth. Revenues for the second quarter rose 82.5% year over year to $3.15 million from $1.73 million, reflecting growth across both services and product sales. The gross profit nearly doubled to $1.94 million from $0.98 million, a 98.9% increase.
Operating expenses climbed 54.4% to $2.44 million, though this represented a sequential decline from the first quarter of 2025. The net loss narrowed 5.6% year over year to $0.67 million, or 13 cents per share, compared to $0.71 million, or 14 cents per share, a year ago. Management attributed roughly $150,000 of the loss to one-time audit-related expenses, while $300,000 in amortization and $25,000 in stock-based compensation also weighed on results. Adjusted for these items, the company suggested it was close to breakeven.
Onfolio Holdings Inc. Price, Consensus and EPS Surprise
Revenues from services surged to $2.06 million, more than doubling from $0.99 million in the prior-year period. Product sales climbed to $1.09 million compared to $0.73 million a year ago. The cost of revenues increased to $1.21 million from $0.75 million, but the gross margin improved significantly, given faster revenue growth.
Cash stood at $0.51 million at the end of June 2025, up modestly from $0.48 million at year-end 2024, aided by proceeds from preferred stock sales and financing inflows. The operating cash outflow narrowed to $0.58 million in the first half of 2025 compared to $0.76 million in the prior year, reflecting improved operating leverage.
ONFO: Management Commentary
CEO Dominic Wells highlighted progress across all key metrics, emphasizing that both revenues and gross profit grew year over year and sequentially, while operating expenses decreased quarter over quarter. He noted that exceptional audit-related costs inflated losses, but these are now behind the company. Wells expressed confidence that, excluding these one-offs, Onfolio was approaching operational breakeven. He also pointed to non-cash charges like amortization and stock-based compensation as factors obscuring the underlying trajectory.
Factors Influencing Onfolio’s Headline Numbers
Several elements shaped second-quarter results. Audit-related costs tied to the 2023 re-audit and 2024 Eastern Standard audit contributed meaningfully to expenses but are not expected to recur. Amortization linked to prior acquisitions remained a notable drag on the income statement. Meanwhile, interest expenses increased to $72,600 from $22,700 a year ago, reflecting higher debt levels. However, improved operating scale more than offset these burdens at the gross profit level, resulting in a narrower loss.
Guidance by ONFO
Management commentary implied confidence in continued improvement. Wells pointed to anticipated reductions in accounting and professional fees beginning in the third quarter, alongside incremental revenue contributions from new business initiatives. He also stressed a disciplined approach to acquisitions, indicating the company will only pursue transactions that are “highly strategic” rather than focusing on expansion at any cost.
Other Developments at Onfolio
Onfolio expanded its portfolio offerings during the quarter. It launched Pace Generative LLC, an AI visibility agency, at the end of the period, which immediately began generating recurring monthly revenues. In addition, the company introduced a revenue-share partnership program for course creators that attracted strong interest, with the first partners scheduled to be onboarded by late August 2025. Management described both initiatives as early but promising contributors to future growth. Importantly, ONFO did not complete any acquisitions in the quarter, though its pipeline remains “strong.” The focus, according to Wells, is on improving the performance of existing businesses before making further additions.
To conclude, Onfolio reported substantial revenue growth and improving margins in the second quarter of 2025, though net losses persisted largely due to non-recurring costs and amortization. Management signaled confidence in achieving breakeven in the coming quarters, supported by new ventures and cost discipline. However, investor sentiment has remained skeptical, with shares sharply underperforming both since the earnings release and over the past month relative to the broader market.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Onfolio Q2 Revenues Soar 83% but Losses Persist, Shares Drop
Shares of Onfolio Holdings, Inc. (ONFO - Free Report) have declined 1.8% since the company reported its earnings for the second quarter of 2025. This compares to the S&P 500 index’s 0.2% decrease over the same period. Over the past month, the stock has retreated 22.9%, sharply underperforming the S&P 500’s 1.8% gain. The recent sell-off underscores investor caution despite notable operational improvements, suggesting heightened scrutiny of the company’s path to profitability.
On the financial front, Onfolio delivered strong top-line growth. Revenues for the second quarter rose 82.5% year over year to $3.15 million from $1.73 million, reflecting growth across both services and product sales. The gross profit nearly doubled to $1.94 million from $0.98 million, a 98.9% increase.
Operating expenses climbed 54.4% to $2.44 million, though this represented a sequential decline from the first quarter of 2025. The net loss narrowed 5.6% year over year to $0.67 million, or 13 cents per share, compared to $0.71 million, or 14 cents per share, a year ago. Management attributed roughly $150,000 of the loss to one-time audit-related expenses, while $300,000 in amortization and $25,000 in stock-based compensation also weighed on results. Adjusted for these items, the company suggested it was close to breakeven.
Onfolio Holdings Inc. Price, Consensus and EPS Surprise
Onfolio Holdings Inc. price-consensus-eps-surprise-chart | Onfolio Holdings Inc. Quote
Other Key Business Metrics of Onfolio
Revenues from services surged to $2.06 million, more than doubling from $0.99 million in the prior-year period. Product sales climbed to $1.09 million compared to $0.73 million a year ago. The cost of revenues increased to $1.21 million from $0.75 million, but the gross margin improved significantly, given faster revenue growth.
Cash stood at $0.51 million at the end of June 2025, up modestly from $0.48 million at year-end 2024, aided by proceeds from preferred stock sales and financing inflows. The operating cash outflow narrowed to $0.58 million in the first half of 2025 compared to $0.76 million in the prior year, reflecting improved operating leverage.
ONFO: Management Commentary
CEO Dominic Wells highlighted progress across all key metrics, emphasizing that both revenues and gross profit grew year over year and sequentially, while operating expenses decreased quarter over quarter. He noted that exceptional audit-related costs inflated losses, but these are now behind the company. Wells expressed confidence that, excluding these one-offs, Onfolio was approaching operational breakeven. He also pointed to non-cash charges like amortization and stock-based compensation as factors obscuring the underlying trajectory.
Factors Influencing Onfolio’s Headline Numbers
Several elements shaped second-quarter results. Audit-related costs tied to the 2023 re-audit and 2024 Eastern Standard audit contributed meaningfully to expenses but are not expected to recur. Amortization linked to prior acquisitions remained a notable drag on the income statement. Meanwhile, interest expenses increased to $72,600 from $22,700 a year ago, reflecting higher debt levels. However, improved operating scale more than offset these burdens at the gross profit level, resulting in a narrower loss.
Guidance by ONFO
Management commentary implied confidence in continued improvement. Wells pointed to anticipated reductions in accounting and professional fees beginning in the third quarter, alongside incremental revenue contributions from new business initiatives. He also stressed a disciplined approach to acquisitions, indicating the company will only pursue transactions that are “highly strategic” rather than focusing on expansion at any cost.
Other Developments at Onfolio
Onfolio expanded its portfolio offerings during the quarter. It launched Pace Generative LLC, an AI visibility agency, at the end of the period, which immediately began generating recurring monthly revenues. In addition, the company introduced a revenue-share partnership program for course creators that attracted strong interest, with the first partners scheduled to be onboarded by late August 2025. Management described both initiatives as early but promising contributors to future growth. Importantly, ONFO did not complete any acquisitions in the quarter, though its pipeline remains “strong.” The focus, according to Wells, is on improving the performance of existing businesses before making further additions.
To conclude, Onfolio reported substantial revenue growth and improving margins in the second quarter of 2025, though net losses persisted largely due to non-recurring costs and amortization. Management signaled confidence in achieving breakeven in the coming quarters, supported by new ventures and cost discipline. However, investor sentiment has remained skeptical, with shares sharply underperforming both since the earnings release and over the past month relative to the broader market.