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Onfolio Stock Slides 28.9% Despite Q3 Revenue Rise, Losses Widen

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Shares of Onfolio Holdings Inc. (ONFO - Free Report) have declined 28.9% since the company reported its earnings for the third quarter of 2025. This compares with the S&P 500 Index’s 2% decrease over the same time. Over the past month, the stock has fallen 39.1% compared with the S&P 500’s 4% decline.

Onfolio posted third-quarter revenues of $2.74 million, up 36% from $2.01 million in the same quarter last year, reflecting a sharp increase in services revenues that outweighed a modest decline in product sales. Net loss widened to $0.6 million from $0.3 million in the prior-year quarter, and net loss per common share doubled to 16 cents from 8 cents. The company highlighted that loss from operations improved to $268,000 from $331,000 last year, though bottom-line results were pressured by non-cash items tied to acquisitions and higher public-company costs.

Onfolio Holdings Inc. Price, Consensus and EPS Surprise

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 ONFO

Mix shift was a key theme. Services revenues climbed 69% year over year to $1.88 million, aided by the Eastern Standard acquisition, while product sales revenues slipped 4% to $0.86 million. Gross profit rose 47% to $1.77 million, and gross margin expanded to 64.6% from 59.9% a year ago, suggesting better profitability on incremental revenues, even as overall earnings remained negative. Total operating expenses increased 33% to $2.04 million, but were down 17% sequentially, indicating some near-term cost tightening. Segment data showed the B2B portfolio generated a small operating profit of $32,000 and B2C produced an operating profit of $287,000, with corporate overhead more than offsetting those gains.

Balance-sheet liquidity stayed tight. Cash ended the quarter at $0.40 million, down from $0.48 million at year-end 2024. Total assets decreased to $8.29 million from $9.59 million, driven mainly by amortization of intangible assets. Current liabilities fell to $2.75 million from $3.74 million, helped by a meaningful reduction in contingent consideration and deferred revenues.

ONFO: Management Commentary

CEO Dom Wells emphasized continued progress in both top-line growth and operating-loss improvements, calling the third quarter of 2025 the company’s “strongest operating profit performance” since becoming public. Management framed the results as evidence that portfolio optimization and growth strategies are working, and noted that, excluding non-cash charges, operating losses are trending favorably. The company reiterated its commitment to reaching profitability while acknowledging that scaling its platform from a small capital base has been challenging.

Factors Influencing ONFO’s Headline Numbers

Revenue growth was acquisition-led. Onfolio attributed most of the $0.73 million year-over-year revenue increase to Eastern Standard, which added roughly $1.17 million, partially offset by the absence of WP Folio revenues following its sale in late 2024 and softer performance at RevenueZen and Contentellect. The cost of revenues rose 20% to $0.97 million, mainly because the newer service businesses carry higher fulfillment costs, though product-related costs dropped, alongside lower physical product sales at Mighty Deals.

Operating expenses expanded primarily due to higher advertising, contractor and compensation spend and amortization tied to acquired intangibles. Interest expense also jumped to $107,697 from $20,126 a year ago, reflecting a heavier debt load and higher rates. Additionally, the quarter included a $294,000 impairment of equity and cost-basis investments and other non-operating charges that weighed on net loss. The company also cited ongoing public-company compliance costs as a modest but persistent drag.

ONFO: Management View

Management provided directional commentary. It expects to pursue ongoing top-line growth while improving operating results. It sees equity financing as the preferred way to accelerate portfolio growth, extend runway, and address seller notes maturing in late 2025 and 2026.

Other Developments at ONFO

Following quarter-end, the company executed a private offering that raised $1 million in gross proceeds in October 2025 through the issuance of units comprising common stock and warrants. Management said proceeds were used to reduce accounts payable, retire a note and prepare for a larger contemplated capital raise. The company also highlighted operational moves, including continued client onboarding at its AI marketing subsidiary Pace Generative and the launch of a partnership program for course creators using a performance-based revenue-share model.


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