ONAR Holding Corporation Reports 79% Revenue Growth but Faces Increased Losses in Latest Quarter

ONAR Holding Corporation reported significant financial developments in its latest quarterly filing for the period ending March 31, 2025. The company generated revenue of $1.07 million, marking a 79% increase from $600,542 in the same period last year. This growth is attributed primarily to the acquisition of HLDCO, LLC, which has expanded ONAR's operational capabilities in the marketing sector. However, the company also faced increased costs, with cost of revenues rising to $877,676, up 83% from the previous year, reflecting the operational scale-up following the acquisition.

The company's operating expenses surged to $1.14 million, a 198% increase compared to $383,690 in the prior year. This rise is largely due to compliance costs associated with being a public company following the acquisition. As a result, ONAR reported a net loss of $1.29 million for the quarter, compared to a loss of $386,733 in the same quarter of 2024. The loss per share was $(0.01), with a weighted average of 114.29 million shares outstanding, a significant increase from 16.79 million shares in the prior year.

Operationally, ONAR's customer base and engagement metrics have been positively impacted by the acquisition. The company now operates two reportable segments: Advertising and Marketing, and Pools. The Advertising and Marketing segment generated $734,515 in revenue, while the Pools segment contributed $338,080. The company is also focusing on expanding its geographic footprint and enhancing product adoption rates in its marketing services, which include digital advertising and experiential marketing.

As of March 31, 2025, ONAR's total assets were reported at $2.23 million, down from $2.45 million at the end of 2024. The company’s liabilities increased to $5.61 million, resulting in a working capital deficit of $4.75 million. This financial strain raises concerns about the company's ability to sustain operations without additional funding. Management has indicated plans to pursue further capital through equity or debt sales, although they acknowledge the potential for significant dilution of existing stockholders.

Looking ahead, ONAR's management remains optimistic about future growth, driven by aggressive marketing strategies and the potential for further acquisitions. However, they caution that the company’s ability to continue as a going concern is contingent upon securing additional funding and achieving profitable operations. The company has not provided specific guidance on expected revenue or profitability for the upcoming quarters, emphasizing the need for careful monitoring of market conditions and operational performance.