ONAR Holding Corporation Reports Q2 2025 Financial Results with Revenue Decline and Increased Losses

ONAR Holding Corporation reported its financial results for the second quarter of 2025, revealing a revenue of $550,639, a decrease of 17% from $667,296 in the same period of 2024. For the six months ending June 30, 2025, the company generated $1,623,234 in revenue, marking a 28% increase compared to $1,267,838 in the prior year. The increase in revenue for the six-month period was primarily attributed to the acquisition of Reliant Holdings, which contributed to the company's pool construction segment. However, the company experienced a gross loss of $270,945 for the quarter and a net loss of $1,406,023, compared to a net loss of $278,771 in the same quarter of the previous year.

The financial performance reflects significant changes in operational costs, with cost of revenues rising to $821,584 for the second quarter of 2025, up from $348,171 in the same quarter of 2024. This increase is largely due to the integration of Reliant Holdings and higher labor costs associated with retaining talent. Operating expenses also surged to $896,967, a 135% increase from $381,004 in the prior year, driven by compliance costs related to the public company status and increased stock-based compensation. The company’s total liabilities reached $6.23 million, resulting in a working capital deficit of approximately $5.47 million.

Strategically, ONAR completed the acquisition of HLDCO, LLC in July 2024, which has since been integrated into its operations. This acquisition has positioned ONAR as a marketing agency group focused on middle-market companies, offering a range of services including digital performance marketing and healthcare marketing. The company is also evaluating strategic alternatives for its pool construction business to focus resources on its marketing agency network, which is expected to yield higher growth potential.

Operationally, ONAR reported a significant increase in its employee headcount and customer base following the acquisition. The company is actively pursuing geographic expansion and product adoption in its marketing services, which include AI-enabled digital advertising and experiential marketing. The management has indicated a focus on tightening expense controls and improving cash conversion to enhance liquidity and support growth initiatives.

Looking ahead, ONAR's management is focused on refinancing near-term debt maturities and improving liquidity through strategic financing options. The company plans to continue its efforts to raise additional capital, including a recent $500,000 closing of its Series E Preferred Stock financing, with the potential for further capital raises up to $6 million. However, the company acknowledges the substantial doubt about its ability to continue as a going concern, emphasizing the need for successful execution of its operational and financial strategies to achieve profitability and positive cash flows in the future.