Onfolio Holdings Reports 77% Revenue Growth to $2.81 Million, Despite Increased Net Loss

Onfolio Holdings, Inc. reported significant financial performance improvements in its latest quarterly filing, with total revenue reaching $2.81 million for the three months ended March 31, 2025, compared to $1.59 million in the same period last year, marking a 77% increase. The growth was primarily driven by contributions from recent acquisitions, including Eastern Standard and DDS Rank, which added approximately $917,500 and $52,500 to revenue, respectively. The company also noted a substantial increase in service revenue, which rose by 148% year-over-year, reflecting a shift in its business strategy and enhanced operational efficiency.

Despite the revenue growth, Onfolio reported a net loss of $806,428 for the first quarter of 2025, up from a loss of $477,826 in the prior year. This increase in net loss was attributed to higher stock-based compensation expenses of $272,930 and increased amortization costs related to intangible assets acquired in previous transactions. The company's operating expenses also rose significantly, driven by increased advertising and marketing costs, as well as higher general and administrative expenses.

Operationally, Onfolio has been focusing on streamlining its operations and enhancing cross-selling opportunities across its portfolio of businesses. The company reported a decrease in cash used in operations to $145,049, down from $431,007 in the same quarter of 2024, indicating improved operational discipline. Additionally, the company raised $700,000 through the sale of Series A preferred stock, which bolstered its cash position by approximately 40% year-over-year.

Onfolio's business segments showed varied performance, with the Business to Business (B2B) segment generating $1.69 million in revenue, a 150% increase from the previous year, while the Business to Consumer (B2C) segment reported $1.12 million, up 23%. The B2B segment's growth was largely driven by the contributions from the DDS Rank and Eastern Standard acquisitions. However, the B2B segment also experienced a decline in operating income due to increased amortization expenses.

Looking ahead, Onfolio's management remains optimistic about its growth trajectory, emphasizing a strong acquisition pipeline and ongoing efforts to achieve profitability. However, the company acknowledged substantial doubt about its ability to continue as a going concern, primarily due to recurring losses and the need for additional capital to support its operations and growth plans. The management is actively exploring various financing options to ensure the company's sustainability and growth in the coming months.