WILMINGTON, DE — Onfolio Holdings Inc. (Nasdaq: ONFO, ONFOW; OTC: ONFOP) reported a 52% drop in second-quarter revenue and a wider loss as weaker sales at portfolio companies coincided with a push to shore up its balance sheet and regain compliance with Nasdaq listing requirements.
Revenue fell to $1.50 million for the quarter ended June 30 from $3.15 million a year earlier.
Gross profit declined 62% to $730,000 from $1.94 million, while gross margin narrowed to 49% from 62%. The company attributed the deterioration partly to a revenue mix shift toward lower-margin business-to-business services.
Operating expenses fell 31% to $1.70 million from $2.44 million, reflecting lower selling, general and administrative costs, reduced advertising and marketing spending and lower amortization expense. Those savings were partly offset by higher professional fees tied to financing activity and Nasdaq compliance matters.
Onfolio posted a net loss of $1.65 million, compared with a $530,000 loss in the year-earlier quarter.
The latest loss included a $280,000 non-cash loss from changes in the fair value of digital assets and $180,000 in non-cash amortization and stock-based compensation expense.
Cash operating loss widened to $860,000 from $250,000, while EBITDA as defined by the company was negative $780,000 compared with negative $150,000 a year earlier.
Cash stood at $250,000 as of June 30, down from $2.18 million at the end of 2025.
Chief Executive Officer Dominic Wells attributed the revenue decline primarily to weaker new sales at Eastern Standard and reduced advertising spending at Proofread Anywhere.
“Overall portfolio performance is not yet where we need it to be, and we’re being direct about that,” Wells stated.
RevenueZen performed better after Eastern Standard assumed responsibility for its fulfillment operations, according to the company, which cited that improvement as evidence for its strategy of consolidating operating functions across portfolio businesses.
Onfolio also took steps after quarter-end to address two Nasdaq listing deficiencies.
The company completed a 1-for-50 reverse stock split effective Aug. 10 in an effort to regain compliance with Nasdaq’s $1 minimum bid-price requirement under Listing Rule 5550(a)(2).
It also retired the full $6 million principal amount of its senior secured convertible note after the quarter ended, with the noteholder converting the outstanding principal into equity. The company expects that move to improve stockholders’ equity as it works toward Nasdaq’s $2.5 million minimum requirement under Listing Rule 5550(b)(1).
Onfolio had previously terminated a binding letter of intent with Paramount Helium LLC in July and has returned its focus to acquiring and operating online businesses.
The company is also seeking to reduce parent-company overhead, increase cash distributions from portfolio businesses and use artificial intelligence to streamline internal processes.
“Our focus for the remainder of the year is unchanged: control parent company costs, get portfolio cash flowing again, and close acquisitions that are accretive from day one,” Wells stated.
Separately, Onfolio launched two AI-focused products under Onfolio Labs: SharePulse, an investor-relations analytics platform, and Parlance, a managed AI communications service for public companies. The company is positioning the products as an asset-light recurring-revenue line alongside its acquisition portfolio.
More information on those products is available at https://onfolio.com/onfolio-labs-sharepulse-parlance/.
Onfolio also reported approximately $1.33 million in digital assets as of June 30, consisting of 5.32 Bitcoin, 322.33 Ether and 6,971.79 Solana. Most of the Ether holdings and all of the Solana holdings were staked to generate yield.
A company report on the terminated Paramount Helium transaction is available at https://onfolio.com/what-happened-with-onfolios-helium-deal/.
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