WILMINGTON, DE — Onfolio Holdings Inc. (Nasdaq: ONFO, ONFOW) (OTC: ONFOP) reported a 33% decline in first-quarter revenue as the company reduced advertising spending and restructured operations around an AI-focused cost model while preparing for a broader acquisition push.
Revenue for the quarter ended March 31 fell to $1.87 million from $2.81 million a year earlier, while gross profit declined 46% to $920,000. Net loss widened to $1.92 million from $810,000 in the prior-year quarter.
The company attributed the revenue decline partly to lower marketing spending at Proofread Anywhere, a portfolio company where management prioritized margin improvement over sales growth.
Chief Executive Officer Dominic Wells said the company deliberately accepted lower short-term revenue in exchange for operational efficiency gains.
“We continued to execute our strategy while making deliberate decisions that reduced near-term revenue but materially improved our operating profile,” Wells stated.
Operating expenses declined 30% to $1.75 million as the company consolidated functions and shifted more workflows toward AI-driven operations.
Wells pointed to restructuring within the company’s business-to-business segment, including the repositioning of RevenueZen under a new AgencyCo structure, where operating expenses fell more than 40%.
“We believe this is what an AI-native operating model looks like in practice,” Wells remarked.
The company is now shifting emphasis from cost reduction toward acquisitions after securing a $100 million equity financing facility in April. Management said it aims to acquire businesses generating between $5 million and $10 million in aggregate annual adjusted EBITDA before the end of 2026.
Onfolio also disclosed an acquisition pipeline representing between $15 million and $20 million in potential EBITDA opportunities.
“We spent 2025 closing the gap to profitability, and now we’re deploying capital to grow,” Wells noted, adding that the financing facility gives the company flexibility to pursue larger acquisitions and integrate them into its operating infrastructure.
Cash on hand declined to $840,000 at the end of the quarter from $2.18 million at year-end 2025.
The company also reported holding approximately $1.6 million in digital assets as of March 31, including Bitcoin, Ethereum, and Solana holdings, with portions of the portfolio staked to generate yield.
Additional information on the company’s acquisition strategy and operating model was published through reports available on Onfolio’s website, including analyses titled “Why Every Agency We Buy Makes the Others More Valuable,” “The AI Acquisition Playbook,” and “Why Our Deal Flow Looks Different Now.”
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