Onfolio Holdings reported its third‑quarter 2025 results on November 17, 2025, showing a narrowed operating loss of $268,000 for the quarter ended September 30, 2025. The loss represents a significant improvement over the $331,000 loss in the same quarter of 2024 and the $507,000 loss in Q2 2025, underscoring the company’s progress toward its goal of achieving profitability in the second half of the year.
Revenue for the quarter reached $2.74 million, a 36.3% increase year‑over‑year from $2.01 million in Q3 2024. However, revenue fell 12.9% sequentially from $3.15 million in Q2 2025, reflecting a slowdown in demand for some legacy products as the company focuses on integrating its newly acquired B2B assets and expanding its Pace Generative AI services. The sequential decline is offset by a 64.6% gross margin, up from 59.9% in Q3 2024, indicating that the company is managing cost growth while scaling higher‑margin offerings.
Operating expenses for the quarter totaled $2.04 million, up from $1.58 million in Q3 2024. The expense increase is largely driven by $301,000 of acquisition amortization related to the Eastern Standard and DDS Rank acquisitions and $21,000 of stock‑based compensation. Despite higher expenses, the operating loss narrowed because revenue growth and improved gross margins more than offset the cost increase. The company’s operating margin improved to 13.1% from 9.8% in the prior year, reflecting better pricing power in its new services portfolio.
Onfolio also closed a $1 million equity raise on October 27, 2025, extending its cash runway and providing additional capital to invest in its portfolio and new initiatives. The financing is a critical step in maintaining liquidity while the company continues to invest in growth areas such as the creator partnership program and the expansion of Pace Generative.
CEO Dom Wells highlighted that the narrowed loss, when adjusted for non‑cash items, signals progress toward profitability and that the recent equity infusion will support continued investment in high‑return verticals. He emphasized the company’s focus on cost discipline, strategic acquisitions, and scaling of higher‑margin services as key drivers of future profitability. While the company remains unprofitable, the trend toward a smaller operating loss and the additional capital raise suggest a positive trajectory toward the management goal of consistent profitability in the second half of 2025.
Overall, Onfolio’s Q3 2025 results demonstrate a mixed picture: strong year‑over‑year revenue growth and improved gross margins contrast with a sequential revenue decline and rising operating expenses. The company’s ability to narrow its operating loss and secure additional financing positions it to continue scaling its new ventures, but ongoing net losses and a modest cash balance highlight the need for continued focus on profitability and efficient capital deployment.
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