Onfolio Holdings (ONFO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $1.87 million–$1.9 million, down 34% year-over-year, reflecting deliberate repositioning, declines in several subsidiaries, and a shift from high-margin B2C to lower-margin B2B services.

• Operating expenses decreased 30% year-over-year, mainly due to lower advertising, marketing, and SG&A costs from AI-driven efficiencies.

• Net loss widened to $2.57 million, impacted by non-cash losses on digital assets, derivative liabilities, and a $654,000 default penalty on convertible notes.

• Secured a $100 million equity facility in April 2026 to accelerate acquisitions and support growth.

• Regained compliance with Nasdaq minimum bid price requirements as of May 2025/May 1, 2026.

Financial highlights

• Total revenue: $1.87 million–$1.9 million (down 34% year-over-year).

• Gross profit: $0.9 million–$0.92 million (down from $1.7 million–$1.71 million); gross margin: 49% (down from 61%).

• Operating expenses: $1.75 million–$1.8 million (down 30%); SG&A: $1.32 million (down 41%).

• Net loss: $2.57 million (vs. $0.9 million prior year), including $674,000 non-cash loss on digital assets, $71,000 on derivative liabilities, and $654,000 default penalty.

• Cash at quarter-end: $842,000–$843,000 (down from $2.2 million at year-end 2025).

• Digital asset holdings: $1.6 million fair value, generating $15,000 in staking rewards; annualized staking yield ~4%.

• Debt: $7.7 million outstanding; Series A preferred stock with 12% cumulative dividend.

Outlook and guidance

• Gross margin expected to trend toward mid-60% range as digital product sales recover and AI efficiencies expand.

• Portfolio profitability anticipated to improve as B2B and B2C restructuring actions take effect.

• Acquisition pipeline targets $5–$10 million in annual adjusted EBITDA at 2–4x multiples, aiming to double revenue run rate and achieve consolidated profitability.

• The company expects to continue incurring operating losses through at least 2026 and will require additional capital to support growth and operations.