Onfolio Holdings updates shareholders on acquisitions, operational strategies, and anticipated profitability for 2025.
Quiver AI Summary
Onfolio Holdings Inc. has shared an open letter from its CEO to shareholders, reflecting on the company's achievements and outlining its strategy for the upcoming year. The letter highlights significant advancements made in 2024, including the acquisition of three businesses that added eight revenue streams and $6 million in revenue, demonstrating a successful capital-efficient acquisition strategy. Onfolio has transitioned to a hybrid operating model that combines centralized strategy with decentralized execution, optimizing business operations while maintaining the strengths of acquired companies. The company also launched Special Purpose Vehicles (SPVs) for investor co-investment in acquisitions and listed its preferred shares on OTCQB to enhance liquidity for investors. As Onfolio approaches profitability, it aims to continue its acquisition strategy, expand capital raising efforts, and further enhance operational efficiencies, setting a strong foundation for growth in 2025.
Potential Positives
- Strategic acquisitions in 2024 added eight revenue streams and $6 million in revenue, highlighting effective portfolio growth.
- The launch of Special Purpose Vehicles (SPVs) expanded capital strategy, enabling co-investment in acquisitions without relying heavily on traditional debt markets.
- Quoting preferred shares on OTCQB improved liquidity for investors and provided a pathway for more efficient capital raising, potentially reducing costs in future financing.
- Onfolio is on the verge of profitability, having significantly reduced losses and positioned itself for sustained profitability in the near term.
Potential Negatives
- The company indicates it is utilizing higher-cost SPVs for funding, which may lead to increased financial risk associated with higher equity sharing costs and reduced diversification for investors.
- The reliance on acquisitions to drive growth may expose the company to integration risks and challenges in successfully managing newly acquired businesses, particularly given the evolving operational model.
- The forward-looking statements highlight potential risks and uncertainties, such as economic conditions and competitive pressures, which could negatively impact actual results compared to projections.
FAQ
What recent acquisitions did Onfolio Holdings make in 2024?
Onfolio acquired RevenueZen, DDSRank, and Eastern Standard, adding significant revenue and operational efficiency to its portfolio.
How has Onfolio improved its operational model?
Onfolio adopted a hybrid model allowing centralized strategy with decentralized execution, enhancing efficiency and profitability for acquired businesses.
What are Special Purpose Vehicles (SPVs) in Onfolio's strategy?
SPVs allow accredited investors to co-invest in acquisitions, providing an effective solution for funding while preserving Onfolio’s capital.
What are the benefits of Onfolio's preferred shares?
Preferred shares provide liquidity for investors and pay a $3 annual dividend, appealing to income-focused investors.
What are Onfolio's growth expectations for 2025?
Onfolio aims to continue strategic acquisitions, expand capital efforts, and optimize operations to achieve significant profitability in 2025.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$ONFO Hedge Fund Activity
We have seen 3 institutional investors add shares of $ONFO stock to their portfolio, and 2 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- RENAISSANCE TECHNOLOGIES LLC removed 35,489 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $47,555
- VIRTU FINANCIAL LLC added 10,607 shares (+inf%) to their portfolio in Q4 2024, for an estimated $14,213
- UBS GROUP AG added 7,120 shares (+87.5%) to their portfolio in Q4 2024, for an estimated $9,540
- TOWER RESEARCH CAPITAL LLC (TRC) added 1,744 shares (+45.4%) to their portfolio in Q4 2024, for an estimated $2,336
- BANK OF AMERICA CORP /DE/ removed 5 shares (-15.2%) from their portfolio in Q4 2024, for an estimated $6
- ACCELERATE INVESTMENT ADVISORS LLC added 0 shares (+0.0%) to their portfolio in Q4 2024, for an estimated $0
- GEODE CAPITAL MANAGEMENT, LLC added 0 shares (+0.0%) to their portfolio in Q4 2024, for an estimated $0
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
WILMINGTON, Del., Feb. 18, 2025 (GLOBE NEWSWIRE) --
Onfolio Holdings Inc.
(Nasdaq: ONFO, ONFOW) (OTC: ONFOP) (the "Company" or "Onfolio"), a company that acquires and manages a diversified portfolio of online businesses, today announced that its chairman and chief executive officer released the following letter to Onfolio shareholders.
A longer version as part of a “2024 In Review” piece has been posted on the Company’s corporate website at https://onfolio.com/2024-in-review.
Dear Shareholders,
What a difference a year makes.
Looking back on 2024, I’d like to reflect on our journey and progress in light of our original thesis. We started with four key beliefs:
There are hundreds or thousands of profitable online businesses undervalued due to idiosyncratic risks or suboptimal operations.
Aggregating these businesses reduces individual risk, strengthening the portfolio.
Our operational expertise enables us to run and grow these businesses more effectively than their previous management.
Our public company status allows us to access capital at costs lower than the returns generated by our acquisitions.
In 2024, we made significant strides in all these areas.
1. Strategic Acquisitions Strengthened Our Portfolio
We acquired three new businesses, adding eight revenue streams and $6M in revenue:
RevenueZen (RZ) (January 2024): A content marketing agency with $1.4M revenue and $227K net profit. RZ retained its entire team post-acquisition, enhancing operational expertise across our portfolio. This acquisition demonstrated our ability to structure deals with minimal upfront cash, utilizing promissory notes, preferred shares, and seller financing.
DDSRank (July 2024): A niche SEO agency for dentists ($500K revenue, $200K net profit). Funded via one of our our SPV funds, preferred shares, and seller notes, requiring minimal Onfolio cash.
Eastern Standard (ES) (October 2024): A digital marketing agency well known in the health and education industries, with $4MM revenue and $630K net profit. This was structured similarly to DDSRank, with SPV fund participation enabling us to secure a majority stake while preserving capital.
Each acquisition reinforced our ability to execute capital-efficient deals while improving operational efficiency.
2. Evolving Our Operating Model
Effective post-acquisition management is key to our success. While we initially operated as a centralized entity and later decentralized entirely, in 2024, we adopted a hybrid model;“centralized strategy, decentralized execution.” This allows portfolio company leaders to focus on their strengths while benefiting from Onfolio’s shared expertise, strategic oversight, and best practices.
This approach enhances operational efficiency, accelerates growth, and enables acquired businesses to maintain and expand profitability. It also allows us to actively participate in strategic hiring, key decision-making, and resource allocation, maximizing value creation across our holdings.
3. Expanding Our Capital Strategy with SPVs
In March 2024, we launched SPVs (Special Purpose Vehicles), allowing accredited investors to co-invest in acquisitions. This proved instrumental in funding DDSRank and ES, enabling us to secure valuable businesses while preserving Onfolio’s cash. While SPVs involve higher capital costs due to equity sharing, they provide an effective solution for funding accretive deals without reliance on traditional debt markets.
For SPV investors, this offers exposure to specific online businesses with a clear return profile, albeit with higher risk and less diversification than Onfolio itself. While not a long-term strategy, SPVs will remain part of our acquisition playbook in 2025, alongside preferred shares.
4. Quoting Our Preferred Shares on OTCQB
A major milestone was quoting our preferred shares on OTCQB, providing liquidity for early investors and expanding access for new ones. Each share pays a $3 annual dividend, appealing to income-focused investors. Since 2022, we’ve raised $1.5M in preferred share financing and issued $3M of preferred shares as part of acquisition financing.
This liquidity should drive demand, potentially allowing us to raise capital more efficiently in 2025 at a lower cost (12%) than SPVs. We anticipate growing this funding channel, unlocking further acquisition opportunities with minimal dilution.
On the Verge of Profitability
Throughout 2024, we have significantly reduced our losses and we now appear to be essentially at profitability. We’ve reached a position where we can continue operations without requiring additional fundraising or acquisitions to achieve profitability, yet we will continue to pursue both because they accelerate our growth and long-term value creation. With this foundation, we expect to move firmly into sustained profitability in the near term.
Looking Ahead to 2025
With our acquisition model validated, capital access expanded, and operational efficiencies improving, 2025 promises even greater momentum. Our roadmap is clear:
Continue acquiring high-quality businesses, where synergies create exponential value.
Expand capital raising efforts, leveraging preferred shares and SPVs.
Further optimize operations, scaling our playbook for sustained growth.
If we execute well, we anticipate achieving significant profitability in the near term, reinforcing our ability to deliver compounded returns for our shareholders.
Onward to an even stronger 2025.
About Onfolio Holdings
Onfolio acquires and manages a diversified portfolio of online businesses. Onfolio acquires business that meet its investment criteria, being that such businesses operate in sectors with long-term growth opportunities, have positive and stable cash flows, face minimal threats of technological or competitive obsolescence and can be managed by our existing team or have strong management teams largely in place. The Company excels at finding acquisition opportunities where the seller has not fully optimized their business, and Onfolio's experience and skillset allows it to add increased value to these existing businesses. Visit
www
.
onfolio.com
for more information.
Safe Harbor Statement
The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "explores," "expects," "anticipates," "continues," "estimates," "projects," "intends," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing new customer offerings, changes in customer order patterns, changes in customer offering mix, continued success in technological advances and delivering technological innovations, delays due to issues with outsourced service providers, those events and factors described by us in Item 1.A "Risk Factors" in our most recent Form 10-K and Form 10-Q; other risks to which our Company is subject; other factors beyond the Company's control. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Investor Contact
investors@onfolio.com
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