Onfolio Holdings reports Q2 revenue drop, cash constraints

On Thursday, Onfolio Holdings (NASDAQ: ONFO ) discussed second-quarter financial results during its earnings call.

The full transcript is provided below.

APIs provide real-time access to earnings call transcripts and financial data.

Visit to learn more.

Access the full call at Summary Onfolio Holdings reported a significant drop in revenue, with Q2 2026 revenue at $1.5 million, a 52% decrease year-over-year, primarily due to challenges in their B2B segment and strategic pullbacks in B2C advertising.

The company executed a 1-for-50 reverse stock split and convertible note conversions to address Nasdaq listing deficiencies, including stockholders' equity and minimum bid price requirements.

The parent company is facing liquidity constraints with a significant cash decline to $251,000 by quarter end, prompting divestitures and ongoing funding discussions to improve cash flow.

Operational challenges in the B2B segment are exacerbated by AI market disruptions, leading to decreased client commitments and a need for new strategies, including a focus on AI services.

Onfolio Holdings is adjusting its acquisition strategy to focus on more immediate, cash-positive acquisitions, with plans for a game-changing acquisition expected to close in October.

Gross margin remains flat due to a revenue mix shift toward lower-margin B2B services, with management adjusting guidance for future gross margin improvements.

The company reported a net loss of $4.6 million, primarily due to non-cash items related to derivative liabilities, with expectations for improved financial results following recent settlements.

Full Transcript OPERATOR (Operator) Earnings conference call.

Joining us today are Dominic Wells, Chief Executive Officer, and Adam Traynor, Chief Operating Officer and Interim Chief Financial Officer.

Before we begin, I would like to remind everyone that certain statements made during this call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied.

Forward-looking statements are based on management's current expectations as of today's date, and the company undertakes no obligation to update or revise any such statements.

For a detailed description of risks and uncertainties, please refer to the Risk Factors section of the company's most recent form filed with the SEC.

Additionally, during this call, management may reference certain non-GAAP financial measures and supplemental operating metrics as indicators of performance.

These measures should not be considered in isolation or as substitutes for GAAP results.

A reconciliation of non-GAAP measures to the most comparable GAAP measures is available in the company's SEC filings, which can be found on the company's website and at investors.onfolio.com/filings.

With that, I'll turn the call over to Dom.

Please go ahead, sir.

Dominic Wells, Chief Executive Officer Thank you, and good morning, everyone.

We appreciate you joining us today.

For anyone newer to the Onfolio Holdings story, we are an owner-operator of cash-generating digital businesses, primarily in B2B marketing agencies and B2C online education.

Since our IPO in 2022, we have grown revenues from approximately $2 million to $10.7 million in full year 2025, roughly a five times increase entirely through acquiring and operating real businesses that generate real cash flow.

We remain at an important inflection point.

We are not yet self-funding at the parent level, but once we get there our options for capital allocation open up significantly: more acquisitions, paying down remaining obligations, or longer term, potentially returning capital to shareholders.

I'll come back to that later in the call.

First, I want to touch directly on where things stand with our Nasdaq listing, since I know that's front of mind for a lot of you, and then I'll walk through the quarter.

So, Nasdaq compliance update: the first issue is a stockholders' equity deficiency.

Nasdaq requires companies listed to maintain stockholders' equity of at least $2.5 million, and we fell below that threshold.

We submitted our plan to regain compliance to Nasdaq in July.

Since then, our senior secured convertible note holder has converted the entirety of the note into equity, and as described in our Aug.

4 blog post, those conversions add back more equity than the size of the deficit.

So we believe this deficiency is more or less addressed, and we expect to have official confirmation from Nasdaq soon.