Onfolio Swings to Profit in Q4 as Revenues Nearly Double Y/Y

Shares of Onfolio Holdings Inc. ONFO have been unchanged since reporting results for the fourth quarter of 2024. This compares to the S&P 500 index’s 0.1% growth over the same time frame. Over the past month, the stock has gained 0.9% against the S&P 500’s 8.4% decline.Solid Revenue Growth & Narrower LossesOnfolio reported a revenue increase of 49% to $7.86 million in 2024, up from $5.24 million in 2023. Gross profit followed suit, growing 39% to $4.54 million from $3.24 million. Notably, this expansion came even as total operating expenses were slashed by 44% to $7.05 million from $12.49 million the prior year, suggesting effective cost rationalization efforts.Net loss attributable to common shareholders was $2.12 million in 2024, a 77% improvement from a loss of $9.38 million in 2023. This translated to a 77% surge in earnings per share (EPS) from negative $1.84 in 2023 to negative 41 cents in 2024.Onfolio Holdings Inc. Price, Consensus and EPS Surprise  Onfolio Holdings Inc. price-consensus-eps-surprise-chart | Onfolio Holdings Inc. QuoteQuarterly Highlights Reflect Operating MomentumQ4 MomentumOnfolio recorded its first-ever positive quarterly net income as a public company, with $136,000 in net income and $33,000 in profit attributable to common shareholders in fourth-quarter 2024. Revenue surged 96% year over year to $2.54 million from $1.26 million and increased sequentially from $2.01 million in the third quarter.Gross profit in the fourth quarter of 2024 was $1.36 million, up 56% year-over-year and 13% sequentially. EPS for the fourth quarter came in at 1 cent, a 102% improvement from the loss of 37 cents in the fourth quarter of 2023.Management CommentaryCEO Dominic Wells framed 2024 as a foundational year, stating that the company met or made progress on all its major goals — revenue growth, gross profit expansion, expense reduction, non-dilutive capital raising, Nasdaq compliance and achieving profitability.Wells emphasized 2024 as a breakthrough year, citing the company’s first-ever net income as a public company in the fourth quarter. He described the fourth-quarter profit, albeit small, as a symbol of the company's broader strategic execution and operational discipline.Wells also noted management’s long-term perspective, recognizing that while progress was made, further work remains in 2025.Drivers of PerformanceRevenue growth was driven by strong contributions from services and product sales. Services revenues more than quintupled year over year in 2024 to $4.66 million from $1.5 million, underscoring the success of the company's acquisitions and integration of B2B-focused digital service providers such as Eastern Standard and RevenueZen. Product sales, however, declined 14% to $3.2 million from $3.74 million, reflecting the de-emphasis of consumer-facing e-commerce as Onfolio pivots toward service-based businesses.The company also reduced its cost of revenues by 17%, resulting in a higher gross margin despite product-side softness. Additionally, operating leverage improved due to lower impairment expenses of $121,000 in 2024 versus $5.02 million in 2023 after the company divested underperforming assets such as WPFolio LLC.OutlookManagement signaled confidence in 2025 as a year of continued progress. Management indicated ongoing capital-raising efforts, including a February 2025 launch of a Regulation D offering for Series A Preferred Shares to fund continued growth. The proceeds are expected to support acquisitions and efforts to sustain profitability. CEO Wells reiterated that the firm remains a “growth-minded organization with long-term views,” implying continued expansion through organic and inorganic means.Other DevelopmentsIn 2024, Onfolio continued to reshape its portfolio. In October, the company acquired Eastern Standard, a digital agency focused on branding and SEO, expanding its B2B services segment. The company also divested WPFolio LLC (operator of PreventDirectAccess.com and PasswordProtectWP.com) in December for $780,000 in cash to realign its focus on high-growth, scalable service businesses.These moves indicate a strategic realignment away from lower-margin or volatile consumer products toward more resilient, recurring revenue business models in digital marketing and SaaS-like services.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Onfolio Holdings Inc. (ONFO): Get Free ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks