Onfolio Signs LOIs for Four Acquisitions Adding $4.1M EBITDA to Double Revenue Run Rate
ONFO•Onfolio signed LOIs to acquire four businesses with $9.4M in trailing revenue and $4.1M adjusted EBITDA, potentially doubling its revenue run rate and turning positive free cash flow. In Q1, revenue fell 34% to $1.87M and net loss widened to $1.92M despite 30% expense cuts and secured $100M equity financing.
1. Q1 Financial Performance
For the quarter ended March 31, Onfolio reported revenue of $1.87 million, down 34% year-over-year, and a net loss of $1.92 million. Gross profit fell to $0.92 million (49% margin) while operating expenses declined 30%, but adjusted EBITDA remained negative $0.50 million and cash balances dropped to $0.84 million.
2. Acquisition LOIs
Onfolio signed exclusive letters of intent to acquire four cash-generative businesses spanning digital marketing, e-commerce and financial media. The targets represent $9.4 million in trailing revenue and $4.1 million in adjusted EBITDA, with upfront consideration of approximately $10.5 million and total potential consideration of $12.1 million, at roughly a 3x EBITDA multiple.
3. Financing Facility
In April, the company secured a $100 million equity financing facility to fund its acquisition pipeline. The facility provides capital for upfront cash consideration and potential earnouts, supporting Onfolio’s plan to self-fund growth and achieve positive free cash flow at the parent level.
4. Strategic Outlook and Risks
Onfolio aims to leverage its AI-driven operating platform to integrate acquisitions, improve margins and scale revenue. Completion of the LOIs remains subject to due diligence and definitive agreements, and execution risks include target performance, integration challenges and financing terms.
