Onfolio to Target $5-10 Million in EBITDA Acquisitions as AI Creates New Buying Opportunities

Onfolio Holdings (Nasdaq: ONFO) activated its acquisition program after establishing a $100 million equity facility.

Rhea-AI Summary

Onfolio Holdings (Nasdaq: ONFO) activated its acquisition program after establishing a $100 million equity facility. The company plans to acquire businesses generating $5–$10 million in aggregate annual adjusted EBITDA by year-end, mainly in digital marketing, e-commerce, and financial media.

Onfolio is targeting cash-generative businesses at 2–4x trailing adjusted EBITDA, using upfront cash and seller-financed notes with performance-based earnouts. According to Onfolio, these deals could roughly double its revenue run rate and support consistent EBITDA and GAAP net income profitability.

Positive

• Targets $5–$10 million in aggregate annual adjusted EBITDA acquisitions by year-end
• Access to a $100 million equity facility to fund acquisition program
• Acquisition multiples targeted at 2–4x trailing adjusted EBITDA
• Focus on cash-generative businesses in digital marketing, e-commerce, and financial media
• Company believes acquisitions could roughly double revenue run rate
• Company believes acquisitions could support consistent EBITDA and GAAP net income profitability

Negative

• None.

Argus May 14 session

-0.97% close to close 0.0x rel. volume Open Argus

Details

News Market Reaction – ONFO

On May 14, the day this news came out, ONFO closed 0.97% below the previous close.

Data tracked by StockTitan Argus for the May 14 session.

Key Figures

Target EBITDA acquisitions: $5–10M annual adjusted EBITDA Acquisition valuation multiple: 2–4x trailing adjusted EBITDA Equity facility size: $100M +5 more

Target EBITDA acquisitions

$5–10M annual adjusted EBITDA

Aggregate EBITDA from acquisitions targeted before end of 2026

Acquisition valuation multiple

2–4x trailing adjusted EBITDA

Stated target range for acquisition pricing

Equity facility size

$100M

Equity facility to fund acquisitions and working capital

2025 revenue

$10.73M

Full year 2025 revenue reported Mar 31, 2026

2025 EBITDA As Defined

$151,000

First positive EBITDA As Defined year for 2025

Year-end 2025 cash

$2.17M

Cash balance at December 31, 2025

Convertible note facility

Up to $300M

Senior secured convertible note program size

Registered resale shares

32,696,345 shares

Common stock registered for resale in 424B3

Historical Context

5 past events · Latest: May 07

5 events

1. May 07

   Earnings call scheduled

   24h Move

   -1.8%

   Announcement of Q1 2026 earnings call and webcast details.

2. May 01

   Nasdaq compliance

   24h Move

   -5.2%

   Regained compliance with Nasdaq $1.00 minimum bid requirement.

3. Apr 16

   Equity facility

   24h Move

   +124.9%

   Announcement of $100M equity facility to fund acquisitions and growth.

4. Mar 31

   Full-year results

   24h Move

   +9.0%

   2025 revenue growth, positive EBITDA As Defined, stronger liquidity.

5. Mar 26

   Earnings call scheduled

   24h Move

   -0.6%

   Scheduling of full-year 2025 earnings conference call.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ebitda, gaap, seller-financed notes, earnout

4 terms

ebitda financial

"will target the acquisition of between $5 million and $10 million in aggregate annual adjusted EBITDA"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

gaap financial

"consistent profitability on an EBITDA and GAAP net income basis"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

seller-financed notes financial

"structured with upfront cash consideration and seller-financed notes with performance-based earnout provisions"

Seller-financed notes are loans where the seller of an asset acts like the bank, allowing the buyer to pay over time with scheduled payments and interest instead of paying all cash up front. For investors, these notes matter because they create a stream of promised payments and carry credit risk tied to the buyer’s ability to pay, so they can be a source of steady income or a potential loss if the buyer defaults — think of the seller becoming the lender and holding the IOU.

earnout financial

"seller-financed notes with performance-based earnout provisions"

An earnout is a financial agreement in which part of the purchase price for a business is paid later, based on the company's future performance. It acts like a bonus system, where sellers earn extra money if the business hits certain goals, aligning their interests with the buyer’s success. Investors pay attention to earnouts because they influence the total deal value and can affect the company's future financial health.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Company evaluating multiple cash-generative businesses at 2-4x EBITDA following establishment of $100 million equity facility

WILMINGTON, Del., May 14, 2026 (GLOBE NEWSWIRE) -- Onfolio Holdings, Inc. (Nasdaq: ONFO, ONFOW) (OTC: ONFOP) (“Onfolio” or the “Company”), an owner-operator of cash-generative online businesses, today announced that it has activated its acquisition program and will target the acquisition of between $5 million and $10 million in aggregate annual adjusted EBITDA before the end of the year. Pursuant to the acquisition program the Company will evaluate multiple cash-generative businesses across digital marketing, e-commerce, and financial media.

The Company will target acquisitions at an average multiple of approximately 2-4x trailing adjusted EBITDA, structured with upfront cash consideration and seller-financed notes with performance-based earnout provisions. The Company believes the acquisitions of such targets could approximately double the Company’s revenue run rate and would likely bring Onfolio to consistent profitability on an EBITDA and GAAP net income basis.

“Capital is available, the pipeline is full, and we are ready to move,” said Dominic Wells, Chief Executive Officer of Onfolio. “Our goal is to add $5 to $10 million in EBITDA to the portfolio before the end of the year. Based on what we’re seeing in our pipeline, we believe that’s achievable.

“We intend to acquire businesses in verticals we already operate in — marketing agencies and e-commerce brands — where we’ve already proven what our AI operating model can do to margins. We may also expand into financial media and investor services, where we see significant opportunities to build a larger, more diversified platform.

“E-commerce represents a particularly interesting opportunity right now. For the first time in years, we’re seeing margin expansion in the space as marketing costs come down due to AI efficiencies. We’ve been on the other side of this through our marketing agencies, passing those reductions on to clients. Now by acquiring eCommerce businesses, we can be on the receiving end of the same AI-driven efficiency gains.

“At 2-4x EBITDA, we believe we could buy these businesses at a fraction of what they’ll be worth under our model. We hope to announce and close a number of acquisitions throughout the remainder of this year,” concluded Wells.

ABOUT ONFOLIO HOLDINGS

Onfolio Holdings Inc. (Nasdaq: ONFO) is an owner-operator of cash-generative online businesses. The Company acquires and operates profitable online businesses across diverse verticals, including marketing, education, and e-commerce, with a focus on sustainable cash flow and long-term value creation. The Company uses AI across its operations to improve acquired businesses, build internal tools, and develop AI-powered products.

Visit www.onfolio.com for more information.

FORWARD-LOOKING STATEMENTS

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, the Company’s ability to identify and complete acquisitions on acceptable terms, the Company’s ability to access its $100 million equity facility to fund proposed acquisitions, the availability of acquisition targets meeting the Company’s investment criteria, the integration of acquired businesses and retention of key personnel and customer relationships, the risk that acquired businesses may not perform in line with their historical results, the Company’s ability to realize anticipated margin improvements through its AI operating model, market conditions affecting the Company’s common stock, general economic and business conditions, those events and factors described by us in Item 1.A “Risk Factors” in our most recent Form 10-K and Form 10-Q’s; 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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What acquisition goals did Onfolio (NASDAQ: ONFO) announce on May 14, 2026?

Onfolio plans to acquire businesses producing $5–$10 million in aggregate annual adjusted EBITDA by year-end. According to Onfolio, these targets are mainly cash-generative digital marketing, e-commerce, and financial media companies, intended to expand its portfolio and strengthen profitability.

How large is Onfolio’s equity facility to fund its 2026 acquisition program?

Onfolio established a $100 million equity facility to support its acquisition strategy. According to Onfolio, this capital will fund purchases of cash-generative businesses, using a mix of upfront cash and seller-financed notes with performance-based earnout structures.

At what valuation multiples is Onfolio (ONFO) targeting its 2026 acquisitions?

Onfolio is targeting acquisitions at about 2–4x trailing adjusted EBITDA. According to Onfolio, these deals will include upfront cash and seller-financed notes with performance-based earnouts, aiming to purchase businesses at attractive earnings multiples relative to their cash generation.

How could Onfolio’s 2026 acquisition plan impact its revenue and profitability?

Onfolio believes its planned acquisitions could roughly double its revenue run rate. According to Onfolio, adding $5–$10 million in aggregate annual adjusted EBITDA may also help the company achieve consistent profitability on both an EBITDA basis and a GAAP net income basis.

Which sectors is Onfolio focusing on for its new acquisitions in 2026?

Onfolio is concentrating on digital marketing agencies, e-commerce brands, and potentially financial media and investor services. According to Onfolio, these areas align with its existing operations and AI-driven operating model aimed at improving margins and capturing AI-related efficiency gains.

How does AI influence Onfolio’s acquisition strategy and target margins in 2026?

AI is central to Onfolio’s view of improving margins in e-commerce and marketing. According to Onfolio, falling marketing costs from AI efficiencies create opportunities to acquire e-commerce businesses and benefit directly from these AI-driven margin and cost improvements.