We thought we’d start off this new quarter with an update on things that are exciting us here at Onfolio, things that are frustrating or worrying us, and a small recap of the year so far.
It’s meant to be digestible and easy to read, but if you want to ask more details on any of it please reach out.
Also if you ever want a call to discuss Onfolio (if you’re a shareholder or not), just use the contact form.
Things that we’re currently excited about:
1) Synergy baby!
It’s taken us a while but the synergies between some of our companies are starting to play out nicely.
Revenuezen and Contentellect in particular are working well together and CE is now fulfilling all the link building work for RZ’s clients, which will almost double CEs revenue and add 10% profit per month to our portfolio’s bottom line.
2) RevenueZen’s Content Offering.
When LLMs first came on the scene, a lot of content agencies were disrupted. Some got wiped out overnight. Others started using AI content without telling their clients.
The content marketing world got distracted by the whole “AI vs Human” debate and AI content detection became a thing.
Fast forward to 2025 and people are realizing the method for creating the content is irrelevant. AI is starting to produce content better than your average human content-mill and people will revert to focusing on “Did I learn anything from this content?” once again.
“AI augmented” content has been the popular narrative for a year or so, without people really knowing what that means.
Previously it meant, use AI to spin out a crappy article and use a human to fix it.
Revenuezen on the other hand is putting the finishing touches on a proprietary process of using AI to create content focused on “net information gain” – in other words, content that adds new insights and information to the conversation. AI can finally do this way better than your average human freelance writer.
Not only does this produce superior content, but it does it far cheaper and at much larger scale.
RZ will be rolling this out in Q2 and will be able to deliver superior content to their clients, at 10x the volume. This will also increase RZ’s gross margin by around 15%.
And that’s before we attract new clients to the service.
Curious to try the new content? Let us know.
Currently the service is invite-only.
3) Continuing our acquisitions
I sent an email earlier this week that went into details of the next two acquisitions we’re looking to close in Q2.
They’ll likely add another $75k/mo profit to our bottom line, as well as bring in a lot of strategic value to our existing portfolio, which will lead to even more gains.
Speaking of synergies, both businesses have a ton of them with our existing portfolio.
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4) Wrapping up our Pref Share Raise
We are inching closer to reaching the $1MM total for our preferred share raise, after raising around $800k in record time.
If you’re on the fence or planning to invest, please visit this page to learn more.
5) Breaking the $1MM per month revenue barrier.
We’ve touched up against $1MM per month revenue for the last few months and feel it is only a matter of time before we break through.
That will be a rewarding milestone, especially with our businesses back in organic growth mode. Meaning we are achieving growth in all areas.
6) AI Courses
The conversation around digital products with regards to AI is similar to the one about content. Nobody really knows what the future entails.
Here’s what the present is like though:
Last week we were able to create a new module for proofreadanywhere in 24 hours. This is something that previously would’ve taken weeks, or would’ve been done with AI but produced mediocre results.
The latest improvements in AI image creation has been a step change and means you can create almost everything you need with AI.
The two things you need in addition, are subject matter expertise so you can make sure the content isn’t too generic, and distribution, so you can launch these courses into a waiting audience.
PA has 300,000 email subscribers and a ton of expertise on its topics, so the ability to launch new courses (not just about proofreading by the way) into that audience at speed is huge.
We had a record quarter for PA in Q1 (revenue, profit, sales) and the rest of the year looks very good.
Maybe we’ll even launch a “how to use AI to make a course” course.
Very meta.
Things that are frustrating or worrying
1) Tariffs
It’s hard to know exactly what impact tariffs are going to have on any business right now, but I don’t think many people are expecting short term benefits.
We’d be more worried if we were heavily into DTC e-commerce, where margins are about to get dangerously thin. Fortunately we only have about 5% of our revenue from DTC brands.
In terms of our info products, there could be fewer people buying, but typically “career builder” info products like ours do well in recessions, and paid advertising usually gets cheaper too.
For the rest of our portfolio, it is a case of continuing to do what we’ve been doing for the past 2 years. Stay lean, get efficient, adapt as necessary.
A recession or general macroeconomic uncertainty is always going to be problematic, but we have got pretty good at dealing with that over the past couple of years.
On a more positive note, businesses are going to be for sale at compressed multiples for longer than we anticipated, which is great for us. We’ve already benefitted from a slower M&A market by getting creative with acquisition financing, so we’re in a great position to take advantage of an extended downturn as far as acquisitions are concerned.
2) The market continues to underprice us
When I think about what we could conservatively sell our portfolio for now, the number I arrive at is well north of $10m.
Our current market cap is half that, and is lower than the value of one of the biggest companies alone.
It’s generally not permitted for us to publicly speculate on why that might be, but this mispricing may likely just be the result of us being a small cap without many eyeballs on us.
Last time we were valued at this level, we had similar cash levels, half the revenue, and significantly larger losses. So clearly the market isn’t pricing our improvements in yet.
To some extent when you’re a small cap, people tend to look at the stock’s behavior as a proxy for whether to buy or not, which means they’re always going to be chasing.
It’s much better to develop familiarity with the company, build conviction, and thank the market when it gives you good prices.
Easier said than done though.
As always, if anybody would like to get to know Onfolio more, the contact form is here.
Recently an investor asked me why the company doesn’t do a stock buyback if we feel undervalued.
The short answer is that at some point we may. Usually we aren’t in a position to do so as we always have a business acquisition in our pipeline, meaning we have inside information and aren’t permitted to do buybacks.
Plus right now our cash is better spent on those acquisitions and organic growth.
You don’t really want us to bid the price up until you’ve had time to build a bigger position though do you?
As much as we’d like a higher valuation, the best thing we can do right now is continue the work we’ve been doing, and the price will take care of itself.
3) Filing our 10-K late
It’s never ideal to have to file an extension with the SEC before your annual report comes out.
This year, our auditors needed more time to test our 2023 and 2024 revenues and to integrate Eastern Standard into the books fully. It’s their first year auditing us after we switched to them in 2024, and while I’m sure they’ll get faster, it was a larger job than anybody expected, so they recommended we file the extension.
As a result, we expect our 10-K to come out on or before April 15th, the new deadline.
It’s frustrating because people naturally assume an extension is the sign of a company being poorly run, when it’s often just a case of thoroughly following protocol or a lot of moving parts, meaning more time is needed.
Wrapping Up
I hope you’ve enjoyed this post. It was enjoyable to write.
I aim to get one of these out at the start of each month, or at least every quarter.
We will see how many things I have to cover this time next month.
And as I mentioned above, reach out if you’d like to know more about any of the things we’ve discussed.
Dom