One of the things we talk about a lot at Onfolio is what happens after we acquire a business. The acquisition gets the headline. The operations are where the value is created.
RevenueZen, our B2B digital marketing agency, is the clearest example of this so far.
Where We Started
When we began restructuring RevenueZen in late 2025, the business was running at approximately 8% operating margins. The service was solid, the clients were happy, but the cost structure was heavier than it needed to be.
That’s not unusual for agencies. Most agencies are built around people doing manual work, and the cost structure reflects it.
What We Changed
We did two things.
First, we consolidated RevenueZen’s operational overhead under Eastern Standard, our largest agency and the anchor of our B2B agency platform. Eastern Standard already had the infrastructure, the team, and the systems. Rather than duplicating that across every agency we own, we centralized it.
Second, and this was the bigger lever, we didn’t replace departed team members with new hires. Towards the end of 2025, two senior leaders moved on from the company, and instead of replacing them, we rebuilt the core operational processes using AI.
This is actually something we see across the portfolio. AI doesn’t quite let you come in and replace your whole team (yet), but it does help other team members adjust when key people leave, and in many cases you don’t need to replace them at all.
Additionally, in Q1 2026 the RevenueZen team undertook a comprehensive rebuild of their internal workflows. They rethought how content gets produced, how client reporting works, how campaigns get managed. The result was a structural reduction in manual overhead, faster turnaround times, and the ability to put impressive proposals together in no-time.
Operating expenses dropped by over 40% while service delivery quality held.
The Results
As of Q1 2026, RevenueZen is running at approximately 15% operating margins, nearly double where it started.
On the sales side, Q1 2026 was the strongest quarter in the past year. Five new clients closed at $38K in new monthly recurring revenue. For context, here’s the trailing five quarters:
Q1 2025: $20K (4 deals)
Q2 2025: $18K (7 deals)
Q3 2025: $28K (5 deals)
Q4 2025: $16K (3 deals)
Q1 2026: $38K (5 deals)
Q4 2025 was the trough, right in the middle of the restructuring. One quarter later, new business nearly tripled. Average deal size is up too: $7,600 per deal in Q1 2026 versus $2,600 in Q2 2025. The business is winning bigger clients with a leaner team.
We are also starting to see an uptick in referrals from LLMs, which is not only exciting, but makes it easier to sell GEO/LLMSEO services.
What’s driving it is a combination of things. Consolidating the agency platform gave Rocky, who runs RZ day-to-day, more focus and direction on sales specifically. The team refined their messaging and proposal approach. And AI is playing a role on the revenue side too, not just the cost side.
The team now uses AI to generate full SEO and GEO audit decks in early sales conversations, essentially providing a comprehensive initial analysis that would have taken days to produce manually. It sets the stage, differentiates the pitch, and demonstrates capability before the client has committed to anything. That’s AI creating value on both sides of the P&L: reducing costs and helping win new business.
The combination of lower operating costs and accelerating sales momentum positions the business for continued margin expansion through the rest of 2026.
Why This Matters Beyond RevenueZen
The operational playbook we developed here is now being deployed across additional portfolio companies. Contentellect and DDS Rank are next.
The pattern is straightforward:
- Consolidate operational overhead across sister companies rather than running duplicate infrastructure.
- Rebuild processes with AI rather than hiring to fill gaps.
- Focus the team on revenue-generating activities rather than manual overhead.
Every business we acquire going forward will go through the same process. The playbook gets refined with each implementation, and the results compound across the portfolio.
This is what an AI-native operating model looks like in practice. Not replacing people with chatbots. Rebuilding how work actually gets done so that the team spends their time on what matters: serving clients and generating revenue.
I’ll share results from the Contentellect and DDS Rank implementations as they come through.
If this was useful to you, it would probably be useful to someone you know. Feel free to share it or forward it to a friend. One of the hardest things about being a small public company is simply being discovered, and word of mouth goes further than anything else.
Disclaimer: This discusses Onfolio’s operational performance. It is not financial advice and should not be taken as a solicitation to buy or sell any security. For complete financial information, refer to our SEC filings at sec.gov.