ONAR Holding Corp. (ONAR): A Strategic Pivot Toward Scalable, High-Margin Growth

• ONAR’s 79% year-over-year revenue growth in Q1 2025 reflects its strategic shift toward high-value, recurring marketing services
• Recent restructuring and brand consolidation positions ONAR as a focused, technology-enabled marketing platform

In an environment where digital ad spending is increasingly scrutinized for return on investment, many mid-sized companies face a dilemma: how to achieve measurable marketing results without access to enterprise-level tools or sprawling internal teams. This challenge is growing in urgency as the advertising landscape becomes more fragmented, data-driven, and AI-powered.

ONAR Holding Corp. (OTCQB: ONAR) is positioning itself squarely at the intersection of this need. By combining specialty marketing agencies with proprietary martech innovation, ONAR is building a scalable platform for delivering advanced, ROI-focused services to growth-stage and middle-market companies, segments often underserved in the broader marketing ecosystem.

Restructuring Unlocks Strategic Clarity

ONAR’s Q1 2025 shareholder letter, released June 30, offers a revealing look at the company’s operational reset and strategic roadmap. Following its acquisition of HLDCO and its subsidiary Integrum Group, ONAR has simplified its corporate structure and rebranded key subsidiaries to reflect a tighter, more focused platform.

Integrum Group has now become ONAR LLC, housing the company’s two core marketing service brands:

• Storia, a premier performance marketing agency specializing in brand growth and with a focus on data-driven excellence.
• Of Kos, a full-service healthcare marketing agency committed to redefining the patient’s experience.

These two agencies sit at the heart of ONAR’s value proposition. By serving distinct high-growth verticals, digital performance media and regulated healthcare communications, they offer differentiated expertise in sectors where demand is strong and barriers to entry are high.

This restructuring move also saw ONAR sunset its experiential marketing business to sharpen its focus and allocate resources toward its most scalable and high-margin operations.

Strong Revenue Momentum, Early Signs of Operating Leverage

The early results of this transformation are showing up in the numbers. ONAR reported $1.07 million in Q1 revenue, up 79% year-over-year, driven largely by its core marketing services. Notably, 90% of revenue from its Advertising & Marketing segment is recurring, giving the company improved visibility and predictability, an important asset for a small-cap public company navigating growth.

More importantly, revenue growth significantly outpaced the increase in cost of revenue, suggesting the emergence of operating leverage in ONAR’s model. As the company grows, it expects its margins to continue expanding, a common trait among technology-enabled service businesses that reach critical scale.

However, ONAR was candid in addressing cash consumption. While its core businesses are profitable standalone, public company costs for compliance and governance remain a drag on overall financials. Management emphasized that upcoming acquisitions are key to achieving platform-level profitability by better absorbing fixed overhead and unlocking additional efficiencies.

Focused on AI-Enabled, High-Growth Segments

ONAR’s commitment to marketing technology remains central. Through ONAR Labs, the company continues to invest in new solutions designed to integrate AI into everyday marketing workflows. These tools are not theoretical or experimental; they are built in collaboration with the agency teams using them.

For example, Storia’s AI-driven media and SEO systems are designed for real-time campaign optimization, while Of Kos supports healthcare clients navigating regulatory challenges with data-informed precision. Both offer what ONAR believes is a durable advantage: results-based marketing tailored to complex industries.

This differentiation matters in an increasingly commoditized marketing services space. ONAR isn’t trying to be a full-service agency for everyone; it’s building domain-specific expertise powered by scalable technology and measurable outcomes.

Acquisition Pipeline and Capital Strategy Provide Growth Visibility

Growth through acquisition remains a cornerstone of ONAR’s strategy. Management said that additional agency targets are in the pipeline and close to being finalized. These acquisitions will not only expand service capacity but are expected to help offset fixed public company costs and accelerate ONAR’s transition toward platform profitability.

To support this growth, the company recently launched a Series E Preferred Stock offering that could raise up to $6 million. Combined with previously issued convertible notes, which have begun converting into common stock, ONAR is steadily improving its capital structure. These conversions also signal investor confidence in the company’s long-term value creation potential.

Importantly, ONAR maintains flexibility by balancing non-dilutive capital tools with long-term equity alignment, giving the company room to execute its strategy without overburdening its balance sheet.

Clear Roadmap with Long-Term Vision

CEO Claude Zdanow summed up the company’s direction succinctly in the shareholder letter, “These aren’t just growth moves – they’re critical steps to transforming our profitable core businesses into a sustainably profitable public platform.”

That transformation is underway. With a clarified structure, focused brand positioning, expanding tech capabilities, and a healthy acquisition pipeline, ONAR is moving from a collection of marketing agencies into an integrated marketing platform built for scale.

For middle-market companies navigating marketing complexity, and for investors watching the evolution of martech from fragmented tools to unified platforms, ONAR offers a compelling case of transformation in progress.

For more information, visit the company’s website at www.ONAR.com.

NOTE TO INVESTORS: The latest news and updates relating to ONAR Holding Corp. are available in the company’s newsroom at https://ibn.fm/ONAR

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