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VHC

VirnetX Holding Corp

VHC

VirnetX Holding Corp • NASDAQ
$21.83 ▼ -8.34% (-1.99)
Market Cap $93.24 M
52w High $29.00
52w Low $3.68
Dividend Yield 0%
P/E -4.46
Volume 2.04K
Outstanding Shares 4.27M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $58K ▲ $4.196M ▲ $-4.348M ▼ -7.497K% ▲ $-1.18 ▼ $-4.342M ▼
Q2-2025 $48K ▲ $3.987M ▼ $-3.621M ▲ -7.544K% ▼ $-0.99 ▲ $-3.616M ▲
Q1-2025 $0 $4.042M ▼ $-3.679M ▲ 0% $-1.01 ▲ $-3.672M ▲
Q4-2024 $0 ▼ $6.664M ▲ $-6.215M ▼ 0% ▲ $-1.73 ▼ $-6.21M ▼
Q3-2024 $2K $4.389M $-3.839M -191.95K% $-1.07 $-4.381M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $28.193M ▼ $37.983M ▼ $8.692M ▲ $29.291M ▼
Q2-2025 $31.226M ▼ $41.82M ▼ $8.649M ▼ $33.171M ▼
Q1-2025 $34.176M ▼ $45.111M ▼ $8.748M ▼ $36.363M ▼
Q4-2024 $38.082M ▼ $49.609M ▼ $9.986M ▼ $39.623M ▼
Q3-2024 $43.754M $55.587M $10.094M $45.493M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-4.348M ▼ $-3.004M ▼ $2.852M ▲ $-12K ▼ $-164K ▲ $-3.021M ▼
Q2-2025 $-3.621M ▲ $-2.938M ▲ $-2.984M ▼ $-7K ▼ $-5.929M ▼ $-2.938M ▲
Q1-2025 $-3.679M ▲ $-3.894M ▲ $3.82M ▲ $0 ▲ $-74K ▲ $-3.894M ▲
Q4-2024 $-6.215M ▼ $-5.51M ▼ $3.796M ▲ $-120K ▼ $-1.834M ▼ $-5.521M ▼
Q3-2024 $-3.839M $-3.221M $2.072M $-6K $-1.155M $-3.221M

Five-Year Company Overview

Income Statement

Income Statement The income statement shows a company with essentially no recurring revenue in recent years and small but persistent operating losses. Earlier profitability appears tied to one‑off legal or settlement events, not to a stable business. Earnings have swung sharply over time, which signals dependence on unpredictable patent outcomes rather than a steady stream of software or service sales. Overall, the core business is not yet covering its costs and remains highly volatile.

Balance Sheet

Balance Sheet The balance sheet is very small and has been shrinking over time. Assets are mostly cash and similar items, with little in the way of hard assets or built‑up retained value. On the positive side, debt is minimal, so there is not much financial leverage risk. On the negative side, equity and cash cushions have been declining, which limits the company’s ability to fund lengthy legal battles or to invest heavily in scaling its products without new external capital or a step‑up in revenue.

Cash Flow

Cash Flow Cash flow has been consistently negative from normal operations in recent years, meaning the business is consuming cash rather than generating it. There is almost no spending on physical assets, so the shortfall is mainly from covering ongoing expenses such as staff, legal, and development costs. Free cash flow tracks operating cash flow closely, reinforcing the picture of a company that needs either new inflows from litigation wins, licensing deals, product traction, or capital raises to sustain itself over time.

Competitive Edge

Competitive Edge VirnetX’s main competitive strength is its patent portfolio in secure communications, backed by a history of high‑profile litigation wins and settlements. This creates a legal moat that can deter some competitors and open doors for licensing. However, this moat is time‑limited and legally contested, and the broader cybersecurity market is crowded with larger, well‑funded players. The pivot toward government and defense customers—supported by security certifications and framework contracts—could create a more defensible niche, but current financials suggest that commercial traction is still limited and unproven at scale.

Innovation and R&D

Innovation and R&D Innovation is centered on secure, zero‑trust communication technologies like on‑demand VPNs and secure domain name systems, packaged into products such as VirnetX One, War Room, Matrix, and the Gabriel suite. These offerings aim to make communications invisible and highly secure, which is attractive for sensitive use cases, especially in government and defense. The company’s strength lies in deep IP and specialized security know‑how, but the key challenge is turning that technical edge into broad, recurring product adoption while continuing to refresh and defend its patent base.

Summary

VirnetX is a tiny, highly specialized security and patent company transitioning from a litigation‑driven model toward a product and government‑focused strategy. Financial statements show minimal revenue, ongoing losses, and steady cash burn, with a small and shrinking capital base but little debt. The core asset is its intellectual property in secure communications, combined with early steps into defense and government markets through certifications and partnerships. Future outcomes depend heavily on three uncertain areas: ongoing patent and legal results, success in winning and scaling government and enterprise contracts, and the company’s ability to manage its limited cash while it attempts this strategic shift.

NEWS

October 16, 2025 · 5:15 PM UTC

VirnetX Awarded Coveted GSA Schedule Contract

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September 11, 2025 · 8:30 AM UTC

VirnetX Announces Move to Nasdaq

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