Virnetx Holding Financials
This page shows Virnetx Holding (VHC) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 17 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
VirnetX is still a cash-funded development-stage operation, where overhead and R&D matter far more than customer revenue today.
In FY2025, operating cash burn and free cash burn were both about$15.6M because capex was only$17K . That means the annual drain is coming from recurring operating costs rather than asset building, so accounting losses and cash usage are largely describing the same underlying business reality.
Revenue moved from
The balance sheet is still lightly leveraged: cash of
Financial Health Signals
We are recalculating Virnetx Holding's peer-relative financial health score against the latest fiscal year. It will appear here once the refresh completes. The signals and metrics below are current.
Virnetx Holding scores -7.88, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($49.6M) relative to total liabilities ($8.6M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Virnetx Holding passes 4 of 7 computable financial strength tests (2 of the nine could not be computed from available data). 1 of 4 profitability signals pass, all 2 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Virnetx Holding generates $0.86 in operating cash flow (-$15.6M OCF vs -$18.2M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Key Financial Metrics
Earnings & Revenue
Virnetx Holding generated $162K in revenue in fiscal year 2025. This represents an increase of 3140.0% from the prior year.
Virnetx Holding's EBITDA was -$19.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 4.7% from the prior year.
Virnetx Holding reported -$18.2M in net income in fiscal year 2025. This represents a decrease of 0.3% from the prior year.
Virnetx Holding earned $-5.00 per diluted share (EPS) in fiscal year 2025. This represents an increase of 1.0% from the prior year.
Cash & Balance Sheet
Virnetx Holding generated -$15.7M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 2.0% from the prior year.
Virnetx Holding held $15.5M in cash against $0 in long-term debt as of fiscal year 2025.
Virnetx Holding had 4M shares outstanding in fiscal year 2025. This represents a decrease of 0.9% from the prior year.
Margins & Returns
Virnetx Holding's operating margin was -12000.0% in fiscal year 2025, reflecting core business profitability. This is up 395940.0 percentage points from the prior year.
Virnetx Holding's net profit margin was -11250.0% in fiscal year 2025, showing the share of revenue converted to profit. This is up 352250.0 percentage points from the prior year.
Virnetx Holding's ROE was -81.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 35.2 percentage points from the prior year.
Capital Allocation
Virnetx Holding invested $5.7M in research and development in fiscal year 2025. This represents a decrease of 6.4% from the prior year.
Virnetx Holding invested $17K in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 22.7% from the prior year.
VHC Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $0 | N/A | $58K+20.8% | $48K | $0 | $0-100.0% | $2K+100.0% | $1K |
| Cost of Revenue | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Gross Profit | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D Expenses | $1.2M | N/A | $1.1M-5.9% | $1.2M-3.5% | $1.3M-46.9% | $2.4M+101.6% | $1.2M-3.8% | $1.2M |
| SG&A Expenses | $3.3M | N/A | $3.1M+10.2% | $2.8M-0.4% | $2.8M-35.1% | $4.3M+33.8% | $3.2M+0.6% | $3.2M |
| Operating Income | -$4.5M | N/A | -$4.6M-17.7% | -$3.9M+2.5% | -$4.0M+39.3% | -$6.7M-52.0% | -$4.4M+0.6% | -$4.4M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $0 | N/A | $0 | $0-100.0% | $2K | $0 | $0-100.0% | $3K |
| Net Income | -$4.4M | N/A | -$4.3M-20.1% | -$3.6M+1.6% | -$3.7M+40.8% | -$6.2M-61.9% | -$3.8M-0.2% | -$3.8M |
| EPS (Diluted) | $-1.16 | N/A | $-1.18-19.2% | $-0.99+2.0% | $-1.01 | N/A | $-1.070.0% | $-1.07 |
VHC Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $26.7M-14.1% | $31.1M-18.2% | $38.0M-9.2% | $41.8M-7.3% | $45.1M-9.1% | $49.6M-10.8% | $55.6M-5.7% | $58.9M |
| Current Assets | $17.6M-18.9% | $21.7M-23.8% | $28.4M-9.8% | $31.5M-8.8% | $34.6M-9.5% | $38.2M-13.2% | $44.0M-6.8% | $47.2M |
| Cash & Equivalents | $14.8M-5.0% | $15.5M-9.2% | $17.1M-0.9% | $17.3M-25.5% | $23.2M-0.3% | $23.3M-7.3% | $25.1M-4.4% | $26.3M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $0-100.0% | $19K0.0% | $19K-60.4% | $48K | N/A | $0 | $0 | $0 |
| Goodwill | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Liabilities | $7.8M-8.7% | $8.6M-1.2% | $8.7M+0.5% | $8.6M-1.1% | $8.7M-12.4% | $10.0M-1.1% | $10.1M-0.4% | $10.1M |
| Current Liabilities | $2.1M+1.7% | $2.0M-2.3% | $2.1M+6.8% | $1.9M-0.6% | $2.0M-72.9% | $7.2M+0.8% | $7.1M+1.8% | $7.0M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $18.9M-16.1% | $22.5M-23.3% | $29.3M-11.7% | $33.2M-8.8% | $36.4M-8.2% | $39.6M-12.9% | $45.5M-6.8% | $48.8M |
| Retained Earnings | -$227.2M-2.0% | -$222.9M-3.0% | -$216.3M-2.1% | -$212.0M-1.7% | -$208.3M-1.8% | -$204.7M-3.1% | -$198.5M-2.0% | -$194.6M |
VHC Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$4.3M+26.0% | -$5.8M-93.3% | -$3.0M-2.2% | -$2.9M+24.6% | -$3.9M+29.3% | -$5.5M-71.1% | -$3.2M-4.6% | -$3.1M |
| Capital Expenditures | N/A | $0-100.0% | $17K | N/A | N/A | $11K | $0 | N/A |
| Free Cash Flow | N/A | -$5.8M-92.3% | -$3.0M | N/A | N/A | -$5.5M-71.4% | -$3.2M | N/A |
| Investing Cash Flow | $3.5M-30.6% | $5.1M+78.2% | $2.9M+195.6% | -$3.0M-178.1% | $3.8M+0.6% | $3.8M+83.2% | $2.1M+16.9% | $1.8M |
| Financing Cash Flow | -$1K+99.9% | -$854K-7016.7% | -$12K-71.4% | -$7K | $0+100.0% | -$120K-1900.0% | -$6K | $0 |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | $0 | $0 | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
VHC Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Margin | N/A | N/A | -8006.9%+209.8pp | -8216.7% | N/A | N/A | -219350.0%+222150.0pp | -441500.0% |
| Net Margin | N/A | N/A | -7496.6%+47.2pp | -7543.8% | N/A | N/A | -191950.0%+191050.0pp | -383000.0% |
| Return on Equity | -23.1% | N/A | -14.8%-3.9pp | -10.9%-0.8pp | -10.1%+5.6pp | -15.7%-7.2pp | -8.4%-0.6pp | -7.8% |
| Return on Assets | -16.3% | N/A | -11.5%-2.8pp | -8.7%-0.5pp | -8.2%+4.4pp | -12.5%-5.6pp | -6.9%-0.4pp | -6.5% |
| Current Ratio | 8.53-2.2 | 10.70-3.0 | 13.72-2.5 | 16.26-1.5 | 17.72+12.4 | 5.31-0.9 | 6.17-0.6 | 6.74 |
| Debt-to-Equity | 0.42+0.0 | 0.38+0.1 | 0.30+0.0 | 0.26+0.0 | 0.24-0.0 | 0.25+0.0 | 0.22+0.0 | 0.21 |
| FCF Margin | N/A | N/A | -5208.6% | N/A | N/A | N/A | -161050.0% | N/A |
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Frequently Asked Questions
What is Virnetx Holding's annual revenue?
Virnetx Holding (VHC) reported $162K in total revenue for fiscal year 2025. This represents a 3140.0% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Virnetx Holding's revenue growing?
Virnetx Holding (VHC) revenue grew by 3140% year-over-year, from $5K to $162K in fiscal year 2025.
Is Virnetx Holding profitable?
No, Virnetx Holding (VHC) reported a net income of -$18.2M in fiscal year 2025, with a net profit margin of -11250.0%.
What is Virnetx Holding's EBITDA?
Virnetx Holding (VHC) had EBITDA of -$19.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Virnetx Holding's operating margin?
Virnetx Holding (VHC) had an operating margin of -12000.0% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Virnetx Holding's net profit margin?
Virnetx Holding (VHC) had a net profit margin of -11250.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Virnetx Holding's return on equity (ROE)?
Virnetx Holding (VHC) has a return on equity of -81.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Virnetx Holding's free cash flow?
Virnetx Holding (VHC) generated -$15.7M in free cash flow during fiscal year 2025. This represents a -2.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Virnetx Holding's operating cash flow?
Virnetx Holding (VHC) generated -$15.6M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Virnetx Holding's total assets?
Virnetx Holding (VHC) had $31.1M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Virnetx Holding's capital expenditures?
Virnetx Holding (VHC) invested $17K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Virnetx Holding spend on research and development?
Virnetx Holding (VHC) invested $5.7M in research and development during fiscal year 2025.
What is Virnetx Holding's current ratio?
Virnetx Holding (VHC) had a current ratio of 10.70 as of fiscal year 2025, which is generally considered healthy.
What is Virnetx Holding's debt-to-equity ratio?
Virnetx Holding (VHC) had a debt-to-equity ratio of 0.38 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Virnetx Holding's return on assets (ROA)?
Virnetx Holding (VHC) had a return on assets of -58.7% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Virnetx Holding's cash runway?
Based on fiscal year 2025 data, Virnetx Holding (VHC) had $15.5M in cash against an annual operating cash burn of $15.6M. This gives an estimated cash runway of approximately 12 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
What is Virnetx Holding's Altman Z-Score?
Virnetx Holding (VHC) has an Altman Z-Score of -7.88, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Virnetx Holding's Piotroski F-Score?
Virnetx Holding (VHC) has a Piotroski F-Score of 4 out of 7 computable signals; 2 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Virnetx Holding's earnings high quality?
Virnetx Holding (VHC) has an earnings quality ratio of 0.86x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.