Revenue generation remains commercially insignificant, with quarterly figures often failing to exceed $58,000 while operating expenses consistently exceed $3 million per quarter.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Sales/Revenue | 162K | 162K | 5K | 7K | 48K | 35K | 302.64M | 85K | 63K | 1.55M | 1.55M | 1.55M | 1.25M | 2.2M | 412K | 20K | 68.19K | 26.31K | 133.74K | 74.87K | 191.29K | 213.01K | 199.52K | 219.38K | 413.64K | 595.35K | 785.16K | 2.24M | 2.5M |
| Revenue Growth % | 5300% | 3140% | -28.57% | -85.42% | 37.14% | -99.99% | 355942.35% | 34.92% | -95.93% | -0.19% | -0.32% | 24.5% | -43.15% | 433.25% | 1960% | -70.67% | 159.2% | -80.33% | 78.64% | -60.86% | -10.2% | 6.76% | -9.06% | -46.96% | -30.52% | -24.17% | -64.99% | -10.3% | - |
| Cost of Goods Sold | 24K | 23K | 0 | 9K | 0 | 0 | 90.11M | 0 | 0 | 26K | 884K | 5.26M | 6.1M | 0 | 0 | 0 | 59.21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 149.53K | 272.22K | 150.06K | 167.49K | 100K |
| COGS % of Revenue | - | 14.2% | - | 128.57% | - | - | 29.77% | - | - | 1.68% | 57.03% | 338.59% | 488.39% | - | - | - | 86832.55% | - | - | - | - | - | - | - | 36.15% | 45.72% | 19.11% | 7.47% | 4% |
| Gross Profit | 138K | 139K | 5K | -2K | 48K | 35K | 212.53M | 85K | 63K | 1.52M | 666K | -3.71M | -4.85M | 2.2M | 412K | 20K | -59.14M | 26.31K | 133.74K | 74.87K | 191.29K | 213.01K | 199.52K | 219.38K | 264.11K | 323.13K | 635.1K | 2.08M | 2.4M |
| Gross Margin % | 85.19% | 85.8% | 100% | -28.57% | 100% | 100% | 70.23% | 100% | 100% | 98.32% | 42.97% | -238.59% | -388.39% | 100% | 100% | 100% | -86732.55% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 63.85% | 54.28% | 80.89% | 92.53% | 96% |
| Gross Profit Growth % | - | 2680% | 350% | -104.17% | 37.14% | -99.98% | 249935.29% | 34.92% | -95.86% | 128.38% | 117.95% | 23.52% | -320.8% | 433.25% | 1960% | 100.03% | -224910.27% | -80.33% | 78.64% | -60.86% | -10.2% | 6.76% | -9.06% | -16.93% | -18.27% | -49.12% | -69.39% | -13.54% | - |
| Operating Expenses | 19.55M | 19.08M | 20.4M | 31.44M | 22.12M | 49.21M | 56.75M | 19.75M | 25.52M | 18.87M | 29.17M | 25.47M | 30.31M | 30.78M | 39.27M | 17.4M | -163.82M | 13.11M | 12.36M | 8.73M | 144.37K | 135.4K | 136.15K | 147.51K | 304.16K | 394.92K | 2.85M | 4.67M | 3.3M |
| OpEx % of Revenue | - | 11777.16% | 408040% | 449185.71% | 46091.67% | 140597.14% | 18.75% | 23235.29% | 40507.94% | 1219.65% | 1882% | 1637.75% | 2427.06% | 1401.18% | 9532.28% | 86980% | -240263.5% | 49852.24% | 9238.05% | 11654.44% | 75.47% | 63.57% | 68.24% | 67.24% | 73.53% | 66.33% | 362.35% | 208.11% | 132% |
| Selling, General & Admin | 13.99M | 13.45M | 14.36M | 21.73M | 15.72M | 52.72M | 47.92M | 15.9M | 20.7M | 16.19M | 26.67M | 23.19M | 28.31M | 29M | 37.72M | 15.93M | 33.76M | 12.25M | 11.51M | 8.04M | 144.37K | 135.4K | 136.15K | 147.51K | 301.93K | 387.38K | 1.92M | 2.96M | 2.3M |
| SG&A % of Revenue | - | 8301.23% | 287280% | 310428.57% | 32754.17% | 150614.29% | 15.83% | 18711.76% | 32865.08% | 1046.8% | 1720.77% | 1491.32% | 2266.61% | 1320.07% | 9154.85% | 79660% | 49518.55% | 46567.6% | 8606% | 10740.38% | 75.47% | 63.57% | 68.24% | 67.24% | 72.99% | 65.07% | 244.9% | 132.15% | 92% |
| Research & Development | 5.56M | 5.65M | 6.04M | 9.71M | 6.41M | 5.58M | 8.83M | 3.85M | 4.82M | 2.67M | 2.5M | 2.28M | 2M | 1.78M | 1.55M | 1.46M | 2.41M | 864.06K | 845.32K | 684.32K | 0 | 0 | 0 | 0 | 0 | 0 | 878.76K | 1.63M | 900K |
| R&D % of Revenue | - | 3490.12% | 120760% | 138757.14% | 13345.83% | 15934.29% | 2.92% | 4523.53% | 7642.86% | 172.85% | 161.23% | 146.43% | 160.45% | 81.11% | 377.43% | 7320% | 3537.59% | 3284.64% | 632.05% | 914.05% | - | - | - | - | - | - | 111.92% | 72.49% | 36% |
| Other Operating Expenses | 0 | -23K | 0 | 0 | -4K | -9.08M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -200M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7.54K | 43.47K | 77.83K | 2.4M |
| Operating Income | -19.4M | -18.94M | -20.4M | -31.45M | -22.08M | -49.17M | 155.78M | -19.66M | -25.46M | -17.32M | -28.5M | -29.18M | -12.16M | -28.59M | -38.86M | -17.38M | 104.69M | -13.09M | -12.22M | -8.65M | 46.92K | 77.61K | 63.37K | 71.87K | -40.05K | -71.79K | -2.21M | -2.59M | -900K |
| Operating Margin % | -11975.93% | -11691.36% | -407940% | -449214.29% | -45991.67% | -140497.14% | 51.47% | -23135.29% | -40407.94% | -1119.65% | -1839.03% | -1876.33% | -973.98% | -1301.18% | -9432.28% | -86880% | 153530.95% | -49752.24% | -9138.05% | -11554.44% | 24.53% | 36.43% | 31.76% | 32.76% | -9.68% | -12.06% | -281.47% | -115.58% | -36% |
| Operating Income Growth % | - | 7.14% | 35.13% | -42.44% | 55.11% | -131.57% | 892.16% | 22.75% | -46.97% | 39.24% | 2.3% | -139.84% | 57.45% | 26.44% | -123.65% | -116.6% | 899.87% | -7.09% | -41.28% | -18535.58% | -39.54% | 22.47% | -11.83% | 279.45% | 44.21% | 96.75% | 14.74% | -187.99% | - |
| EBITDA | -19.38M | -18.92M | -20.38M | -31.44M | -22.07M | -49.17M | 155.78M | -19.66M | -25.44M | -17.3M | -28.48M | -29.15M | -12.14M | -28.55M | -38.79M | -17.31M | 104.74M | -13.02M | -12.15M | -8.63M | 47.76K | 78.31K | 63.37K | 71.87K | -37.82K | -64.25K | -2.17M | -2.51M | -800K |
| EBITDA Margin % | -11961.11% | -11677.16% | -407520% | -449085.71% | -45977.08% | -140485.71% | 51.48% | -23127.06% | -40379.37% | -1117.97% | -1837.23% | -1874.66% | -971.98% | -1299.54% | -9415.05% | -86540% | 153617.58% | -49512.32% | -9086.74% | -11529.58% | 24.97% | 36.76% | 31.76% | 32.76% | -9.14% | -10.79% | -275.93% | -112.11% | -32% |
| EBITDA Growth % | 0.62% | 7.16% | 35.18% | -42.44% | 55.12% | -131.56% | 892.47% | 22.72% | -47.09% | 39.27% | 2.31% | -140.12% | 57.48% | 26.4% | -124.12% | -116.52% | 904.2% | -7.17% | -40.79% | -18173.9% | -39.02% | 23.58% | -11.83% | 290.02% | 41.13% | 97.03% | 13.83% | -214.26% | - |
| D&A (Non-Cash Add-back) | 24K | 23K | 21K | 9K | 7K | 4K | 5K | 7K | 18K | 26K | 28K | 26K | 25K | 36K | 71K | 68K | 59.07K | 63.11K | 68.62K | 18.61K | 836 | 703 | 0 | 0 | 2.23K | 7.54K | 43.47K | 77.83K | 100K |
| EBIT | -19.28M | -18.94M | -20.4M | -27.95M | -22.08M | -49.13M | 307.45M | -19.57M | -25.46M | -17.32M | -28.5M | -29.18M | -35.16M | -28.59M | -38.86M | -17.38M | 75.48M | -13.09M | -12.22M | -8.65M | -1.41M | 77.61K | 67.53K | 71.87K | 41.07K | -71.79K | -2.21M | -902.13K | -800K |
| Net Interest Income | 997K | 1.21M | 2.23M | 3.5M | 1.85M | 48K | 108.29M | 92K | 54K | 46K | 69K | 68K | 40K | 122K | 329K | 228K | 1.31M | 5.07K | 149.41K | -41.82K | 0 | 0 | 0 | 0 | 0 | 0 | -1.29K | 0 | 0 |
| Interest Income | 997K | 1.21M | 2.23M | 3.5M | 1.85M | 48K | 108.29M | 92K | 54K | 46K | 69K | 68K | 40K | 122K | 329K | 228K | 1.31M | 5.07K | 149.41K | 0 | 0 | 0 | 0 | 0 | 2.96K | 1.56K | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 41.82K | 0 | 0 | 0 | 0 | 0 | 0 | 1.29K | 0 | 0 |
| Other Income/Expense | 497K | 713K | 2.23M | 3.5M | 1.85M | 48K | 151.67M | 92K | 54K | 46K | 69K | -49K | 2.28M | 1.73M | -598K | -5.37M | 170.79M | 563.45K | 149.41K | -41.82K | 1.47M | 42.91K | 4.16K | 3.49K | 77.14K | -1.21M | -1.6M | 902.13K | 200K |
| Pretax Income | -18.9M | -18.23M | -18.17M | -27.95M | -20.23M | -49.13M | 307.45M | -19.57M | -25.4M | -17.27M | -28.44M | -29.23M | -9.89M | -26.86M | -39.46M | -22.74M | 75.48M | -13.08B | 0 | 0 | 60.42K | 120.52K | 67.52K | 75.36K | 37.09K | -1.29M | -3.81M | -2.47M | -600K |
| Pretax Margin % | -11669.14% | -11251.23% | -363440% | -399285.71% | -42141.67% | -140360% | 101.59% | -23027.06% | -40322.22% | -1116.68% | -1834.58% | -1879.49% | -791.59% | -1222.44% | -9577.43% | -113715% | 110697.85% | -49732954.46% | - | - | 31.59% | 56.58% | 33.84% | 34.35% | 8.97% | -215.94% | -485.45% | -110.23% | -24% |
| Income Tax | -4K | -2K | 3K | -79K | 16.03M | -6.21M | 27.02M | -393K | 3K | 3K | 133K | 8K | 15K | 751K | -12.54M | -5.48M | 34.06M | 5.07M | -149.41K | 41.82K | -13.5K | 0 | 2.4K | 6.66K | -5.92K | 0 | 403.15K | -127.83K | -400K |
| Effective Tax Rate % | 0.02% | 0.01% | -0.02% | 0.28% | -79.26% | 12.63% | 8.79% | 2.01% | -0.01% | -0.02% | -0.47% | -0.03% | -0.15% | -2.8% | 31.77% | 24.1% | 45.13% | -0.04% | - | - | -22.34% | 0% | 3.55% | 8.84% | -15.95% | 0% | -10.58% | 5.17% | 66.67% |
| Net Income | -18.9M | -18.23M | -18.18M | -27.87M | -36.26M | -42.92M | 280.43M | -19.18M | -25.41M | -17.28M | -28.57M | -29.23M | -9.9M | -27.61M | -26.92M | -17.26M | 41.42M | -13.08M | -12.07M | -8.69M | 60.42K | 120.52K | 65.12K | 70.03K | -37.09K | -1.31M | -2.61M | -2.46M | -500K |
| Net Margin % | -11666.67% | -11250% | -363500% | -398157.14% | -75541.67% | -122631.43% | 92.66% | -22564.71% | -40326.98% | -1116.87% | -1843.16% | -1880% | -792.79% | -1256.62% | -6534.95% | -86315% | 60741.94% | -49732.95% | -9026.33% | -11610.3% | 31.59% | 56.58% | 32.64% | 31.92% | -8.97% | -219.53% | -332.81% | -109.88% | -20% |
| Net Income Growth % | -7.61% | -0.28% | 34.79% | 23.14% | 15.52% | -115.31% | 1562.09% | 24.51% | -47.04% | 39.52% | 2.27% | -195.23% | 64.13% | -2.54% | -55.96% | -141.68% | 416.58% | -8.37% | -38.89% | -14486.71% | -49.87% | 85.07% | -7.01% | 288.8% | 97.16% | 49.98% | -6.05% | -392.81% | - |
| Net Income (Continuing) | -18.9M | -18.23M | -18.18M | -27.87M | -36.26M | -42.92M | 280.43M | -19.18M | -25.41M | -17.28M | -28.57M | -29.23M | -9.9M | -27.61M | -26.92M | -17.26M | 41.42M | -13.08M | -12.07M | -8.69M | -1.4M | 120.52K | 65.12K | 68.7K | 44.02K | -1.29M | -3.79M | -774.3K | -500K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -5.03 | -5.00 | -5.05 | -7.79 | -10.17 | -12.06 | 78.31 | -5.59 | -8.07 | -5.92 | -10.21 | -11.16 | -3.84 | -10.79 | -10.57 | -0.35 | 0.84 | -0.35 | -0.35 | -0.36 | -0.08 | 0.06 | 0.01 | 0.03 | -0.02 | -0.85 | -1.99 | -1.87 | -0.42 |
| EPS Growth % | -0.41% | 0.99% | 35.17% | 23.4% | 15.67% | -115.4% | 1500.89% | 30.73% | -36.32% | 42.02% | 8.51% | -190.63% | 64.41% | -2.08% | -2920% | -141.67% | 340% | 0% | 2.78% | -350% | -233.33% | 500% | -66.67% | 234.53% | 97.38% | 57.29% | -6.42% | -345.24% | - |
| EPS (Basic) | - | -5.00 | -5.05 | -7.79 | -10.17 | -12.06 | 79.16 | -5.59 | -8.07 | -5.92 | -10.21 | -11.16 | -3.84 | -10.79 | -10.57 | -0.35 | 0.91 | -0.35 | -0.35 | -0.25 | -0.08 | 0.06 | 0.01 | 0.03 | -0.02 | -0.85 | -1.99 | -1.87 | -0.42 |
| Diluted Shares Outstanding | 3.75M | 3.65M | 3.6M | 3.58M | 3.56M | 3.56M | 3.58M | 3.43M | 3.15M | 2.92M | 2.8M | 2.62M | 2.58M | 2.56M | 2.55M | 50.03M | 49.07M | 37.91M | 34.88M | 34.81M | 17.09M | 1.67M | 1.67M | 1.67M | 1.67M | 1.54M | 1.32M | 1.32M | 1.19M |
| Basic Shares Outstanding | 3.75M | 3.65M | 3.6M | 3.58M | 3.56M | 3.56M | 3.54M | 3.43M | 3.15M | 2.92M | 2.8M | 2.62M | 2.58M | 2.56M | 2.55M | 50.03M | 45.45M | 37.91M | 34.88M | 34.74M | 17.09M | 1.67M | 1.67M | 1.67M | 1.67M | 1.54M | 1.32M | 1.32M | 1.19M |
| Dividend Payout Ratio | - | - | - | - | - | - | 25.26% | - | - | - | - | - | - | - | - | - | 56.98% | - | - | - | - | - | - | - | - | - | - | - | - |
Unsustainable Operating Burn Rate
According to recent financial disclosures, VirnetX's quarterly revenue remains negligible, fluctuating between zero and $58,000, which suggests the company has yet to establish a repeatable commercial model despite its pivot toward a SaaS-based product strategy for its secure communication offerings.
The revenue figures indicate that the company is currently operating at a pre-commercial stage, with no evidence of consistent demand for its VirnetX One platform. Investors should monitor whether the company can move beyond these nominal figures, as the current trajectory does not support a viable software business.
As reported in quarterly filings, VirnetX maintains a high fixed-cost structure with SG&A expenses consistently exceeding $3 million per quarter, a level of spending that appears entirely disconnected from the company's minimal revenue generation and suggests a lack of disciplined expense management.
The persistent reliance on heavy R&D and SG&A spending without a corresponding increase in top-line growth highlights a structural inefficiency. This cost profile suggests that the company is still operating with the overhead of a litigation-focused entity rather than a lean, scalable software provider.
Based on the provided income statements, VirnetX consistently issues significant stock-based compensation, with quarterly grants frequently exceeding $400,000, which further dilutes existing shareholders while the company continues to report deep net losses and fails to achieve positive operating cash flow.
The reliance on equity-based incentives in the absence of operational profitability warrants further investigation into management's alignment with long-term shareholder value. This practice effectively shifts the burden of funding the company's high burn rate onto investors through ongoing dilution.
Data from recent financial statements indicates that with a cash balance of approximately $15.5 million and quarterly operating losses often exceeding $4 million, VirnetX faces a critical liquidity risk that may necessitate dilutive financing if product-led revenue does not accelerate rapidly.
The current burn rate suggests that the company's runway is limited, forcing a reliance on either a sudden, unlikely surge in SaaS adoption or a return to unpredictable legal settlements. This binary dependency on non-operational outcomes remains the primary threat to the company's long-term solvency.
Quick answers to the most common questions about buying VHC stock.
For fiscal year 2025, VirnetX Holding Corp (VHC) reported total revenue of $0.2M. This represents a 93.5% decline compared to $2.5M in 1998.
VirnetX Holding Corp (VHC) reported a net loss of $18.2M for the fiscal year ending 2025.
VirnetX Holding Corp (VHC) reported an operating income of $-18.9M, resulting in an operating profit margin of -11691.4%. This margin reflects the operational efficiency of the business before interest and taxes.
VirnetX Holding Corp (VHC) generated $0.1M in gross profit for the year, representing a gross profit margin of 85.8%. This demonstrates the company's core pricing power and production efficiency.