VirnetX Holding Corp Common Stock (VHC)

FairStock Score: 30/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Looking at VirnetX through a Graham-and-Buffett lens, I see a security-software business with almost no revenue and no profits. In fiscal 2025, the year ended December 31, 2025, filed results show revenue of just $162,000 against a net loss of $18.2 million, or diluted EPS of -$5.00. Fiscal 2024 was similar: revenue of $5,000 and a net loss of $18.2 million. Fiscal 2023 had revenue of $7,000 and a net loss of $27.9 million. That is not a durable franchise; it suggests no meaningful pricing power or competitive moat at present. FairStock calculations at the 2026-10-13 close of $10.96 show P/B of 3.07, ROE of -82.13%, ROCE of -38.80%, and FCF yield of -34.8% on trailing free cash flow of -$16.1 million. The Piotroski F-Score is 3/9 and Altman Z-Score is -8.52, which point to financial distress. FairStock's Lynch category is none because the company lost money in each of the last four years. Revenue growth is not meaningful when the base is thousands of dollars. A beta of 2.25 and a 52-week range of $8.41 to $29.00 show how speculative the stock has been. As a value investor, I want a margin of safety, stable earning power, and an understandable business. Here the losses, negative cash flow, and lack of profit history make intrinsic value nearly impossible to estimate. The price may reflect hope, not current business results.

In plain English: VirnetX is a small internet security software company. The business looks weak: in fiscal 2025, the year ended December 31, 2025, it reported only $162,000 of revenue and an $18.2 million net loss. At the 2026-10-13 close of $10.96, the stock looks expensive compared with those numbers.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer