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VirnetX Holding Corp (VHC)



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Upturn Advisory Summary
08/14/2025: VHC (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type Stock | Historic Profit -43.04% | Avg. Invested days 26 | Today’s Advisory WEAK BUY |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 45.90M USD | Price to earnings Ratio - | 1Y Target Price 2.88 |
Price to earnings Ratio - | 1Y Target Price 2.88 | ||
Volume (30-day avg) - | Beta 1.45 | 52 Weeks Range 3.68 - 13.89 | Updated Date 06/29/2025 |
52 Weeks Range 3.68 - 13.89 | Updated Date 06/29/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -4.87 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin - | Operating Margin (TTM) -650600% |
Management Effectiveness
Return on Assets (TTM) -22.72% | Return on Equity (TTM) -39.67% |
Valuation
Trailing PE - | Forward PE - | Enterprise Value 11727832 | Price to Sales(TTM) 15301.27 |
Enterprise Value 11727832 | Price to Sales(TTM) 15301.27 | ||
Enterprise Value to Revenue 3909.28 | Enterprise Value to EBITDA 1.74 | Shares Outstanding 4238580 | Shares Floating 3619791 |
Shares Outstanding 4238580 | Shares Floating 3619791 | ||
Percent Insiders 14.41 | Percent Institutions 10.75 |
Upturn AI SWOT
VirnetX Holding Corp

Company Overview
History and Background
VirnetX Holding Corp. was founded in 1998. It focuses on the development and licensing of secure communication technologies, particularly related to virtual private networks (VPNs) and secure domain name systems (DNS). The company has primarily generated revenue through patent litigation.
Core Business Areas
- Licensing and Intellectual Property: VirnetX's primary business is licensing its patent portfolio related to secure communication protocols and technologies. They generate revenue through licensing agreements and litigation settlements.
Leadership and Structure
The leadership team includes Kendall Larsen (CEO) and various other executives. The company structure is centered around intellectual property management and licensing.
Top Products and Market Share
Key Offerings
- Secure Domain Name System (DNS) Technology: VirnetX's core technology focuses on secure DNS, aiming to provide enhanced security and privacy for internet communications. Market share data is difficult to determine due to its unique licensing model rather than direct product sales. Competitors include major DNS providers and security firms, but VirnetX competes primarily on its patents.
- Virtual Private Network (VPN) Technology: VirnetX holds patents related to VPN technology. This offering is primarily monetized through licensing, not direct product sales. Competitors include NordVPN (private company), ExpressVPN (private company), and other VPN providers.
Market Dynamics
Industry Overview
The cybersecurity industry is experiencing significant growth due to increasing cyber threats. Secure communication technologies are in high demand.
Positioning
VirnetX positions itself as an innovator in secure communication technologies, primarily generating revenue through enforcing its patents.
Total Addressable Market (TAM)
The cybersecurity market is estimated to be hundreds of billions of dollars. VirnetX's position within this TAM is limited to licensing its technology rather than direct market competition.
Upturn SWOT Analysis
Strengths
- Patent Portfolio
- Proven ability to win patent litigation
- Innovative secure communication technologies
Weaknesses
- Heavy reliance on patent litigation for revenue
- Limited direct product sales
- High operating expenses relative to revenue
Opportunities
- Growing demand for secure communication technologies
- Potential for new licensing agreements
- Expansion of patent portfolio
Threats
- Challenges to patent validity
- Competition from larger technology companies
- Changes in patent law
Competitors and Market Share
Key Competitors
- CSCO
- AAPL
- MSFT
Competitive Landscape
VirnetX competes indirectly with larger technology companies through patent enforcement. Its advantage lies in its patent portfolio, while its disadvantage is its small size and lack of direct product sales.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been erratic, tied to patent litigation success.
Future Projections: Future growth projections are speculative due to dependence on unpredictable litigation outcomes. Analyst estimates are unavailable given its unique business model.
Recent Initiatives: Recent initiatives focus on enforcing existing patents and developing new intellectual property.
Summary
VirnetX is a patent holding company whose financial performance is strongly influenced by the outcomes of its patent litigation, which makes financial projections challenging. Success in court has historically boosted the company and has been crucial for it to stay afloat. The company's heavy dependence on patent litigation for revenue introduces significant volatility and risk, and while its strong patent portfolio is a strength, this is balanced by its limited business model.
Peer Comparison
Sources and Disclaimers
Data Sources:
- SEC Filings
- Company Website
- Patent Office Records
- Market Reports
Disclaimers:
The information provided is for informational purposes only and does not constitute financial advice. Investment decisions should be made based on individual due diligence. Market share data is based on estimated licensing revenue impact, and market size may vary.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About VirnetX Holding Corp
Exchange NYSE | Headquaters Zephyr Cove, NV, United States | ||
IPO Launch date 1999-07-30 | Chairman of the Board of Directors, CEO & President Mr. Kendall Larsen | ||
Sector Technology | Industry Software - Infrastructure | Full time employees 23 | Website https://www.virnetx.com |
Full time employees 23 | Website https://www.virnetx.com |
VirnetX Holding Corporation, through its subsidiary VirnetX, Inc., operates as an Internet security software and technology company primarily in the United States. The company develops software and technology solutions, including secure domain name registry and GABRIEL Connection Technology that are designed to secure communications over the Internet using zero trust network access. It also offers a portfolio of licenses and services, such as VirnetX One, a security-as-a-service platform that protects enterprise applications, services, and infrastructure from cyber-attacks; GABRIEL Connection Technology software development kit to assist with rapid integration of its techniques into existing software implementations; War Room software that offers safe and secure video conferencing meeting environment where sensitive communications and data is invisible to those not authorized to view it; and VirnetX Matrix that provides security for internet-enabled enterprise applications and their connected devices. It serves domain infrastructure and communication service providers, and system integrators; and enterprise customers, developers, and original equipment manufacturers of chips, servers, desktops, smart phones, tablets, laptops, net books, and other devices in the IP-telephony, mobility, fixed-mobile convergence, and unified communications markets. VirnetX Holding Corporation was incorporated in 2005 and is headquartered in Zephyr Cove, Nevada.

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