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VirnetX Holding Corp (VHC)

Upturn stock ratingUpturn stock rating
$14.01
Last Close (24-hour delay)
Profit since last BUY29.12%
upturn advisory
WEAK BUY
BUY since 33 days
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  • SELL Advisory (Loss)​
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Upturn Advisory Summary

08/14/2025: VHC (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

rating

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Number of Analysts

rating

0 Analysts rated it

Very few follow this stock; limited insights, higher-risk early investing.

Analysis of Past Performance

Type Stock
Historic Profit -43.04%
Avg. Invested days 26
Today’s Advisory WEAK BUY
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 08/14/2025

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

ai summary icon Upturn AI SWOT

VirnetX Holding Corp

stock logo

Company Overview

overview logo 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.

business area logo 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 logo 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

overview logo 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 logo 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

competitor logo 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.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization 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
Full time employees 23

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.