10-Q · May 15, 2026
VirnetX Holding Corporation reports no revenue for Q1 2026, consistent with Q1 2025 results. The company incurred a net loss of $4.4 million, which is an increase from a loss of $3.7 million a year ago, reflecting…
Earnings analysis · 10-Q
VHC earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
VirnetX produced no revenue in Q2 2026, with diluted EPS worsening to $(1.20) from $(0.99) year over year and net loss rising to $4.527 million. Operating cash burn remained substantial at $7.617 million for the first…
Read full summary
VirnetX produced no revenue in Q2 2026, with diluted EPS worsening to $(1.20) from $(0.99) year over year and net loss rising to $4.527 million. Operating cash burn remained substantial at $7.617 million for the first six months, reducing cash and cash equivalents to $13.090 million and prompting a going-concern disclosure. Although the company has a $20 million S-3 financing shelf, the filing provides no revenue or EPS guidance and indicates that additional capital or revenue will be needed to sustain operations.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-1.2
- Segment
- Single reportable segment; revenue was $0 for the three months ended June 30, 2026 versus $48 thousand in the prior-year quarter.
What stood out
-
Revenue Remained Zero
Revenue was $0 for the quarter, down from $48 thousand in the prior-year quarter and unchanged from $0 in the immediately preceding quarter. The company reported one operating segment.
-
EPS and Net Loss Worsened
Diluted EPS deteriorated to $(1.20) from $(0.99) year over year and $(1.16) in Q1 2026. Net loss increased to $4.527 million from $3.621 million in Q2 2025.
-
SG&A Drove Expense Growth
Operating expenses increased 16.5% to $4.652 million from $3.992 million year over year. SG&A rose $749 thousand to $3.526 million, driven by $388 thousand of higher legal expense, $362 thousand of higher equity compensation, and $395 thousand of higher travel expense.
-
Liquidity Position Deteriorated
Cash and cash equivalents declined to $13.090 million from $15.548 million at December 31, 2025, while working capital was $11.847 million. Short-term investments declined to approximately $799 thousand from $5.979 million.
-
Operating Cash Burn Increased
Six-month operating cash flow was negative $7.617 million, compared with negative $6.832 million in the prior-year period. Capital expenditures were only $8 thousand, indicating that cash use was overwhelmingly operating-related.
-
Financing Capacity Established
Management secured an effective Form S-3 shelf registration covering up to $20 million of securities on June 2, 2026, providing a potential financing source.
What to watch
-
Going-Concern Uncertainty
The company disclosed substantial doubt about its ability to continue as a going concern because existing liquid resources are projected to be insufficient for the twelve months following issuance. It reported a six-month net loss of $8.881 million and an accumulated deficit of $231.776 million.
-
Potential Dilutive Financing
Management stated that additional capital may be needed and that financing may occur through equity offerings. The effective Form S-3 permits offerings of up to $20 million, creating potential dilution and financing risk.
-
Commercialization and Revenue Risk
Revenue was $0 in Q2 2026 and the company reported a six-month net loss of $8.881 million. Management cautioned that additional revenue cannot be assured or secured in sufficient quantity and that long, unpredictable sales cycles may exhaust financial resources before significant revenue is generated.
-
Costs Rising Without Revenue
SG&A increased to $3.526 million from $2.777 million year over year, including $388 thousand of higher legal expense and $362 thousand of higher equity compensation, while revenue remained $0.
-
Equity Dilution Exposure
As of June 30, 2026, the company had 685,339 outstanding options, including 218,337 vested options, and 1,133,720 shares available for grant under its equity plan. Future awards or exercises could dilute existing holders.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management expects the full-year effective tax rate to be 0%, while stating that existing liquid resources are projected to be insufficient to sustain operations for twelve months from the financial statement issuance date.
Earlier filings 4
10-K · March 24, 2026
VirnetX (VHC) shows a clear revenue pickup in 2025 after immaterial 2024 results, driven by government/subcontract activity and early commercial product deployments (VirnetX One™, Matrix™, War Room™). Despite the…
10-Q · November 14, 2025
VirnetX reported Q3 revenue of $58,000 (vs $48,000 in prior quarter and $2,000 a year ago) with a GAAP net loss of $4,348 and diluted loss per share of $(1.18). Operating loss for the quarter was $(4,644) (versus…
10-Q · August 12, 2025
VirnetX reported a substantial increase in revenue for Q2 2025, generating $48,000, compared to just $1 in Q2 2024. However, the company continued to incur significant losses, with a diluted EPS of -$0.99, an…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.