MeritValue

VirnetX Holding Corp

VHCdata completeness 88%17 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

VirnetX Holding Corp earns about -97% on invested capital, and has bought back 100% of its shares over 5 years. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$35,0001$48,0002$7,0003$5,0004$162,0004
Net income−$42.9M5−$36.3M6−$27.9M7−$18.2M8−$18.2M8
Operating cash flow−$51.7M9−$16.9M10−$24.8M11−$15.3M12−$15.6M12
Capital expenditure$11,00013$014$65,00015$22,00016$17,00016
Free cash flow (derived)−$51.7M9−$16.9M10−$24.8M11−$15.3M12−$15.7M12
Total debt—————
Cash & equivalents$142M17$86.6M18$26.3M19$23.3M20$15.5M20
Diluted shares71.2M3,5653,5793,5963,647

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$61,623.25
your share of equity
Profit it earned you last year
−$49,972.58
Free cash flow it threw off
−$42,942.14
Debt you’d be carrying
—

10 shares is a claim on $61,623.25 of net worth that earned you −$49,972.58 and generated −$42,942.14 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-97% avg · 5y
FY21 -89%FY22 -24%FY23 -74%FY24 -88%FY25 -208%

It earned an average -97% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−100% shares · 5y

Share count is down 100% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001140361-23-015369 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001140361-24-013522 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001140361-25-009024 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001140361-26-010895 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001140361-23-015369 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001140361-24-013522 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001140361-25-009024 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001140361-26-010895 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001140361-23-015369 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001140361-24-013522 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001140361-25-009024 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001140361-26-010895 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001140361-23-015369 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001140361-24-013522 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001140361-25-009024 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001140361-26-010895 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0001140361-23-015369 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001140361-24-013522 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001140361-25-009024 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001140361-26-010895 (CashAndCashEquivalentsAtCarryingValue)