VirnetX Holding Corporation

What they do

VirnetX describes itself as an Internet security software and technology company with patented cybersecurity solutions built on its Secure Domain Name System (SDNS) technology. Its flagship platform, VirnetX One, is a security-as-a-service ZTNA product deployable in cloud, on-premise or hybrid environments, extended into VirnetX Matrix for identity-based access control and VirnetX War Room for secure collaboration. The 10-Q also describes VirnetX iSCOUT, an IoT and data-fusion product with initial HADR-ER and smart-city implementations. The company targets U.S. Department of Defense, federal government and commercial customers and pursues sales nationwide.

Revenue drivers

• VirnetX One platform — Flagship ZTNA security-as-a-service platform described in both the 10-K and 10-Q; the filings do not break out its revenue contribution.
• VirnetX Matrix and VirnetX War Room — Products built on VirnetX One for encrypted identity-based access control and secure collaboration; risk factors cite 'the number of product license sales of VirnetX War Room, VirnetX Matrix and associated services' as a driver of results.
• Digital engineering, MBSE and cyber threat assessment services — Services aligned with the DoD Digital Engineering strategy, including Dynamic Trust Evaluation and cyber threat intelligence, which the company intends to make available to federal, state and local agencies.
• VirnetX iSCOUT — IoT and data-fusion stack with HADR-ER and smart-city applications in development, described in the 10-Q; no revenue is disclosed for it.

Recent performance

Annual revenue rose to $162,000 in 2025 from $5,000 in 2024, $7,000 in 2023, $48,000 in 2022 and $35,000 in 2021. The company reported a net loss of $18.2 million in 2025, identical to the 2024 net loss, with diluted EPS of -$5.00 for 2025 versus -$5.05 for 2024. Operating cash flow was -$15.6 million in 2025 compared with -$15.3 million in 2024. Quarterly revenue was $58,000 in the quarter ended 2025-09-30 and $56,000 in the quarter ended 2025-12-31, then fell to $0 for both the quarters ended 2026-03-31 and 2026-06-30. At 2026-06-30 the company reported total assets of $23.0 million, total liabilities of $7.9 million, shareholder equity of $15.1 million and cash and equivalents of $13.1 million.

Strategy

Management is positioning the business around the VirnetX One ZTNA platform and derived products (Matrix, War Room, iSCOUT) sold to DoD, federal and commercial customers. The roadmap extends secure networking to IoT and resource-constrained edge devices and develops a federated, hybrid mesh network architecture with dynamic trust evaluation and autonomous recovery. The company uses Model-Based Systems Engineering and agent-based modeling and is aligning services with the DoD Digital Engineering strategy. It is developing a Center for Advanced Software and Hardware Integration at its Farmington, Utah facility incorporating AI and digital-twin technologies, and has made an investment in L2 Holdings, LLC (OmniTeq), an AI/ML solutions provider. It also engages universities for research collaboration and workforce development.

Risks

• Persistent losses and accumulated deficit — The company had a net loss of $18.2 million for 2025, a net loss of $18.2 million for 2024 and an accumulated deficit of $222.9 million as of December 31, 2025.
• Inconsistent, hard-to-predict revenue — Revenue has ranged from $5,000 (2024) to $162,000 (2025) and was $0 in the quarters ended 2026-03-31 and 2026-06-30, and the 10-K states operating results may not be consistent.
• Customer adoption of new products — The 10-K lists customer acceptance of DE/DTE, MBSE and cyber threat assessment services and adoption of the VirnetX One platform as factors that could cause results to fluctuate.
• Listing-rule and delisting notices — The company disclosed delisting notices or listing-rule failures in 8-K filings on 2025-09-11 and 2024-09-04.

Outlook

Management states it intends to make digital engineering, cyber MBSE and cyber threat intelligence services available to federal, state and local government agencies, subject to applicable contracting requirements. It is developing a Center for Advanced Software and Hardware Integration in Farmington, Utah with AI and digital-twin technologies. The 10-K also notes efforts to accelerate a transition to new product development and sales strategies targeting large enterprises, government customers and service provider partnerships. The filings do not provide numerical forward guidance.