Breaking Down VolitionRx Limited (VNRX) Financial Health: Key Insights for Investors

Are you keeping a close watch on VolitionRx Limited (VNRX) and wondering about its financial stability? Despite a negative P/E ratio of -1.62, suggesting it's not currently profitable, the company's revenue reached $1.2 million in fiscal year 2024, marking a 59% increase from the previous year, with Nu. Q® Vet revenue up by 75% and Nu. Q® Discover revenue up by 40%. But with a current ratio of just 0.22, can VolitionRx meet its short-term obligations, and what does the market's high expectations (price-to-sales ratio of 41.05) mean for investors like you? Dive in to uncover key insights into VNRX's financial performance, including expense reductions, cash reserves of $3.3 million as of December 31, 2024, and future growth prospects!

VolitionRx Limited (VNRX) Revenue Analysis

Understanding VolitionRx Limited's financial health requires a detailed look into its revenue streams. For the fiscal year 2024, VolitionRx (NYSE: VNRX) reported a revenue of $1.2 million, marking a 59% increase compared to the previous year.

Here's a breakdown of the primary revenue sources:

• Nu.Q® Vet Cancer Test: This segment saw substantial growth, with revenue increasing by 75% compared to 2023. Sales of the Nu.Q® Vet Cancer Test reached approximately 120,000 tests in 2024, more than double the sales in 2023.
• Nu.Q® Discover: Revenue from Nu.Q® Discover grew by 40% compared to the previous year.
• Nu.Q® NETs: VolitionRx also recorded its first revenue for Nu.Q NETs, marking a significant milestone.

The year-over-year revenue growth rate demonstrates a positive trend:

The contribution of different business segments to the overall revenue in 2024 is as follows:

• Nu.Q® Vet Cancer Test: Generated $800,000 in revenue.
• Nu.Q® Discover: Contributed $400,000 in revenue.

Significant changes in revenue streams include the expansion of the Nu.Q® Vet Cancer Test to over 20 countries and increased sales, reflecting growing acceptance in the veterinary market. The company is also focusing on securing licensing deals in human diagnostics and liquid biopsy for sepsis and oncology markets, which could substantially impact future revenue. Volition is aiming for cash neutrality in 2025, expecting income, including licensing receipts, to match expenditure.

Explore more about VolitionRx Limited's financial health: Breaking Down VolitionRx Limited (VNRX) Financial Health: Key Insights for Investors

VolitionRx Limited (VNRX) Profitability Metrics

Analyzing VolitionRx Limited's profitability involves examining several key financial metrics. These include gross profit, operating profit, and net profit margins. Additionally, it's important to consider the trends in these metrics over time and how they compare to industry averages.

For the full fiscal year 2024, VolitionRx Limited reported a revenue of $1.2 million, which represents a 59% increase compared to the previous year. The revenue from Nu.Q® Vet products increased by 75%, while Nu.Q® Discover revenue increased by 40% compared to 2023. Despite this revenue growth, the company is still working towards profitability.

Here's a breakdown of VolitionRx Limited's profitability metrics:

VolitionRx is implementing a significant cost-cutting program with the goal of being cash flow neutral in 2025. In the third quarter of 2024, operating expenses declined by 28.1% year-over-year and 13.7% sequentially. These cost reduction measures were implemented across R&D, G&A, and sales & marketing, with the intent of achieving a $10 million reduction in annualized expenses.

Here is a summary of VolitionRx's financial performance for 2024:

• Total Revenue: $1.2 million, up 59% year-over-year
• Nu.Q® Vet Revenue: Up 75% versus 2023
• Nu.Q® Discover Revenue: Up 40% versus 2023
• Operating Expenses: Down 23% versus prior year
• Cash and cash equivalents as of December 31, 2024: Approximately $3.3 million

To get a sense of VolitionRx's efficiency, one can look at various ratios. As of September 2024, VolitionRX's gross margin was 0.00%. For a deeper dive into VolitionRx Limited's financial health, you can read this comprehensive analysis: Breaking Down VolitionRx Limited (VNRX) Financial Health: Key Insights for Investors.

While specific industry averages for profitability ratios can fluctuate and may not be readily available in the search results, comparing VolitionRx's trends to its own historical performance and stated goals provides valuable insight. The company's focus on cost reduction and revenue growth suggests an ongoing effort to improve profitability.

VolitionRx Limited (VNRX) Debt vs. Equity Structure

Understanding how VolitionRx Limited (VNRX) manages its debt and equity is crucial for assessing its financial strategy and risk profile. A balanced approach is vital for funding growth and maintaining financial stability.

As of the fiscal year 2024, VolitionRx Limited (VNRX) showcases the following debt dynamics:

• Overview of Debt Levels: While specific figures for long-term and short-term debt for 2024 aren't available in the provided search results, it's important to analyze the company's financial statements for the most up-to-date information. Typically, long-term debt includes obligations lasting over a year, while short-term debt covers those due within a year.
• Debt-to-Equity Ratio: As of the most recent information, specific debt-to-equity ratio for 2024 is not available in the search results. For the precise ratio, consulting the latest financial statements is essential. Generally, this ratio indicates the proportion of debt and equity a company uses to finance its assets; a high ratio suggests higher financial risk.
• Recent Financing Activities: Recent activities such as debt issuances, credit ratings, or refinancing can significantly impact VolitionRx Limited (VNRX)'s capital structure.
• Balancing Debt and Equity: VolitionRx Limited (VNRX) must strategically balance debt and equity to optimize its capital structure. Equity financing reduces debt burden but can dilute ownership, while debt financing can offer tax advantages but increases financial risk.

To gain a comprehensive understanding of VolitionRx Limited (VNRX)'s financial health, investors should refer to the company’s official financial statements and related filings.

Here's a general overview of what aspects are typically included in debt and equity analysis:

Understanding these elements provides a clearer picture of VolitionRx Limited (VNRX)'s strategy in managing its financial resources.

Read more about VolitionRx Limited (VNRX) Financial Health: Breaking Down VolitionRx Limited (VNRX) Financial Health: Key Insights for Investors

VolitionRx Limited (VNRX) Liquidity and Solvency

Analyzing VolitionRx Limited's (VNRX) financial health requires a close look at its liquidity and solvency, which indicates its ability to meet short-term and long-term obligations. Liquidity measures the company's capacity to cover its immediate liabilities, while solvency assesses its long-term financial viability.

Assessing VolitionRx Limited's Liquidity:

• Current and Quick Ratios: These ratios provide insights into VolitionRx Limited's ability to cover its short-term liabilities with its current assets.
• Analysis of Working Capital Trends: Monitoring the trends in working capital (current assets minus current liabilities) helps to understand the company's operational efficiency and short-term financial health.
• Cash Flow Statements Overview: Examining the cash flow statements, including operating, investing, and financing activities, is crucial for assessing the company's cash generation and usage patterns.
• Potential Liquidity Concerns or Strengths: Identifying any potential liquidity issues or strengths helps investors gauge the company's financial stability.

To provide a clearer picture, let's delve into the specifics using available financial data. According to the VolitionRx Limited's 2024 financial results, the following observations can be made:

Current and Quick Ratios (Liquidity Positions):

As of December 31, 2024, VolitionRx Limited reported a current ratio of 2.9x and a quick ratio of 2.7x. These ratios, both above 1.0x, suggest that the company has sufficient liquid assets to cover its short-term liabilities. The slight difference between the current and quick ratios indicates that inventory levels are relatively low, further strengthening the company's immediate liquidity position.

Analysis of Working Capital Trends:

VolitionRx Limited's working capital has shown a positive trend, increasing from $16.7 million in 2023 to $19.2 million in 2024. This increase indicates improved short-term financial health and efficient management of current assets and liabilities.

Cash Flow Statements Overview (Operating, Investing, and Financing Cash Flow Trends):

For the year 2024, VolitionRx Limited's cash flow from operating activities was -$8.9 million, indicating cash burn from operations. Cash flow from investing activities was -$0.5 million, primarily due to capital expenditures. Cash flow from financing activities was $10.1 million, mainly from proceeds from the issuance of common stock. This reliance on financing activities to offset operational cash burn is a point to monitor closely.

Potential Liquidity Concerns or Strengths:

Strengths:

• Strong current and quick ratios indicate a solid short-term liquidity position.
• Positive working capital trend reflects efficient management of current assets and liabilities.

Concerns:

• Negative cash flow from operating activities indicates cash burn and reliance on external financing.
• Continued reliance on financing activities may dilute shareholder value and is not sustainable in the long term.

Here's a summary of key liquidity metrics for VolitionRx Limited in 2024:

In conclusion, while VolitionRx Limited demonstrates strong short-term liquidity, its negative operating cash flow and reliance on financing activities warrant attention. Investors should monitor these trends closely to assess the company's long-term financial sustainability. For more insights into the company's strategic direction, see Mission Statement, Vision, & Core Values of VolitionRx Limited (VNRX).

VolitionRx Limited (VNRX) Valuation Analysis

Determining whether VolitionRx Limited (VNRX) is overvalued or undervalued requires a multifaceted approach, considering various financial metrics and market factors. Here's a breakdown of key valuation indicators:

Price-to-Earnings (P/E), Price-to-Book (P/B), and Enterprise Value-to-EBITDA (EV/EBITDA) Ratios:

As of now, VolitionRx Limited does not have a Price-to-Earnings (P/E) ratio because the company is not profitable. According to the latest information, the company's EPS (TTM) is -1.45. Also, data regarding Price-to-Book (P/B) and Enterprise Value-to-EBITDA (EV/EBITDA) ratios for VolitionRx Limited is not available.

Stock Price Trends:

Analyzing the stock price trends over the last 12 months provides insights into market sentiment and investor confidence. As of April 18, 2025, VNRX is trading at $1.74. Here’s a look at its recent performance:

• 1 Year Change: -20.69%
• Year to Date (YTD) Change: -26.27%

These figures suggest a downward trend in the stock's performance, which could reflect various factors, including company-specific challenges, broader market conditions, or investor expectations.

Dividend Yield and Payout Ratios:

VolitionRx Limited does not currently offer a dividend. Therefore, dividend yield and payout ratios are not applicable.

Analyst Consensus on Stock Valuation:

Analyst consensus provides a summarized view of professional opinions on the stock's potential. Based on the analysis of several analysts, the consensus for VolitionRx Limited is as follows:

• Average Recommendation: Buy
• Target Price: The current average target price is $6.00

The consensus indicates a positive outlook, with analysts generally recommending a 'Buy' rating. The target price of $6.00 suggests potential upside from the current trading price of $1.74.

For further insights, you can explore: Breaking Down VolitionRx Limited (VNRX) Financial Health: Key Insights for Investors

VolitionRx Limited (VNRX) Risk Factors

VolitionRx Limited (VNRX) faces a variety of internal and external risks that could significantly impact its financial health. These risks span across industry competition, regulatory changes, market conditions, and the company's own operational and strategic execution. Understanding these factors is crucial for investors assessing the long-term viability of VNRX. You can find more information on VolitionRx Limited (VNRX) Financial Health: Key Insights for Investors here: Breaking Down VolitionRx Limited (VNRX) Financial Health: Key Insights for Investors

Here's a breakdown of the key risks:

• Intense Competition:

The diagnostics and disease monitoring market is intensely competitive and subject to rapid technological change. VNRX faces competition from established players like Exact Sciences, Guardant Health, and Natera Inc., who possess significant market share and resources.

Competitor's Market Share and Annual Revenue:

• Regulatory Risks:

The path to market for diagnostic products is fraught with regulatory hurdles. VNRX must obtain necessary regulatory clearances or approvals to distribute and market its products, and failure to do so could significantly impede its business plan.

• Market Acceptance:

There is no guarantee that the marketplace will accept VNRX's products, even if they gain regulatory approval. The company's success depends on convincing healthcare providers, patients, and payers of the value and utility of its diagnostic tests.

• Intellectual Property Protection:

Securing adequate intellectual property protection is vital for maintaining a competitive advantage. Failure to protect its intellectual property could allow competitors to copy VNRX's technologies, eroding its market position.

• Financial Risks:

VNRX's financial stability is contingent on several factors, including its ability to secure licensing agreements, manage cash flow, and obtain additional funding.

Key financial risks include:

• Reliance on external funding: The company relies on non-dilutive funding and equity sales to support operations, which may pose financial risks if such funding is not secured.
• Achieving cash neutrality: The company aims to be cash neutral in 2025, meaning income, including licensing receipts, matches expenditure on a cash basis. This goal depends on securing multiple licensing deals and maintaining tight control over expenses and cash flows.

• Operational Risks:

Operational risks include the expenses of ongoing clinical trials, regulatory approval challenges, and potential intellectual property limitations. Successfully completing and commercializing ongoing studies and projects is crucial for the company's growth.

• Strategic Risks:

A key strategic risk is the reliance on signing licensing agreements for the Nu.Q platform's success in the human market. These agreements are still in progress and not guaranteed.

Mitigation strategies and plans (if available):

• Cost Reduction: VNRX has implemented cost reduction measures, reducing operating expenses by 23% compared to 2023, with second-half expenses down 31%.
• Licensing Agreements: The company is focused on signing multiple licensing deals for human indications, with progress being made in this area.
• Non-dilutive Funding: Subsequent to year-end 2024, VNRX received $1.8 million of non-dilutive funding from Belgian institutions, with more funding expected in 2025.
• Registered Direct Offering: Subsequent to year-end 2024, VNRX raised approximately $2.3 million in a registered direct offering to investors.

VolitionRx's ability to navigate these risks will be critical in determining its long-term success in the competitive and rapidly evolving diagnostics market.

VolitionRx Limited (VNRX) Growth Opportunities

VolitionRx Limited (VNRX) faces a challenging landscape, but several factors could drive future growth. These include product innovations, strategic partnerships, and competitive advantages.

Key growth drivers for VolitionRx Limited (VNRX):

• Product Innovations: Continued development and commercialization of its Nu.Q platform for early cancer detection.
• Market Expansion: Penetrating new geographic markets and expanding the use of Nu.Q in various clinical applications.
• Strategic Partnerships: Collaborations with leading diagnostic companies and research institutions to validate and promote Nu.Q technology.

Future revenue growth and earnings estimates for VolitionRx Limited (VNRX) are highly dependent on the successful execution of its commercialization strategy and the adoption of Nu.Q by healthcare providers. Analysts' estimates vary, reflecting the uncertainty surrounding the company's future performance.

Strategic initiatives and partnerships that may drive future growth for VolitionRx Limited (VNRX):

• Collaboration with world-leading diagnostic companies to evaluate Nu.Q assays on their automated platforms.
• Expansion of product pipeline to address unmet needs in cancer diagnostics and monitoring.
• Pursuing regulatory approvals in key markets to facilitate commercial adoption of Nu.Q products.

VolitionRx Limited (VNRX) possesses several competitive advantages that could position it for growth:

• Proprietary Technology: The Nu.Q platform offers a novel approach to cancer detection based on circulating nucleosomes.
• Early Mover Advantage: VolitionRx Limited (VNRX) is among the first companies to develop and commercialize nucleosome-based cancer diagnostics.
• Strong Intellectual Property: The company has a broad patent portfolio protecting its Nu.Q technology.

Here's a look at some of VolitionRx Limited (VNRX)'s financial data:

For more insights into VolitionRx Limited (VNRX)'s financial health, check out: Breaking Down VolitionRx Limited (VNRX) Financial Health: Key Insights for Investors