VolitionRx (VNRX) Plunges 22.65% on Q2 Earnings-Driven Liquidity Crisis, Hits 3-Day Low

VolitionRx (VNRX) fell 22.65% on Thursday, marking a three-day losing streak with a cumulative decline of 28.60%. The stock hit an intraday low of $0.34, its lowest level since May 2025, reflecting heightened investor concern over the biotech firm’s financial stability.

The recent selloff follows a dire liquidity crisis outlined in the company’s Q2 2025 earnings report. As of June 30, 2025, VolitionRx held just $2.3 million in cash, while its cash burn for the first half of the year reached $10.6 million. This shortfall has forced the company to rely on highly dilutive financing, including the Lind Note—a $6.3 million convertible loan issued at a 19% discount to face value. The note’s terms include monthly payments of $416,666, creating a near-term risk of either rapid cash depletion or significant shareholder dilution.

Revenue remains a critical weakness, with H1 2025 earnings at $0.65 million, driven by its Nu.Q Vet Cancer Test and Nu.Q Discover services. The company’s dependence on third-party partners for distribution, such as Heska and IDEXX, limits its control over pricing and market expansion. Meanwhile, R&D cuts of $3 million and reduced headcount in research operations signal a contraction in innovation, potentially hampering long-term competitiveness in the cancer diagnostics sector.

Compounding these challenges, VolitionRx disclosed a material weakness in internal controls over financial reporting, citing a lack of documented policies. This raises concerns about the accuracy of its financial statements and investor trust. The firm’s strategic pivot to licensing and partnerships, while reducing short-term costs, further dilutes its margin potential and market influence. Analysts note that these factors, combined with the company’s insolvency risk, have overwhelmed any positive momentum from cost reductions or international commercialization efforts.

Investors are now closely monitoring the company’s ability to secure additional funding, manage the Lind Note repayment, and address governance issues. Without immediate capital infusions or operational improvements, the bearish outlook for VNRX is likely to persist, with further declines anticipated unless critical milestones are met.