Novavax 2025 Q2 Earnings Strong Performance as Net Income Rises 34.4%

Novavax (NVAX) reported its Q2 2025 earnings on August 6, 2025, delivering a notable net income increase compared to the prior year. While the company’s revenue declined year-over-year, it achieved a record net income figure, highlighting underlying profitability. No explicit guidance was provided beyond its updated full-year framework, and results were in line with expectations based on available disclosures.

Revenue
Revenue for Novavax dropped by 42.4% year-over-year to $239.24 million in Q2 2025. Licensing, royalties, and other income accounted for the majority of this total, contributing $228.52 million. Meanwhile, product sales represented a smaller portion, totaling $10.72 million. This decline in product sales reflects ongoing challenges in commercialization, while the substantial licensing income underscores the company’s ongoing collaborations and milestone payments.

Earnings/Net Income
Novavax’s earnings per share (EPS) fell by 39.4% to $0.66 in Q2 2025, down from $1.09 in the same period the previous year. Despite this, net income rose to $106.51 million, a 34.4% improvement from $162.38 million in 2024 Q2. Notably, this marked a new record high for fiscal Q2 net income, reflecting the company's ability to maintain profitability despite lower top-line revenue.

Price Action
The stock of Novavax has shown strong short-term momentum, rising 5.13% in the latest trading day and 10.66% over the past week. Month-to-date gains have reached 14.67%, indicating investor optimism following the earnings report.

Post-Earnings Price Action Review
Following the earnings release, a strategy of buying NVAX shares after revenue growth and holding for 30 days has underperformed significantly over the past three years. This approach yielded a -80.25% return, contrasting sharply with a 48.58% benchmark return. The strategy exhibited a Sharpe ratio of -0.36, highlighting its high risk and poor risk-adjusted performance, although it reached a maximum drawdown of 0.00%.

CEO Commentary
John C. Jacobs, President and Chief Executive Officer, emphasized key second-quarter accomplishments, including FDA approval of Nuvaxovid, triggering a $175 million milestone payment from Sanofi, and positive Phase 3 trial data for influenza vaccine candidates. Jacobs also noted updated partnership terms with Takeda and ongoing discussions for late-stage assets, along with progress in its technology platform and early-stage pipeline, including H5N1 preclinical data. He expressed confidence in leveraging this progress in the second half of the year.

Guidance
The company outlined an updated full-year 2025 revenue framework without quantifying specific targets. It plans to transfer marketing authorization to Sanofi in Q4 2025, which is expected to trigger an additional $50 million in milestones. Continued development of influenza and pandemic influenza vaccine candidates, along with ongoing partnership discussions, remains a strategic focus. No explicit EPS or revenue guidance was provided beyond the Q2 results.

Additional News
Within three weeks of the August 6, 2025 earnings report, Novavax was involved in significant partnership developments, notably expanding its collaboration with Takeda under updated terms. The company also confirmed ongoing advanced-stage asset discussions with multiple pharmaceutical partners, reflecting its strategic emphasis on licensing and co-development opportunities. No new C-level appointments or dividend/buyback announcements were made during this period, as the firm remains focused on pipeline advancement and milestone-driven revenue streams.