Curevac 2025 Q1 Earnings Net Loss Narrows 26.2% Despite Revenue Decline

Curevac (CVAC) reported its fiscal 2025 Q1 earnings on May 20th, 2025. Curevac's Q1 2025 performance fell below expectations, with revenue significantly declining while net loss improved. The company maintained guidance in line with previous projections. The strategic realignment and cost discipline contributed to reducing operational losses, and Curevac anticipates leveraging its cash position to drive pipeline advancements.

Revenue
Curevac's revenue for Q1 2025 fell dramatically by 92.8% to $893,000, compared to $12.37 million in the same quarter of the previous year. The revenue breakdown reveals that the partnership with GSK contributed $306,000, while CRISPR collaborations added $586,000, cumulatively totaling the reported $893,000.

Earnings/Net Income
Curevac narrowed its losses from $0.31 per share in Q1 2024 to $0.23 per share in Q1 2025, reflecting a 25.8% improvement. The net loss was reduced to $52.08 million from $70.55 million in the prior year, demonstrating effective cost management. Despite ongoing challenges, the EPS indicates a positive shift in financial performance.

Price Action
The stock price of Curevac jumped 9.74% during the latest trading day, surged 26.07% over the past trading week, and increased 37.18% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing CVAC shares when revenues exceed expectations and holding them for 30 days has resulted in disappointing returns. This approach yielded a -4.62% return, falling short of the benchmark return of 44.57%. With a Sharpe ratio of -0.03 and a maximum drawdown of -56.29%, the strategy revealed considerable risk and volatility, underscoring the necessity for more rigorous analysis or modifications in future investment strategies.

CEO Commentary
CureVac N.V. CEO highlighted the company's pivotal advancements in Q1 2025, emphasizing the FDA's clearance for the lung cancer candidate CVHNLC and the commencement of Phase 1 trials in H2 2025. The CEO noted the completion of enrollment in the glioblastoma program, CVGBM, and expressed optimism about a critical decision regarding Phase 2 anticipated later this year. Despite a significant revenue decline to €0.9 million compared to €12.4 million in the prior year, the CEO pointed out an improved operating loss of €54.7 million, attributing it to strategic restructuring and cost discipline, while maintaining a strong cash position of €438.3 million.

Guidance
CureVac expects to leverage its solid cash position to drive future pipeline catalysts, with a focus on advancing its oncology and infectious disease programs. The company anticipates continued strategic investments to enhance its market position and is guiding for ongoing operational improvements. While revenue recovery is uncertain, CureVac’s leadership remains committed to navigating challenges and maximizing the potential of its innovative therapies.

Additional News
In recent developments, CureVac secured another favorable ruling from the European Patent Office in its ongoing legal battle against BioNTech, which strengthens its intellectual property portfolio. The company announced strategic changes to its leadership team, appointing Axel Sven Malkomes as Chief Financial Officer, effective November 2024, bringing extensive experience from the biotech and pharmaceutical industries. Additionally, CureVac is advancing its oncology pipeline with FDA clearance for a new lung cancer clinical trial and has completed full enrollment for its glioblastoma study, setting the stage for significant data releases later this year.