Moderna 2025 Q2 Earnings Narrowed Losses with Net Income Improvement

Moderna (MRNA) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. The company surpassed Wall Street's expectations, reporting a loss of $2.13 per share compared to the expected $2.97 loss. However, it adjusted its full-year revenue guidance downward due to shipment delays, setting a new range of $1.5 to $2.2 billion. Analysts had anticipated a steeper revenue decline, projecting a drop to $112.5 million. Despite beating these forecasts, the company's updated guidance reflects challenges in its business environment.

Revenue
Moderna's total revenue in 2025 Q2 decreased by 38.0% to $114 million from $184 million in 2024 Q2. The net product sales accounted for the entire $114 million in revenue, while other revenue contributed an additional $28 million, bringing the total to $142 million.

Earnings/Net Income
The company narrowed its losses to $2.13 per share in 2025 Q2, improving from a loss of $3.33 per share in 2024 Q2, representing a 36.0% improvement. Meanwhile, Moderna reduced its net loss by 35.5%, reporting a $-825 million net loss compared to $-1.28 billion in 2024 Q2. This reflects a positive trend in earnings improvement.

Price Action
The stock price of Moderna dropped 5.29% during the latest trading day, tumbled 13.08% over the most recent full trading week, and climbed 7.14% month-to-date.

Post-Earnings Price Action Review
Over the past three years, a strategy of purchasing Moderna shares following a revenue increase on the earnings release date and holding for 30 days has led to significant underperformance, delivering a return of -64.34%. This strategy lagged behind the benchmark return of 85.57%, resulting in an excess return of -149.91%. The strategy's compound annual growth rate (CAGR) was -18.76%, indicating substantial losses over the period. Interestingly, the strategy experienced a maximum drawdown of 0.00%, which implies that while it avoided additional losses during market downturns, it failed to capitalize on positive market movements. This highlights the challenges faced by investors in leveraging short-term earnings improvements for long-term gains.

CEO Commentary
Stéphane Bancel, Chief Executive Officer of Moderna, commented, "In the last three months, we advanced our pipeline with positive Phase 3 flu vaccine efficacy data and expanded our commercial portfolio with three new U.S. FDA approvals to drive future sales growth. Today, we are updating our 2025 financial framework, reducing the high end of this year's expected revenue range by $300 million due to the timing of shipments. We continue to operate with financial discipline and are improving expected annual operating expenses in 2025 by approximately $400 million. Looking forward, we have important catalysts over the next six months across our infectious disease and oncology programs that will help us deliver on the promise of our mRNA platform for patients."

Guidance
Moderna updated its 2025 projected revenue range to $1.5 to $2.2 billion, reflecting a $300 million reduction at the high end. The company expects to improve its 2025 operating expenses by approximately $400 million, bringing the expected range to $5.9 to $6.1 billion. Moderna reiterated its expectation for a year-end cash balance of approximately $6 billion, indicating a continued focus on financial discipline as it navigates its upcoming commercial and development opportunities.

Additional News
In recent developments unrelated to earnings, Moderna is making strategic adjustments to navigate the evolving market landscape. The company announced plans to cut 10% of its workforce amid a declining cash balance, demonstrating a commitment to cost management as it faces diminishing Covid-19 vaccine sales. Despite these challenges, Moderna continues to push forward with its product pipeline. The European Union's drug regulator has recommended approval of Moderna's updated Spikevax formulation for the 2025-2026 season, highlighting ongoing efforts to adapt to changing public health needs. Additionally, Moderna's next-generation Covid-19 vaccine, mNEXSPIKE, has received FDA approval, poised to target high-risk populations with improved storage and dosage features. These strategic moves underscore Moderna's resilience and adaptability in a rapidly shifting biotech environment.