Vaxart 2025 Q1 Earnings Narrowed Losses with 36.1% Net Income Improvement

Vaxart (VXRT) reported its fiscal 2025 Q1 earnings on May 13th, 2025. The company saw significant financial improvements, narrowing its net loss by 36.1% compared to the previous year. The revenue reached $20.88 million, marking an 857.2% increase from 2024 Q1. However, results against expectations were not explicitly mentioned, and guidance adjustments were in line with prior projections. Vaxart remains focused on vaccine development, with plans to report top-line data from its Phase 1 norovirus vaccine trial in mid-2025.

Revenue

The total revenue for Vaxart in 2025 Q1 was $20.88 million, a substantial 857.2% increase from the previous year. The revenue was driven by non-cash royalty revenue from future royalties, which amounted to $1.58 billion, and revenue from government contracts, totaling $19.30 billion.

Earnings/Net Income

Vaxart narrowed its losses to $0.07 per share in 2025 Q1 from a loss of $0.14 per share in 2024 Q1, marking a 50.0% improvement. The net loss was reduced to $15.59 million, a 36.1% decrease compared to the previous year's $24.42 million net loss. The EPS reflects a positive trend as losses continue to decrease.

Price Action

The stock price of Vaxart edged up 1.42% during the latest trading day, jumped 9.72% over the most recent full trading week, and surged 32.16% month-to-date.

Post-Earnings Price Action Review

Vaxart's post-earnings strategy, which involves purchasing shares after revenue drops on the release date and holding for 30 days, yielded a 127% gain over five years, outperforming the market's 18% return within the same period. Despite recent volatility showing a -51.95% change over the past year and a -86.47% change over five years, the company's stock price has experienced a 19% increase in the last quarter. This recent uptick suggests potential short-term gains, although investors should remain cautious due to the stock's historically volatile performance.

CEO Commentary

Steven Lo, CEO, expressed optimism about Vaxart's advancements, particularly following the lifting of the stop work order on their COVID-19 vaccine trial, highlighting the importance of collaboration with BARDA and HHS. He acknowledged the challenges faced due to limited communication during negotiations but emphasized the necessity of adhering to contractual obligations. Lo pointed out the strategic importance of vaccines for public health and the need to manage costs through workforce reductions to navigate the biotech environment effectively. He also welcomed new CFO Jeroen Grasman, underscoring the company's commitment to vaccine innovation and partnerships to maximize future opportunities.

Guidance

Vaxart expects to report top-line data from its Phase 1 norovirus vaccine trial in mid-2025 and anticipates patient dosing for the COVID-19 trial to begin in Q2 2025, with enrollment completion projected to take approximately five to six months. The company maintains a cash runway into the first quarter of 2026, supported by a $460.7 million contract with BARDA, with current revenue reported at $20.9 million for Q1 2025.

Additional News

Vaxart has initiated a Phase 1 trial for its second-generation oral norovirus vaccine, designed to assess immune response compared to first-generation candidates. The company is also urging stockholders to approve a reverse stock split proposal to maintain Nasdaq compliance and avoid delisting, with a vote set for May 21, 2025. The proposed split ratio ranges from 1-for-5 to 1-for-50, with management emphasizing it will not alter stockholder value but aims to enhance market visibility and facilitate future financing opportunities.