Core Insights - Moderna announced a global workforce reduction of approximately 10%, which translates to nearly 800 employees, bringing the total number of employees below 5,000 by the end of the year [1][3] - The decision to cut jobs is driven by a significant decline in vaccine sales revenue, with the company's stock price dropping over 75% in the past year and market capitalization plummeting from nearly $200 billion to around $11 billion, a decrease of over 90% [3] Financial Pressure and Strategic Adjustments - To address the revenue decline, Moderna has implemented several cost-cutting measures, including a plan to reduce annual operating expenses by approximately $1.5 billion by 2027 [3] - The company also canceled plans to build an mRNA drug manufacturing facility in Japan due to changes in the global and Japanese business environment, indicating a strategic retreat from non-core business investments [3] Market Environment Challenges - Changes in U.S. health policy have directly impacted Moderna's business, including the withdrawal of long-term vaccination recommendations for children and pregnant women, which has narrowed the market for its latest vaccine [4] - The termination of a contract for developing an avian flu vaccine further constricts the company's business scope [4] - Moderna's second major product, the respiratory syncytial virus vaccine, has not gained significant market attention, leading to a downward revision of the company's revenue expectations for the year [4] - The timeline for achieving breakeven has been pushed from 2026 to 2028 due to underperformance in sales [4] - Despite these challenges, the CEO remains optimistic, highlighting that Moderna currently has three approved products and up to eight more expected to be approved within the next three years [4]

Core Insights - Moderna reported revenue of $142 million for the quarter ended June 2025, a decrease of 41.1% year-over-year, with an EPS of -$2.13 compared to -$3.33 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $127.17 million by 11.66%, while the EPS also surpassed the consensus estimate of -$2.99 by 28.76% [1] Revenue Breakdown - Product sales in the United States were $88 million, significantly higher than the average estimate of $28.31 million, but represented a year-over-year decline of 45.7% [4] - Product sales in the Rest of the World reached $26 million, below the average estimate of $42.95 million, but showed an 18.2% increase year-over-year [4] - Net product sales totaled $114 million, exceeding the average estimate of $81.42 million, but reflected a 38% decrease compared to the previous year [4] - Other revenue amounted to $28 million, slightly above the average estimate of $25.13 million, but indicated a 50.9% decline year-over-year [4] - Grant revenue was reported at $5 million, compared to the average estimate of $6.16 million [4] - Licensing and royalty revenue was $2 million, significantly lower than the average estimate of $10.65 million [4] - Collaboration revenue reached $4 million, below the average estimate of $7.5 million [4] Stock Performance - Over the past month, Moderna's shares have returned -3.1%, contrasting with the Zacks S&P 500 composite's increase of 2.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The company reported a net loss of $825 million in Q2 2025, an improvement from Q2 2024, with total assets decreasing to $12.0 billion due to cash used in operations [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$12.01 billion** by June 30, 2025, from **$14.14 billion**, driven by reduced cash and investments, with equity declining to **$9.40 billion** Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$12,010** | **$14,142** | | Cash and cash equivalents | $1,279 | $1,927 | | Total investments | $6,226 | $7,592 | | **Total Liabilities** | **$2,611** | **$3,241** | | Total current liabilities | $1,572 | $2,206 | | **Total Stockholders' Equity** | **$9,399** | **$10,901** | | Retained earnings | $8,249 | $10,045 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 total revenue decreased 41% to **$142 million**, resulting in a net loss of **$825 million**, which narrowed from Q2 2024 due to a 43% reduction in R&D expenses Statement of Operations Summary (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $142 | $241 | $250 | $408 | | Research and development | $700 | $1,221 | $1,556 | $2,284 | | Total operating expenses | $1,049 | $1,604 | $2,207 | $3,037 | | Loss from operations | $(907) | $(1,363) | $(1,957) | $(2,629) | | Net loss | $(825) | $(1,279) | $(1,796) | $(2,454) | | Net loss per share (basic and diluted) | $(2.13) | $(3.33) | $(4.64) | $(6.41) | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities for H1 2025 was **$1.96 billion**, an improvement from 2024, with investing activities providing **$1.29 billion**, resulting in a **$648 million** decrease in cash Cash Flow Summary for Six Months Ended June 30 (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,956) | $(2,263) | | Net cash provided by investing activities | $1,294 | $1,767 | | Net cash provided by financing activities | $13 | $48 | | **Net decrease in cash, cash equivalents and restricted cash** | **$(648)** | **$(448)** | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail business, accounting policies, and financial components, highlighting three commercial products, declining sales, key collaborations, increased inventory write-downs, and patent litigation - The company has three commercial products: **Spikevax** (original COVID vaccine), **mRESVIA** (RSV vaccine), and **mNEXSPIKE** (next-gen COVID vaccine) It has a pipeline of **30 development candidates** across **39 programs**[30](index=30&type=chunk) Net Product Sales by Product (in millions) | Product | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | COVID | $114 | $184 | $198 | $351 | | RSV | $— | $— | $2 | $— | | **Total** | **$114** | **$184** | **$200** | **$351** | - A development and commercialization funding arrangement with Blackstone for the mRNA-based influenza vaccine program resulted in a reduction of R&D expenses by **$160 million** and **$250 million** for the three and six months ended June 30, 2025, respectively[55](index=55&type=chunk)[56](index=56&type=chunk) - Inventory write-downs increased to **$38 million** in Q2 2025 and **$80 million** in H1 2025, compared to **$14 million** and **$44 million** in the respective prior-year periods, mainly due to excess demand forecasts and shelf-life expiration[64](index=64&type=chunk) - The company is involved in significant patent-infringement litigation with multiple parties, including **Pfizer/BioNTech**, **Arbutus**, **Alnylam**, and **GSK**[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) - As of June 30, 2025, **$1.7 billion** remains under the board's authorization for share repurchases No shares were repurchased during the first six months of 2025[100](index=100&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a **41%** Q2 2025 revenue decline due to lower COVID vaccine sales, with net loss narrowing from reduced R&D and SG&A expenses, and highlights key regulatory approvals and sufficient liquidity [Business Highlights and Recent Program Developments](index=31&type=section&id=Business%20Highlights%20and%20Recent%20Program%20Developments) Moderna achieved key regulatory milestones with FDA approvals for **mNEXSPIKE** and expanded **mRESVIA**, reported positive Phase 3 flu vaccine results, and advanced CMV, Norovirus, and oncology programs - In May 2025, the FDA approved **mNEXSPIKE (mRNA-1283)**, the company's next-generation COVID-19 vaccine, for individuals 12 and older at risk, based on a Phase 3 study showing non-inferiority and higher relative efficacy compared to Spikevax[109](index=109&type=chunk) - In June 2025, the FDA expanded the approval of **mRESVIA**, the RSV vaccine, to include adults aged 18-59 at increased risk, building on the initial approval for adults 60 and older[110](index=110&type=chunk) - The seasonal flu vaccine candidate (**mRNA-1010**) achieved its primary superiority endpoint in a Phase 3 study, showing **26.6%** relative vaccine efficacy compared to a licensed standard-dose vaccine The company is preparing for FDA submission[115](index=115&type=chunk) - The pivotal Phase 3 study for the CMV vaccine candidate (**mRNA-1647**) is fully enrolled with a final analysis anticipated in 2025[115](index=115&type=chunk) [Results of Operations Analysis](index=35&type=section&id=Results%20of%20Operations%20Analysis) Q2 2025 total revenue decreased **41%** to **$142 million** due to lower product sales, while cost of sales rose to **105%**, and operating expenses significantly reduced with R&D down **43%** Q2 2025 vs Q2 2024 Performance (in millions) | Metric | Q2 2025 | Q2 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Net product sales | $114 | $184 | $(70) | (38)% | | Total revenue | $142 | $241 | $(99) | (41)% | | Cost of sales | $119 | $115 | $4 | 3% | | Research and development | $700 | $1,221 | $(521) | (43)% | | Selling, general and administrative | $230 | $268 | $(38) | (14)% | | Net loss | $(825) | $(1,279) | $454 | 35% | - The decrease in Q2 and H1 2025 revenue was largely due to lower sales volume and a lower average selling price for the COVID vaccine in the U.S. market[126](index=126&type=chunk)[127](index=127&type=chunk) - Cost of sales as a percentage of net product sales increased to **105%** in Q2 2025, compared to **62%** in Q2 2024, primarily due to the impact of lower net product sales against largely fixed manufacturing costs[130](index=130&type=chunk) - The **43%** decrease in Q2 2025 R&D expenses was driven by lower clinical manufacturing and trial expenses, investment reprioritization, and a **$62 million** benefit from the Blackstone funding arrangement[132](index=132&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, Moderna held **$7.5 billion** in cash and investments, a **$2.0 billion** decrease from December 2024, primarily due to operating cash outflow, but believes it has sufficient funding for 12 months Financial Position (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,279 | $1,927 | | Total Investments | $6,226 | $7,592 | | **Total Cash & Investments** | **$7,505** | **$9,519** | | Working Capital | $4,599 | $5,893 | - Net cash used in operating activities for the first six months of 2025 was **$2.0 billion**, driven by a net loss of **$1.8 billion** and changes in working capital[147](index=147&type=chunk) - The company believes its cash, cash equivalents, and investments as of June 30, 2025, will be sufficient to fund operations and capital expenditures for at least the next **12 months**[155](index=155&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes occurred in the company's market risks or their management during the first six months of 2025 compared to the 2024 Form 10-K disclosure - There have been no material changes to the company's market risk or its management of such risks for the three and six months ended June 30, 2025[158](index=158&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of June 30, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level[159](index=159&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[160](index=160&type=chunk) [PART II. OTHER INFORMATION](index=43&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company provides updates on ongoing patent litigation, including the Arbutus trial rescheduled to March 2026, new GSK lawsuits, and a favorable appeal decision with Alnylam - The patent infringement trial with **Arbutus Biopharma** and **Genevant Sciences** has been rescheduled to begin on **March 9, 2026**[164](index=164&type=chunk) - In July 2025, **GlaxoSmithKline (GSK)** filed two new patent infringement lawsuits against Moderna in the **Unified Patent Court (UPC)** related to liposomes for RNA delivery, seeking monetary and injunctive relief[165](index=165&type=chunk) - In a case with **Alnylam Pharmaceuticals**, the Federal Circuit Court of Appeals decided an appeal in Moderna's favor on **June 4, 2025**, regarding a judgment of non-infringement[166](index=166&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred in the company's risk factors compared to those previously disclosed in the 2024 Annual Report on Form 10-K - There have been no material changes from the risk factors previously disclosed in the 2024 Form 10-K[167](index=167&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased during Q2 2025, with **$1.7 billion** remaining under the board's share repurchase authorization, which has no expiration date - No shares were repurchased during the three months ended June 30, 2025[168](index=168&type=chunk) - As of June 30, 2025, **$1.7 billion** of the Board's authorization for share repurchases remains outstanding with no expiration date[168](index=168&type=chunk) [Item 5. Other Information](index=45&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated a Rule 10b5-1 trading plan or other non-Rule 10b5-1 trading arrangement during the fiscal quarter - No directors or officers adopted or terminated a **Rule 10b5-1** trading plan or a non-Rule 10b5-1 trading arrangement during the quarter[170](index=170&type=chunk) [Item 6. Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q, including officer certifications and XBRL data files

Company Performance - Moderna's shares experienced a sharp decline [1] - The company lowered the upper limit of its full-year revenue forecast [1] Operational Challenges - A delay in vaccine deliveries to the UK contributed to the revised revenue outlook [1]

Core Insights - Moderna reported a Q2 2025 loss of $2.13 per share, which was better than the Zacks Consensus Estimate of a loss of $2.99, and an improvement from a loss of $3.33 in the same period last year [1][7] - Total revenues for the quarter were $142 million, exceeding the Zacks Consensus Estimate of $127 million, but reflecting a 41% year-over-year decline due to lower net product sales [1][2] - The company revised its total revenue guidance for 2025 to a range of $1.5 billion to $2.2 billion, a reduction of $300 million from the previous guidance [5][9] Revenue Breakdown - Product sales decreased by 38% year over year to $114 million, primarily due to lower sales of the COVID-19 vaccine Spikevax, with minimal contribution from the newly launched RSV vaccine mResvia [2][3] - Moderna generated $28 million from grants, collaborations, licensing, and royalty revenues, down 51% year over year, typically derived from partnerships with major pharma companies [3] Cost Management - Selling, general and administrative (SG&A) expenses were $230 million, a 14% decrease year over year, attributed to cost-cutting measures [4] - Research and development (R&D) expenses fell by 43% to $700 million, influenced by reduced clinical spending across respiratory programs [4][9] Future Outlook - The company anticipates generating the majority of its guided revenue in the second half of 2025, with a revenue split of 40-50% expected in Q3 [8] - Moderna expects to end 2025 with nearly $6 billion in cash, cash equivalents, and investments [10] Pipeline Developments - Moderna received three regulatory approvals from the FDA, including full approval for Spikevax in pediatric patients and label expansion for mResvia [11] - The company is evaluating several late-stage pipeline candidates, including a promising influenza vaccine candidate, mRNA-1010, which showed superior efficacy compared to an approved flu shot [12][13] - A significant candidate in development is intismeran autogene, a personalized cancer therapy being evaluated in collaboration with Merck [14][16] Legal Developments - The U.K. Court of Appeal upheld the validity of Moderna's EP'949 patent, affirming the infringement by Pfizer/BioNTech's COVID-19 vaccine Comirnaty [17]

Core Viewpoint - Moderna is facing significant financial pressure due to declining vaccine sales, leading to a decision to cut approximately 10% of its workforce, which has resulted in a sharp decline in its stock price [1][3][6]. Financial Performance - Moderna's stock price has dropped over 90% from its peak, with its market capitalization plummeting from nearly $200 billion (approximately 1.44 trillion RMB) to under $10.5 billion (approximately 75.7 billion RMB) [6]. - The company reported a more than 75% decline in stock price over the past year, indicating a deteriorating financial situation [6]. Workforce Reduction - The layoffs will affect hundreds of employees globally, with the total number of employees expected to fall below 5,000 by the end of the year [5][6]. - CEO Stephane Bancel emphasized the necessity of restructuring operations to align cost structures with actual business needs while maintaining a focus on research investment [3]. Strategic Challenges - Moderna is facing multiple challenges, including criticism from U.S. health officials that has led to changes in vaccine recommendations, impacting the market for its latest vaccine [7]. - The company has also canceled plans for a new mRNA production facility in Japan due to changes in the global business environment [6]. Revenue Projections - Moderna has significantly lowered its revenue expectations for the year, particularly for its RSV vaccine, which has not gained widespread market attention [8]. - The company has postponed its goal of achieving breakeven profitability by two years, now expecting to reach this milestone by 2028 instead of 2026 [8]. Future Outlook - Despite current challenges, CEO Bancel remains optimistic about Moderna's future, citing three approved products and the potential for up to eight additional products to be approved in the next three years [9]. - The company continues to invest in the development of a new generation of COVID-19 vaccines, with recent FDA approval for a third vaccine targeting new variants [9]. Competitive Landscape - Comparatively, BioNTech, another vaccine manufacturer, has successfully adjusted its strategy post-pandemic, resulting in a stock price increase of nearly 25% over the past year, with a market capitalization exceeding $26 billion, more than double that of Moderna [9].

Core Viewpoint - Moderna's stock experienced a significant drop of over 10%, trading at $26.56, following the announcement of its second-quarter financial results which revealed a net loss of $825 million, or $2.13 per share, which was better than the expected loss of $2.97 per share [1] Financial Performance - The company's revenue from COVID-19 vaccine sales declined by 41% year-over-year, amounting to $140 million, which exceeded the expected revenue of $110 million [1] - In the same quarter of the previous year, Moderna reported a net loss of $1.3 billion, or $3.33 per share [1] Revenue Guidance - Due to delays in vaccine shipments to the UK, Moderna has revised its revenue guidance for 2025, now expecting annual revenue to be between $1.5 billion and $2.2 billion, a reduction of $300 million from earlier projections [1]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Moderna (MRNA) came out with a quarterly loss of $2.13 per share versus the Zacks Consensus Estimate of a loss of $2.99. This compares to a loss of $3.33 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +28.76%. A quarter ago, it was expected that this biotechnology company would post a loss of $2.92 per share when it actually produced a loss of $2.52, delivering a surprise of +13.7%.Over the last four quarters, the company has ...

Financial Data and Key Metrics Changes - In Q2 2025, the company reported revenues of $100 million and a net loss of $800 million, aligning with expectations and reflecting the seasonal nature of its respiratory vaccine business [7] - Cash and investments at the end of the quarter stood at $7.5 billion, down from $8.4 billion at the end of Q1 2025 [18] - The company achieved a 35% reduction in combined cost of sales, R&D, and SG&A compared to 2024, with cash operating expenses reduced by $581 million year-over-year, representing a 40% reduction [8][12] Business Line Data and Key Metrics Changes - Net product sales for the quarter were $114 million, primarily driven by COVID vaccine sales, with the U.S. accounting for approximately 80% of sales [14] - R&D expenses were $700 million, down 43% from the previous year, mainly due to the wind-down of respiratory trials [15] - SG&A expenses were $230 million, reflecting a 14% year-over-year decrease due to broad-based cost reductions [16] Market Data and Key Metrics Changes - The updated 2025 projected revenue range is $1.5 billion to $2.2 billion, reflecting a $300 million reduction at the high end due to a timing shift of UK COVID shipments to 2026 [19] - U.S. product sales are expected to range from $1 billion to $1.5 billion, while international product sales are projected at $400 million to $600 million [21] Company Strategy and Development Direction - The company is focused on three strategic priorities: driving the use of commercial products, advancing its pipeline to drive sales growth, and executing with financial discipline [9][44] - The company aims to achieve a significant reduction in annual GAAP operating expenses from $11 billion in 2023 to $5 billion or less by 2027 [24][25] - The company is leveraging AI to enhance business processes, with 100% of knowledge workers actively using AI tools [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to further streamline operations and achieve cash cost reductions to $4.2 billion by 2027, aiming for cash breakeven by 2028 [45][50] - The company remains cautiously optimistic about the upcoming fall and winter season for COVID vaccines, noting solid spring booster campaign results [78] Other Important Information - The UK Court of Appeal upheld the validity of Moderna's EP949 patent, which is infringed by Pfizer and BioNTech, and the company will continue to enforce its patent rights globally [13] - The company announced a workforce reduction of approximately 10% to align its cost structure with current business conditions [12] Q&A Session Summary Question: Context for changes to CMV and rationale for secondary endpoints - Management explained that the addition of secondary endpoints aims to enhance the study's value and ensure comprehensive data analysis, with a focus on protecting the study's integrity [55][56] Question: Expectations for COVID vaccine pricing in the U.S. - Management indicated that pricing discussions are complete, and they are confident in their revenue range, factoring in competitive pressures and vaccination rates [62][64] Question: Demand for COVID vaccines for the upcoming season - Management noted that while there is uncertainty, early signs from the spring booster campaign are encouraging, and they expect to have a clearer picture by the end of Q3 [78][79]