Moderna 2025 Q1 Earnings Narrowed Losses as Net Income Improves 17.4%

Moderna (MRNA) reported its fiscal 2025 Q1 earnings on May 01st, 2025. The results showed a narrowing of losses, with the company reporting a net loss of $971 million, a 17.4% improvement from the previous year. Despite the decline in revenue to $86 million, down 48.5% from 2024, Moderna has reiterated its 2025 revenue guidance of $1.5 to $2.5 billion, reflecting confidence in its long-term outlook. The company also announced plans to reduce annual operating expenses by approximately $1.5 billion by 2027, showcasing continued financial discipline and strategic investment in its oncology pipeline.

Revenue

Moderna's revenue for Q1 2025 fell to $86 million, marking a 48.5% decrease compared to Q1 2024. Net product sales accounted for $86 million, while other revenue contributed an additional $22 million, collectively bringing total revenue to $108 million.

Earnings/Net Income

Moderna reported a loss of $2.52 per share in Q1 2025, an improvement from $3.07 per share in Q1 2024. The net loss narrowed to $971 million from $1.18 billion, indicating improved financial performance despite challenges.

Post-Earnings Price Action Review

Moderna's post-earnings stock performance reflected mixed outcomes, with varied returns based on investment horizons. The 3-day win rate following earnings was 23.81%, increasing to 33.33% over 10 days, and further to 52.38% over 30 days. This suggests a greater likelihood of positive returns with longer holding periods, though the maximum observed return over 30 days was a modest 9.92%. These results indicate potential for recovery but highlight limited overall gains, underscoring the importance of timing and investment strategy for shareholders.

CEO Commentary

"In the first quarter, we continued to execute with financial discipline, significantly reducing our operating expenses, and further prioritized our investments in oncology," said Stéphan Bancel, Chief Executive Officer of Moderna. "Looking ahead, we are reiterating our 2025 financial framework and announcing a cost structure that is expected to reduce our annual operating expenses by approximately $1.5 billion by 2027. With several Phase 3 readouts approaching and continued momentum toward 10 product approvals, we remain confident in Moderna's long-term outlook."

Guidance

Moderna reiterates its expected revenue for 2025 to be in the range of $1.5 to $2.5 billion, with approximately $0.2 billion anticipated in the first half of the year due to the seasonality of its respiratory business. The company expects total cost of sales for 2025 to be around $1.2 billion, research and development expenses to be approximately $4.1 billion, and selling, general, and administrative expenses projected at about $1.1 billion. Capital expenditures for 2025 are estimated to be approximately $0.4 billion.

Additional News

Recently, Moderna has been involved in significant developments outside of earnings. The company received approval from the Australian Therapeutic Goods Administration for its RSV vaccine, marking a milestone as the first mRNA vaccine approved in Australia beyond COVID-19. Additionally, Moderna announced a new collaboration with Pfizer aimed at discovering novel inhibitors for autoimmune diseases, leveraging AI-powered technology to optimize drug discovery. Furthermore, Moderna has been named to LinkedIn's list of Top Companies in the U.S. for the second consecutive year, highlighting its continued recognition as a leading innovator in the biotechnology sector.