Novavax Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.54%.
Did NVAX Beat Earnings? Q2 2025 Results
Novavax delivered a striking second-quarter earnings beat for Q2 2025, posting EPS of $0.62 against a consensus estimate of negative $0.08, a 895.89% positive surprise, while revenue of $239.24 million cleared the $165.01 million consensus by 44.98%. The headline driver was a $175 million milestone payment from Sanofi tied to the FDA's BLA approval of Nuvaxovid, the only recombinant protein-based, non-mRNA COVID-19 vaccine authorized in the U.S., which flooded the licensing and royalties line and lifted total revenue well above expectations despite a 42.4% year-over-year decline from a stronger prior-year comparable. Cost discipline reinforced the bottom line, with R&D expenses falling to $79 million and SG&A dropping 57% to $44 million as Sanofi assumed U.S. commercial leadership. Looking ahead, Novavax raised its full-year adjusted total revenue framework to $1.00 billion to $1.05 billion while guiding combined operating expenses to $495 million to $545 million, even as the stock has faced considerable pressure from institutional holders navigating a prolonged share price decline.
- $175 million Sanofi milestone payment triggered by FDA BLA approval for Nuvaxovid
- 57% reduction in SG&A expenses due to commercial transition to Sanofi and cost reduction efforts
- 26% reduction in R&D expenses from lower COVID-19 development and commercial manufacturing network costs
- Licensing, Royalties and Other Revenue of $229 million driven by Sanofi milestone
“This quarter we continued to progress our growth strategy with key achievements including BLA approval for our COVID-19 vaccine, positive data from our COVID-19-Influenza-Combination and stand-alone influenza programs, advancement of our early-stage pipeline, and progression of our partnership strategy.”
Novavax CEO, on the earnings call
Forward Guidance & Outlook
Novavax updated its Full Year 2025 financial guidance, raising combined R&D and SG&A expenses to $495–$545 million (from $475–$525 million previously), reflecting the FDA-requested postmarketing commitment study for Nuvaxovid expected to cost $70–$90 million over 2025–2026 with Sanofi reimbursing approximately 70% of costs. The Adjusted Total Revenue framework was raised to $1,000–$1,050 million (from $975–$1,025 million), including Nuvaxovid Product Sales of $610 million, Adjusted Supply Sales of $25–$40 million, and Adjusted Licensing, Royalties and Other Revenue of $365–$400 million. Revenue components excluded from the framework include Sanofi Supply Sales, Sanofi Royalties (high teens to low twenties percent on Sanofi sales), and Sanofi CIC/Matrix-M milestones (up to $350 million in Phase 3 and launch milestones, plus up to $200 million per new Matrix-M vaccine). Transfers of U.S. and EU marketing authorizations to Sanofi expected in Q4 2025 will trigger an additional $50 million in milestones. The $175 million BLA milestone cash receipt is expected in Q3 2025.
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Figures from SEC filings and company reports. Not investment advice.