Moderna narrows quarterly loss as operating expenses decline
The biotechnology company reported a net loss of $0.8 billion for the second quarter, an improvement of $43 million over the prior year.
Moderna (MRNA) reported second-quarter revenue of $145 million. The biotechnology maker saw a slight increase from the $142 million recorded in the same period last year, as declines in COVID vaccine sales across the U.S. and South America were offset by collaboration revenue and deliveries tied to a partnership with the U.K. government.
The company narrowed its quarterly net loss to $0.8 billion, a 5% improvement compared to the second quarter of 2024. This result followed a broad reduction in spending across its primary cost centers.
Cost of sales fell 22% year-over-year to $93 million due to productivity improvements that lowered costs related to unutilized manufacturing capacity. Research and development expenses decreased 7% to $651 million as Moderna wound down several late-stage programs. Selling, general and administrative expenses also declined 6% to $216 million.
Clinical progress for the company's pipeline was mixed. The norovirus vaccine candidate, mRNA-1403, failed to meet statistical criteria for early success during a Phase 3 interim analysis, necessitating the enrollment of an additional cohort. Conversely, the seasonal influenza vaccine, mRNA-1010, moved toward potential approval with a unanimous VRBPAC recommendation and a PDUFA date of August 5, 2026, following a Refusal-to-File letter from the FDA in February.
Moderna lowered its full-year 2026 cost of sales guidance to approximately $1.7 billion from $1.8 billion, a figure that includes a $0.9 billion non-recurring litigation charge. The company also reduced its 2026 research and development guidance to approximately $2.9 billion from $3.0 billion. Overall, the company improved its 2026 GAAP operating expense outlook by approximately $0.2 billion.
Cash, cash equivalents, and investments stood at $6.9 billion as of June 30, 2026, down from $7.5 billion at the end of March. The decrease reflected operational funding and a $950 million litigation settlement payment made in July. Moderna improved its year-end cash balance projection to a range of $4.7 billion to $5.2 billion and reiterated its 2026 revenue growth target of up to 10% over 2025 levels.