Moderna revises 2025 earnings outlook downward

Moderna adjusts its 2025 revenue forecast due to delayed vaccine deliveries amid falling sales.

Moderna lowers revenue outlook for 2025 due to vaccine shipment delays

Moderna announced a reduction in its 2025 revenue outlook following delays in shipping Covid vaccines to the U.K. The adjustment lowered its forecast by $300 million at the top end, now estimating full-year revenue between $1.5 billion and $2.2 billion. Despite this news, the company reported a smaller-than-expected loss in the second quarter, with revenue hitting $142 million, exceeding Wall Street predictions of $113 million. Shares dropped over 6% in premarket trading after the announcement, as Moderna continues to face challenges from declining Covid vaccine sales and has plans to cut 10% of its workforce. CFO Jamey Mock explained that while the delivery schedule has shifted to early 2026, the overall contract value remains unchanged. The second quarter reports a net loss of $825 million or $2.13 per share, though this is an improvement from a $1.3 billion loss in the same quarter last year. Operating expenses were reduced significantly by 27% to $1.1 billion, which Mock emphasized as a positive takeaway for the first half of the year.

The recent adjustments in Moderna's financial outlook highlight the ongoing volatility in the biotech sector, especially concerning vaccine sales. With the pandemic receding as a major concern, revenues from related products are not recovering as quickly as expected. Moderna's decision to cut its workforce may reflect a longer-term strategy to adapt to this market shift. Furthermore, the emphasis on cost-cutting measures reveals a cautious approach as the company navigates its future. The struggle to generate demand for new products, like the respiratory syncytial virus vaccine, underscores a critical challenge ahead.

Highlights

Moderna's future will likely depend on its ability to innovate amid declining sales.