Moderna's Q2 Performance Exceeds Expectations Amid Ongoing Cost-Saving Measures

Moderna, the mRNA specialist, has reported better-than-expected second-quarter results for 2025, despite ongoing declines in vaccine sales. The company's strategic cost-saving initiatives and portfolio adjustments are showing signs of impact as it navigates the transition from a pandemic to an endemic market for COVID-19 vaccines.

Q2 Financial Results and Revenue Outlook

Moderna recorded total revenues of $142 million for the second quarter of 2025, marking a 41% decrease compared to the same period in 2024. The company posted a net loss of $825 million, which was less severe than Wall Street's expectations of a $1.16 billion loss.

Spikevax, Moderna's COVID-19 vaccine, remained the primary revenue driver with sales of $114 million. While this represents a 38% decline from Q2 2024, it surpassed consensus estimates of $88 million. CFO Jamey Mock attributed the better-than-expected performance to a "stronger-than-expected U.S. spring booster season."

Despite the positive Q2 results, Moderna has adjusted its 2025 revenue guidance, lowering it by $300 million. The company now forecasts total 2025 sales between $1.5 billion and $2.2 billion. This reduction is primarily due to a "timing shift" in COVID vaccine shipments to the United Kingdom, moving from the second half of 2025 to the first quarter of 2026.

Product Portfolio and R&D Updates

Moderna now boasts three commercially approved products: Spikevax, the next-generation COVID vaccine mNEXSPIKE, and the respiratory syncytial virus (RSV) shot mRESVIA. However, mRESVIA, approved in May, has struggled to gain traction in a competitive market dominated by Pfizer and GSK, with Q2 sales described as "negligible."

On the research front, Moderna has made significant progress with its cytomegalovirus (CMV) vaccine candidate mRNA-1647. The company has accrued sufficient cases for evaluation of the primary endpoint in the phase 3 study and expects to conduct a final analysis before the end of 2025. Additional secondary endpoints have been incorporated into the trial to potentially broaden the vaccine's applicability across various populations.

Cost-Cutting Measures and Organizational Changes

As part of its long-term savings drive, Moderna aims to reduce operating costs by approximately $1.5 billion over the next two years, targeting a cash breakeven point in 2028. The company has already made substantial progress, lowering Q2 R&D expenses by 43% to $700 million through the wind-down of respiratory trials and reduced clinical manufacturing costs.

In a significant organizational move, Moderna announced a 10% reduction in its global workforce. CEO Stéphane Bancel clarified that the cuts will primarily affect manufacturing and R&D roles, aligning with the company's broader cost-cutting focus. The mRNA specialist expects to employ "fewer than 5,000 colleagues" by the end of 2025, down from about 5,800 at the beginning of the year.

Despite these reductions, Bancel emphasized that Moderna continues to hire in certain areas, particularly to support new product launches. The company is also pivoting its focus from seasonal respiratory vaccines to potential launches that are less affected by seasonal fluctuations.