Novavax Reports Q2 2025 Revenue of $239.2M, Down 42.4% Year-Over-Year

Novavax, Inc. reported significant financial results for the second quarter of 2025, revealing a total revenue of $239.2 million, a decrease of 42.4% from $415.5 million in the same quarter of 2024. The decline was primarily attributed to a substantial drop in licensing revenue from its collaboration with Sanofi, which fell from $392.9 million to $199.4 million. Product sales also decreased, totaling $10.7 million compared to $22.6 million in the prior year, largely due to adjustments in estimated product returns related to its COVID-19 vaccine, Nuvaxovid. Despite the revenue drop, the company reported a net income of $106.5 million, or $0.66 per share, down from $162.4 million, or $1.09 per share, in the previous year.

For the first half of 2025, Novavax's total revenue reached $905.9 million, a notable increase from $509.3 million in the same period of 2024. This growth was driven by the recognition of $575.7 million from the termination of advance purchase agreements (APAs) with Canada and New Zealand, alongside milestone payments from Sanofi. The company’s product sales surged to $632.4 million, compared to $112.4 million in the prior year, reflecting the impact of these terminated agreements and ongoing sales of its COVID-19 vaccine.

Operationally, Novavax has been undergoing a restructuring plan aimed at reducing costs and optimizing its operations. Total expenses for the second quarter decreased to $138.2 million from $254.5 million in the previous year, with significant reductions in research and development costs, which fell to $79.2 million from $106.9 million. The company has also streamlined its selling, general, and administrative expenses, which dropped to $43.6 million from $101.3 million. As of June 30, 2025, Novavax had $253.7 million in cash and cash equivalents, down from $530.2 million at the end of 2024, indicating a need for careful cash management moving forward.

In terms of strategic developments, Novavax has focused on enhancing its partnership with Sanofi, which includes co-commercializing its COVID-19 vaccine and exploring combination vaccines. The U.S. FDA approved the Biologics License Application (BLA) for Nuvaxovid in May 2025, triggering a $175 million milestone payment from Sanofi. The company is also advancing its pipeline, including a COVID-19-Influenza combination vaccine and a stand-alone influenza vaccine, with plans to seek partnerships for further development.

Looking ahead, Novavax anticipates continued revenue generation from its collaborations and product sales, while also managing its restructuring efforts to ensure operational efficiency. The company expects to receive additional milestone payments from Sanofi and is actively exploring new partnerships to leverage its technology platform. However, the ongoing challenges in the vaccine market and regulatory landscape may impact its future performance and cash flow.