Vaxart Reports 857% Revenue Growth to $20.9 Million, Despite Net Loss of $15.6 Million

Vaxart, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2025. The company generated total revenue of $20.9 million, a substantial increase from $2.2 million in the same period last year, marking an increase of 857%. This growth was primarily driven by revenue from government contracts, which amounted to $19.3 million, compared to just $1.6 million in the previous year. The increase in government contract revenue is attributed to the 2024 ATI-RRPV Contract with HHS BARDA, which supports the development of Vaxart's oral COVID-19 vaccine candidate.

Despite the increase in revenue, Vaxart reported a net loss of $15.6 million for the quarter, a decrease from a net loss of $24.4 million in the prior year, reflecting a 36% improvement. The company's operating expenses rose to $35.8 million, up 36% from $26.3 million, largely due to increased research and development costs associated with clinical trials for its vaccine candidates. Research and development expenses alone surged by 62% to $30.7 million, driven by costs related to the COVID-19 and norovirus vaccine programs.

In terms of strategic developments, Vaxart has been active in securing funding to support its operations. The company entered into an At the Market Offering Agreement in March 2025, allowing it to sell up to $50 million in common stock, although no shares have been sold under this agreement as of the reporting date. Additionally, Vaxart completed a registered direct offering in June 2024, raising $40 million, which has bolstered its cash position. As of March 31, 2025, the company reported cash, cash equivalents, and short-term investments totaling $41.9 million.

Operationally, Vaxart is focused on advancing its vaccine candidates, including those for norovirus and COVID-19. The company has initiated a Phase 1 clinical trial for its second-generation norovirus vaccine constructs, with topline data expected in mid-2025. Furthermore, Vaxart is preparing for a Phase 2b study of its COVID-19 vaccine candidate, which will involve approximately 10,000 participants. However, the company faces challenges, including a recent stop work order on the 2024 ATI-RRPV Contract, which was lifted in April 2025, allowing Vaxart to resume its activities.

Looking ahead, Vaxart's management has expressed concerns regarding its ability to continue as a going concern, given that its current cash reserves may not be sufficient to fund operations for the next 12 months. The company plans to seek additional capital through various means, including equity sales and potential partnerships, to support its ongoing research and development efforts. If unable to secure the necessary funding, Vaxart may need to reduce or delay its operations, which could adversely impact its business prospects.