Moderna Beats Q2 Spikevax Expectations Despite Revenue Slide and Cost-Cutting Push

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: Lane Turner/The Boston Globe via Getty Images

Moderna has reported better than expected results for the second quarter of 2025, even as the company grapples with continued revenue declines, an underwhelming RSV vaccine launch, and an aggressive cost-reduction strategy.

The mRNA specialist posted total revenues of $142 million for Q2, reflecting a 41% year-over-year drop, but surpassing analysts’ expectations. The majority of this revenue came from its flagship COVID-19 vaccine Spikevax, which generated $114 million down 38% from the same period last year but significantly higher than the consensus estimate of $88 million, according to analysts at William Blair.

Despite a net loss of $825 million, Moderna fared better than Wall Street projections of a $1.16 billion loss, thanks largely to a stronger than anticipated U.S. spring booster season.

Spikevax Leads, RSV Vaccine Disappoints

Moderna now markets three FDA-approved vaccines:

• Spikevax (COVID-19)

• mNEXSPIKE (next-gen COVID-19)

• mRESVIA (RSV)

However, mRESVIA continues to struggle commercially amid stiff competition from Pfizer and GSK, with second-quarter sales described by the company as “negligible” well below the $6 million sales estimate.

Due to a shift in vaccine shipment timing to the UK, Moderna has revised its 2025 revenue guidance downward by $300 million, now expecting total sales between $1.5 billion and $2.2 billion. “This represents the vast majority of the $300 million impact,” said CFO Jamey Mock during an analyst call.

As demand transitions from pandemic to endemic levels, Moderna is repositioning itself by downsizing its respiratory vaccine pipeline and focusing on less seasonal opportunities. The company has also initiated a two-year cost-reduction initiative aiming to slash $1.5 billion in operating expenses and reach cash breakeven by 2028.

As part of this strategy, R&D expenses were reduced by 43% to $700 million in Q2, driven by the winding down of respiratory trials and lower manufacturing costs. “We’ve seen year-over-year reductions in preclinical and external service costs,” Mock explained.

To support its restructuring goals, Moderna announced it will cut approximately 10% of its global workforce, targeting manufacturing and R&D roles. CEO Stéphane Bancel confirmed that the company is resizing capacities as phase 3 respiratory studies conclude.

Despite the layoffs, Moderna continues to hire in areas supporting new product launches. The company expects to have fewer than 5,000 employees by the end of 2025, down from 5,800 earlier in the year.

On the R&D front, Moderna is progressing with its cytomegalovirus (CMV) vaccine candidate mRNA-1647. The company has reached a sufficient number of cases for a final phase 3 analysis, expected before the end of 2025.

“We’ve incorporated additional secondary endpoints to reflect broader data sets that may inform the vaccine’s use across wider populations, including congenital CMV,” said President Stephen Hoge, M.D.

As Moderna continues navigating a rapidly evolving vaccine market, its focus is shifting toward sustainable, non-seasonal commercial opportunities while maintaining momentum in innovative pipeline development. Despite short-term losses and restructuring challenges, the company's long-term outlook remains tied to successful execution of its cost-saving roadmap and diversification beyond COVID-19.