Novavax reported third‑quarter 2025 revenue of $70.4 million, a 17.6% decline from $85 million in the same period last year, yet the figure surpassed consensus estimates of $44.87 million. The beat was largely driven by a surge in licensing, royalties, and other partnership revenue, which rose to $57 million from $48 million in Q3 2024, reflecting strong milestone payments and supply sales under the Sanofi collaboration.
The company posted a net loss of $202 million, with a GAAP earnings‑per‑share of –$1.25, missing the consensus of –$1.06. The widening loss is attributable to continued investment in research and development, higher cost inflation, and the transition of commercial responsibility for Nuvaxovid to Sanofi, which has reduced direct product sales.
Nuvaxovid product sales fell to $0 in Q3 2025, compared with $38 million in Q3 2024, as Sanofi assumes commercial responsibility for the vaccine in key markets. This shift explains the sharp decline in direct sales while partnership revenue has grown.
Licensing, royalties, and other revenue reached $57 million, up from $48 million in the prior quarter, driven by milestone payments from Sanofi and increased supply sales. The partnership continues to be a central driver of the company’s revenue mix shift.
Management raised full‑year revenue guidance to $1,040–$1,060 million, up from $975–$1,025 million, signaling confidence in the partnership pipeline and milestone payments. The guidance for combined R&D and SG&A expenses remains unchanged at $505–$535 million, underscoring the company’s focus on cost discipline.
CEO John C. Jacobs emphasized that Novavax is “continuing the transformation” with a focus on R&D and partnerships, and reiterated a path to profitability by 2027. He noted that while net losses persist, the company is benefiting from milestone payments, cost‑reduction initiatives, and a growing technology platform.
Investors reacted cautiously: the revenue beat was offset by the EPS miss and the widening net loss, leading to a mixed market response. The company’s strategic pivot to partnerships and the raised guidance provide a positive outlook, but the ongoing financial losses and cash burn remain headwinds for the near term.
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