Moderna has lowered the high end of its 2025 revenue forecast, citing a delay in Covid vaccine shipments to the UK. The company now expects between $1.5 billion and $2.2 billion in revenue, down $300 million at the top of its earlier range.
The adjustment comes as Moderna continues to face dwindling Covid vaccine demand, while also moving forward with cost-cutting efforts, including a 10% workforce reduction.
Despite this, Moderna reported second-quarter revenue and earnings results that beat Wall Street expectations, with losses coming in smaller than anticipated.
Revenue guidance lowered as UK shipment pushed to 2026
On Friday, Moderna confirmed that instead of delivering spring Covid boosters to the UK at the end of 2025, the doses will now be shipped in the first quarter of 2026.
The company stated that the overall contract value with the UK government remains unchanged, but the timing of the delivery has shifted to align with the UK’s fiscal year-end.
As a result, the company reduced its annual revenue outlook by $300 million. Full-year guidance now sits between $1.5 billion and $2.2 billion, as compared with its earlier projection of up to $2.5 billion.
Shares of Moderna fell more than 6% in premarket trading on Friday following the announcement.
Second-quarter sales fall 41% year over year
For the second quarter, Moderna reported $142 million in revenue, which was higher than the $113 million analysts expected, according to data from LSEG.
However, sales were still down 41% compared with the same period last year, reflecting the ongoing decline in Covid vaccine demand.
The vast majority of the second-quarter revenue—$114 million—came from Moderna’s Covid shot. This exceeded analyst forecasts of $89 million, based on StreetAccount estimates.
The company’s respiratory syncytial virus (RSV) vaccine, meanwhile, posted negligible sales, far below the $5.9 million expected.
Net loss narrows as operating expenses reduced by 27%
Moderna posted a net loss of $825 million, or $2.13 per share, for the quarter. This compares with a net loss of $1.3 billion, or $3.33 per share, in the year-ago period.
Analysts had expected a larger quarterly loss of $2.97 per share, meaning Moderna’s results were better than anticipated.
The company attributed this outperformance in part to cost controls. Operating expenses dropped 27% year on year, from $1.6 billion to $1.1 billion.
Executives emphasised that expense management has been critical to supporting Moderna’s financials as Covid vaccine sales continue to decline.
Workforce reduction and cost management strategy
The updated revenue outlook came a day after Moderna announced plans to cut its workforce by 10%.
This move adds to a series of cost-cutting measures the company has implemented in response to weaker Covid-related sales.
The workforce reduction and expense cuts are aimed at helping Moderna sustain investment in new products while managing reduced revenue streams.
While the company’s Covid shot remains the largest contributor to revenue, Moderna continues to focus on broadening its pipeline, including vaccines targeting flu and RSV.
However, with negligible RSV sales in the second quarter, the company remains reliant on Covid boosters for the majority of its income.
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