Moderna’s Q1 earnings showed revenue of $108 million, reflecting a year-over-year decline driven by reduced COVID-19 vaccination rates and the seasonal nature of its respiratory business. While a slight improvement from the previous year, the company posted a GAAP loss of $1 billion. The loss comes despite reduced operating costs, with R&D and SG&A down 19% and 23%, respectively, as Moderna continues to streamline operations and prioritize its oncology portfolio.2
"In the first quarter, we continued to execute with financial discipline, significantly reducing our operating expenses, and further prioritized our investments in oncology," said Bancelin, in a May press release. "Looking ahead, we are reiterating our 2025 financial framework and announcing a cost structure that is expected to reduce our annual operating expenses by approximately $1.5 billion by 2027. With several Phase III readouts approaching and continued momentum toward 10 product approvals, we remain confident in Moderna's long-term outlook."
Outlook Remains Positive Amid Cuts
The company explained that despite the loss, it maintains a strong cash position of $8.4 billion and reaffirmed its 2025 revenue outlook of $1.5 to $2.5 billion, expecting most product sales to occur in the second half of the year.2
Recent Approval Marks a Strategic Milestone
The workforce reduction follows closely on the heels of Moderna’s latest vaccine approval, marking a pivotal moment as the company sharpens its focus and restructures for long-term growth. In May, the FDA approved mNEXSPIKE (mRNA-1283), the company’s next-generation COVID vaccine, for use in adults aged 65 years and older, as well as in individuals aged 12 to 64 years who have at least one risk factor for severe disease as defined by the Centers for Disease Control and Prevention. The approval marked the third product to receive regulatory authorization in Moderna’s portfolio.3
Acknowledging Impact, Reaffirming Mission
“This decision was not made lightly,” continued Bancel, in the letter. “It impacts teammates and friends who have dedicated themselves to our mission and who have helped build Moderna. I want to express, on behalf of the entire Executive Committee and on behalf of patients you have served, our deepest thanks for everything you have contributed.”
Despite the planned layoffs, Bancel noted that there are reasons to remain optimistic about the company’s future.
“Our mission remains unchanged,” he said, in the letter. “With three approved products and the potential for up to eight more approvals in the next three years, the future of Moderna is bright. We are sharpening our focus, becoming leaner, and staying ambitious in oncology, rare diseases and latent viruses.”
References
- A Difficult but Necessary Step Forward. Moderna. July 31, 2025. Accessed July 31, 2025. https://www.modernatx.com/en-US/media-center/all-media/blogs/aligning-cost-structure-to-deliver-pipeline
- Moderna Reports First Quarter 2025 Financial Results and Provides Business Updates. Moderna. May 1, 2025. Accessed July 31, 2025. https://feeds.issuerdirect.com/news-release.html?newsid=8295599746434378&symbol=MRNA
- FDA Approves Moderna’s mNEXSPIKE COVID-19 Vaccine for High-Risk Populations. PharmExec. June 2, 2025. Accessed July 31, 2025. https://www.pharmexec.com/view/fda-approves-moderna-mnexspike-covid-19-vaccine-high-risk-populations