Novavax (NASDAQ: NVAX) reported Q2 2026 revenue of $56.7 million, down 76% from $239.2 million a year earlier, while diluted EPS swung to a loss of $0.32 from a profit of $0.62. The comparison was dominated by $202 million of milestone and amendment revenue recognized in Q2 2025; product sales increased in the latest quarter, and operating expenses declined under the company’s cost-reduction program.
Core financial results
The steep revenue decline primarily reflected the absence of the prior-year $175 million Nuvaxovid approval milestone and $27 million Takeda amendment. In contrast, Q2 2026 product sales rose 76% as demand for Matrix-M adjuvant and sales to licensing partners increased.
Cost reductions did not fully offset the lower revenue. Combined GAAP R&D and SG&A expenses declined by approximately 21%, but Novavax still moved from operating and net profits in Q2 2025 to losses in Q2 2026.
| Metric | Q2 2026 | Q2 2025 | Year-over-year change |
|---|---|---|---|
| Total revenue | $56.7 million | $239.2 million | Down 76% |
| Product sales | $18.9 million | $10.7 million | Up 76% |
| Licensing, royalties and other revenue | $37.8 million | $228.5 million | Down 83% |
| Operating income (loss) | $(54.9) million | $101.1 million | Swung to a loss |
| Net income (loss) | $(53.4) million | $106.5 million | Swung to a loss |
| Diluted EPS | $(0.32) | $0.62 | Swung to a loss |
| Combined GAAP R&D and SG&A expenses | $97.4 million | $122.8 million | Down about 21% |
| Non-GAAP combined R&D and SG&A expenses | $74.8 million | $116.4 million | Down about 36% |
Business and revenue mix
Revenue performance differed sharply by category. Supply sales benefited from higher Matrix-M demand, while revenue associated with Sanofi and Takeda declined against unusually high prior-year comparisons.
Sanofi-related revenue includes amounts recognized from upfront payments, milestones, royalties and transition-service reimbursements. The decline therefore does not represent only a change in vaccine sales.
| Revenue category | Q2 2026 | Q2 2025 | Year-over-year change |
|---|---|---|---|
| Supply sales | $19 million | $13 million | Up 47% |
| Sanofi-related revenue | $36 million | $199 million | Down 82% |
| Takeda-related revenue | Less than $1 million | $27 million | Down 99% |
| Serum-related revenue | $2 million | $2 million | Approximately unchanged |
Novavax has transferred lead commercial responsibility for Nuvaxovid in selected markets to Sanofi. Sanofi is expanding commercial activity in the United States and plans launches in the United Kingdom, Germany and Canada from 2026 onward. Novavax is eligible for royalties in the high teens to low twenties as a percentage of Sanofi’s global net sales.
Profitability and balance sheet
GAAP R&D expense declined to $70.7 million from $79.2 million. Partner reimbursements increased to $22.6 million from $6.5 million, bringing non-GAAP R&D expense after reimbursements down 34% to $48.1 million. Novavax attributed the reduction to streamlined operations and more targeted R&D investment.
SG&A expense fell 39% to $26.7 million, mainly because lead commercial activities shifted to Sanofi, Novavax eliminated related commercial infrastructure, and its administrative cost-reduction program continued. Despite these savings, total expenses of $111.6 million remained well above quarterly revenue, producing the $54.9 million operating loss.
Cash, cash equivalents, marketable securities and restricted cash totaled $723.9 million on June 30, 2026, compared with $750.5 million at the end of 2025. Over the same period, working capital declined by about $77.8 million to $440.5 million, while long-term debt increased by about $47.3 million to $291.5 million. Total stockholders’ deficit widened to $190.7 million from $127.8 million.
Sanofi milestones and internal pipeline
Sanofi is in advanced discussions with regulators about the timing of its Phase 3 COVID-19-influenza combination vaccine trial. Starting that trial in the United States or European Union would trigger a $125 million payment to Novavax, but the company did not provide a firm start date.
Completion of the Nuvaxovid manufacturing technology transfer to Sanofi is expected in mid-2027 and would trigger another $75 million milestone. Novavax is also eligible for up to $350 million in Phase 3 development and commercial-launch milestones tied to Sanofi’s combination vaccine products.
Outside the Sanofi partnership, multiple partners are evaluating Matrix-M across infectious-disease and oncology targets. Novavax has also started pre-IND discussions with the FDA and initiated a GMP manufacturing process for its C. difficile vaccine candidate, supporting possible clinical entry as early as 2027.
2026 guidance
Novavax raised both ends of its adjusted total revenue framework by $5 million, driven by a higher outlook for adjusted supply sales. It also lowered GAAP combined R&D and SG&A guidance by $10 million at both ends, but reduced expected R&D reimbursements by the same amount, leaving non-GAAP expense guidance unchanged.
| Metric | Latest FY2026 guidance | Previous guidance | Change |
|---|---|---|---|
| Adjusted total revenue | $235 million-$275 million | $230 million-$270 million | Raised by $5 million at both ends |
| Nuvaxovid product sales | $35 million-$45 million | $35 million-$45 million | Unchanged |
| Adjusted supply sales | $45 million-$55 million | $40 million-$50 million | Raised by $5 million at both ends |
| Adjusted licensing, royalties and other revenue | $155 million-$175 million | $155 million-$175 million | Unchanged |
| GAAP combined R&D and SG&A expenses | $370 million-$410 million | $380 million-$420 million | Lowered by $10 million at both ends |
| R&D reimbursements | $60 million-$70 million | $70 million-$80 million | Lowered by $10 million at both ends |
| Non-GAAP combined R&D and SG&A expenses | $310 million-$340 million | $310 million-$340 million | Unchanged |
The adjusted revenue framework excludes Sanofi supply sales, royalties and milestones because Novavax relies on Sanofi forecasts for those components. Novavax did not provide guidance for the excluded categories, meaning actual reported revenue could vary based on Sanofi’s commercial performance and the timing of milestone events.
Risks investors should monitor
- Milestone timing: The potential $125 million Phase 3 payment depends on Sanofi starting its combination vaccine trial in the United States or European Union. Regulatory or clinical delays could shift the timing.
- Revenue visibility: Full-year adjusted revenue guidance excludes Sanofi supply sales, royalties and milestones, leaving several potentially material revenue sources outside the stated range.
- COVID-19 vaccine demand: Nuvaxovid sales and Sanofi royalties remain exposed to vaccination seasonality, commercial adoption and changes in vaccine recommendations or public demand.
- Balance-sheet movement: Cash and working capital declined during the first half of 2026, while long-term debt and the stockholders’ deficit increased.
- Pipeline execution: The value of Matrix-M partnerships and the C. difficile program depends on successful experiments, regulatory progress and clinical development.
Summary
Novavax’s Q2 2026 revenue and earnings fell sharply because large milestone and amendment payments boosted the prior-year period. Higher product sales and lower operating expenses provided partial offsets but were not enough to prevent an operating loss. The next major variables are Sanofi-related sales and royalties, the timing of potential partnership milestones, and whether Novavax can maintain its lower cost structure while advancing its internal pipeline.
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