Novavax Stock Gains as Q4 Earnings & Sales Beat Estimates

Novavax NVAX reported earnings of 11 cents per share in the fourth quarter of 2025 against the Zacks Consensus Estimate of a loss of 66 cents. In the year-ago quarter, the company had recorded a loss of 51 cents.

Quarterly revenues totaled $147.1 million, up 67% year over year. This metric beat the Zacks Consensus Estimate of $78.4 million.

Novavax’s shares were up more than 17% yesterday, likely due to the better-than-expected results reported by the company. Investors were expecting the company to report a loss in the quarter. The company’s positive earnings took the investor community by surprise. This encouraging financial performance was driven by higher licensing revenues received from partner Sanofi SNY, coupled with lower-than-expected operating expenses incurred during the quarter.

Shares of Novavax have surged nearly 67% so far this year compared with the industry’s 9% growth.

NVAX’s Earnings in Detail

Novavax recorded $39.2 million in product sales, down 34% year over year. The reported figure includes about $20 million from the sales of the company’s COVID-19 vaccine, Nuvaxovid, where NVAX is the commercial market lead, and $19 million from Matrix-M supply sales sold to licensed partners.

Licensing, royalties and other revenues totaled $108 million, which includes $98 million recognized under the licensing agreement with Sanofi. The metric increased 67% on a year-over-year basis.

Last year, Sanofi acquired exclusive rights to market Nuvaxovid globally, except in certain territories where Novavax maintains existing partnership agreements.

NVAX’s Costs & Cash Balance

Research and development (R&D) expenses totaled $75.9 million, down 27% year over year, driven by the company’s ongoing cost reduction efforts. This figure does not include the $28 million of R&D reimbursement by Sanofi.

Selling, general and administrative (SG&A) expenses declined 56% year over year to $34.1 million. This downside was primarily due to the transition of lead commercial activities to Sanofi and the elimination of Novavax’s commercial infrastructure.

As of Dec. 31, 2025, Novavax had $751 million in cash and cash equivalents compared with $778 million in the previous quarter.

Full-Year 2025 Results

For the full year, Novavax generated revenues of $1.1 billion, up 65% year over year.

In the same period, management recorded earnings of $2.58 per share against a loss of $1.23 in the year-ago period.

Financial Guidance

For 2026

With Sanofi responsible for marketing the company’s COVID-19 vaccine, Novavax has not issued total revenue guidance for the year as it is reliant on SNY’s sales forecasts for certain revenue components. Instead, the company has issued an adjusted revenue framework and expects to generate between $230 million and $270 million. This guidance does not include any amounts receivable from Sanofi.

Novavax expects full-year combined R&D and SG&A expenses to be in the band of $380-$420 million. This figure excludes $70 million to $80 million in anticipated R&D reimbursements from Sanofi.

Beyond 2026

Novavax guided that adjusted combined R&D and SG&A expenses, inclusive of R&D reimbursements, are expected to be approximately $225 million in 2027 (at the midpoint). For 2028, the company is targeting these expenses at $200 million or below.

NVAX’s Recent Key Updates

Last month, Novavax entered into a non-exclusive license agreement with Pfizer PFE, granting the latter access to its proprietary Matrix-M adjuvant technology for use in up to two disease areas. Per the terms of the agreement, Novavax will receive an upfront payment of $30 million from PFE and is eligible to earn up to $500 million in potential development and commercial milestone payments. The company will be eligible to receive tiered, high, mid-single-digit royalties on net sales of any of Pfizer’s products incorporating the Matrix-M adjuvant.

Between the fourth quarter of 2025 and February 2026, Novavax signed multiple material transfer agreements (MTA) with undisclosed pharmaceutical companies for its Matrix-M adjuvant.

The company is progressing well with its preclinical pipeline, which includes vaccines for Clostridium difficile colitis (C. Diff.), varicella-zoster virus (shingles) and RSV combination vaccines. It intends to start clinical studies on at least one of these candidates as early as next year.

Novavax, Inc. Price

 

Novavax, Inc. price | Novavax, Inc. Quote

NVAX’s Zacks Rank

Novavax currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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