01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
Moderna, Inc. reported a net loss of $1.34 billiona for the first quarter of 2026, compared to a net loss of $971 million in the same period of 2025.
This widening loss is significantly influenced by a substantial increase in Cost of Sales, primarily due to an $878 millionb charge related to the Arbutus and Genevant litigation settlement. Excluding this one-time settlement cost, the company's underlying cost of sales as a percentage of revenue actually decreased, indicating improved operational efficiency. Total revenue saw a significant increase of 260% to $389 million, driven by a 309% surge in net product sales to $352 million, largely attributable to increased COVID vaccine sales internationally.
Research and development expenses decreased by 24% due to portfolio prioritization and cost management. The company's cash position decreased by approximately 8% from year-end 2025 to $7.46 billionc in cash and investments, with working capital also decreasing. Despite the net loss, Moderna believes its current cash and investment balance, combined with available borrowings, will be sufficient to fund operations for at least the next 12 months.
02—Key points
Key Highlights
- Net loss for Q1 2026 was $1.34 billion, a significant increase from $971 million in Q1 2025, largely due to a $878 million litigation settlement charge.
- Total revenue surged by 260% year-over-year to $389 million, driven by a 309% increase in net product sales to $352 million, primarily from international COVID vaccine sales.
- Cost of Sales increased substantially to $955 million from $90 million, heavily impacted by the $878 million Arbutus/Genevant litigation settlement expense.
- Research and Development expenses decreased by 24% to $649 million, reflecting ongoing efforts in portfolio prioritization and cost control.
- The company announced a $950 million settlement with Arbutus and Genevant to resolve worldwide litigation regarding Spikevax and mRESVIA, with a payment due in Q3 2026, though an appeal could lead to an additional payment of up to $1.3 billion.
- Moderna received European Commission marketing authorization for mCOMBRIAX, their mRNA combination vaccine for influenza and COVID-19.
- Cash, cash equivalents, and investments decreased by 8% to $7.46 billion from the end of 2025, with net cash used in operating activities at $630 million for the quarter.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 1, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $389.00M$108.00M | +260.2% |
| Cost of Revenue | $955.00M$90.00M | +961.1% |
| Gross Profit | -$566.00M$18.00M | −3244.4% |
| R&D Expenses | $649.00M$856.00M | −24.2% |
| Operating Expenses | $1.78B$1.16B | +53.5% |
| Operating Income | -$1.39B-$1.05B | −32.2% |
| Net Income | -$1.34B-$971.00M | −38.3% |
| EPS (Basic) | $-3.40$-2.52 | −34.9% |
| EPS (Diluted) | $-3.40$-2.52 | −34.9% |
| Shares Outstanding (Basic) | 395.00M386.00M | +2.3% |
| Shares Outstanding (Diluted) | 395.00M386.00M | +2.3% |
05—Questions
Frequently Asked Questions
What is the primary driver behind Moderna's increased net loss in the first quarter of 2026?
The primary driver for the increased net loss of $1.34 billion in Q1 2026 (compared to $971 million in Q1 2025) is a substantial charge of $878 million related to the settlement of litigation with Arbutus and Genevant, which significantly impacted the Cost of Sales.
How has Moderna's revenue performed in the first quarter of 2026?
Moderna reported a significant increase in total revenue, up 260% year-over-year to $389 million. This growth was primarily fueled by a 309% increase in net product sales to $352 million, predominantly from international sales of their COVID vaccines.
What is the financial impact of the Arbutus and Genevant litigation settlement?
Moderna entered into a $950 million settlement agreement, payable in Q3 2026, to resolve worldwide litigation. A portion of this settlement, $878 million, was recognized as an expense in Cost of Sales in Q1 2026. Additionally, $74 million was capitalized as an intangible asset. There is a potential for an additional payment of up to $1.3 billion depending on the outcome of an appeal.
How is Moderna's research and development spending trending?
Research and development expenses decreased by 24% year-over-year to $649 million in Q1 2026. This reduction is attributed to portfolio prioritization, disciplined cost management, and a focus on pipeline execution, although some clinical trial activities have shifted from 2025 into 2026.
06—Continue