Moderna, Inc. (MRNA) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. Moderna, Inc. is a biotechnology company developing mRNA medicines across infectious disease vaccines, oncology therapeutics, and rare disease therapeutics. As of the reporting date, the company has four approved products: Spikevax and mNEXSPIKE (COVID-19), mRESVIA (RSV), and mCOMBRIAX (Flu + COVID, approved in the EU). The company maintains a pipeline of 26 development candidates across 36 programs.
Key Financial Metrics
| Metric | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 |
|---|---|---|---|---|
| Total Revenue | $145 million | $142 million | $534 million | $250 million |
| Net Product Sales | $94 million | $114 million | $446 million | $200 million |
| Net Loss | $(782) million | $(825) million | $(2,125) million | $(1,796) million |
| Net Loss Per Share | $(1.97) | $(2.13) | $(5.36) | $(4.64) |
| Operating Cash Flow (YTD) | $(1,156) million | $(1,956) million | — | — |
| Cash & Investments (Total) | $6,910 million | — | — | — |
| Long-Term Debt | $591 million | — | — | — |
Note: YTD figures represent the six months ended June 30. Cash and Investments total includes $1,723 million in cash equivalents and $5,187 million in investments.
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 114% year-over-year for the six months ended June 30, 2026, driven by a 123% increase in net product sales. This growth was primarily due to higher COVID vaccine sales in international markets under long-term government partnerships.
- Cost of Sales Spike: Cost of sales for the six months ended June 30, 2026, surged 401% to $1.048 billion. This was primarily driven by a $906 million royalty expense related to a litigation settlement with Arbutus and Genevant (including $884 million in the first half of 2026). Excluding this settlement, cost of sales decreased significantly.
- Operating Expenses: Research and development (R&D) expenses decreased 16% year-over-year for the six-month period, reflecting the wind-down of late-stage programs (e.g., flu + COVID, norovirus) and portfolio reprioritization. SG&A expenses decreased 12% due to cost discipline.
- Liquidity: Total cash, cash equivalents, and investments decreased by approximately $1.2 billion from year-end 2025, primarily due to operating cash outflows and capital expenditures.
Guidance, Outlook, and Risks
- Product Pipeline & Approvals:
- mCOMBRIAX: Received EU marketing authorization in April 2026; commercialization pending national access procedures.
- mRNA-1010 (Flu): FDA Advisory Committee voted unanimously in June 2026 supporting approval. PDUFA date set for August 5, 2026.
- Oncology: Positive 5-year Phase 2b data for intismeran autogene (mRNA-4157) presented at ASCO 2026. Phase 3 adjuvant melanoma data expected in 2026.
- Norovirus: Phase 3 interim analysis did not meet statistical criteria for early success; trial ongoing.
- Financial Outlook: Management anticipates a return to sales growth in 2026 supported by government partnerships. R&D and SG&A expenses are expected to remain modest or decrease compared to 2025, excluding the one-time litigation settlement impact.
- Liquidity Position: The company believes its current cash, investments, and available borrowings under its $1.5 billion credit facility (with $600 million drawn) are sufficient to fund operations for at least the next 12 months.
- Risks & Contingencies:
- Litigation Settlement: A $950 million lump sum payment to Arbutus/Genevant was accrued in Q1/Q2 and paid in July 2026. An appeal regarding a potential additional $1.3 billion payment is pending, though no accrual was made as the loss is not considered probable.
- Patent Litigation: Ongoing disputes with Pfizer, BioNTech, GSK, Sanofi, and others regarding mRNA platform technology and delivery methods.
- Market Dynamics: Continued decline in demand for COVID vaccines as the market transitions to a competitive, commercially driven environment.
Key Facts for Investor Verification
- Settlement Impact: Verify the full financial impact of the $950 million Arbutus/Genevant settlement, including the $906 million royalty charge in cost of sales and the $74 million capitalized intangible asset.
- Regulatory Milestones: Monitor the FDA decision on mRNA-1010 (Flu vaccine) expected by August 5, 2026, and the commercial launch timeline for mCOMBRIAX in the EU.
- Cash Burn Rate: Assess the sustainability of the operating cash burn (approx. $1.2 billion for H1 2026) against the $6.9 billion cash and investment balance.
- Debt Covenants: Confirm continued compliance with the Credit Agreement's minimum cash covenant ($500 million), especially following the July 2026 settlement payment.
- Pipeline Execution: Track the Phase 3 adjuvant melanoma data readout for mRNA-4157 expected in 2026 and the status of the norovirus vaccine program.