Moderna, Inc. 10-Q Summary: Q1 2026
Business Context and Reporting Period
This report covers the quarterly period ended March 31, 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 three commercial products: Spikevax and mNEXSPIKE (COVID-19 vaccines) and mRESVIA (RSV vaccine). The company recently received European Commission marketing authorization for mCOMBRIAX, a flu plus COVID combination vaccine.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenue | $389 million | $108 million |
| Net Product Sales | $352 million | $86 million |
| Net Loss | $(1,343) million | $(971) million |
| Net Loss Per Share | $(3.40) | $(2.52) |
| Operating Cash Flow | $(630) million | $(1,037) million |
| Cash & Investments | $7,456 million | $8,135 million (Dec 31, 2025) |
| Long-Term Debt | $590 million | $0 (Note: Debt facility entered Nov 2025) |
Cost of Sales: $955 million (249% of net product sales), heavily impacted by a one-time litigation settlement charge.
Research & Development: $649 million.
Selling, General & Administrative: $173 million.
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 260% year-over-year, driven primarily by a 309% increase in net product sales. International sales, particularly in Europe ($239 million), were a significant driver compared to the prior year.
- Cost of Sales Spike: Cost of sales increased 961% to $955 million. This was primarily due to a $878 million charge related to the settlement of patent litigation with Arbutus and Genevant, recorded in cost of sales. Excluding this charge, cost of sales would have decreased.
- Net Loss Expansion: Net loss widened by 38% to $1.343 billion, reflecting the litigation charge and continued investment in the pipeline, despite revenue growth.
- Debt Financing: In November 2025, the company entered a $1.5 billion credit facility. As of March 31, 2026, $600 million was drawn, resulting in interest expense of $17 million for the quarter.
Guidance, Outlook, and Risks
- Outlook: Management expects product sales to return to growth in 2026, supported by long-term strategic partnerships with government entities. R&D expenses are expected to see a modest reduction in 2026 due to portfolio prioritization and cost management.
- Litigation Settlement: A $950 million lump sum payment to Arbutus and Genevant is scheduled for Q3 2026. The company has appealed a court decision and faces a potential additional payment of up to $1.3 billion pending the outcome, though no accrual has been recorded as the loss is not considered probable.
- Pipeline Catalysts:
- mCOMBRIAX: Approved in the EU; regulatory filings under review in Canada and Australia.
- mRNA-1010 (Flu): FDA PDUFA date set for August 5, 2026.
- Intismeran (Oncology): Phase 3 data for adjuvant melanoma expected in 2026.
- Propionic Acidemia: Registrational study for mRNA-3927 has reached target enrollment.
- Liquidity: The company believes its cash, investments, and available borrowings are sufficient to fund operations for at least the next 12 months.
Investor Verification Checklist
- Litigation Exposure: Verify the status of the appeal regarding the Arbutus/Genevant settlement and the potential for the additional $1.3 billion liability.
- Cost Structure Normalization: Assess the trajectory of Cost of Sales as a percentage of revenue once the one-time $878 million litigation charge is excluded.
- Regulatory Timelines: Monitor the FDA decision on the seasonal flu vaccine (mRNA-1010) expected in August 2026 and the status of the mCOMBRIAX filing in the U.S.
- Debt Covenants: Confirm continued compliance with the minimum cash covenant ($500 million) under the new $1.5 billion credit facility.
- Inventory Management: Review inventory write-downs ($38 million in Q1) and shelf-life expiration risks for COVID and RSV vaccines.