Moderna Expands Cost-Cutting Measures Amid Financial Challenges

Key Facts

Moderna reported Q1 2025 revenues of $84-86 million, below analyst expectations of $100-115 million2
The company announced plans to cut an additional $1.4-1.7 billion in operating costs by 20271 4
Operating costs for 2026 are now projected to be $5.4-5.7 billion, down from a previous estimate of $5.9 billion1
Moderna reported a GAAP net loss of $1.0 billion and earnings per share of -$2.52 for Q1 20251
The company reaffirmed its 2025 revenue guidance of $1.5-2.5 billion despite current challenges1 4
FDA approval for Moderna's flu/COVID combination vaccine has been delayed until 20264

Cost Reduction Strategy

Moderna is significantly expanding its cost-cutting initiatives as it navigates through what it describes as an "uncertain environment." The company achieved a 19% reduction in cost of sales and R&D expenses in Q1 20255. This aggressive approach to financial discipline has already yielded results, with the company beating earnings per share expectations despite missing revenue targets2.

The newly announced cost reduction plan aims to decrease annual operating expenses by approximately $1.5 billion by 2027, adding to billions in cuts already planned2. For 2026, Moderna has revised its GAAP operating cost projections downward to $5.4-5.7 billion from the previous estimate of $5.9 billion4. By 2027, operating costs are expected to further decrease to $4.7-5.0 billion4.

Business Outlook

Despite current financial challenges, CEO Stéphane Bancel expressed confidence in the company's long-term prospects. Moderna remains committed to its ambitious goal of securing 10 product approvals by the end of 2027, with particular focus on its oncology pipeline1 2. The company is prioritizing investments in cancer treatments while maintaining financial discipline across other areas.

Moderna is targeting financial breakeven by 20283. For the remainder of 2025, the company expects approximately $0.2 billion in revenue during the first half of the year, reflecting the seasonality of its respiratory business, with total year revenue projected between $1.5-2.5 billion4.