Novavax shares subdued despite earnings, revenue beat

Investing.com -- Novavax Inc. (NASDAQ: NVAX) reported fourth quarter results that exceeded analyst expectations. Shares initially fell premarket, but now trade around 0.7% higher.

The vaccine maker posted adjusted earnings per share of $0.11 for the fourth quarter, beating the consensus estimate of -$0.49. Revenue reached $147 million, surging 67% from $88 million in the prior-year period and significantly above the $89.86 million analyst estimate. For the full year 2025, total revenue climbed 65% YoY to $1.1 billion, driven primarily by $625 million in Nuvaxovid product sales.

The company's fourth quarter revenue included $98 million from its Sanofi partnership, which contributed $225 million in milestones during full year 2025. Novavax also announced a licensing agreement with Pfizer in January 2026 for its Matrix-M adjuvant technology, generating a $30 million upfront payment with potential for up to $500 million in additional milestones and high-mid-single digit royalties.

"In 2025, we made significant progress on our corporate strategy, marked with the successful achievement of key milestones under our Sanofi agreement," said John C. Jacobs, President and Chief Executive Officer.

For 2026, Novavax provided guidance for adjusted total revenue of $230 million to $270 million, with a midpoint of $250 million. The company expects combined R&D and SG&A expenses of $380 million to $420 million, offset by $70 million to $80 million in R&D reimbursements, resulting in adjusted combined expenses of $310 million to $340 million at the midpoint of $325 million.

The company reported net income of $18 million for the fourth quarter compared to a net loss of $81 million in the prior year. Cash and equivalents totaled $751 million at year-end 2025.

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