Novavax Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 6 August 2026: press release. Guidance figures: 3 raised, 2 lowered, 4 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue fell 76% on prior-year milestone: Total revenue was $57 million, down 76% from $239 million. The prior year included $202 million of milestone and amendment revenue. Source
• Full-year expense guidance lowered: Combined R&D and SG&A expense guidance was cut to $370 million to $410 million from $380 million to $420 million. Non-GAAP combined guidance of $310 million to $340 million was maintained. Source
• Adjusted revenue framework raised: Adjusted Total Revenue framework rose to $235 million to $275 million from $230 million to $270 million, with adjusted supply and other partner revenue ranges also higher. Source
• Combination trial timing with regulators: Sanofi said it is in advanced discussions with regulators on Phase 3 combination trial timing and intends to be among the first movers in combination vaccines. Source
• Cash fell to $724 million: Cash, cash equivalents, marketable securities and restricted cash were $724 million at June 30, 2026, against $751 million at December 31, 2025. Source
• C. difficile vaccine nears clinic: The company moved its C. difficile vaccine candidate into pre-IND interactions with the FDA and began GMP manufacturing, supporting clinical entry as early as 2027. Source

“We're encouraged by the momentum we're seeing across our business as we continue to advance our strategy,”

John C. Jacobs, President and Chief Executive Officer, Novavax

Guidance

What changed from last quarter

• Guidance lowered: Combined R&D and SG&A expense guidance for 2026 cut to $370 million to $410 million from $380 million to $420 million. Source
• Guidance raised: Adjusted Total Revenue framework for 2026 raised to $235 million to $275 million from $230 million to $270 million. Source
• Guidance raised: Adjusted supply sales range raised to $45 million to $55 million from $40 million to $50 million. Source
• Guidance raised: Other partner-related revenue range raised to $60 million to $70 million from $50 million to $60 million. Source
• Guidance lowered: R&D reimbursement range lowered to $60 million to $70 million from $70 million to $80 million. Source
• Guidance kept: Non-GAAP combined R&D and SG&A expense guidance of $310 million to $340 million was maintained. Source
• New: Sanofi received FDA Fast Track designation for its H5 pandemic influenza candidate SP0335, which uses Matrix-M. Source
• New: Sanofi is expanding Nuvaxovid commercial activity with launches in the UK, Germany and Canada from 2026. Source
• New: C. difficile vaccine candidate entered pre-IND interactions with the FDA and started GMP manufacturing process. Source

Quarter results and drivers

• Revenue fell 76% on prior-year milestone: Total revenue was $57 million, down 76% from $239 million. The prior year included $202 million of milestone and amendment revenue. Source
• Net loss against prior-year net income: The company reported a net loss of $53 million, or $0.32 per diluted share, compared with net income of $107 million a year earlier. Source
• Product sales rose on Matrix-M demand: Product sales were $19 million, 76% higher than a year earlier, reflecting higher Matrix-M adjuvant demand and sales to license partners. Source

Revenue lines and partner income

• Sanofi revenue fell 82%: Sanofi revenue was $36 million against $199 million, down 82%. Takeda revenue was nil, against $27 million in the prior-year quarter from the amendment. Source
• Licensing and royalty revenue fell 83%: Licensing, royalties and other revenue was $38 million, down 83% from $229 million a year earlier. It includes R&D reimbursements from partners. Source
• Nuvaxovid sales nil this quarter: Nuvaxovid Sales, where Novavax is the commercial market lead, were $0 against negative $2 million a year earlier. Source

“As we enter the second half of 2026 and prepare for next year, we believe we are well positioned to deliver several important partner milestones while we advance our internal R&D programs and progress our MTA collaborations.”

John C. Jacobs, President and Chief Executive Officer, Novavax

Costs and margins

• Non-GAAP R&D fell 34%: Partners reimbursed $23 million of R&D costs. Non-GAAP R&D, net of that reimbursement, fell 34%, which the company linked to its ongoing cost reduction program. Source
• SG&A fell 39% after commercial exit: SG&A was $27 million, down 39%, mainly because lead commercial activities moved to Sanofi and commercial infrastructure was eliminated, plus general cost reduction. Source
• Cost of sales little changed: Cost of sales was $14 million, against $15 million a year earlier. Source

Full-year 2026 guidance

• Full-year expense guidance lowered: Combined R&D and SG&A expense guidance was cut to $370 million to $410 million from $380 million to $420 million. Non-GAAP combined guidance of $310 million to $340 million was maintained. Source
• Adjusted revenue framework raised: Adjusted Total Revenue framework rose to $235 million to $275 million from $230 million to $270 million, with adjusted supply and other partner revenue ranges also higher. Source
• Sanofi revenue excluded from framework: Sanofi supply sales, royalties and milestones are excluded from the revenue framework and carry no guidance, because Novavax relies on Sanofi forecasts. Source

“This continued progress reinforces our confidence in our strategy and the potential to drive vaccine innovation to create meaningful value for our shareholders.”

John C. Jacobs, President and Chief Executive Officer, Novavax

Sanofi partnership and Matrix-M

• Sanofi widens Nuvaxovid launches: Sanofi is expanding commercial activity for Nuvaxovid, with launches in the UK, Germany and Canada from 2026. Novavax is eligible for royalties in the high teens to low twenties percent. Source
• Combination trial timing with regulators: Sanofi said it is in advanced discussions with regulators on Phase 3 combination trial timing and intends to be among the first movers in combination vaccines. Source
• Partner experiments with Matrix-M under way: Multiple partner-led experiments are running with Matrix-M across a wide range of infectious disease and oncology targets. Source
• Scientific evidence supports Matrix-M use: The company said a growing body of scientific evidence supports Matrix-M's utility in oncology and infectious disease, with evaluations by partners and potential partners underway. Source

Capital, cash and balance sheet

• Cash fell to $724 million: Cash, cash equivalents, marketable securities and restricted cash were $724 million at June 30, 2026, against $751 million at December 31, 2025. Source
• Stockholders' deficit widened: Total stockholders' deficit was $190.7 million at June 30, 2026, against $127.8 million at December 31, 2025, while long-term debt was $291.5 million. Source
• Interest and other income lower: Interest expense was $5.7 million and other income, net was $8.9 million, against $11.9 million a year earlier. Source

Strategy, pipeline and innovation

• C. difficile vaccine nears clinic: The company moved its C. difficile vaccine candidate into pre-IND interactions with the FDA and began GMP manufacturing, supporting clinical entry as early as 2027. Source
• Three-pillar strategy restated: The corporate growth strategy rests on partnering its technology, targeted and capital-efficient R&D innovation, and a lean and efficient operating model. Source
• Cost reduction continues in operations: The company said its cost reduction program continues to streamline operations and direct R&D to targeted investments. Source

Coming up, as management said on 6 August 2026

• Sanofi trial start triggers $125 million: Starting the Sanofi combination trial in the U.S. or European Union would trigger a $125 million milestone. Trial timing is under discussion with regulators. Source
• Nuvaxovid technology transfer due mid-2027: Completion of the Nuvaxovid manufacturing technology transfer to Sanofi is expected in mid-2027 and would trigger a $75 million milestone payment. Source
• Sanofi supply for 2026-2027 season: Novavax will sell Nuvaxovid commercial supply to Sanofi for the 2026-2027 COVID-19 season, with reimbursement recorded as product sales. Source

Risks management discussed

• Regulatory: Timing of the Sanofi combination trial depends on regulator discussions that are still in progress. Source
• Operational: Revenue tied to Sanofi sales forecasts cannot be reconciled to GAAP without unreasonable effort, so those components are excluded from guidance. Source

Earlier plans management reported on

• On track: The company states its C. difficile program is on track for clinical entry as early as 2027. Source
• Not stated: The company described its cost reduction program as ongoing, without a status against a target. Source

Other quarters

• Q3 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.