Novavax (NASDAQ:NVAX) Announces Quarterly Earnings Results, Beats Expectations By $0.77 EPS

Novavax (NASDAQ:NVAX) issued its quarterly earnings results on Thursday. The biopharmaceutical company reported $0.11 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.66) by $0.77, FiscalAI reports. Novavax had a net margin of 39.19% and a negative return on equity of 836.17%. The company had revenue of $136.40 million during the quarter, compared to analyst estimates of $90.26 million. During the same period in the prior year, the business posted ($0.51) EPS. The business’s revenue for the quarter was up 66.6% compared to the same quarter last year.

Here are the key takeaways from Novavax’s conference call:

• Pfizer partnership: Novavax signed a Matrix‑M license with Pfizer that delivered a $30M upfront payment and up to $500M of development/sales milestones across two disease areas, plus long‑term royalties, a deal the company says could translate into multi‑billion dollars if Pfizer commercializes a significant product.
• 2025 financials and cash runway: Novavax reported $1.1B in 2025 revenue (65% YoY, including $625M non‑cash APA items), positive GAAP income for Q4 and full year, $857M cash/accounts receivable at year‑end plus ~$80M in early 2026 and credit facility access, and believes it can fund operations into 2028 without new cash.
• Cost reductions and guidance: The company cut combined R&D and SG&A (net of partner reimbursements) by 42% (FY) and 53% (Q4), is annualizing to a ~$328M run‑rate, and set non‑GAAP combined R&D/SG&A targets of $325M (2026), $225M (2027) and ≤$200M (2028) with a goal of non‑GAAP profitability by 2028.
• R&D and Matrix expansion: Novavax is building a portfolio of Matrix‑based adjuvants (including new formulations like dry powder) and advancing internal preclinical programs (C. difficile, shingles, RSV triple combo) with the intent to file at least one IND and enter the clinic as early as 2027, citing encouraging early C. diff data.
• Execution and regulatory risks: Future revenue materially depends on partner commercial success (notably Sanofi) and regulatory outcomes (e.g., US ACIP/FDA uncertainty), and Sanofi’s request to shift tech transfer to a US site may delay recognition/timing of a $75M milestone despite management saying it does not affect the stated cash runway.

Novavax Trading Down 9.4%

Novavax stock traded down $1.05 during midday trading on Friday, reaching $10.14. The stock had a trading volume of 10,214,821 shares, compared to its average volume of 4,427,895. Novavax has a twelve month low of $5.01 and a twelve month high of $11.97. The company has a debt-to-equity ratio of 5.93, a current ratio of 2.27 and a quick ratio of 2.24. The firm has a market cap of $1.65 billion, a price-to-earnings ratio of 4.21 and a beta of 2.58. The firm’s fifty day simple moving average is $8.34 and its two-hundred day simple moving average is $8.03.

Key Stories Impacting Novavax

Here are the key news stories impacting Novavax this week:

• Positive Sentiment: Q4 results beat: Novavax reported a surprise GAAP profit (EPS $0.11) and ~67% year‑over‑year revenue growth, driven by licensing/milestone revenues — the core reason the stock jumped on the news. Novavax Stock Gains as Q4 Earnings & Sales Beat Estimates
• Positive Sentiment: Strong operational highlights and balance sheet: Full‑year 2025 revenue of ~$1.1B, $225M Sanofi milestones earned, and year‑end cash of ~$751M reduce short‑term financing risk and support pipeline investments. Novavax Reports Fourth Quarter and Full Year 2025 Financial Results and Operational Highlights
• Positive Sentiment: Analyst upgrade: HC Wainwright raised its price target to $16 and kept a Buy rating, signaling bullish conviction from at least one sell‑side shop. Benzinga
• Neutral Sentiment: Investor access: Management will present at upcoming investor conferences (TD Cowen fireside chat, others) — useful for transparency but not a near‑term catalyst by itself. Novavax to Participate in Upcoming Investor Conferences
• Neutral Sentiment: Market activity: Unusual options flow showed heavy call buying around the earnings move, indicating elevated short‑term speculative interest. (This reflects trader positioning, not fundamental change.)
• Neutral Sentiment: Earnings call transcript posted for deeper detail on results and guidance assumptions. Novavax, Inc. (NVAX) Q4 2025 Earnings Call Transcript
• Negative Sentiment: 2026 revenue guidance disappointed relative to consensus: Management guided revenue of $230M–$270M for 2026, well below street estimates (~$402M), creating concern about demand trends and prompting profit‑taking. Novavax Q4 Press Release / Guidance
• Negative Sentiment: Analyst caution remains: Some analysts argue the bull case needs more proof despite the beat — concerns on sustainability of licensing revenue, product demand and execution could cap multiple expansion. Novavax: The Bear Case Is Broken, But The Bull Case Needs More Proof

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on NVAX shares. BTIG Research reaffirmed a “buy” rating and set a $19.00 target price on shares of Novavax in a research note on Tuesday, January 20th. Weiss Ratings restated a “sell (d+)” rating on shares of Novavax in a research report on Monday, December 29th. B. Riley Financial reaffirmed a “buy” rating and issued a $16.00 price objective (down from $18.00) on shares of Novavax in a research note on Monday, November 10th. TD Cowen reduced their target price on shares of Novavax from $8.00 to $7.00 and set a “hold” rating for the company in a report on Tuesday, November 4th. Finally, Wall Street Zen raised Novavax from a “sell” rating to a “hold” rating in a report on Saturday. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $11.88.

Institutional Trading of Novavax

Several hedge funds and other institutional investors have recently modified their holdings of NVAX. State Street Corp raised its position in Novavax by 32.3% during the fourth quarter. State Street Corp now owns 9,523,646 shares of the biopharmaceutical company’s stock valued at $63,999,000 after buying an additional 2,326,927 shares during the period. Bank of America Corp DE grew its stake in Novavax by 0.5% during the 3rd quarter. Bank of America Corp DE now owns 3,101,074 shares of the biopharmaceutical company’s stock valued at $26,886,000 after acquiring an additional 15,685 shares in the last quarter. Charles Schwab Investment Management Inc. increased its holdings in shares of Novavax by 0.3% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,335,053 shares of the biopharmaceutical company’s stock valued at $8,972,000 after purchasing an additional 3,767 shares during the period. Barclays PLC increased its holdings in shares of Novavax by 108.8% in the 4th quarter. Barclays PLC now owns 1,102,300 shares of the biopharmaceutical company’s stock valued at $7,407,000 after purchasing an additional 574,263 shares during the period. Finally, Two Sigma Investments LP lifted its position in shares of Novavax by 30.2% in the third quarter. Two Sigma Investments LP now owns 702,000 shares of the biopharmaceutical company’s stock worth $6,086,000 after purchasing an additional 162,754 shares in the last quarter. Institutional investors and hedge funds own 53.04% of the company’s stock.

Novavax Company Profile

Novavax, Inc is a clinical-stage biotechnology company headquartered in Gaithersburg, Maryland, that specializes in the discovery, development and commercialization of next-generation vaccines to prevent serious infectious diseases. Founded in 1987, the company has built a platform based on recombinant nanoparticle technology and its proprietary Matrix-M™ adjuvant to enhance immune responses.

The company’s lead product is NVX-CoV2373, a protein-based vaccine designed to elicit a robust immune response against the SARS-CoV-2 virus.