How MRNA (Moderna) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a biotechnology innovator like MRNA Income Statement Overview makes money is essential for investors and anyone interested in the business of biopharmaceuticals. In this post, we break down MRNA's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick MRNA Overview

MRNA Income Statement Overview operates as a biotechnology company specializing in mRNA-based therapeutics and vaccines. Revenue comes primarily from the sale of its COVID-19 vaccine and related products, with a small contribution from other product sales. The company’s business model is centered on leveraging its mRNA platform to develop and commercialize vaccines and therapeutics, with ongoing investment in research for new indications and pipeline expansion.

Revenue Breakdown

• Total Revenue (Q3 2025): $1.02B (−45.2% YoY)
  • Product Sales Revenue: $973M (95.8% of total, −46.5% YoY)
  • Other Revenue: $43M (4.2% of total)
  • Collaboration, Grant, Licensing & Royalty Revenue: $0M
• Growth is powered by product sales, but overall revenue declined sharply YoY as global COVID-19 vaccine demand normalized post-pandemic.

Gross Profit and Margins

• Gross Profit: $809M (79.6% gross margin)
  • Cost of Revenue: $207M (−59.7% YoY)
  • MRNA maintains robust margins due to its scalable digital manufacturing processes and high-value product mix.
• Most costs come from manufacturing, supply chain, and distribution of vaccine products.

Operating Income and Expenses

• Operating Income: −$260M (not reported as positive; margin not meaningful)
• Operating Expenses: $1.07B (−24.2% YoY)
  • R&D: $801M (−29.6% YoY, 78.8% of revenue) — Focused on expanding the mRNA pipeline, including vaccines for RSV, flu, and other infectious diseases, as well as oncology and rare diseases.
  • SG&A: $268M (−4.6% YoY, 26.4% of revenue) — Covers commercial operations, global sales, and administrative infrastructure.
  • MRNA continues to prioritize innovation and pipeline expansion while maintaining operational discipline in SG&A.

Net Income

• Pre-Tax Income: Not disclosed for Q3 2025 (operating loss reported)
• Income Tax: Not disclosed (effective tax rate not meaningful due to pre-tax loss)
• Net Income: $200M (flat YoY, 19.7% net margin)
• MRNA converts a moderate portion of sales into profit due to high gross margins, but heavy R&D investment weighs on the bottom line.

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What Drives MRNA's Money Machine?

• Product Sales Revenue: 95.8% of revenue comes from COVID-19 vaccine and related product sales.
• R&D Intensity: $801M invested in R&D (78.8% of revenue), reflecting a commitment to long-term innovation and future product launches.
• Strategic Investment: Heavy R&D spending targets pipeline expansion in infectious diseases, oncology, and rare diseases.
• Future Growth Areas: New mRNA-based vaccines and therapeutics, including RSV and flu, are in late-stage development but not yet profitable.

Visualizing MRNA's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with R&D expenses taking the largest chunk of operating costs.
• Even after significant R&D investment, 19.7% of revenue drops to the bottom line as net income.

Key Takeaways

• MRNA's money comes overwhelmingly from product sales (COVID-19 vaccine and related products)
• High gross margins illustrate the power of MRNA's scalable mRNA platform
• Heavy investment in R&D, balanced by efficiency in SG&A and cost of revenue
• Ongoing growth is driven by pipeline expansion and new vaccine launches

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FAQ About MRNA's Income Statement

1. What is the main source of MRNA's revenue in 2025?

MRNA generates over 95% of its revenue from product sales, primarily its COVID-19 vaccine. Other revenue sources, such as grants, collaborations, and royalties, were negligible in Q3 2025.

2. How profitable is MRNA in Q3 2025?

MRNA reported net income of $200M in Q3 2025, with a net margin of approximately 19.7%, reflecting moderate profitability driven by high gross margins but offset by substantial R&D investment.

3. What are the largest expense categories for MRNA?

The biggest expenses on MRNA's income statement are operating expenses, particularly Research & Development (R&D) at $801M in Q3 2025 (78.8% of revenue), as the company prioritizes pipeline expansion and innovation. SG&A costs were $268M (26.4% of revenue).

4. Why does the R&D segment operate at a loss?

R&D, despite being a critical investment area, does not generate direct revenue and posted a significant operating loss in Q3 2025. This is because MRNA aggressively invests in developing new vaccines and therapeutics, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does MRNA's effective tax rate compare to previous years?

MRNA's effective tax rate for Q3 2025 was not disclosed, as the company reported a pre-tax operating loss. In prior periods, the effective tax rate has fluctuated based on profitability and tax benefits related to R&D and international operations.