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

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Understanding how a biotechnology innovator like MRNA (formerly Moderna, Inc.) makes money is essential for investors and anyone interested in the business of mRNA therapeutics and vaccines. In this post, we break down MRNA's quarterly income statement (Q2 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 operates as a leading biotechnology company specializing in messenger RNA (mRNA) therapeutics and vaccines. Revenue comes primarily from product sales of its COVID-19 vaccine and other mRNA-based products, supplemented by grants and collaboration agreements. The company’s business segments include product sales, grant revenue, and collaboration revenue, reflecting its focus on both commercialized products and ongoing research partnerships.

Revenue Breakdown

• Total Revenue (Q2 2025): $142.0M (−41.1% YoY)
  • Product Sales Revenue: $114.0M (80.3% of total, −38.0% YoY)
  • Other Revenue by Product: $17.0M (12.0% of total)
  • Grant Revenue: $5.0M (3.5% of total, −75.0% YoY)
  • Collaboration Revenue: $4.0M (2.8% of total, −42.9% YoY)
  • Other: $2.0M (<2% of total)
• Growth is powered by ongoing product innovation, but total revenue declined sharply year-over-year as pandemic-related demand for COVID-19 vaccines normalized and grant funding decreased.

Gross Profit and Margins

• Gross Profit: $23.0M (16.2% gross margin)
  • Cost of Revenue: $119.0M (−23.7% YoY)
  • MRNA maintains moderate margins due to the high cost of manufacturing and scaling mRNA products, as well as reduced economies of scale post-pandemic.
• Most costs come from manufacturing, supply chain logistics, and raw materials for vaccine production.

Operating Income and Expenses

• Operating Income: Not reported for Q2 2025 (operating expenses far exceed gross profit)
• Operating Expenses: $930.0M (−35.8% YoY)
  • R&D: $700.0M (−40.7% YoY, 493.0% of revenue) — Reflects heavy investment in next-generation mRNA vaccines, oncology, rare diseases, and platform expansion.
  • SG&A: $230.0M (−14.2% YoY, 162.0% of revenue) — Includes global commercial operations, marketing, and administrative costs.
  • MRNA continues to prioritize innovation and pipeline expansion while controlling costs in response to lower revenues.

Net Income

• Pre-Tax Income: Not reported for Q2 2025
• Income Tax: Not reported for Q2 2025
• Net Income: $825.0M loss (−35.5% YoY, −581.0% net margin)
• MRNA converts a significant portion of sales into net losses due to outsized R&D and operating expenses relative to sharply reduced revenue, reflecting the company’s commitment to long-term innovation over short-term profitability.

What Drives MRNA's Money Machine?

• Product Sales Revenue: 80%+ of revenue comes from commercialized mRNA vaccines, primarily COVID-19 and other infectious disease products.
• R&D Investment: R&D spending is nearly 5x total revenue, highlighting MRNA’s aggressive pipeline development in vaccines, oncology, and rare diseases.
• Strategic Partnerships: Collaboration and grant revenues, while small, support early-stage research and platform innovation.
• Future Growth Areas: Oncology, rare diseases, and next-generation vaccines are key focus areas, though these segments are 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 operating expenses (especially R&D) taking the largest chunk.
• Even after large investments in R&D and SG&A, over 581% of revenue is lost at the bottom line, underscoring the company’s high-risk, high-investment growth strategy.

Key Takeaways

• MRNA's money comes overwhelmingly from product sales of mRNA-based vaccines.
• High R&D spend and negative net margins illustrate the capital-intensive, innovation-driven nature of the biotech business model.
• Heavy investment in next-generation therapeutics and vaccines, balanced by cost controls in SG&A.
• Ongoing growth is driven by pipeline expansion and new product launches, though profitability remains a long-term goal.

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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 80% of its revenue from product sales, primarily mRNA-based vaccines. Additional revenue comes from grants, collaborations, and other product-related income.

2. How profitable is MRNA in Q2 2025?

MRNA reported a net loss of $825.0M in Q2 2025, with a net margin of approximately −581%, reflecting significant losses driven by high R&D and operating expenses relative to sharply reduced revenue.

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 $700.0M in Q2 2025, as MRNA prioritizes pipeline expansion in vaccines, oncology, and rare diseases. SG&A costs were $230.0M.

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

R&D, despite being a critical driver of future growth, posted an operating loss of over $700.0M in Q2 2025. This is because MRNA aggressively invests in next-generation therapeutics and vaccine platforms, 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 Q2 2025 was not reported, but the company’s net losses and significant R&D investments typically result in a low or negligible effective tax rate, consistent with prior years.