How NVAX (Novavax) Makes Money in 2025: A Deep-Dive With Income Statement

Welcome to the Value Sense Blog, your resource for insights on the stock market! At Value Sense, we focus on intrinsic value tools and offer stock ideas with undervalued companies. Dive into our research products and learn more about our unique approach at valuesense.io

Explore diverse stock ideas covering technology, healthcare, and commodities sectors. Our insights are crafted to help investors spot opportunities in undervalued growth stocks, enhancing potential returns. Visit us to see evaluations and in-depth market research.

Understanding how a biotechnology company like NVAX Income Statement Overview makes money is essential for investors and anyone interested in the business of vaccine development and commercialization. In this post, we break down NVAX'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 NVAX Overview

NVAX Income Statement Overview operates as a biotechnology company focused on the research, development, and commercialization of vaccines targeting infectious diseases. Revenue comes primarily from product sales of its proprietary vaccines and, to a lesser extent, from licensing agreements and government contracts. The company’s business segments are centered around vaccine R&D and global distribution partnerships.

Revenue Breakdown

• Total Revenue (Q3 2025): $70.4M (−16.6% YoY)
  • Product Sales: $70.4M (100% of total)
  • Licensing/Other: $0M (0% of total)
  • Growth is powered by ongoing demand for NVAX’s vaccine portfolio, though revenue declined year-over-year due to lower pandemic-related sales and competitive pressures.

Gross Profit and Margins

• Gross Profit: $48.9M (69.5% gross margin)
  • Cost of Revenue: $21.5M (−64.5% YoY)
  • NVAX maintains robust margins due to its scalable vaccine manufacturing and efficient supply chain.
• Most costs come from raw materials, manufacturing, and distribution logistics.

Operating Income and Expenses

• Operating Income: Not reported for Q3 2025 (operating expenses exceeded gross profit, indicating an operating loss)
• Operating Expenses: $129.9M (−17.7% YoY)
  • R&D: $98.3M (+12.7% YoY, 139.5% of revenue) — Focused on next-generation vaccine candidates, platform improvements, and clinical trials.
  • SG&A: $31.7M (−55.3% YoY, 44.9% of revenue) — Includes sales, marketing, administrative, and corporate overhead.
  • NVAX continues to prioritize innovation and invest heavily in R&D while controlling SG&A costs to maintain operational efficiency.

Net Income

• Pre-Tax Income: Not reported for Q3 2025 (likely negative due to operating loss and other expenses)
• Income Tax: Not reported (effective tax rate not available)
• Net Income: $202.4M (+66.8% YoY, −287.3% net margin)
• NVAX converts a significant portion of sales into net loss due to aggressive R&D investment and declining revenues, typical for biotech firms in heavy development phases.

What Drives NVAX's Money Machine?

• Product Sales: 100% of revenue comes from vaccine sales, primarily targeting infectious diseases.
• R&D Intensity: R&D expenses represent 139.5% of revenue, underscoring NVAX’s commitment to pipeline expansion and innovation.
• Strategic Investments: NVAX invests in clinical trials, regulatory approvals, and platform technologies to secure future growth.
• Future Growth Areas: Expansion into new vaccine indications and global partnerships, though these segments are not yet profitable.

Visualizing NVAX'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, NVAX’s net loss reflects the high-risk, high-reward nature of biotech innovation.

Key Takeaways

• NVAX’s money comes overwhelmingly from vaccine product sales
• High gross margins illustrate the power of NVAX’s scalable manufacturing model
• Heavy investment in R&D, balanced by efficiency in SG&A costs
• Ongoing growth is driven by pipeline expansion and global partnerships

Explore More Investment Opportunities

For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:

📌 50 Undervalued Stocks (Best) overall value plays for 2025
📌 50 Undervalued Dividend Stocks (For income-focused investors)
📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)

🔍 Check out these stocks on the Value Sense platform for free!

FAQ About NVAX's Income Statement

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

NVAX generates over 100% of its revenue from vaccine product sales. There are no significant licensing or other revenue sources reported for Q3 2025.

2. How profitable is NVAX in Q3 2025?

NVAX reported a net loss of $202.4M in Q3 2025, with a net margin of approximately −287.3%, reflecting significant R&D investment and declining sales.

3. What are the largest expense categories for NVAX?

The biggest expenses on NVAX’s income statement are operating expenses, particularly Research & Development (R&D) at $98.3M in Q3 2025, as NVAX prioritizes pipeline expansion and clinical development. SG&A costs were $31.7M.

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

R&D, despite being the core of NVAX’s business, posted an operating loss due to aggressive investment in new vaccine candidates and clinical trials, which are essential for long-term growth—even if the division is unprofitable today.

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

NVAX’s effective tax rate for Q3 2025 was not reported, but the company’s net loss and high R&D spend typically result in a low or zero effective tax rate, consistent with prior periods due to tax benefits from operating losses and R&D credits.