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

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Understanding how a biotechnology innovator like NVAX Income Statement Overview (NVAX) 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 (Q2 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, supplemented by grants and collaboration agreements. The business is structured around vaccine R&D, manufacturing, and global distribution, with a strong emphasis on innovation and partnerships.

Revenue Breakdown

• Total Revenue (Q2 2025): $239.2M (−42.4% YoY)
  • Product Sales: $239.2M (100% of total)
  • No reported segment breakdown for Q2 2025; revenue is concentrated in vaccine sales.
  • Growth is powered by ongoing demand for infectious disease vaccines, though YoY revenue declined due to market normalization post-pandemic and competitive pressures.

Gross Profit and Margins

• Gross Profit: $225.0M (94.1% gross margin)
  • Cost of Revenue: $14.2M (−60.5% YoY)
  • NVAX maintains robust margins due to its scalable digital business model, efficient manufacturing, and high-value product portfolio.
• Most costs come from manufacturing, supply chain logistics, and quality assurance.

Operating Income and Expenses

• Operating Income: $105.7M (−34.4% YoY, 44.2% margin)
• Operating Expenses: $119.3M (−42.7% YoY)
  • R&D: $77.6M (−27.4% YoY, 32.4% of revenue) — Focused on next-generation vaccine platforms, clinical trials, and regulatory submissions.
  • SG&A: $40.6M (−59.9% YoY, 17.0% of revenue) — Includes sales, marketing, administrative, and corporate overhead.
  • NVAX continues to prioritize innovation and invest in growth while maintaining operational efficiency and cost discipline.

Net Income

• Pre-Tax Income: $107.5M (−34.7% YoY, 44.9% margin)
• Income Tax: $946.0K (0.9% effective tax rate)
• Net Income: $106.5M (−34.4% YoY, 44.5% net margin)
• NVAX converts a significant portion of sales into profit due to its scalable product model and disciplined cost structure.

What Drives NVAX's Money Machine?

• Vaccine Product Sales: 100% of revenue, driven by proprietary infectious disease vaccines.
• Gross Margin: 94.1%, reflecting high pricing power and efficient production.
• R&D Investment: $77.6M in Q2 2025, supporting pipeline expansion and next-gen vaccine development.
• Future Growth Areas: Expansion into new vaccine indications and global markets, 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 significant investments in research and development, 44.5% of revenue drops to the bottom line.

Key Takeaways

• NVAX's money comes overwhelmingly from vaccine product sales
• High gross and net margins illustrate the power of NVAX's scalable biotech business model
• Heavy investment in R&D, balanced by efficiency in operating costs
• Ongoing growth is driven by pipeline innovation and global market expansion

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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 additional revenue sources reported for Q2 2025.

2. How profitable is NVAX in Q2 2025?

NVAX reported net income of $106.5M in Q2 2025, with a net margin of approximately 44.5%, reflecting strong profitability driven by high gross margins and disciplined cost management.

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 $77.6M in Q2 2025, as NVAX prioritizes pipeline innovation and clinical development. SG&A is the next largest at $40.6M, covering sales, marketing, and administrative costs.

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

R&D, despite being a critical investment area, posted an operating expense of $77.6M in Q2 2025. This is because NVAX aggressively invests in developing new vaccines and expanding its pipeline, believing these will drive 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 in Q2 2025 was 0.9%, lower than previous years. This low rate is primarily due to tax benefits from share-based compensation and international structuring.