How NVAX (Novavax) Makes Money in 2026: A Deep-Dive With Income Statement

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Understanding how a biotechnology company like NVAX makes money is essential for investors and anyone interested in the business of biotech. 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 operates as a biotechnology company focused on developing vaccines and therapeutics, primarily known for its work on respiratory vaccines including COVID-19 and influenza candidates. Revenue comes primarily from product sales, grants, and collaborations in the vaccine sector. As a clinical-stage biotech without detailed segment breakdowns in recent filings, its business centers on research-driven vaccine development with revenue tied to milestones and limited commercial sales.

Revenue Breakdown

• Total Revenue (Q3 2025): $70.4M (-16.6% YoY)
  • Product sales and grants: Primary sources, though specific segments not broken out.
  • Growth is powered by vaccine-related contracts and partnerships, offset by market declines in demand.

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 lower variable costs in vaccine production scaling and efficiencies in manufacturing post-pandemic.
• Most costs come from manufacturing, raw materials, and direct production expenses for vaccine doses.

Operating Income and Expenses

• Operating Income: Not specified (negative implied from high expenses)
• Operating Expenses: $129.9M (-17.7% YoY)
  • R&D: $98.3M (+12.7% YoY, 139.5% of revenue) — Focused on advancing next-generation COVID-19 vaccines, influenza programs, and preclinical candidates.
  • SG&A: $31.7M (-55.3% YoY, 44.9% of revenue) — Covers administrative, sales, and general operations amid cost controls.
  • NVAX continues to prioritize innovation while maintaining efficiency through headcount reductions and streamlined operations.

Net Income

• Pre-Tax Income: Not specified
• Income Tax: Not specified (0% effective tax rate implied)
• Net Income: $202.4M (+66.8% YoY, 287.3% net margin)
• NVAX converts a high portion of sales into profit due to non-operating other income boosting the bottom line despite operating losses.

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What Drives NVAX's Money Machine?

• Product sales and grants: Core revenue, though declining YoY amid reduced COVID demand.
• R&D investment: 139.5% of revenue highlights heavy focus on pipeline expansion.
• Other income: $202.4M strategic item driving net profitability.
• Future growth areas: Next-gen vaccines and partnerships, though not yet profitable at operating level.

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, 287.3% of revenue drops to the bottom line due to other income.

Key Takeaways

• NVAX's money comes overwhelmingly from product sales, grants, and other income
• High gross and net margins illustrate the power of NVAX's vaccine development scalability
• Heavy investment in R&D, balanced by efficiency in operating costs
• Ongoing growth is driven by pipeline advancements and partnerships

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FAQ About NVAX's Income Statement

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

NVAX generates revenue from product sales, grants, and collaborations. Specific segments are not detailed, but vaccine-related activities dominate.

2. How profitable is NVAX in Q3 2025?

NVAX reported net income of $202.4M in Q3 2025, with a net margin of approximately 287.3%, reflecting strong profitability driven by other income despite high R&D spend.

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) and Sales, General & Administrative (SG&A) costs. R&D investment reached $98.3M in Q3 2025, as NVAX prioritizes vaccine pipeline development.

4. Why does NVAX operate at a loss?

NVAX, despite generating $70.4M in revenue, posted operating losses exceeding expenses in Q3 2025. This is because NVAX aggressively invests in R&D, believing these will drive long-term growth—even if unprofitable today.

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

NVAX's effective tax rate in Q3 2025 was 0%, consistent with previous years. This low rate is primarily due to operating loss carryforwards and biotech tax incentives.