Vaxart Revenue Jumps 520% in Fiscal Q2

Vaxart (VXRT -2.79%), a biotechnology company focused on developing oral tablet vaccines for infectious diseases, reported its second quarter results on August 13, 2025. The standout headline was a revenue surge to $39.7 million (GAAP)—well above the $2.03 million analyst consensus—driven by a step-up in government contract income, mainly from the Biomedical Advanced Research and Development Authority (BARDA). Earnings per share loss (GAAP) narrowed to $0.07, ahead of the $0.09 GAAP loss expected by analysts. While the topline performance (GAAP) easily surpassed expectations thanks to BARDA funding for its COVID-19 pill vaccine program, the period was marked by sharply rising research costs, government-mandated pauses in the key COVID-19 trial, and persistent questions around future funding and regulatory progress. Overall, the quarter saw financial outperformance and advances in clinical trials, but also greater operational and strategic uncertainty given escalating expenses and reliance on external partnerships.

Source: Analyst estimates for the quarter provided by FactSet.

Business Overview and Strategic Focus

Vaxart is building a portfolio of oral vaccines designed to address infectious diseases including norovirus, COVID-19, and influenza. Its lead programs target major public health threats and aim to differentiate with tablet-based delivery that avoids injections. The company’s proprietary platform allows vaccines to be delivered as pills, which could improve convenience, increase uptake, and reach populations needing needle-free solutions.

Over recent years, the company’s priorities have centered on advancing its candidates through clinical milestones. Major focus areas have included progressing norovirus and COVID-19 oral vaccines through human trials, securing government or third-party funding, and preparing for larger, pivotal studies. Demonstrating strong clinical data, finding partners to co-fund development, and managing regulatory submissions are essential for Vaxart’s success.

Quarter in Review: Revenue, Trials, and Financials

The second quarter featured an exceptional revenue jump, as BARDA funding—intended for the pivotal Phase 2b trial of Vaxart’s oral COVID-19 vaccine—was recognized on the income statement (GAAP). This resulted in a GAAP revenue figure over 18 times analyst forecasts and up 520.3% compared to $6.4 million for the second quarter of 2024 (GAAP). This income arose primarily from government clinical trial contracts, not product sales, so it may not be recurring outside these arrangements.

The revenue boost helped reduce the quarterly net loss and improved the company’s per-share results (GAAP) compared to consensus estimates. Despite this, the company recorded a net loss of $15.0 million (GAAP) as research and development (R&D) expenses increased to $49.7 million for the second quarter of 2025, compared to $17.5 million for the second quarter of 2024. This increase reflects ongoing investment in clinical programs, particularly for the COVID-19 oral vaccine and the updated norovirus candidates. General and administrative costs, which capture overhead such as management and legal fees, fell to $4.6 million, compared to $5.2 million for the second quarter of 2024, as ongoing cost controls continued.

Clinical trial progress defined the period’s business achievements. Vaxart completed enrollment for a Phase 1, dose-ranging, open-label study of its second-generation oral norovirus vaccine constructs. Results from this study—designed to confirm safety and assess immune responses—are expected by mid-2025. Results already show that newer constructs produced notably stronger antibody responses: blocking antibody levels were up 141% for norovirus GI.1 and up 94% for GII.4 versus the previous generation, as reported in June 2025.

On the COVID-19 front, the company had enrolled about 5,000 out of a planned 10,000 participants in its pivotal Phase 2b study when, on August 5, 2025, it received a government stop work order halting new enrollment. Follow-up continues for participants already dosed and a pre-defined sentinel group. All progress and funding remain closely tied to government oversight and reimbursements. Meanwhile, the company’s preclinical avian influenza (bird flu) candidate demonstrated 100% protection against death in trial animals compared to zero in the placebo arm, according to data reported in August 2025. This avian flu vaccine, still in animal testing, may move forward depending on new partnerships or funding.

Competitive Landscape, Partnerships, and Risk Factors

Vaxart’s oral vaccine platform is a differentiator, offering patients a pill alternative to injections and mRNA-based vaccines. Management has highlighted rapid enrollment in the COVID-19 pill trial as evidence of market demand for non-injectable products. However, the company operates in a highly competitive environment, facing established vaccine makers such as Pfizer (injectable, mRNA COVID-19 vaccines), Moderna (mRNA COVID-19 and norovirus candidates), and others like HilleVax (injectable norovirus vaccines). Competing successfully will require not just demonstration of clinical efficacy, but also partner support, regulatory progress, and scalable manufacturing capabilities.

All of Vaxart’s current revenue depends on government contracts. Specifically, the BARDA award for its COVID-19 program provides up to $460.7 million in funding (with $98.9 million received by June 30, 2025), but much of this is earmarked for specific trial and overhead expenses. The norovirus program’s next clinical trial phase is contingent on securing a strategic partnership or additional funding. The company is actively in discussions with a range of prospective partners, but timelines are not assured.

Operationally, Vaxart’s cost base remains high due to the R&D intensity of moving vaccine candidates through trials. The company ended the quarter with $26.3 million in cash and equivalents, down from $41.9 million at the end of Q1 2025. Management stated that this runway should last into the first quarter of 2026, emphasizing a need to secure further capital or non-dilutive partnership funding to extend financial flexibility. The company is also preparing for a potential reverse stock split, with a special shareholder meeting scheduled to authorize this step if needed to maintain compliance with minimum bid rules for NASDAQ listing. The risk of delisting remains a near-term challenge.

There were also changes in the executive suite; Jeroen Grasman joined as Chief Financial Officer, replacing Phillip Lee, who will remain to assist with the transition through June 1, 2025. Management turnover is a potential source of organizational disruption, but the transition appears planned and communicated to stakeholders.

Looking Forward: Guidance and Upcoming Milestones

Management did not provide formal financial guidance for the remainder of fiscal 2025 or beyond. Instead, the company outlined key clinical and funding priorities for the upcoming periods. For the norovirus vaccine, a Phase 2b safety and immunogenicity study could begin as early as the second half of 2025, contingent upon partnership or external funding. An end of Phase 2 meeting with the U.S. Food and Drug Administration is targeted before advancing to Phase 3, which could commence as soon as 2026 if all goes as planned.

On the COVID-19 oral vaccine front, a government stop work order has paused enrollment in the pivotal study. Only monitoring and follow-up of previously dosed participants and a sentinel group are ongoing. Topline data from the main trial are not expected until late 2026, with earlier results from the sentinel cohort expected in Q1 2026. The company's influenza program, highlighted by strong preclinical results, does not yet have a public timeline for clinical trials in humans. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.