MRNA · 10-Q · 2026Q2 · Full report
Gross Margin Drivers
Moderna, Inc. · 2026-07-31 · Importance 59 · Surprise 48 · No source text
Second-quarter 2026 cost of sales was $93 million and included $41 million of inventory write-downs, $23 million of unutilized manufacturing capacity costs, and $11 million of third-party royalties. Cost of sales declined $26 million, or 22%, year over year, and cost of sales as a percentage of net product sales and stand-ready manufacturing revenue improved to 74% from 91%. Six-month 2026 cost of sales rose $839 million, or 401%, to approximately $1.0 billion, primarily because of the Arbutus and Genevant settlement-related royalty expense. Excluding settlement-related expenses, six-month cost of sales declined 59% and the related cost ratio improved by 65 percentage points, driven by lower unused capacity costs and losses on firm purchase commitments.
Key facts
- Excluding litigation settlement-related expenses, Moderna, Inc. reported that cost of sales for the six months ended June 30, 2026 decreased by 59% and cost of sales as a percentage of net product sales and stand-ready manufacturing revenue decreased by 65 percentage points compared to the same period in 2025. source
- Cost of sales as a percentage of net product sales and stand-ready manufacturing revenue for the six months ended June 30, 2026 was 206%, compared to 91% for the same period in 2025. source
- Cost of sales for the six months ended June 30, 2026 increased by $839 million, or 401%, compared to the same period in 2025. source
- Cost of sales recorded in the condensed consolidated statements of operations: $1,048 million. source
- Cost of sales for the three months ended June 30, 2026 decreased by $26 million, or 22%, compared to the same period in 2025. source
- Cost of sales as a percentage of net product sales and stand-ready manufacturing revenue for the three months ended June 30, 2026 was 74%, compared to 91% for the same period in 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -578.6% | Cost of sales for the six months ended June 30, 2026 increased by $839 million, or 401%, compared to the same period in 2025. |
| margin | negative | realized | -115.0% | Cost of sales as a percentage of net product sales and stand-ready manufacturing revenue for the six months ended June 30, 2026 was 206%,… |
| margin | positive | realized | +65.0% | Excluding litigation settlement-related expenses, Moderna, Inc. reported that cost of sales for the six months ended June 30, 2026… |
| operating_income | negative | realized | — | Cost of sales recorded in the condensed consolidated statements of operations: $1,048 million. |