12:15 PM EDT, 05/01/2025 (MT Newswires) -- Moderna's ( MRNA ) first-quarter loss unexpectedly improved year on year as a drop in expenses helped offset the impact of a decline in revenue.

The drugmaker's loss moved to $2.52 per share for the March quarter from $3.07 a year earlier. The consensus on FactSet was for a loss of $3.17. Overall revenue declined to $108 million from $167 million, but came in ahead of analysts' $106.2 million view.

Product sales fell to $86 million from $167 million, reflecting lower vaccination rates and "the continued normalization of COVID into a seasonal commercial market, with demand expected to be concentrated in the second half of the year," Moderna ( MRNA ) said.

Shares of the company declined 6.2% intraday Thursday.

"These (results) were in line with our expectations and reflect the highly seasonal nature of our respiratory vaccine business," Chief Executive Stephane Bancel said during an earnings call, according to a FactSet transcript.

Operating expenses declined to $1.16 billion from $1.43 billion. Cost of sales fell 6% to $90 million due to lower sales volume.

For 2025, Moderna ( MRNA ) continues to expect overall revenue of $1.5 billion to $2.5 billion. Analysts polled by FactSet expect $2.09 billion, which is down from last year's $3.24 billion.

"Looking ahead, we are reiterating our 2025 financial framework and announcing a cost structure that is expected to reduce our annual operating expenses by approximately $1.5 billion by 2027," Bancel said in a statement. "With several Phase 3 readouts approaching and continued momentum toward 10 product approvals, we remain confident in Moderna's ( MRNA ) long-term outlook."

Moderna ( MRNA ) has not seen any significant impact from current tariffs, Chief Financial Officer Jamey Mock told analysts on an earnings conference call.

"All of our drug substance for the US market is manufactured at our facilities in Massachusetts," he said, according to a FactSet transcript. "Internationally, our new plants in Australia, Canada and the UK are expected to be online in 2025 to supply local markets. Finally, material sourced from China are not material to our total cost base."

Price: 27.15, Change: -1.39, Percent Change: -4.87