Moderna narrowed its loss in the recent quarter as revenue climbed, boosted by deliveries made under a government contract in the U.K.

The biopharmaceutical company said Friday that it continues to advance its pipeline, noting that a late-stage trial of its norovirus vaccine candidate--mRNA-1403--didn't meet the criteria for early success in an interim analysis of trial data.

"The trial is ongoing and remains blinded as the company works toward enrolling an additional cohort," it said.

Shares fell 7.6%, to $54, in premarket trading.

At the same time, Moderna is working to improve its financial profile, cutting costs from the business and issuing an improved operating expense outlook for the year. The company now expects its cost of sales for 2026 to be approximately $1.7 billion, down from a prior outlook of $1.8 billion.

Moderna posted a second-quarter loss of $782 million, compared with a loss of $825 million last year. The quarterly loss came out to $1.97 a share, ahead of analyst expectations for a loss of $2.03 a share, according to FactSet.

Total revenue climbed 2.1% to $145 million, topping Wall Street models for $102.9 million.

The Cambridge, Mass., company said lower Covid-19 vaccine sales in the U.S. and South America were offset by deliveries in the U.K., made under a long-term government partnership.

Looking ahead, Moderna projects revenue to grow up to 10% this year. About 55% of the company's second-half 2026 revenue is expected to be recognized in the third quarter, it added.