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Verastem
(NASDAQ:VSTM)
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Rating:54Neutral
Price Target:
$10.50
▲(48.31% Upside)
Action:Reiterated
Date:10/16/26
The score is held back primarily by weak financial performance—large ongoing losses, significant negative free cash flow, and meaningful leverage despite strong revenue growth. Offsetting this are moderately supportive technicals (price above key longer-term moving averages), a constructive earnings outlook with runway guidance, and positive liquidity-related corporate events, though valuation support is limited due to negative earnings and no dividend.
Positive Factors
Commercial revenue and adoption growth
Meaningful product revenue and improving adoption indicate that Verastem has established commercial demand for its CO-PACK. Broader physician use, refills and earlier-line treatment can support more durable revenue growth and improve operating leverage as the franchise expands.
Negative Factors
Large ongoing losses and cash burn
The company is not currently self-funding: substantial operating and free-cash-flow deficits require continued financing while revenue remains modest relative to expenses. Persistent cash burn can constrain investment choices and make execution increasingly dependent on funding access.
Read all positive and negative factors
Positive Factors
Negative Factors
Commercial revenue and adoption growth
Meaningful product revenue and improving adoption indicate that Verastem has established commercial demand for its CO-PACK. Broader physician use, refills and earlier-line treatment can support more durable revenue growth and improve operating leverage as the franchise expands.
Read all positive factors
Verastem (VSTM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.13B
Dividend YieldN/A
Average Volume (3M)4.23M
Price to Earnings (P/E)―
Beta (1Y)0.96
Revenue Growth3995.74%
EPS Growth24.87%
CountryUS
Employees102
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-2.46
Shares Outstanding121,500,940
10 Day Avg. Volume8,112,610
30 Day Avg. Volume4,230,631
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)9.35
Price to Sales (P/S)17.31
P/FCF Ratio-3.89
Enterprise Value/Market Cap0.29
Enterprise Value/Revenue3.78
Enterprise Value/Gross Profit4.35
Enterprise Value/Ebitda-1.66
Forecast
1Y Price Target
$18.17Price Target Upside156.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)-1.63
Revenue Forecast (FY)$113.48M
Verastem Business Overview & Revenue Model
Company Description
Verastem, Inc. is an emerging biopharmaceutical company dedicated to the creation and commercialization of innovative therapeutic agents for cancer treatment. A primary asset in its pipeline is VS-6766, a novel dual RAF/MEK inhibitor that operates...
Verastem Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed substantial positive momentum: commercial rebound with $25.1M in product revenue, strengthened liquidity via a $50M draw and $15M milestone (pro forma cash $201.4M), improved non-GAAP loss versus prior year, and rapid clinical progress for VS-7375 (enrollment completed in expansions, Fast Track for NSCLC, three Phase II studies initiated and an October data update anticipated). Notable risks remain — the company is still loss-making with high R&D spend, relies on financing to bridge to readouts, has limited prescription visibility, faces tolerability and dose-management operational challenges, and navigates a competitive/regulatory landscape. On balance, the material commercial and clinical achievements and improved financial cushion outweigh the outstanding challenges.Positive Updates
Net Product Revenue
Generated $25.1 million in net product revenue in Q2 2026, reflecting a meaningful quarter-over-quarter rebound in commercial performance for the AVMAPKI FAKZYNJA CO-PACK.
Negative Updates
Continued Operating Losses
Despite improvement, the company remains unprofitable with a non-GAAP adjusted net loss of $30.6 million in Q2 2026 and significant ongoing operating expenses.
Read all updates
Q2-2026 Updates
Positive
Negative
Net Product Revenue
Generated $25.1 million in net product revenue in Q2 2026, reflecting a meaningful quarter-over-quarter rebound in commercial performance for the AVMAPKI FAKZYNJA CO-PACK.
Read all positive updates
Company Guidance
Verastem guided that, based on Q2 2026 results (net product revenue $25.1M; product cost of sales $3.8M; $15M license milestone from Secura Bio after COPIKTRA surpassed $200M in cumulative sales; R&D $41.3M; SG&A $27.4M; non‑GAAP adjusted net loss $30.6M or $0.31/share vs $41.3M or $0.62/share in Q2 2025), it expects the LGSOC franchise to be self‑sustaining by the end of 2026, SG&A to remain roughly flat quarter‑to‑quarter through 2026, and sufficient cash runway into the second half of 2027 (cash & investments $136.4M at quarter end; pro forma cash $201.4M including an expected $50M draw from a royalty facility up to $75M plus the $15M milestone); operationally, Verastem plans to complete enrollment in three Phase II registration‑directed VS‑7375 trials, initiate three Phase III trials, and provide an October data update including response rates and early durability across ~20 patients each in pancreatic, lung and colorectal cohorts.Verastem Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
38
Negative
Cash Flow
26
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 87.53M | 30.91M | 10.00M | 0.00 | 2.60M | 2.05M |
| Gross Profit | 75.87M | 25.62M | 10.00M | 0.00 | 2.60M | 2.05M |
| EBITDA | -199.58M | -207.60M | -125.86M | -83.17M | -71.56M | -61.16M |
| Net Income | -202.70M | -209.47M | -130.64M | -87.37M | -73.81M | -71.20M |
Balance Sheet | ||||||
| Total Assets | 206.51M | 246.44M | 101.54M | 149.72M | 95.05M | 108.66M |
| Cash, Cash Equivalents and Short-Term Investments | 136.35M | 204.99M | 88.82M | 137.13M | 87.89M | 100.26M |
| Total Debt | 84.33M | 76.86M | 42.25M | 41.56M | 27.07M | 3.18M |
| Total Liabilities | 156.53M | 189.25M | 130.43M | 92.34M | 47.66M | 21.10M |
| Stockholders Equity | 49.99M | 57.20M | -28.89M | 57.37M | 47.39M | 87.56M |
Cash Flow | ||||||
| Free Cash Flow | -163.54M | -137.51M | -104.80M | -86.46M | -63.67M | -53.70M |
| Operating Cash Flow | -162.19M | -137.51M | -104.77M | -86.46M | -63.67M | -53.50M |
| Investing Cash Flow | -9.39M | -9.62M | 59.97M | -44.45M | 66.19M | 87.00K |
| Financing Cash Flow | 143.62M | 263.31M | 54.78M | 134.19M | 51.78M | 6.88M |
Verastem Technical Analysis
Positive
7.08
Price Trends
7.75
Positive
6.36
Positive
6.08
Positive
Market Momentum
0.37
Negative
61.50
Neutral
77.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VSTM, the sentiment is Positive. The current price of 7.08 is below the 20-day moving average (MA) of 8.19, below the 50-day MA of 7.75, and above the 200-day MA of 6.08, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 61.50 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VSTM.
Verastem Risk Analysis
Verastem disclosed 67 risk factors in its most recent earnings report. Verastem reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Verastem Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $555.43M | 20.33 | 20.85% | ― | -2.86% | -46.26% | |
62 Neutral | $500.86M | 39.76 | 1.91% | ― | -15.05% | ― | |
54 Neutral | $1.13B | -3.74 | -467.49% | ― | 3995.74% | 24.87% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $459.50M | -1.99 | -50.04% | ― | ― | 40.16% | |
44 Neutral | $546.93M | -5.33 | -38.46% | ― | -87.03% | -179.91% | |
42 Neutral | $218.07M | >-0.01 | -46.90% | ― | ― | -614363.93% |
* Healthcare Sector Average
VSTM
Verastem
10.06
2.25
28.81%
PBYI
Puma Biotechnology
11.26
6.22
123.41%
CTMX
CytomX Therapeutics
2.44
-0.86
-26.06%
ARVN
Arvinas Holding Company
7.72
-1.44
-15.72%
ALLO
Allogene Therapeutics
1.25
0.04
3.31%
BBOT
BridgeBio Oncology Therapeutics
2.85
-8.02
-73.78%
Verastem Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Verastem Announces $234 Million Oncology Financing Transaction
Positive
Oct 14, 2026
On October 14, 2026, Verastem entered into an underwriting agreement with Jefferies and Guggenheim Securities for an underwritten public offering of 30,937,500 shares of common stock and pre-funded warrants to purchase up to 312,503 additional sha...
Business Operations and StrategyExecutive/Board ChangesProduct-Related AnnouncementsRegulatory Filings and Compliance
Verastem Oncology Announces CEO Transition to Michael Bailey
Positive
Oct 14, 2026
Verastem Oncology said on October 14, 2026, that longtime executive Daniel Paterson will retire as president and CEO effective January 1, 2027, while remaining on the board and serving as an advisor, with board member and veteran oncology executiv...
Business Operations and StrategyPrivate Placements and Financing
Verastem Restructures Oberland Financing to Support Commercialization
Positive
Aug 7, 2026
On August 6, 2026, Verastem amended its note purchase agreement with funds managed by Oberland Capital to restructure its financing into two series of senior secured notes, maintaining $75 million of Initial Notes and creating up to $75 million of...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.