Verastem (NASDAQ:VSTM) Announces Quarterly Earnings Results

Verastem (NASDAQ:VSTM) released its quarterly earnings data on Thursday. The biopharmaceutical company reported ($0.35) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.43) by $0.08, Zacks reports. Verastem had a negative return on equity of 492.59% and a negative net margin of 231.59%.The firm had revenue of $40.08 million during the quarter, compared to analyst estimates of $22.88 million.

Here are the key takeaways from Verastem’s conference call:

• Second-quarter product revenue reached $25.1 million, reflecting a rebound in AVMAPKI FAKZYNJA CO-PACK demand driven by new patient starts, earlier-line prescribing, broader physician adoption, and improving refills.
• Verastem added up to $90 million in non-dilutive funding, including $50 million drawn from Oberland Capital and a $15 million COPIKTRA milestone, bringing pro forma cash to $201.4 million and supporting operations into the second half of 2027, according to management.
• The company advanced VS-7375 by completing enrollment in three TARGET-D 101 expansion cohorts and dosing the first patients in registration-directed Phase II trials for pancreatic, colorectal, and non-small cell lung cancers; management expects response-rate and early durability data across the three tumor types in October.
• Management is targeting the potential accelerated-approval benchmark of roughly 30% response rates with at least six months of durability, while emphasizing that tolerability will also be important in regulatory and competitive comparisons.
• Verastem continues to pursue partnerships for VS-7375, including work with Erasca, but said its new funding provides flexibility to avoid rushing into a partnership or equity financing before additional clinical data become available.

Verastem Price Performance

Shares of NASDAQ:VSTM opened at $6.74 on Friday. The business has a fifty day moving average price of $4.86 and a 200-day moving average price of $5.38. The company has a debt-to-equity ratio of 0.89, a current ratio of 3.04 and a quick ratio of 3.00. The company has a market capitalization of $592.24 million, a PE ratio of -2.53 and a beta of 0.26. Verastem has a 1-year low of $3.43 and a 1-year high of $11.24.

Trending Headlines about Verastem

Here are the key news stories impacting Verastem this week:

• Positive Sentiment: Verastem reported a second-quarter loss of $0.35 per share, better than the $0.43–$0.46 loss analysts expected and improved from a $0.39 loss in the year-ago quarter. Revenue of $40.08 million substantially exceeded the approximately $22.88 million consensus estimate. Verastem Reports Q2 Loss, Beats Revenue Estimates
• Positive Sentiment: Management highlighted continued momentum for AVMAPKI FAKZYNJA and progress with VS-7375, supporting the company’s commercialization strategy and future pipeline potential. Verastem Oncology Reports Second Quarter 2026 Financial Results and Highlights Recent Business Updates
• Positive Sentiment: H.C. Wainwright reiterated its Buy rating and maintained an $18 price target, citing strong AVMAPKI FAKZYNJA momentum and progress with VS-7375. The target implies significant upside relative to the stock’s recent trading level. Verastem Reiterated as Buy
• Neutral Sentiment: Verastem amended its note purchase agreement with funds managed by Oberland Capital to support commercialization. The arrangement may improve funding flexibility, but investors will continue to monitor its financing costs and obligations. Verastem Restructures Oberland Financing
• Negative Sentiment: Despite the quarterly beat, Verastem remains deeply unprofitable, with a reported negative net margin and negative return on equity. Its full-year earnings outlook also remains a loss, limiting the impact of the quarterly improvement.
• Negative Sentiment: CEO Dan Paterson sold 1,302 shares under a pre-arranged Rule 10b5-1 trading plan. The transaction represented only about 0.22% of his holdings, so it is a relatively minor insider-selling signal. SEC Insider Trading Filing

Insider Transactions at Verastem

In related news, CEO Dan Paterson sold 20,871 shares of the stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $4.18, for a total transaction of $87,240.78. Following the sale, the chief executive officer directly owned 591,242 shares of the company’s stock, valued at approximately $2,471,391.56. This represents a 3.41% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 26,262 shares of company stock valued at $111,897. Insiders own 1.94% of the company’s stock.

Hedge Funds Weigh In On Verastem

A number of hedge funds have recently added to or reduced their stakes in the company. RTW Investments LP lifted its position in Verastem by 21.2% in the 4th quarter. RTW Investments LP now owns 6,576,306 shares of the biopharmaceutical company’s stock valued at $50,769,000 after acquiring an additional 1,150,000 shares in the last quarter. Polar Capital Holdings Plc lifted its holdings in shares of Verastem by 270.7% during the fourth quarter. Polar Capital Holdings Plc now owns 3,925,126 shares of the biopharmaceutical company’s stock valued at $30,302,000 after purchasing an additional 2,866,350 shares in the last quarter. Vanguard Group Inc. lifted its holdings in shares of Verastem by 1.6% during the third quarter. Vanguard Group Inc. now owns 3,479,011 shares of the biopharmaceutical company’s stock valued at $30,720,000 after purchasing an additional 55,394 shares in the last quarter. State Street Corp boosted its position in shares of Verastem by 44.5% during the fourth quarter. State Street Corp now owns 3,219,295 shares of the biopharmaceutical company’s stock valued at $24,853,000 after buying an additional 990,655 shares during the last quarter. Finally, Nantahala Capital Management LLC boosted its position in shares of Verastem by 28.5% during the second quarter. Nantahala Capital Management LLC now owns 2,954,735 shares of the biopharmaceutical company’s stock valued at $12,262,000 after buying an additional 656,194 shares during the last quarter. 88.37% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the stock. Alliance Global Partners reaffirmed a “buy” rating on shares of Verastem in a research note on Friday, May 8th. Wall Street Zen raised shares of Verastem from a “sell” rating to a “hold” rating in a report on Saturday, July 25th. Guggenheim set a $12.00 price objective on Verastem and gave the stock a “buy” rating in a research report on Friday. Royal Bank Of Canada set a $14.00 price objective on shares of Verastem and gave the stock an “outperform” rating in a research note on Tuesday, July 7th. Finally, Weiss Ratings downgraded shares of Verastem from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Wednesday, June 17th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $14.00.

About Verastem

Verastem Oncology, Inc is a clinical-stage biopharmaceutical company focused on the discovery and development of small molecule therapies that target cancer stemness and resistance pathways. Established in 2010 and headquartered in Needham, Massachusetts, Verastem Oncology applies a precision-medicine approach to identify key signaling nodes responsible for tumor growth and relapse, with an emphasis on hematologic malignancies and solid tumors. The company’s research platform integrates insights into complex signaling networks to advance novel compounds from early discovery through clinical proof of concept.

The company’s lead marketed product is COPIKTRA (duvelisib), an oral inhibitor of PI3K-delta and PI3K-gamma, which received U.S.