Verastem (NASDAQ:VSTM) Posts Earnings Results, Beats Estimates By $0.08 EPS

Key Points

• Verastem beat quarterly estimates: It reported a loss of $0.35 per share versus the expected $0.43 loss, while revenue reached $40.08 million, well above the $22.88 million consensus.
• Commercial momentum and funding improved: Second-quarter product revenue was $25.1 million, and up to $90 million in non-dilutive financing raised pro forma cash to $201.4 million, supporting operations into the second half of 2027.
• The pipeline advanced, but profitability remains a challenge: Verastem progressed VS-7375 into registration-directed Phase II trials with data expected in October, while the company remains deeply unprofitable with a negative net margin and return on equity.

Verastem (NASDAQ:VSTM - Get Free Report) issued its earnings results on Thursday. The biopharmaceutical company reported ($0.35) earnings per share for the quarter, beating the consensus estimate of ($0.43) by $0.08, Zacks reports. The business had revenue of $40.08 million for the quarter, compared to analyst estimates of $22.88 million. Verastem had a negative net margin of 391.17% and a negative return on equity of 486.40%.

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

VSTM stock traded up $0.83 during midday trading on Friday, reaching $6.74. 4,318,203 shares of the company's stock traded hands, compared to its average volume of 2,257,864. The company has a 50-day simple moving average of $4.81 and a two-hundred day simple moving average of $5.37. The company has a quick ratio of 3.00, a current ratio of 3.04 and a debt-to-equity ratio of 0.89. Verastem has a 1-year low of $3.43 and a 1-year high of $11.24. The company has a market cap of $592.27 million, a price-to-earnings ratio of -2.50 and a beta of 0.26.

Analyst Ratings Changes

A number of brokerages have recently issued reports on VSTM. Guggenheim set a $12.00 target price on Verastem and gave the stock a "buy" rating in a report on Friday. HC Wainwright reaffirmed a "buy" rating and issued a $18.00 price target on shares of Verastem in a research note on Wednesday, June 24th. Jefferies Financial Group lowered their price target on Verastem from $15.00 to $8.00 and set a "buy" rating on the stock in a research report on Tuesday, June 23rd. Weiss Ratings lowered Verastem from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Wednesday, June 17th. Finally, Wall Street Zen raised Verastem from a "sell" rating to a "hold" rating in a report on Saturday, July 25th. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Verastem presently has an average rating of "Moderate Buy" and a consensus price target of $14.00.

Insider Buying and Selling at Verastem

In related news, CEO Dan Paterson sold 20,871 shares of the company's 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 transaction, the chief executive officer owned 591,242 shares in the company, valued at $2,471,391.56. This represents a 3.41% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 26,262 shares of company stock valued at $111,897 in the last three months. Company insiders own 1.94% of the company's stock.

Hedge Funds Weigh In On Verastem

A number of institutional investors have recently modified their holdings of VSTM. XTX Topco Ltd lifted its position in shares of Verastem by 168.1% during the fourth quarter. XTX Topco Ltd now owns 131,121 shares of the biopharmaceutical company's stock worth $1,012,000 after purchasing an additional 82,210 shares in the last quarter. Ikarian Capital LLC acquired a new position in Verastem during the 4th quarter worth $1,651,000. VARCOV Co. acquired a new position in Verastem during the 4th quarter worth $261,000. Virtus Investment Advisers LLC bought a new position in Verastem in the 4th quarter valued at $214,000. Finally, Tang Capital Management LLC boosted its position in Verastem by 35.5% in the 4th quarter. Tang Capital Management LLC now owns 1,069,810 shares of the biopharmaceutical company's stock valued at $8,259,000 after buying an additional 280,000 shares during the last quarter. 88.37% of the stock is owned by institutional investors.

Key Verastem News

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

Verastem Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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