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

Verastem (NASDAQ:VSTM) released its quarterly earnings data 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 firm had revenue of $40.08 million during the quarter, compared to the consensus estimate of $22.88 million. Verastem had a negative return on equity of 486.40% and a negative net margin of 391.17%.

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 Stock Up 14.0%

Shares of NASDAQ VSTM traded up $0.83 during trading hours on Friday, hitting $6.74. 4,318,203 shares of the stock were exchanged, compared to its average volume of 2,257,864. The company has a quick ratio of 3.00, a current ratio of 3.04 and a debt-to-equity ratio of 0.89. The company has a market cap of $592.27 million, a PE ratio of -2.50 and a beta of 0.26. The firm has a fifty day moving average price of $4.81 and a 200-day moving average price of $5.37. Verastem has a 12 month low of $3.43 and a 12 month high of $11.24.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on VSTM shares. HC Wainwright reaffirmed a “buy” rating and issued a $18.00 price target on shares of Verastem in a research report on Wednesday, June 24th. 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. Weiss Ratings lowered Verastem from a “sell (d-)” rating to a “sell (e+)” rating in a report on Wednesday, June 17th. Guggenheim set a $12.00 target price on Verastem and gave the company a “buy” rating in a research report on Friday. Finally, Wall Street Zen upgraded Verastem from a “sell” rating to a “hold” rating in a report on Saturday, July 25th. Two investment analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $14.00.

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

Insiders Place Their Bets

In other Verastem news, CEO Dan Paterson sold 20,871 shares of Verastem stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $4.18, for a total value of $87,240.78. Following the transaction, the chief executive officer directly owned 591,242 shares of the company’s stock, valued at approximately $2,471,391.56. The trade was a 3.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 26,262 shares of company stock valued at $111,897 in the last three months. 1.94% of the stock is owned by company insiders.

Institutional Investors Weigh In On Verastem

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

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.