Verastem (NASDAQ:VSTM) Announces Earnings Results

Verastem (NASDAQ:VSTM) issued its quarterly earnings results on Wednesday. The biopharmaceutical company reported ($0.50) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.49) by ($0.01), Zacks reports. The business had revenue of $17.54 million for the quarter, compared to analysts’ expectations of $16.85 million.

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

• Verastem launched AVMAPKI FAKZYNJA (avutometinib + defactinib) CO‑PACK in May 2025 and reported $30.9M net product revenue for the May–Dec launch period ($17.5M in Q4) with almost 300 prescribers and growing academic and community adoption.
• The recent NCCN guideline update did not expand the recommendation to include KRAS wild‑type recurrent LGSOC, a disappointment that could limit guideline‑based uptake and make payer/promotional dynamics for wild‑type patients more challenging.
• Enrollment for the confirmatory RAMP‑301 Phase 3 trial in recurrent LGSOC finished ahead of schedule and the company expects a top‑line primary analysis in mid‑2027, a clear regulatory and commercial catalyst that could expand the indication.
• Next‑generation KRAS program VS‑7375 advanced rapidly (IND/Fast Track, first U.S. dosing in June 2025), is undergoing dose escalation up to 1,200 mg with encouraging tolerability, and the FDA requested disease‑specific Phase‑2 registration‑directed trials with preliminary readouts planned in H1/H2 2026.
• Operating losses widened (higher R&D and SG&A) but Verastem ended Q4 with ~$205M cash ($234.4M pro forma) and says this plus product revenue provides runway into H1 2027 and that the LGSOC franchise could be self‑sustaining in H2 2026.

Verastem Stock Performance

NASDAQ VSTM opened at $6.15 on Friday. The firm has a market cap of $410.70 million, a price-to-earnings ratio of -1.92 and a beta of 0.40. The company has a current ratio of 2.58, a quick ratio of 2.55 and a debt-to-equity ratio of 2.06. Verastem has a 1-year low of $4.01 and a 1-year high of $11.24. The company has a 50 day moving average of $6.53 and a 200-day moving average of $8.19.

Insiders Place Their Bets

In related news, CFO Daniel Calkins sold 5,039 shares of the firm’s stock in a transaction on Monday, January 12th. The stock was sold at an average price of $7.16, for a total transaction of $36,079.24. Following the completion of the sale, the chief financial officer directly owned 104,719 shares of the company’s stock, valued at $749,788.04. This trade represents a 4.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Dan Paterson sold 10,321 shares of the business’s stock in a transaction on Monday, January 12th. The stock was sold at an average price of $7.16, for a total value of $73,898.36. Following the completion of the transaction, the chief executive officer directly owned 400,104 shares in the company, valued at approximately $2,864,744.64. This represents a 2.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 21,678 shares of company stock valued at $169,825 over the last ninety days. Insiders own 2.10% of the company’s stock.

Institutional Investors Weigh In On Verastem

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Russell Investments Group Ltd. lifted its position in shares of Verastem by 182.9% during the third quarter. Russell Investments Group Ltd. now owns 4,578 shares of the biopharmaceutical company’s stock worth $40,000 after purchasing an additional 2,960 shares in the last quarter. BNP Paribas Financial Markets raised its position in Verastem by 110.9% in the 3rd quarter. BNP Paribas Financial Markets now owns 8,550 shares of the biopharmaceutical company’s stock worth $75,000 after purchasing an additional 4,496 shares during the last quarter. E Fund Management Co. Ltd. acquired a new position in Verastem during the 2nd quarter worth $49,000. DRW Securities LLC bought a new position in Verastem in the 4th quarter valued at $93,000. Finally, Nebula Research & Development LLC acquired a new stake in shares of Verastem in the 2nd quarter valued at $53,000. Institutional investors and hedge funds own 88.37% of the company’s stock.

Analyst Ratings Changes

Several brokerages recently issued reports on VSTM. Mizuho set a $18.00 price target on Verastem in a research note on Thursday, February 19th. Guggenheim restated a “buy” rating on shares of Verastem in a research report on Tuesday, December 30th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Verastem in a research report on Wednesday, January 21st. Zacks Research downgraded shares of Verastem from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, November 18th. Finally, HC Wainwright began coverage on Verastem in a report on Wednesday, February 4th. They issued a “buy” rating and a $18.00 target price for the company. Two equities research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $17.00.

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.