Verastem (NASDAQ:VSTM) Issues Earnings Results, Beats Expectations By $0.08 EPS

Verastem (NASDAQ:VSTM) released its earnings results on Thursday. The biopharmaceutical company reported ($0.35) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.43) by $0.08, Zacks reports. The company had revenue of $40.08 million for the quarter, compared to the consensus estimate 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 Trading Up 14.0%

Shares of VSTM stock traded up $0.83 on Friday, hitting $6.74. The stock had a trading volume of 4,318,203 shares, compared to its average volume of 2,257,864. Verastem has a twelve month low of $3.43 and a twelve month high of $11.24. The firm has a market cap of $592.27 million, a P/E ratio of -2.50 and a beta of 0.26. The company has a current ratio of 3.04, a quick ratio of 3.00 and a debt-to-equity ratio of 0.89. The company has a fifty day moving average price of $4.81 and a two-hundred day moving average price of $5.37.

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 Buying and Selling

In related news, CEO Dan Paterson sold 20,871 shares of the firm’s stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $4.18, for a total transaction of $87,240.78. Following the sale, the chief executive officer owned 591,242 shares of the company’s stock, valued at approximately $2,471,391.56. This trade represents a 3.41% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 26,262 shares of company stock worth $111,897. Company insiders own 1.94% of the company’s stock.

Institutional Investors Weigh In On Verastem

Several large investors have recently modified their holdings of the business. Russell Investments Group Ltd. grew its position in shares of Verastem by 182.9% in the 3rd quarter. Russell Investments Group Ltd. now owns 4,578 shares of the biopharmaceutical company’s stock valued at $40,000 after purchasing an additional 2,960 shares during the period. E Fund Management Co. Ltd. acquired a new stake in Verastem during the 2nd quarter worth approximately $49,000. Nebula Research & Development LLC acquired a new stake in Verastem during the 2nd quarter worth approximately $53,000. The Manufacturers Life Insurance Company lifted its stake in Verastem by 9.8% in the second quarter. The Manufacturers Life Insurance Company now owns 16,188 shares of the biopharmaceutical company’s stock valued at $67,000 after buying an additional 1,440 shares in the last quarter. Finally, BNP Paribas Financial Markets lifted its stake in Verastem by 110.9% in the third quarter. BNP Paribas Financial Markets now owns 8,550 shares of the biopharmaceutical company’s stock valued at $75,000 after buying an additional 4,496 shares in the last quarter. 88.37% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

VSTM has been the subject of a number of recent research reports. Jefferies Financial Group dropped their price target on shares of Verastem from $15.00 to $8.00 and set a “buy” rating for the company in a research note on Tuesday, June 23rd. BTIG Research reissued a “buy” rating and issued a $18.00 price target on shares of Verastem in a research note on Thursday, July 2nd. Wall Street Zen upgraded Verastem from a “sell” rating to a “hold” rating in a research report on Saturday, July 25th. Alliance Global Partners restated a “buy” rating on shares of Verastem in a research report on Friday, May 8th. Finally, Weiss Ratings cut Verastem from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Wednesday, June 17th. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target 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.