📊 VSTM Key Takeaways
Is Verastem, Inc. (VSTM) a Good Investment?
Early-stage pharmaceutical company with exceptional revenue growth (+209% YoY) and strong cash reserves ($165.6M) providing 3+ years of runway at current burn rates. However, severe unprofitability (-196% net margin) and negative operating cash flow (-$52.1M) indicate the company is pre-commercial viability; success depends critically on achieving profitability within cash runway window.
Verastem, Inc. Key Strengths (VSTM)
- Exceptional revenue growth of 209% YoY demonstrates strong market demand
- Strong cash position of $165.6M with excellent liquidity ratios (3.04x current ratio) provides significant operational runway
- Improving EPS trend (+17.5% YoY) despite negative absolute values shows progress toward profitability
VSTM Stock Risks: Verastem, Inc. Investment Risks
- Severe unprofitability with net margin of -196% and operating losses of $44.9M against $18.7M revenue
- Substantial cash burn of $52.1M annually with negative operating cash flow; limited visibility to profitability
- High execution risk typical of pharmaceutical companies; pipeline and clinical trial outcomes could materially impact viability
Key Metrics to Watch
- Path to GAAP profitability and timeline for achieving positive operating cash flow
- Quarterly revenue growth sustainability and gross margin expansion when reported
- Cash burn rate trend and remaining runway; any significant spending acceleration could shorten runway
Verastem, Inc. (VSTM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.04x current ratio provides a solid financial cushion.
VSTM Profit Margin, ROE & Profitability Analysis
VSTM vs Healthcare Sector: How Verastem, Inc. Compares
How Verastem, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Verastem, Inc. Stock Overvalued? VSTM Valuation Analysis 2026
Based on fundamental analysis, Verastem, Inc. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Verastem, Inc. Balance Sheet: VSTM Debt, Cash & Liquidity
VSTM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Verastem, Inc.'s revenue has declined by 63% over the 5-year period, indicating business contraction. The most recent EPS of $-3.96 indicates the company is currently unprofitable.
VSTM Revenue Growth, EPS Growth & YoY Performance
VSTM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2024 | $10.0M | -$8.3M | $-0.60 |
| Q1 2024 | $10.0M | -$8.3M | $-0.08 |
| Q3 2023 | $2.6M | -$15.7M | $-0.08 |
| Q2 2023 | $2.6M | -$15.7M | $-0.08 |
| Q1 2023 | $2.6M | -$15.7M | $-0.08 |
| Q3 2022 | $2.0K | -$15.0M | $-0.09 |
| Q2 2022 | $500.0K | -$15.0M | $-0.10 |
| Q1 2022 | $1.0M | -$15.0M | $-0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Verastem, Inc. Dividends, Buybacks & Capital Allocation
VSTM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Verastem, Inc. (CIK: 0001526119)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 27, 2026 | 4 | xslF345X06/tm2615478-6_4seq1.xml | View → |
| May 26, 2026 | 4 | xslF345X06/tm2615478-3_4seq1.xml | View → |
| May 26, 2026 | 4 | xslF345X06/tm2615478-1_4seq1.xml | View → |
| May 26, 2026 | 4 | xslF345X06/tm2615478-5_4seq1.xml | View → |
| May 26, 2026 | 4 | xslF345X06/tm2615478-7_4seq1.xml | View → |
❓ Frequently Asked Questions about VSTM
What is the AI rating for VSTM?
Verastem, Inc. (VSTM) has an AI grade of B with 42% confidence, based on fundamental analysis of SEC EDGAR filings.
What are VSTM's key strengths?
Claude: Exceptional revenue growth of 209% YoY demonstrates strong market demand. Strong cash position of $165.6M with excellent liquidity ratios (3.04x current ratio) provides significant operational runway.
What are the risks of investing in VSTM?
Claude: Severe unprofitability with net margin of -196% and operating losses of $44.9M against $18.7M revenue. Substantial cash burn of $52.1M annually with negative operating cash flow; limited visibility to profitability.
What is VSTM's revenue and growth?
Verastem, Inc. reported revenue of $18.7M.
Does VSTM pay dividends?
Verastem, Inc. does not currently pay dividends.
Where can I find VSTM SEC filings?
Official SEC filings for Verastem, Inc. (CIK: 0001526119) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is VSTM's EPS?
Verastem, Inc. has a diluted EPS of $-0.46.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is VSTM's fundamental grade?
Based on our AI fundamental analysis in June 2026, Verastem, Inc. has a B grade with 42% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is VSTM stock overvalued or undervalued?
Valuation metrics for VSTM: ROE of -44.7% (sector avg: 15%), net margin of -196.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is VSTM's AI grade for 2026?
Our dual AI analysis gives Verastem, Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is VSTM's free cash flow?
Verastem, Inc.'s operating cash flow is $-52.1M, with capital expenditures of $28.0K. FCF margin is -279.3%.
How does VSTM compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -196.0% (avg: 12%), ROE -44.7% (avg: 15%), current ratio 3.04 (avg: 2).