Verastem, Inc. (VSTM) AI Stock Analysis

Verastem, Inc., based in Needham, Massachusetts, is an innovative developmental-stage biopharmaceutical firm focused on researching and commercializing cancer therapies. Its pipeline centers on VS-6766, a dual inhibitor targeting RAF and MEK pathways crucial to cancer cell survival and proliferation. Verastem is evaluating VS-6766 alongside defactinib, an oral FAK inhibitor, in clinical trials including RAMP 201 for recurrent low-grade serous ovarian cancer and RAMP 202 for KRAS and BRAF mutant non-small cell lung cancer. The company has entered strategic partnerships, including a licensing agreement with Chugai Pharmaceutical Co., Ltd. for VS-6766, and clinical collaborations with Pfizer Inc. and Amgen, Inc.

Revenue expanded significantly from $2.1M in FY2021 to $30.9M in FY2025, posting a five-year revenue CAGR of 12.1% through FY2025. In the latest quarter ended June 30, 2026, revenue increased 1775.4% year-over-year, bringing trailing twelve-month revenue to $87.5M. However, operating expenses and high research and development spending, which totaled $114.6M in FY2025, have led to sustained losses. In FY2025, net income was -$209.5M with an operating margin of -550.3%, compared to a net income of -$130.6M in FY2024. For the trailing twelve months, profit margin was -231.6% and operating margin was -81.6%, resulting in an EPS of -$2.45.

As of June 30, 2026, Verastem held $136.4M in cash and short-term investments against total debt of $84.3M, leaving net cash of $52.0M. The company's current ratio stood at 2.25, while debt-to-equity was 1.69 on shareholders' equity of $50.0M. Operating cash flow in FY2025 was -$137.5M, matching a free cash flow of -$137.5M. Capital expenditures reached $9.6M in FY2025, and the five-year share count change was 557.7%.

Verastem trades at a price-to-sales multiple of 9.0x and an enterprise-value-to-revenue ratio of 7.9x, based on an enterprise value of $688.3M and a market cap of $783.4M. Its price-to-sales ratio exceeds the US-listed Healthcare median of 4.1x. The stock has a price-to-book multiple of 14.8x. Over the past year, Verastem returned -9.0%, underperforming the S&P 500 (SPY) return of 16.8%. Over five years, the stock has dropped 73.9% compared to an 83.0% gain for the benchmark.

Verastem is covered by Wall Street analysts with 9 Strong Buy ratings and 1 Buy rating. The mean price target is $17.22, which represents a 99.1% upside compared to the last close price of $8.65 on October 16, 2026. For the current fiscal year ending December 31, 2026, analysts estimate revenue of $111.3M and an EPS of -$1.80. The company beat EPS estimates in each of the last 4 quarters, and the next earnings date is November 3, 2026.

This page is an AI-written research summary of Verastem, Inc. (VSTM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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