Verastem (NASDAQ:VSTM) Announces Earnings Results, Misses Estimates By $0.01 EPS

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 company 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 Up 2.3%

Shares of VSTM opened at $5.81 on Thursday. Verastem has a 52-week low of $4.01 and a 52-week high of $11.24. The company has a quick ratio of 2.55, a current ratio of 2.58 and a debt-to-equity ratio of 2.06. The stock has a fifty day simple moving average of $6.57 and a two-hundred day simple moving average of $8.20. The company has a market capitalization of $387.99 million, a PE ratio of -1.44 and a beta of 0.40.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on VSTM shares. Wall Street Zen downgraded Verastem from a “hold” rating to a “sell” rating in a research report on Saturday, November 8th. Guggenheim reiterated a “buy” rating on shares of Verastem in a research report on Tuesday, December 30th. Weiss Ratings reissued a “sell (d-)” rating on shares of Verastem in a research note on Wednesday, January 21st. Mizuho set a $18.00 price objective on Verastem in a report on Thursday, February 19th. Finally, HC Wainwright began coverage on shares of Verastem in a research note on Wednesday, February 4th. They set a “buy” rating and a $18.00 target price on the stock. Two research analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $16.33.

Trending Headlines about Verastem

Here are the key news stories impacting Verastem this week:

• Positive Sentiment: H.C. Wainwright reiterated a Buy rating and set an $18 price target, citing strong commercial uptake and an expanding RAS/MAPK oncology pipeline — a clear positive signal for growth expectations and valuation. Verastem: Strong Commercial Uptake and Expanding RAS/MAPK Oncology Pipeline Underpin Buy Rating and $18 Target
• Positive Sentiment: Company press release highlights the 2025 FDA approval and launch of AVMAPKI FAKZYNJA CO‑PACK (for KRAS‑mutated recurrent LGSOC) and frames 2025 as “transformative,” supporting revenue upside from commercial sales. Verastem Oncology Reports Fourth Quarter and Full Year 2025 Financial Results and Highlights Recent Business Updates
• Positive Sentiment: Verastem reported Q4 revenue of $17.54M (above estimates) and EPS roughly in line (loss of ~$0.48 vs. -0.49 est.), which reduces near‑term execution risk and supports the story of commercial adoption. Earnings results and press release
• Positive Sentiment: Management outlined 2026 milestones and said the CO‑PACK franchise is on track to be self‑sustaining in H2, indicating improving margins and potential cash‑flow inflection later this year. Verastem outlines 2026 milestones with CO-PACK franchise set to be self-sustaining in H2
• Neutral Sentiment: Analyst consensus compiled by third parties shows a “Moderate Buy” stance, reflecting broad analyst support but variation in conviction and price targets. Verastem, Inc. (NASDAQ:VSTM) Given Consensus Rating of “Moderate Buy” by Analysts
• Neutral Sentiment: Quarterly details and the full earnings call transcript are available for investors evaluating execution, guidance and pipeline updates — useful for modeling but not new surprises. Verastem, Inc. (VSTM) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Some outlets note the company still reports a GAAP loss (improved vs. prior year), which keeps longer‑term profitability a work in progress and may temper risk‑adjusted valuation. Verastem (VSTM) Reports Q4 Loss, Beats Revenue Estimates

Insider Activity

In other Verastem news, CEO Dan Paterson sold 10,321 shares of Verastem stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $7.16, for a total transaction of $73,898.36. Following the transaction, the chief executive officer directly owned 400,104 shares of the company’s stock, valued at $2,864,744.64. The trade was a 2.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Daniel Calkins sold 5,039 shares of the business’s stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $7.16, for a total transaction of $36,079.24. Following the completion of the transaction, the chief financial officer owned 104,719 shares in the company, valued at $749,788.04. The trade was a 4.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 23,678 shares of company stock worth $191,045. Corporate insiders own 2.10% of the company’s stock.

Institutional Trading of Verastem

Several institutional investors have recently made changes to their positions in the company. Russell Investments Group Ltd. lifted its holdings in Verastem by 182.9% in the third quarter. Russell Investments Group Ltd. now owns 4,578 shares of the biopharmaceutical company’s stock valued at $40,000 after acquiring an additional 2,960 shares during the last quarter. E Fund Management Co. Ltd. purchased a new stake in Verastem in the second quarter valued at $49,000. Nebula Research & Development LLC acquired a new position in shares of Verastem in the 2nd quarter valued at $53,000. The Manufacturers Life Insurance Company lifted its stake in shares of Verastem by 9.8% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 16,188 shares of the biopharmaceutical company’s stock valued at $67,000 after purchasing an additional 1,440 shares during the last quarter. Finally, BNP Paribas Financial Markets grew its holdings in shares of Verastem by 110.9% during 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 period. Hedge funds and other institutional investors own 88.37% of the company’s stock.

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.