📊 VSTM Key Takeaways
Is Verastem, Inc. (VSTM) a Good Investment?
Verastem demonstrates compelling revenue growth of 209% YoY, indicating successful early-stage commercialization of approved products. However, the company is fundamentally unsustainable with $137.5M annual cash burn against only $30.9M in revenue, generating a -677.6% net margin and -$209.5M net loss. At current burn rates, the $205M cash reserve provides only ~1.5 years of runway, requiring significant revenue acceleration, cost structure improvement, or capital raise within 12-18 months.
Why Buy Verastem, Inc. Stock? VSTM Key Strengths
- Exceptional revenue growth of 209% YoY demonstrates strong commercial momentum and product market fit
- Fortress balance sheet with $205M cash providing substantial runway and 3.09x current ratio
- Conservative leverage at 0.71x debt-to-equity with long-term debt easily covered by cash reserves
VSTM Stock Risks: Verastem, Inc. Investment Risks
- Cash burn of $137.5M annually is 4.4x current revenue, indicating unsustainable cost structure despite growth
- Runway of approximately 1.5 years at current burn rates will likely necessitate dilutive capital raise or major revenue inflection
- Operating losses deteriorating (-550.3% margin) while revenue grows suggests cost base expanding faster than revenue scaling
Key Metrics to Watch
- Operating cash flow trajectory and cash burn rate improvement
- Revenue growth sustainability and path to gross profitability by product line
- Cash runway timeline and any planned capital raises or major revenue milestones
Verastem, Inc. (VSTM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.09x 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
❓ Frequently Asked Questions about VSTM
What is the AI rating for VSTM?
Verastem, Inc. (VSTM) has an AI rating of SELL with 70% confidence, based on fundamental analysis of SEC EDGAR filings.
What are VSTM's key strengths?
Claude: Exceptional revenue growth of 209% YoY demonstrates strong commercial momentum and product market fit. Fortress balance sheet with $205M cash providing substantial runway and 3.09x current ratio.
What are the risks of investing in VSTM?
Claude: Cash burn of $137.5M annually is 4.4x current revenue, indicating unsustainable cost structure despite growth. Runway of approximately 1.5 years at current burn rates will likely necessitate dilutive capital raise or major revenue inflection.
What is VSTM's revenue and growth?
Verastem, Inc. reported revenue of $30.9M.
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 $-3.02.
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 rating reflects both perspectives for balanced insights.
Is VSTM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Verastem, Inc. has a SELL rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is VSTM stock overvalued or undervalued?
Valuation metrics for VSTM: ROE of -366.2% (sector avg: 15%), net margin of -677.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy VSTM stock in 2026?
Our dual AI analysis gives Verastem, Inc. a combined SELL rating 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 $-137.5M, with capital expenditures of $28.0K. FCF margin is -444.9%.
How does VSTM compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -677.6% (avg: 12%), ROE -366.2% (avg: 15%), current ratio 3.09 (avg: 2).